CLA-2 OT:RR:CTF:TCM H179843 LWF
Martha De Castro
Bed Bath & Beyond, Inc.
650 Liberty Ave.
Union, NJ 07083
RE: Classification of a lighted floral arrangement
Dear Ms. Castro:
This is in response to your letter of June 29, 2011, to the U.S. Customs and Border Protection (CBP) National Commodity Specialist Division (NCSD) in New York, on behalf of Bed Bath & Beyond, Inc. (“BBB”), seeking a prospective binding tariff classification ruling under the Harmonized Tariff Schedule of the United States (HTSUS), concerning a lighted floral arrangement. Your request was forwarded to this office for response.
FACTS:
BBB intends to import from China a lighted floral arrangement that is identified as the, “24-inch Lighted Floral Arrangement” (BBB product number, SKU# 18089238) (“the Arrangement”). The Arrangement consists of artificial flower blossoms with light-emitting diode (LED) lights that are attached to natural willow branches and arranged in a white porcelain vase. In the sample provided, the willow branches measure approximately 24 inches in length and are decorated with 10 small, white polyester flowers that are attached with plastic zip ties to the willow branches at various heights along the branches. The polyester flowers measure approximately 1½ inches in diameter and are constructed to resemble cherry tree blossoms. Each artificial flower contains a single LED bulb that is situated at the center of each blossom. An insulated copper wire is entwined around each willow branch to connect the LED bulbs to a battery pack located in a compartment at the bottom of the base. The Arrangement operates with two “AA” batteries.
The value and material breakdown of the Arrangement consist of porcelain ceramic (25% of value and 25% of material); copper wire (25% of value and 20% of material); LED lights (17% of value and 20% of material); plastic (15% of value and 10% of material); willow branches (10% of value and 15% of material); and polyester (8% of value and 10% of material).
ISSUE:
Whether the lighted floral arrangement is classified in heading 0604, HTSUS, as foliage, branches and other parts of plants; heading 6702, HTSUS, as artificial foliage; heading 6913, HTSUS, as an ornamental ceramic article; or heading 9405, HTSUS, as a lamp and lighting fitting, not elsewhere specified or included.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
GRI 3 provides, in pertinent part, as follows:
When, by application of rule 2(b) or for any other reason, good are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
…
Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
* * * * *
The HTSUS provisions under consideration in this case are as follows:
0604 Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared:
0604.99 Other:
Other:
0604.99.30 Dried or bleached…
* * * * *
6702 Artificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit:
6702.90 Of other materials:
Other:
6702.90.35 Of man-made fibers…
* * * * *
6913 Statuettes and other ornamental ceramic articles:
6913.10 Of porcelain or china:
Other:
6913.10.50 Other…
* * * * *
9405 Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included:
9405.40 Other electric lamps and lighting fittings:
9405.40.80 Other…
* * * * *
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs”) constitute the official interpretation of the Harmonized System at the international level. While not legally binding or dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-90, 54 Fed. Reg. 35127 (August 23, 1989)
The ENs to GRI 3(b) provide, in pertinent part, that:
(VII) In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(VIII) The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
(IX) For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.
* * * * *
The good at issue is composed of different materials that are prima facie classifiable in different headings. There is no dispute that heading 0604, HTSUS, describes the willow branches; that heading 6702, HTSUS, describes the artificial flower blossoms; that heading 6913, HTSUS, describes the porcelain vase; and that heading 9405, HTSUS, describes the LED lighting fittings. Because the materials are classifiable in separate headings, GRI 3 will apply to the classification of the Arrangement as imported.
GRI 3(b) covers mixtures, composite goods, and goods put up in sets for retail sale. For purposes of this rule, Explanatory Note IX to GRI 3(b) provides that: “composite goods made up of different components shall be taken to mean not only those in which the component are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.” (Emphasis original). As packaged, the Arrangement meets this definition because it includes natural willow branches, artificial flower blossoms, a porcelain vase, and LED light fittings which are attached to each other to form a lighted floral arrangement.
Under GRI 3(b), composite goods must be classified according to the material or component which gives them their essential character. In order to identify a composite good’s essential character, the U.S. Court of International Trade has applied the factors listed in the ENs to GRI 3(b). See Conair Corp. v. United States, 29 C.I.T. 888 (2005); Structural Industries v. United States, 360 F. Supp. 2d 1330, 1337-1338 (Ct. Int’l Trade 2005); and Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278, 1295-1356 (Ct. Int’l Trade 2006), aff’d 491 F.3d 1334 (Fed. Cir. 2007). In Home Depot USA, Inc., the court stated that, “[a]n essential character inquiry requires a fact intensive analysis.” 427 F. Supp. 2d at 1284. In that case, the Court of International Trade examined all of the factors listed in EN VIII to GRI 3(b) to determine the classification of merchandise. Id. at 1293. In addition, the court also noted that the EN list is not exhaustive and that other factors should be considered including the article’s name, primary function, and the “attribute which strongly marks or serves to distinguish what it is. Its essential character is that which is indispensable to the structure, core or condition of the article, i.e., what it is.” Id. (citing A.N. Deringer, Inc. v. United States, 66 Cust. Ct. 378 (1971)). CBP finds that an essential character analysis will vary from product to product. Therefore, CBP will undertake an essential character analysis for the Arrangement because of the factually intensive considerations required.
CBP has classified composite articles incorporating natural and artificial foliage on a case-by-case analysis based on which material imparts the given item with its essential character. See, e.g., Headquarters Ruling Letter (HQ) H162815, dated July 20, 2011, and HQ H147436, dated May 11, 2011 (classifying wreaths in headings 4602 and 6702, HTSUS); and NY N007428, dated March 22, 2007, and NY N012231, dated June 28, 2007 (classifying artificial foliage arranged in a ceramic container in heading 6702, HTSUS).
The first factors that CBP looks to for determining the essential character of the Arrangement are those factors identified in EN VIII to GRI 3(b), including the nature of the component and the role of a constituent material in relation to the use of the good. To determine the nature of the Arrangement’s components, we consider the bulk, quantity, weight, or value of each component. In this case, the 10 LED lights consist of 20% of the materials used in construction and 17% of the cost. In HQ H162815, CBP considered the essential character of wreaths constructed of natural and artificial materials and interwoven with a string of LEDs. In assessing the role of the LEDs in relation to the wreaths, CBP determined that while powered LEDs may add to the decorative appeal of the wreaths, such a complementary role is not sufficient to impart the wreaths with their essential character. We apply the same reasoning in the instant case.
Although the Arrangement’s 10 LEDs enhance the aesthetic value of the article, the LEDs merely serve a complementary role to the artificial flower blossoms and the overall structure of the Arrangement. Moreover, the presence or absence of the LEDs does not affect whether the floral arrangement is identifiable as such. Accordingly, we find that the LEDs attached to the willow branches do not impart the Arrangement with its essential character.
Having eliminated the LED lights for purposes of GRI 3(b) analysis, at issue remains whether the porcelain vase, artificial flower blossoms, or the natural willow branches give the Arrangement its essential character. In prior rulings, CBP has classified artificial floral arrangements that do not incorporate natural materials under heading 6702, HTSUS. See NY N007428, dated March 22, 2007, and NY N012231, dated June 28, 2007. In NY N007428 and NY N012231, CBP found that plastic foliage, presented without natural components, provided each item with its essential character. However, we note in those cases that the cost and weight percentages for components of the subject articles were not given, and that the subject articles consisted of only artificial foliage and vases. Accordingly, we find that due to the limited facts, NY N007428 and NY N012231 have diminished precedential value and are nevertheless distinguishable from the instant merchandise.
In this case, the porcelain vase, artificial flower blossom, and natural willow branch components share similar cost and weight percentages and equally contribute to the overall structure and visual impact of the Arrangement. The porcelain vase consists of 25% of the materials used in construction of the Arrangement, as well as 25% of the cost. The artificial flower blossoms consist of 20% of the materials (10% polyester and 10% plastic) used in construction and 23% of the cost. The willow branches consist of 15% of the materials used in construction and approximately 10% of the cost.
Likewise, the porcelain vase, artificial flower blossoms, and natural willow branches each contribute to the overall structure and visual impact of the Arrangement. The porcelain vase is fitted with a battery pack that connects to the LEDs via copper wire, and, therefore, the vase cannot act as a receptacle for other materials or liquids. Consequently, the vase is used only as a base for the Arrangement and is important because it provides the structure and visual impact of the Arrangement’s bottom portion. However, the porcelain vase by itself does not impart the Arrangement with its essential character because the vase forms only a portion of the Arrangement’s overall general profile. The artificial flower blossoms and natural willow branches also contribute to the overall visual impact of the Arrangement by forming the general shape of the upper portion of the merchandise. The willow branches play a necessary role by providing the structure on which the artificial flower blossoms and LEDs are attached and displayed. The artificial flower blossoms also impart the Arrangement with the visual character of a floral arrangement, and without the artificial blossoms, the Arrangement would merely consist of lighted branches. However, despite providing vertical structure and visual character to the Arrangement, the willow branches and artificial flower blossoms, when considered individually, do not give the Arrangement its essential character because they constitute only a portion of the Arrangement’s overall general profile. Consequently, in comparing the porcelain vase, artificial flower blossoms, and natural willow branches, it is impossible to determine which individual component imparts the Arrangement with its essential character by application GRI 3(b) because each of the three components merits equal consideration.
As it is therefore impossible to determine whether the porcelain vase, artificial flower blossoms, or natural willow branches impart the Arrangement with its essential character, GRI 3(c) must be applied. It states:
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
The willow branches are properly classified in heading 0604, HTSUS, and the artificial flower blossoms are properly classified in heading 6702, HTSUS. The porcelain vase is classified in heading 6913, HTSUS. Therefore, we find that the “24-inch Lighted Floral Arrangement” is classifiable in heading 6913, HTSUS.
HOLDING:
By application of GRI 3(c), the SKU18089238 24-inch Lighted Floral Arrangement is classified in heading 6913, HTSUS, more specifically in subheading 6913.10.50, HTSUS, which provides for, “Statuettes and other ornamental ceramic articles: Of porcelain or china: Other: Other…” The 2011 column one, general rate of duty for merchandise of subheading 6913.10.50 is free.
Duty rates are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov.
Sincerely,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch