CLA-2 CO:R:C:T 953592 jb
Mr. Malcolm Holtby
Tropical Friends N B Trading Co.
3663 West 3rd. Avenue
Vancouver V6R 1M1
CANADA
RE: Raschel knit hammock chair; seat designed to be hung;
subheading 9401.80.6030, HTSUSA
Dear Mr. Holtby:
This is in response to your letter, dated December 17 1992,
requesting classification of a raschel knit hammock chair under
the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). A sample was provided to our office for examination.
FACTS:
The article at issue is a hammock chair, also referred to as
"The Hang Out", made of 83 percent nylon and 17 percent cotton.
The netting of the fabric consists of yarn made into a raschel
knit construction and formed into the shape of the chair. The
body of the hammock is hand made, in Mexico, by twisting and
intertwining the cotton/nylon cords forming an unstable open
mesh.
The netting hangs from a wooden pole which is attached to a
ceiling by a hook. The pole is assembled in Canada using
Canadian hemlock and finished with two coats of varnish. Both
the wooden pole and an additional hardware component are packaged
in Canada.
ISSUE:
What is the classification for the subject article?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI). GRI 1 requires
that classification be determined according to the terms of the
headings and any relative section or chapter notes, taken in
order. Where goods cannot be classified solely on the basis of
GRI 1, the remaining GRI will be applied, in the order of their
appearance.
Heading 9401, HTSUSA, provides for, among other things,
seats (other than those of heading 9402), whether or not
convertible into beds. The Explanatory Notes to the Harmonized
Commodity Description and Coding System (EN), represent the
official interpretation of the tariff at the international level.
Chapter Note 2 to chapter 94, HTSUSA, states in pertinent part:
The articles (other than parts) referred to in headings
94.01 to 94.03 are to be classified in those headings only
if they are designed for placing on the floor or ground.
The following are, however, to be classified in the
above-mentioned headings even if they are designed to
be hung, to be fixed to the wall or to stand one on the
other:
(b) seats and beds
General Note (B)(ii) to chapter 94, HTSUSA, also states:
For the purposes of this Chapter, the term "furniture"
means:
seats or beds designed to be hung or to be fixed to the
wall
The information sheet and pictures submitted with the
subject article reveal that "The Hang Out" can be used anywhere.
This newly designed hammock hangs from a wooden pole which needs
only one point of suspension--a hook in the ceiling (indoors or
outdoors) or a sturdy branch and a piece of rope.
The hammock is a chair designed to be hung. Photographs
submitted with the article show individuals sitting or "lounging"
comfortably in the hammock. Once inside the hammock, the
sitter's body weight against the malleable net forms a natural
"seat". As stated in the literature used in the advertising for
the hammock:
For best results hang the hammock so the bottom of the net
is knee high from the ground. Sit as close to the centre of
the hammock as possible--pulling some of the weave up under
your knees. This makes a very comfortable seat.
Emphasis added.
Accordingly, the hammock is within the furniture provision as a
"seat", as per the EN to chapter 94, HTSUSA.
The marking statute, section 304 of the Tariff Act of 1930,
as amended (19 U.S.C. 1304), provides that, unless excepted,
every article of foreign origin (or its container) imported into
the U.S. shall be marked in a conspicuous place as legibly,
indelibly and permanently as the nature of the article (or its
container) will permit, in such a manner as to indicate to the
ultimate purchaser in the U.S. the English name of the country of
origin of the article. Part 134, Customs Regulations (19 CFR
part 134), implements the country of origin marking requirements
and exceptions of 19 U.S.C. 1304.
The country of origin for marking purposes is defined at
section 134.1(b), Customs Regulations (19 CFR 134.1(b)), to mean
the country of manufacture, production, or growth of any article
of foreign origin entering the U.S. Further work or material
added to an article in another country must effect a substantial
transformation in order to render such other country the "country
of origin" within the meaning of Part 134.
A substantial transformation occurs when an article loses
its identity and becomes a new article having a new name,
character, or use. National Juice Products Association v. United
States, 10 CIT 48, 628 F. Supp. 978 (1986), Koru North America v.
United States, 12 CIT 1120, 701 F. Supp 229 (1988). The question
of when a substantial transformation occurs for marking purposes
is a question of fact, to be addressed in a case by case basis.
Uniroyal Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026
(1982), aff'd, 1 Fed. Cir. 21, 702 F.2d 1022 (1983).
In the instant case, the nylon/cotton mesh portion of the
"Hang Out" gives the article its identity. It is this netting
which forms the "seat" of the article and thus defines its use.
Though the wooden pole and additional hardware allow the article
to be easily suspended, its identity remains that which is
imparted by the netting, i.e., a chair designed to be hung.
The country of origin for marking purposes is thus Mexico where
the body of the hammock is manufactured.
As regards your inquiry concerning special permits that may
be necessary concerning mail order or direct retail, we advise
you to contact the Federal Trade Commission which may provide you
with the information you require.
HOLDING:
The hammock, also referred to as "The Hang Out", is
classifiable under subheading 9401.80.6030 HTSUSA which provides
for other seats (other than those of heading 9402) whether or not
convertible into beds and parts thereof.
As Mexico is a designated country under the Generalized
System of Preferences, the article is imported into the United
States duty free. There are no textile quota/visa requirements
for this subheading.
Sincerely,
John Durant, Director
Commercial Rulings Division