CLA-2 OT:RR: CTF:TCM: HQ H248132 ERB
Ms. Alice Liu
Atico International USA, Inc.
501 South Andrews Avenue
Fort Lauderdale, FL 33301
Mr. Steve Haverstick
RIO Brands, LLC
10981 Decatur Road
Philadelphia, PA 19154
RE: Revocation of NY N242418 and NY N242443; tariff classification of beach or outdoor umbrellas
Dear Ms. Liu and Mr. Haverstick:
On June 11, 2013, U.S. Customs and Border Protection (CBP) issued Atico International USA, Inc. New York Ruling Letter (NY) N242418. On June 14, 2013, CBP issued RIO Brands, Inc. NY N242443. Both rulings pertain to the tariff classification under the Harmonized Tariff Schedule of the United States, (HTSUS) of an outdoor umbrella, also referred to as a shelter umbrella or a beach umbrella. We have reviewed additional information regarding the central pole of the umbrellas at issue, and have found NY N242418 and NY N242443 to be in error with respect to the tariff classification.
Pursuant to Section 6125(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by Section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), this notice advises interested parties that CBP is revoking the above noted two rulings concerning the classification of certain outdoor umbrellas with a central adjustable pole, under the HTSUS. Similarly, CBP is revoking any treatment previously accorded by it to substantially identical transactions. Notice of the proposed revocation was published on April 8, 2015, in Volume 49, Number 14, of the Customs Bulletin. No comments were received in response to the proposed notice.
FACTS:
In NY N242418 CBP found the following:
You submitted photographs of a portable umbrella with a 2-piece telescopic pole. The umbrella, item #A050CA00185, includes a textile carrying bag along with six steel stakes and cords.
In your letter you state that the umbrella measures approximately 6-1/2’ wide including two elongated sides with pockets. The umbrella can be used in two ways, as a shelter tied down with the stakes and cords or as an umbrella.
The applicable subheading for the umbrella shelter, item #A040CA00185, will be 66901.91.0000 Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Umbrellas…Other…: Having a telescopic shaft. The rate of duty will be Free.
Additional information provided for this submission notes that the umbrella has a two-piece adjustable pole that does not tilt.
In NY N242443, CBP found the following:
In your letter you describe a portable outdoor umbrella with a 2-piece telescopic pole. The umbrella, item #8211, includes a textile carrying bag. You also state that the upper portion of the telescopic pole is both adjustable for eight and can be tilted for optimal sun coverage.
The applicable subheading for the telescopic beach umbrella, item #8211, will be 6601.91.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Umbrellas…Other…: Having a telescopic shaft. The rate of duty will be Free.
Additional information provided states that the umbrella is a two-piece adjustable pole, whereby the upper pole and the lower pole fit together with a cantilever lock, and can be adjusted for height or tilt. It is not telescopic.
ISSUE:
Whether the subject outdoor umbrellas are considered “garden umbrellas” of subheading 6601.10, HTSUS or “Other similar umbrellas” under subheading 6601.91, HTSUS.
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI). 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 may then be applied. The HTSUS provisions under consideration are as follows:
6601 Umbrellas and sun umbrellas (including walking-stick umbrellas, garden umbrellas and similar umbrellas):
6601.10.00 Garden or similar umbrellas
6601.91.00 Other
Because the instant classification dispute occurs beyond the four-digit heading level, GRI 6 is implicated. GRI 6 states:
For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes, and mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter, and subchapter notes also apply, unless the context otherwise requires.
There is no dispute that the goods at issue are umbrellas, and are properly classified in heading 6601, HTSUS. Therefore, CBP’s analysis turns to whether the subject umbrellas are classified under subheading 6601.10, HTSUS, which provides for “Garden or similar umbrellas…” or under subheading 6601.91, HTSUS, which provides for all other types of umbrellas.
The HTSUS does not define the term “garden umbrella” or even the term “umbrella,” but the terms of the HTSUS are construed according to their common commercial meaning. See Millennium Lumber Distrib. Ltd. v. United States, 558 F.3d 1326, 1329 (Fed. Cir. 2009). To ascertain the common commercial meaning of a tariff term, CBP, “may rely on its own understanding of the term as well as lexicographic and scientific authorities.” See Lon-Ron Mft. Co. v. United States, 334 F.3d 1304, 1309 (Fed. Cir. 2003). An umbrella is defined as a “collapsible shade for protection against weather consisting of fabric stretched over hinged ribs radiating from a central pole; especially: a small one for carrying in the hand.” It can be “a device…consisting of a collapsible, usually circular canopy mounted on a central rod;” and it can be used for rain or sun.
A garden umbrella is often sold as a component of an outdoor dining set to provide shade for use during moments of acceptable ambient air temperatures and meteorological tranquility. It has a central, non-telescopic pole and usually a very large canopy so as to accommodate multiple persons and in some cases, furniture. It is also used interchangeably with “patio umbrella” and sometimes “shade umbrella” or “dining umbrella.” Hence, “similar umbrellas” would have these same characteristics. They would be large, with a central, non-telescopic pole so that they may remain stationary for long periods of time in the garden or other outdoor setting.
CBP has had occasion to distinguish between similar products and has been consistent with its classification of garden umbrellas and beach umbrellas, and those which are hand-held or for personal use, such as mini umbrellas, golf umbrellas, or stick umbrellas. See NY G89320, dated April 9, 2001, which classified a 36-inch diameter beach umbrella under heading 6601.10, HTSUS, as a “garden or similar umbrella,” but classified a “mini” umbrella described as a “hand-open umbrella, 21-inches in diameter with a telescopic shaft,” under subheading 6601.91, HTSUS, as an “Other: having a telescopic shaft,” and a 27-inch golf umbrella and a 23-inch in diameter stick umbrella, (not described as telescopic) under heading 6601.99, HTSUS. See also NY K84498, dated April 1, 2004, where CBP classified a 60-inch golf umbrella under subheading 6601.99, HTSUS, as an “Other” umbrella and a “beach/tailgater umbrella” under subheading 6601.10, HTSUS, as a “garden or similar umbrella;” NY K87585, dated July 12, 2004, classified a beach umbrella under subheading 6601.10, HTSUS; NY M80104, dated January 27, 2006, classified a beach umbrella comprised of two pieces that fit together under subheading 6601.10, HTSUS.
The instant merchandise have central non-telescoping poles. Thus, they are properly classified under subheading 6601.10, HTSUS, which provides for, “Umbrellas and sun umbrellas (including walking-stick umbrellas, garden umbrellas and similar umbrellas): Garden or similar umbrellas.”
HOLDING:
Under the authority of GRI 1, the subject umbrellas are properly classifiable under subheading 6601.10.00, HTSUS, which provides for “Umbrellas and sun umbrellas (including walking-stick umbrellas, garden umbrellas and similar umbrellas): Garden or similar umbrellas.” The duty rate is 6.5% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N242418, dated June 11, 2013, and NY N242443, dated June 14, 2013 are REVOKED.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division