OT:RR:CTF:TCM H337821 LAW
Kenneth R. Paley
Sharretts, Paley, Carter & Blauvelt, P.C.
75 Broad Street
New York, NY 10004
RE: Classification of Certain Static Converters with Artificial Plants from China
Dear Mr. Paley:
This letter is in reply to your request, submitted on February 6, 2024[1], on behalf of SDI Technologies, Inc., for a binding ruling pursuant to 19 C.F.R. 177 on the proper tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) of certain static converters with artificial plants from China. Our decision is set forth below.
FACTS:
The article at issue is the "iHome Artificial Plant," Model Number iPP45 (iPP45). The iPP45 is an artificial succulent plant housed in a cylindrical plastic flowerpot that serves as an electric static converter with two 20 W USB-C sockets and one 10 W USB-A socket on its side. An electrical cord extends from the bottom of the flowerpot and includes a universal 30 W power adapter.
The iPP45 comes in several styles, with each one composed of plastic that is "assembled over molded wire stuck into a foam base," according to the importer. The base is permanently attached to the flowerpot. The iPP45 comes with an AC adapter and will be produced in China. You claim that the iPP45 will be primarily "marketed and purchased for interior home or office decoration."
ISSUE:
Whether the "iHome Artificial Plant," Model Number iPP45, as described above, is properly classified under heading 6702, HTSUS, or heading 8504, HTSUS.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the Harmonized Tariff Schedule of the United States (HTSUS). Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provision of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in their appropriate order. GRI 2(a) relates to incomplete or unfinished goods. GRI 2(b) relates to mixtures and combinations of materials or substances.
GRI 3 provides:
When, by application of Rule 2(b) or for any other reason, goods are prima facie, classifiable under two or more headings, classification shall be effected as follows:
a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
b) 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....
c) 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 Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are generally indicative of the proper interpretation of the heading.[2]
The following HTSUS headings are under consideration:
6702 Artificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit:
* * *
8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof:
In this case, headings 6702 and 8504 refer only to part of the composite good in question. As such, GRI 3(b) controls. The EN to GRI 3(b) provides, in pertinent part:
(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.
Moreover, in Conair Corp. v. United States, 29 C.I.T. 888 (2005), the court considered the classification of a tabletop fountain implicating GRI 3(b). The court held that the essential character of the fountain, which consisted of a plastic housing, water pump, and decorative rocks, was imparted by the pump.[3] The court found that consumers would not buy a tabletop fountain "for the purpose of enjoying the visual aspects of the plastic sculpture."[4] Rather, it reasoned that any visual or auditory appeal was present only when the pump was running and water was flowing through the fountain. Therefore, the pump was the indispensable item that imparted the essential character.[5] The court thus classified the fountain under heading 8413, HTSUS, which provides for pumps for liquids.
It is clear from the listed components and materials provided about the product that the USB charging ports on the flowerpot's side, in conjunction with the accompanying corded wall adapter, serve to convert AC electricity to DC electricity. The consumer utilizes this electricity via the USB sockets. Accordingly, this is a static conversion function. The product's decorative nature, in the form of an artificial plant, does not change its electrical function. Even though approximately 59 percent of the iPP45's value and 62 percent of its bulk weight is attributable to the artificial plant component, the electrical charger component is nevertheless housed in the same plastic flowerpot base as the artificial succulent. Thus, the electrical static converter and the artificial plant share much of the overall materials which comprise the product. Instead, the iPP45 is better compared to the tabletop fountain in Conair. The tabletop fountain in that case was a composite good wherein its internal water pump was the component most responsible for the visual and auditory appeal (that is, flowing water) for which consumers would purchase and enjoy the product.[6] Here, the iPP45 is similarly a composite good with a largely internal electrical charging component, housed in the same materials used by the artificial foliage, that represents the primary purpose for which consumers would likely purchase the product: as a (decorative) charging station. Therefore, the electrical static converter component of the product imparts the essential character of the whole iPP45, while the artificial plant component serves as a secondary, ornamental feature.
You point out, in your supplemental submission, that the iPP45 technically fulfills its decorative function as an artificial succulent on a continuous basis, while the charger will likely not be in continuous use, and thus merely represents an "alternative" means for charging electronic devices for the consumer. However, this perspective overlooks the fact that most charging devices are rarely in continuous use by the consumer - rather they are often only utilized when there is a need to perform their function; that is, recharge an electronic device. Moreover, it is important to note that, even though no retailers are currently selling or marketing the iPP45 (as it has yet to be imported), you state that SDI Technologies' customers "intend to display the item with other home products in their home or housewares departments." In fact, you note that the iPP45 "will be sold with the iHome brand name facing the front of the box," and that it would "appear out of place if the product were situated with chargers rather than home and household products." However, according to iHome's "About Us" section on its website, the iHome brand is "...the premier brand in the audio accessories market," offering "full lines of alarm clocks, portable speakers, Bluetooth vanity mirrors, sleep therapy wellness products, and a licensed line of smartphone, tablet, and smart home products." The description found on iHome's own website makes clear that the brand emphasizes the "smart" capabilities of its products, which comprise an array of electronic gadgets, largely intended for use within the home. We are therefore unpersuaded that the iPP45's essential character is predominated by its decorative plant features, and not its electrical charging capabilities.
In examining the iPP45's composition, features, and intended uses, it becomes evident that the product can be classified in reference to its essential character pursuant to GRI 3(b):[7] the iPP45 is essentially a decorative, electrical static converter, meant to charge items and resemble an ornamental succulent plant at the same time. Both headings describe only part of the iPP45. However, the charging function grants the iPP45 its essential character, while the decorative foliage does not. Thus, the product is appropriately classified pursuant to GRI 3(b), in heading 8504, HTSUS.
We find that the "iHome Artificial Plant" in question is an electrical static converter for purposes of heading 8504, HTSUS. For the foregoing reasons, the iPP45 is to be classified under heading 8504, HTSUS, in accordance with GRI 3(b). Specifically, the iPP45 is to be classified under subheading 8504.40.95, HTSUS.
HOLDING:
By application of GRI 3(b), the iPP45 is to be classified under heading 8504, HTSUS. Specifically, the subject product is to be classified under subheading 8504.40.95, HTSUS, which provides for "Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters: Other: Rectifiers and rectifying apparatus: Other." The column one, general rate of duty is free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8504.40.95, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8504.40.95, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov.
Please note that this ruling letter is "issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect." 19 C.F.R 177.9(b)(1). The application of this ruling letter "is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based." See id. CBP therefore reserves the right to verify all facts as noted herein. Furthermore, this ruling letter will be "applied only with respect to transactions involving articles identical to the sample submitted with the ruling request or to articles whose description is identical to the description set forth in the ruling letter." 19 C.F.R 177.9(b)(2).
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
/s/
for Gregory S. Connor, Chief
Electronics, Machinery, Automotive, and
International Nomenclature Branch
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[1] We also received a letter containing supplemental arguments on behalf of your client on April 25, 2024. We consider that letter a supplemental submission to your original request, and its contents have been addressed in this decision.
[2] See Treasury Decision (T.D.) 89-80, 54 Fed. Reg. 35127, 35127-28 (Aug. 23, 1989).
[3] Id.
[4] Id. at 897.
[5] Id. See also HQ Ruling W967689 (dated March 17, 2008) for application of GRI 3(b), as set forth by the analysis in Conair, to a similar decorative tabletop fountain.
[6] See Conair at 897.
[7] See Sections VII and VIII to the EN to GRI 3(b).
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