CLA-2-85:OT:RR:NC:N4:415
Mr. Tripp Dillard
Hamilton Beach Brands, Inc.
4421 Waterfront Drive
Glen Allen, VA 23060
RE: The tariff classification of a combination oven and toaster appliance from China.
Dear Mr. Dillard:
In your letter dated October 17, 2018, you requested a tariff classification ruling.
The product under consideration, Model 31156, is a 2-in-1 oven and toaster appliance. As limited information was provided with your submission, additional details were found on the product website, https://www.hamiltonbeach.com/2-in-1-oven-and-toaster-31156. As per the website, this product allows the consumer to switch from the extra-wide slot toaster on top to the spacious oven with the slide of a lever. The toaster can fit larger pieces of bread, features a bread lifter and a separate toast shade selector. The oven can bake and broil, has two rack positions, and is “perfect for making muffins, baked potatoes, casseroles and more.” It has a large enough interior to fit a nine inch pizza.
For the purposes of subheading 8516.72, the term "toasters" includes toaster-ovens, which are designed essentially for toasting bread, but can also bake small items, such as potatoes. It is this office’s opinion that the oven portion of this product does not qualify as a “toaster” as defined in Chapter 85, Additional U.S. Note 2, Harmonized Tariff Schedule of the United States (HTSUS), as it performs more than toasting and baking small items.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the components of these articles in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component, which gives them their essential character. The oven portion of this device predominates this article and thus provides the essential character.
In your submission, you indicated that you believe this article would qualify for classification under 9902.16.67. HTSUS subheading 9902.16.67, by virtue of legislative action, provides for a temporary reduction in the rate of duty for “[e]lectrothermic toaster ovens of a kind used for domestic purposes, each incorporating a single-slot toaster opening on top of the oven (provided for in subheading 8516.72.00).” As this combination oven and toaster would not be classified under 8516.72.00, it would not meet the prerequisites of this tariff provision. Accordingly, it would not be entitled to beneficial treatment under HTSUS subheading 9902.16.67.
The applicable subheading for the 2-in-1 oven and toaster, Model 31156, will be 8516.60.4070, HTSUS, which provides for: "[e]lectric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electrothermic hairdressing apparatus (for example, hair dryers, hair curlers, curling tong heaters) and hand dryers; electric flatirons; other electrothermic appliances of a kind used for domestic purposes; electric heating resistors, other than those of heading 8545; parts thereof: [o]ther ovens; cooking stoves, ranges, cooking plates, boiling rings, grillers and roasters: [c]ooking stoves, ranges and ovens: [o]ther: [p]ortable.” The column one, general rate of duty is Free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8516.60.40, HTSUS, unless specifically excluded, are subject to the additional 10 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 8516.60.4070, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division