CLA-2-94:OT:RR:NC:N4:463
Cathy Yu
Jakks Pacific
21749 Baker Pkwy.
Walnut, CA 91789
RE: The tariff classification of two children’s table and chair activity sets from China
Dear Ms. Yu:
This ruling is being issued in response to your letter dated December 12, 2023, requesting a tariff classification determination. In lieu of samples, pictures and a product description were provided.
Per the submitted information, the two children’s activity sets are identified as the “Set 1 Activity Table with Two Chairs” and the “Set 2 Activity Table with Encasing and One Chair.” Each set is a retail-packaged children’s table with either one or two chairs designed for children between the ages of 3 and 7. The table in each set measures 24.7" (W) x 20" (H) x 23.7" (D) and has tubular steel frames with folding legs and rubber endcaps. The tabletops, which also fold in half, are made of a hinged MDF board covered in padded vinyl. The tubular-steel folding chairs in each set measure 13" (W) x 10.85" (H) x 8.5"(D) and have vinyl covered and padded seats and seatbacks, and rubber endcaps. Both sets are made in China.
The “Set 1 Activity Table with Two Chairs” consists of a folding table in one of three styles, two folding chairs, and two clamp-on plastic trays. The three styles are Play-Doh, Paw Patrol, and Minnie Mouse. See image below:
The “Set 2 Activity Table with Encasing and One Chair” consists of a folding table in one of four styles, a PVC coated fabric table skirt (encasing) and one folding chair. The four styles are Play-Doh, Paw Patrol, Minnie Mouse, and Disney Princess. The coated fabric table skirt attaches to the tabletop with hook and loop fasteners extends down to the ground on all four sides. See image below:
Classification under the Harmonized Tariff Schedule of the United States (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. If the goods cannot be classified solely based on 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.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and coding System, which constitutes the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading and are generally indicative of the proper interpretation of the HTSUS. The ENs to Chapter 94 of the HTSUS state, in relevant part, for the purposes of this Chapter, that the term “furniture” means: (A): Any “movable” articles (not included under other more specific headings of the Nomenclature), which have the essential characteristic that they are constructed for placing on the floor or ground, and which are used, mainly with a utilitarian purpose, to equip private dwellings, hotels, theatres, cinemas, offices, churches, schools, cafés, restaurants, laboratories, hospitals, dentists, surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan-trailers or similar means of transport. (It should be noted that, for purposes of this Chapter, articles are considered to be “movable” furniture even if they are designed for bolting, etc., to the floor, e.g., chairs for use on ships). Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are included in this category. The activity tables are within the meaning of furniture as described by the General ENs to Chapter 94 of the HTSUS.
The ENs to GRI 3(b) state at Note X that the term “goods put up in sets for retail sale” means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to end users without repacking.
Since the activity tables 1) are made up of a table classified in one heading of the HTSUS (9403, furniture) and chairs classified in another (9401, seats), 2) are used together to promote play, and 3) are sold together at retail as imported, this office finds that the activity table sets meet the terms of EN X to Rule 3(b), HTSUS, “goods put up in sets for retail sale” and shall therefore be classified as if they consisted of the single material or component that imparts their essential character.
In general, essential character has been construed to mean the attribute which strongly marks or serves to distinguish what an article is: that which is indispensable to the structure, core or condition of the article. In addition, GRI 3(b) state at Note VIII states that the factor which determines essential character will vary 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.
In addition to these factors, the Court of International Trade (CIT) has listed other factors to be considered in determining “essential character,” including the respective indispensability of the properties of the components of the merchandise, the respective cost of the components of the merchandise, the basis for a consumer’s decision to purchase the merchandise, and the respective duration and/or frequency of the use of the components. See Better Home Plastics Corp. v. United States, 20 CIT 221, 916 F. Supp. 1265 (1996), aff’d, 119 F.3d 969 (Fed. Cir. 1997).
This office finds the essential character of the activity table sets to be the table.
Because the articles are composed of different materials (steel, MDF, etc.), they are considered composite goods for tariff purposes. The ENs to the HTSUS, GRI 3(b) (VIII) state that “the factor which determines essential character will vary between different kinds of goods. It may, for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good. Barring significant evidence to the contrary, U.S. Customs and Border Protection (CBP) has historically found that the material comprising the tabletop imparts the essential character to a table and that when the tabletop is comprised of a wood underlayment covered with a PVC coated fabric or sheeting, the essential character of the table is imparted by the wood underlayment. (See NYRLs N334774 and N097758.)
The applicable classification for the “Set 1 Activity Table with Two Chairs” and “Set 2 Activity Table with Encasing and One Chair” will be subheading 9403.60.8081, HTSUS, which provides for “Other furniture and parts thereof: Other wooden furniture: Other: Other.” The general rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.60.8081, 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, 9903.88.03, in addition to subheading 9403.60.8081, 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, 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 are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. If the facts are modified in any way, or if the goods do not conform to these facts at the time of importation, you should bring this to the attention of CBP and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division