CLA-2-44:OT:RR:NC:2:230
Mr. Troy Crago-Edwards
Atico International USA
501 South Andrews Avenue
Fort Lauderdale, FL 33301
RE: The tariff classification of terra cotta gift set in wooden tray from China
Dear Mr. Crago-Edwards:
In your letter dated November 13, 2009 you requested a tariff classification ruling.
The ruling was requested on a terra cotta gift set in a wooden tray (A029OA01021). A photograph and description of the product was submitted for our review. The terra cotta gift set consists of a wooden tray measuring approximately 9 7/8” x 9 7/8” x ½”, one terra cotta tealight holder (the tealight candle is not included) measuring approximately 3 3/8” diameter x 1 ¾” height, one terra cotta oil warmer (tealight candle and oil are not included) measuring approximately 3 1/8” diameter x 3 ½” height, one terra cotta vase measuring approximately 3 ¾” diameter x 8” height, and balls of wound rattan rods. The terra cotta gift set is for decorative household use.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (“GRIs”), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require the remaining GRI will be applied, in the order of their appearance.
GRI 3 states as follows:
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 up 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. (Emphasis added.)
In this case, the different items are in a set put up for retail sale; however, we need to determine if the items are a set for tariff purposes.
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 HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
The ENs to GRI 3 (b) define the expression “goods put up in sets for retail sale” as follows:
(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 users without repacking…
Although the subject items are packaged together for retail sale, the wooden tray , balls of wound rattan rods, terra cotta vase, terra cotta oil warmer, and terra cotta tealight holder are not put up to meet a particular need or carry out a specific activity. Thus, we find that the products do not constitute a set for tariff purposes. Accordingly, they are classifiable separately.
The applicable subheading for the wooden tray will be 4421.90.9760, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of wood: other.The rate of duty will be 3.3 percent ad valorem.
The applicable subheading for the rattan balls of rattan rods will be 4602.12.3500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601: Of vegetable materials: Of rattan: Other: Wickerwork. The rate of duty will be free.
The applicable subheading for the tealight candle holder will be 9405.50.4000, HTSUS, which provides for lamps and lighting fittings: non-electrical lamps and lighting fittings: other: other. The rate of duty will be 6 percent ad valorem.
The applicable subheading for the terra cotta oil warmer will be 6913.90.5000, HTSUS, which provides for Statuettes and other ornamental ceramic articles… Other. The rate of duty will be 6 percent ad valorem
The applicable subheading for the terra cotta vase will be 6913.90.5000, HTSUS, which provides for Statuettes and other ornamental ceramic articles… Other. The rate of duty will be 6 percent 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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Paul Garretto at (646) 733-3035.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division