CLA-2-94:OT:RR:NC:N4:433
Amy Morgan
Customs Compliance Manager
Costco Wholesale
999 Lake Drive
Issaquah, WA 98027
RE: The tariff classification of patio furniture from China.
Dear Ms. Morgan:
In your letter dated October 1, 2010, you requested a tariff classification ruling.
Item number 538109 is described as a metal frame resin “wicker” furniture patio set. The set includes (A) two chairs, (B) two ottomans, (C) a sofa and (D) a table. The merchandise is described as follows:
(A) The chairs have an aluminum frame with only the arms and legs exposed. The seat and the back rest are wrapped with a plastic resin material designed to look like actual wicker. There is nothing between the aluminum frame and the resin wicker; no wadding, padding or furniture foam of any kind. There are textile seat and back cushions that are to be used with the chair, but the cushions are removable.
(B) The ottomans have an aluminum frame with only the legs exposed. The seat is wrapped with a resin wicker. There is nothing between the aluminum frame and the resin wicker; no wadding, padding or sheeting of any kind. There is a cushion to be used with the ottoman, but the cushion is removable and the ottoman is able to be sat upon or used without the cushion.
(C) The sofa has an aluminum frame with only the arms and legs exposed. The seat and back rest are wrapped with a resin wicker. There is nothing between the aluminum frame and the resin wicker; no wadding, padding or sheeting of any kind. There are cushions that are to be used with the sofa, but the cushions are removable and the sofa is able to be sat upon without the cushions.
(D) The table is made of 100% aluminum. The table top has aluminum slats which alternate angles in quarter sections for decorative purposes.
You suggest that because there is no wadding or padding between the frame and the resin wicker that the items should not be classified as upholstered seats under heading 9401 of the Harmonized Tariff Schedule of the United States (HTSUS). Provided manufacturer’s data indicates that the tolerance and weight capacity for each seat without the cushions is 400 pounds, while the cushions provide an uplift of +3% to 412 pounds.
Relative to the issue, of whether or not a “seat” is considered upholstered for tariff purposes, are the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) to heading 9401, HTSUS. The 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.
The ENs to heading 9401, HTSUS: Parts, Subheading Explanatory Notes, Subheadings 9401.61 (wooden frames) and 9401.71 (metal frames) state:
“Upholstered seats” are those having a soft layer of, for example, wadding, tow, animal hair, cellular plastics or rubber, shaped (whether or not fixed) to the seat and covered with a material such as woven fabric, leather or sheeting of plastics. Also classified as upholstered seats are seats the upholstering materials of which are not covered or have only a white fabric cover which is itself intended to be covered (known as upholstered seats “ in muslin ”), seats which are presented with detachable seat or back cushions and which could not be used without such cushions, and seats with helical springs (for upholstery). On the other hand, the presence of horizontally acting tension springs, designed to attach to the frame a steel wire lattice, taut woven fabric, etc., is not sufficient to cause the seats to be classified as upholstered. Similarly, seats covered directly with materials such as woven fabric, leather, sheeting of plastics, without the interposition of upholstering materials or springs, and seats to which a single woven fabric backed with a thin layer of cellular plastics has been applied, are not regarded as upholstered seats.
According to the manufacturer’s specifications, the detachable seats and back cushions are not necessary for the functioning and use of the seats, ottomans and sofa. The seats are fully functional and can be used up to 400 pounds without cushions and 412 pounds with cushions. The difference of twelve pounds between cushioned seats and un-cushioned seats is negligible, and therefore the seats can be used without their cushions. In accordance with the ENs, at Subheading Note 9401.71, the two chairs, two ottomans and sofa, constructed with metal frames, are not considered upholstered for tariff purposes.
Classification of goods 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. 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, 2 through 6, may then be applied in order.
GRI 3 (b) provides for: mixtures, composite goods consisting or 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, insofar as this criterion is applicable.
At GRI 3 (b) (VIII), ENs to the HTSUS, it 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 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. Further delineated under GRI 3 (b) (X), ENs, the term "goods put up in sets for retail sale" means goods which: (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.
The combination of items presented do not meet the tariff provision for sets, as defined by the ENs at GRI 3 (b) X in that the chairs, ottomans and sofa are all classified in the same tariff provision at subheading 9401.79.0005; the aluminum table is not designed to be used with the chairs, ottomans or sofa, and therefore does not contribute to the gathering and entertaining of family and/or guest members; and due to the size of the items, the furniture pieces are not put up together for sale directly to users, but rather, are packaged in multiple boxes. Consequently, each individual item is separately classifiable.
Accordingly, the chairs, ottomans and sofa having aluminum frames covered largely in resin wicker are composite 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. In this case, the resin wicker component imparts the essential character to the chairs, ottomans and sofa, in that the synthetic wicker is the most prominent feature of the pieces giving the appearance of wicker-like furniture with aluminum accents. See Headquarters Ruling HQ 952032 dated July 6, 1992.
The applicable subheading for the chairs, ottomans, and sofa, covered largely in resin wicker, will be 9401.79.0005, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Seats….: Other seats, with metal frames; Other: Outdoor: With textile covered cushions or textile seating or back materials.” The rate of duty will be free.
The applicable subheading for the aluminum table, will be 9403.20.0015, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Other metal furniture: Household: Other.” The rate of duty will be free.
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 Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division