CLA-2-94:OT:RR:NC:N4:433
Andrea K. Swanger
Import Documents and Billing
Intercon, Inc.
635 N. Billy Mitchell Road
Salt Lake City, UT 84106
RE: The country of origin of a dining table and chairs, and the tariff classification of a dining table and chairs, from Vietnam.
Dear Ms. Swanger:
In your letter dated July 28, 2014, you requested, on behalf of Costco Wholesale, a ruling. Since the nature of the ruling was not specified, this ruling will address the country of origin of the dining table and chairs, and the tariff classification of the dining table and chairs. Illustrative literature was provided.
Item number SO-TA-C4290-RAI-SET is identified as the “Sonoma 9 Pc Dining Set.” The item consists of one, solid mango wood dining table and eight, X-back style chairs. The table comes with an 18-inch extension leaf. None of the chairs have arms and the seats of the chairs are upholstered. Company provided information indicates the following: (1) the table top, apron and table legs are made from solid mango wood with country of origin for each piece being Vietnam, and (2) the chair backs/2pcs are made of rubberwood and bentwood with country of origin being Cambodia/Vietnam, the chair covers are made from bonded leather with country of origin being China, the seat pads are made from foam with country of origin being Vietnam, and the chair legs are made from rubberwood with country of origin being Cambodia. Illustrative literature indicates that the manufacturing or assembling of the table and chairs is performed in a factory located in Vietnam.
In Carlson Furniture Industries v. United States, 65 Cust. Ct. 474 (1970), the U.S. Customs Court ruled that U.S. operations on imported chair parts constituted a substantial transformation, resulting in the creation of a new article of commerce. After importation, the importer assembled, fitted, and glued the wooden parts together, inserted steel pins into the key joints, cut the legs to length and leveled them, and in some instances, upholstered the chairs and fitted the legs with glides and casters. The court determined that the importer had to perform additional work on the imported chair parts and add materials to create a functional article of commerce. The court found that the operations were substantial in nature, and more than the mere assembly of the parts together.
Based on company provided information, for the table, made from all solid mango wood materials being of Vietnamese origin, the county of origin for the table is Vietnam. Consistent with Carlson Furniture Industries v. United States, we are of the opinion that the chairs consisting of four main components (chair backs, chair covers, foam seat pads and chair legs) assembled in Vietnam are more than simple assembly of the components together, in that the foam pads of Vietnamese origin and some of the chair backs of Vietnamese origin are added to the components of Cambodian and Chinese origin. As such, the chairs assembled in Vietnam, from Vietnamese and foreign components, are country of origin Vietnam.
The Explanatory Notes (ENs) which constitute the official interpretation of the Harmonized Tariff Schedule of the United States (HTSUS) at the international level, state in Note X to Rule 3 (b) of the General Rules of Interpretation (GRIs), that 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 and carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. Centered on the description and photos you provided, the “Sonoma 9 Pc Dining Set” does not appear to be packaged together for retail sale in one box, and therefore does not qualify as a set for tariff purposes. Consequently, the dining table and chairs must be classified separately.
The applicable subheading for the dining table, not used in the kitchen but rather placed in the dining room, will be 9403.60.8040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Other wooden furniture: Other; Dining tables.” The rate of duty will be free.
The applicable subheading for the chairs, with wood frames and leather upholstered seats, will be 9401.61.4011, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Other seats, with wooden frames: Upholstered: Chairs: Other; Other household.” 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 E-mail address: [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division