CLA-2-94:OT:RR:NC:N4:433
Maya Kessler
Customs Compliance Specialist
Costco Wholesale
999 Lake Drive
Issaquah, WA 98027
RE: The tariff classification of a “Wicker Patio Set” from China.
Dear Ms. Maya:
In your letter dated September 23, 2015, you requested a tariff classification ruling. Illustrative literature and a material breakdown were provided.
In reading your ruling request, you propose an amendment to New York ruling N266674 dated August 12, 2015. Your amendment is predicated upon the packaging of Costco’s item # 898296, Wicker Patio Set, not being put up in a manner for retail sale and thereby not being classifiable as a set for tariff purposes. Upon review of the facts and conclusion reached in N266674, we do not find an amendment is in order. Nevertheless, for purposes of this current ruling we will review the additional information on the packaging of the wicker patio set and elaborate on the analysis that led to the conclusion in N266674.
Per the additional information provided, the wicker patio set: (1) will not be packaged together for retail sale in one box; (2) will be packaged in three boxes [box #1 will have two chairs, box #2 will have 2 chairs, and box #3 will have 1 table]; (3) will not be repackaged after importation; and (4) will be sold in stores in the same boxes as they were originally imported into the United States.
Item # 898296 is described as the Wicker Patio Set. The item consists of one table and four chairs. The patio table is composed of an aluminum frame covered over in plastic, Polyethylene (PE) imitation wicker, and has a round glass tabletop. Each patio chair is composed of an aluminum frame covered over in PE imitation wicker and each patio chair has a back and seat cushion made of foam covered over in textile fabric. The PE imitation wicker is not made of reinforced or laminated plastics. This set is marketed for use as a household patio set.
Company provided information on the material breakdown, not aggregated but rather per table and per chair, indicates that the weight of the imitation wicker of the table is significantly more than the weight of the imitation wicker of the chair, while the cost of the imitation wicker of the chair is nominally more than the cost of the imitation wicker of the table. Observation of the photo for both the table and chairs depicts large surface areas of imitation wicker visible to one’s eye.
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: 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.
There is no requirement that goods put up in sets for retail sale have to be packaged in one box, case, container, bag, etc., they only have to be put up in a manner suitable for sale directly to users without repacking. See Headquarters rulings HQ 962125 dated May 5, 2000 and HQ 965927 dated August 14, 2003, in which reference is made to “C.S.D. 92-11” stating that Customs concluded that components of a set need not be packaged together at time of entry in order to be considered classifiable as a set, but all garments must be present in the entry and there must be an equal amount of components to make up the set in the shipment. Consistent with C.S.D. 92-11, we find the wicker patio set packaged in three separate boxes and ready for retail sale without repackaging and imported on the same shipment in equal quantities is not a dismissing factor when considering if goods qualify as sets for retail sale.
Because the table and chairs are classified in two different headings of the HTSUS (table: 9403 and chairs: 9401); are used together to facilitate the joining of four individuals for purposes of eating and drinking and socializing; and are packaged together for retail sale, whether packaged in one box or in two or more boxes but in equal quantities and on the same shipment, we find that the imitation wicker patio set falls within the term goods put up in sets for retail sale. As such, the individual pieces within the set are not classified separately, but rather according to the General Rules of Interpretation (GRIs) to the HTSUS, specifically GRI 3 (b), HTSUS.
Under the GRIs to the HTSUS, specifically at GRI 3 (b), the table and chairs of the patio set are composed of different components (i.e., table: plastic, metal and glass; chairs: plastic and metal; and cushions: foam and textile fabric) and therefore are considered composite goods. Composite goods and sets under GRI 3 (b) will be classified as if consisting of the material or component which gives them their essential character, insofar as this criterion is applicable. When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of that material or component which imparts the essential character to the composite good or set.
Further provided, the ENs to 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.” Even with recognizing that the glass tabletop provides for the functionality of the table and that the table cannot function without its glass tabletop, we are of the opinion that the PE (imitation wicker) that surrounds the table imparts the essential character to the good. The weight, bulk and volume of the imitation wicker dominates the table as an entity. It is the imitation wicker that provides the visible shape and esthetic appeal of the table, while the glass tabletop provides an accent/contrast to the table. Moreover, it is the table that draws four individuals around while sitting on four chairs for purposes of eating, drinking and socializing.
The applicable subheading for the Wicker Patio Set will be 9403.70.8015, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Furniture of plastics: 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