CLA-2-49:OT:RR:NC:N4:234
Trudi Van Heuveln
Impact Innovations, Inc.
223 SE 1st Avenue
Clara City, MN 56222
RE: The tariff classification of decorative items from China.
Dear Ms. Van Heuveln:
In your letter dated March 18, 2016, you requested a tariff classification ruling. Descriptions and illustrations were provided. No material breakdown tables were provided. Nevertheless an essential character determination will be undertaken based on the descriptions and illustrations provided.
Item # 58561JC-A, is a 23-inch decorative sign, depicted with the words “Pumpkins, Apples and Hayrides.” The background of the sign resembles a distressed-white picket fence with no spaces between.
Item # 58561JC-B, is a 23-inch decorative sign, depicted with the words “Welcome Fall” and has an image of a pumpkin. The background of the sign resembles a distressed-white picket fence with no spaces between.
Item # 58561JC-C, is a 23-inch directional decorative sign, depicted with the words “Pumpkins, Hot Apple Cider and Hayrides.” There are words or phrases that are not legible. The background of the sign resembles a horizontal wooden stockade fence with no spaces between.
Item # 58561JC-D, is a 23-inch decorative sign, depicted with the words, “Grateful, Thankful and Blessed.” The background of the sign resembles a horizontal wooden stockade fence with no spaces between.
Item #58770JC-A, is a 45-inch decorative sign, depicted with the singular word “Blessings.” The background of the sign resembles a horizontal distressed-gray wooden picket.
Item #58770JC-B, is a 45-inch decorative sign, depicted with the singular word “Welcome.” The background of the sign resembles a horizontal distressed-gray wooden picket.
Item # 58538JC-A, is a 38-inch vertical decorative sign, depicted with the singular word “Beware.” The background of the sign resembles a dark-gray wooden picket.
Item # 58538JC-B, is a 38-inch vertical decorative sign, depicted with the singular word “Boo.” The background of the sign resembles a distressed-orange wooden picket.
Item # 58538JC-C, is a 38-inch vertical decorative sign, depicted with the singular words “Happy Fall Y’all.” The background of the sign resembles a distressed-orange wooden picket.
Item # 58538JC-D, is a 38-inch vertical decorative sign, depicted with the singular word “Welcome.” The background of the sign resembles a distressed-white wooden picket.
All of the signs are composed of an underlying substrate of Medium-density Fibreboard (MDF – engineered wood) and are covered over on their front surface with a lithographically printed design. The printed designs are composed on 157 gsm (less than 0.188 mm) paper and are glued to the front-surface of the MDF. You indicate that the signs will be used by end consumers to decorate their homes for the Fall & Halloween season, however, there is no direct association in the singular words or phrases of the signs to a specific recognized holiday or festivity.
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.
There is no single head of the HTSUS that provides for printed designs glued onto wood backings, and as such, GRI 1, is not applicable. The goods are not presented in incomplete or unfinished form nor are they in unassembled or disassembled form, and as such, GRI 2, HTSUS, is not applicable. Consequently, under GRI 3 (b), HTSUS, the “decorative printed signs” are considered composite goods for tariff purposes with each sign consisting of a wooden understructure and a printed design.
Composite goods under GRI 3 (b), HTSUS, are classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. The Explanatory Notes (ENs) to the HTSUS, at 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.
It is our opinion that the essential character for the “decorative printed signs” is imparted by the lithographically printed designs, which cover the entire visual surface area of the signs, and attracts end consumers, either on behalf of themselves or on behalf of their children, to purchase such items with the intent of decorating and adorning their households. The underlying wood substrate of the signs play no role in the design of the “decorative printed signs,’ and merely act as backings for the printed works. Accordingly, the “decorative printed signs” are classifiable in heading 4911, HTSUS.
The applicable subheading for the “decorative printed signs” will be 4911.91.2040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other printed matter, including printed pictures and photographs: Other: Pictures, designs and photographs: Printed not over 20 years at time of importation: Other: Lithographs on paper or paperboard: Not over 0.51 mm in thickness: 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 https://hts.usitc.gov/current.
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 [email protected].
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division