CLA-2-94:OT:RR:NC:N4:433
Daniel Skornicka
Lumaland Inc.
601 Abbot Road
East Lansing, MI 48823
RE: The tariff classification of bean bag chairs from China; Marking.
Dear Mr. Skornicka:
In your letter dated July 30, 2018, you requested a tariff classification ruling. Description, a photograph and a sample were received.
The merchandise concerned is identified as the “Lumaland 3, 4, 5, 6 and 7 foot Bean Bag Chairs.” Each of the bean bag chairs come with a microsuede machine washable cover and has an inner zippered bag stuffed with 100% polyester fill. Microsuede is a polyester microfiber fabric with a water-repellent finished surface, resembling that of suede. These bean bag chairs are designed to be used in multiple rooms within one’s home, and depending on the size purchased are depicted in photographs found on the internet for seating one, two or three individuals.
You indicate that you are importing the empty outer-covers and inner bags, and filling them in your warehouse in the United States. For purposes of this ruling the inner bags will be considered stuffed with 100% polyester fill and zippered closed prior to import into the United States, and the outer-covers and stuffed bags are imported in equal numbers and on the same shipment, regardless of boxed together.
Classification of goods under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 GRI may then be applied. The merchandise concerned is not classified under GRI 1 of the HTSUS as the terms of the heading do not provide for unassembled goods.
Under GRI 2 (a), “any reference to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.” GRI 2 (a) does not apply when unassembled components of goods are imported separately. When component parts are imported as separate items, the goods are classified separately. Whereas, if component goods of unassembled articles are imported together, in equal quantities, even in separate boxes, the items are aggregated to determine the appropriate classification – see Headquarters ruling, HQ H079175 dated April 8, 2010.
By application of GRI 2 (a), the outer-covers and stuffed inner-bags, whether packaged together or in separate boxes, when imported together in corresponding quantities, are classifiable in heading 9401, HTSUS, the heading for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof.” As such, the Lumaland bean bag chairs are classifiable in subheading 9401.80.6028, HTSUS.
The applicable subheading for the Lumaland bean bag chairs will be 9401.80.6028, 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: 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 the World Wide Web at https://hts.usitc.gov/current.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. §1304. The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C.1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. See also 19 CFR 134.11 “Country of origin marking required.”
Congressional intent in enacting 19 U.S.C. §1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlaender & Co., 27 CCPA 297 at 302; C.A.D. 104 (1940).
Because the microsuede outer-covers and inner stuffed bags are imported in unassembled condition, either in a one to one condition (one cover to one stuffed bag) or packaged in bulk, in the same shipment, and will be assembled together into bean bag chairs at your warehouse in the United States, the marking regulations of 19 CFR 134, at 19 CFR 134.26 “Imported articles repacked or manipulated,” is implicated. In accordance with 19 CFR 134.26 and at 19 CFR 134.11, a [repackaging certificate] is required, and in this case, country of origin China must be marked on the bean bag chairs or on the individual repackaged boxes sold to the consumer in a conspicuous place as legibly, indelibly, and permanently as the nature of the articles or boxes will permit, and in such a manner as to indicate in the United States the English name of the country of origin for the bean bag chairs.
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,
Steven A. Mack
Director
National Commodity Specialist Division