CLA-2-94:OT:RR:NC:N4:433
Cathy Lopez – LCB/CCS
Trade Policy Advisor
C.H. Robinson International
1452 Hughes Road, Suite 350
Grapevine, TX 76051
RE: The tariff classification of hampers from China and Vietnam.
Dear Ms. Lopez:
In your letter dated August 1, 2018, on behalf of Lamont Home, you requested a tariff classification ruling. Samples and product information were provided.
Item #1 identified as a “Wire Basket” is a rectangular laundry hamper, measuring approximately 23” in length, 17.5” in width, and 13.5” in depth. The hamper is made up of a powder coated, black steel wire frame and a textile liner made of 65% polyester and 35% cotton that fits inside of the wire frame. The hamper does not have handles.
Item #2 identified as a “Outdoor Hamper” is a laundry hamper with a hinged lid measuring approximately 26” in length, 19” in width, and 14” in depth. The hamper’s shell is made of woven strips of polyethylene (PE) plastic. Each strip measures approximately 6.8mm to 7.2mm in width. Under the shell is a powder coated steel frame. A 65% polyester and 35% cotton fabric liner fits the inside of the wire frame. A sample of the fabric liner was not provided. An open slot, one on each side, allow the basket to be carried.
When interpreting and implementing the Harmonized Tariff Schedule of the United States (HTSUS), the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The General ENs to Chapter 94 of the HTSUS, state, in relevant part, with regard to the meaning of furniture, at (A): For the purposes of this Chapter, the term “furniture” means: Any “movable” articles (not included under other more specific headings of the Nomenclature), which have the essential characteristic that they are constructed for placing on the floor or ground, and which are used, mainly with a utilitarian purpose, to equip private dwellings, hotels, theatres, cinemas, offices, churches, schools, cafés, restaurants, laboratories, hospitals, dentists, surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan-trailers or similar means of transport. (It should be noted that, for purposes of this Chapter, articles are considered to be “movable” furniture even if they are designed for bolting, etc., to the floor, e.g., chairs for use on ships). Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are included in this category.
This office is of the opinion that the Wire Basket hamper falls within the meaning of furniture as described by the General ENs to Chapter 94 of the HTSUS, in that the hamper is a utilitarian movable article used to equip private establishments.
Accordingly, the Wire Basket hamper is classified in heading 9403, HTSUS, the heading for (“Other Furniture and parts thereof”). At the subheading level the hamper is composed of different components (i.e., steel and textile), and is considered a composite good for tariff purposes. GRI 3 (b) in conjunction with GRI 6 is implicated. The Explanatory Notes (ENs) to the HTSUS, GRI 3 (b) (VIII), state: “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. The powder coated steel frame is the primary structure that imparts the essential character and allows the item to function as a hamper.
The applicable subheading for the “Wire Basket,” will be 9403.20.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Other metal furniture: Household: Other: Other.” The rate of duty will be free.
The Outdoor Hamper is constructed of “plaiting materials” of chapter 46, HTSUS. The heading including “baskets and bags” is most specific in describing this hamper and therefore takes precedence over any other chapters and headings.
Strips of plastic over 5 mm in apparent width used in the “Outdoor Hamper” meets the definition of plaiting materials, as set forth in Note 1 to Chapter 46, (HTSUS), which states:
In this chapter the expression "plaiting materials" means materials in a state or form suitable for plaiting, interlacing or similar processes; it includes straw, osier or willow, bamboos, rattans, rushes, reeds, strips of wood, strips of other vegetable material (for example, strips of bark, narrow leaves and raffia or other strips obtained from broad leaves), unspun natural textile fibers, monofilament and strip and the like of plastics and strips of paper, but not strips of leather or composition leather or of felt or nonwovens, human hair, horsehair, textile rovings or yarns, or monofilament and strip and the like of chapter 54.
Further, the Outdoor Hamper is a composite article made of plaiting materials (PE strips), textile fabric, and steel. Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 3(b) provides that composite articles consisting of different materials or made up of different components shall be classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article.
It is the PE strip plaiting material which imparts the essential character of the Outdoor Hamper. It provides the basket its primary structure and allows it to function as a laundry basket.
The applicable subheading for the “Outdoor Hamper,” will be 4602.90.0000, which provides for “Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601;…: Other (other than of vegetable materials). The rate of duty will be 3.5% ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 9403.20.0050, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.04, in addition to subheading 9403.20.0050, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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.
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 Dharmendra Lilia at dharmendra.lilia.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division