CLA-2-85:OT:RR:NC:N2:220
Jennifer Chang
YCC Product Inc.
1740 Barcelona Cir.
Placentia, CA 92870
RE: The tariff classification of a towel warmer from China
Dear Ms. Chang:
In your letter dated August 31, 2018 you requested a tariff classification ruling.
The merchandise under consideration is referred to as the HC-Mini Towel Warmer and is described as a hot towel warmer consisting of an insulated metal/plastic enclosure with an internal temperature controller and an interior wire rack that can hold 12 facial sized towels. You state that these units are primarily used in home and salons to heat, dry and store towels.
In your request, you proposed that this towel warmer should be classified under subheading 8516.79.0000, which provides for other electrothermic appliances of a kind used for domestic purposes. Further, you indicate, “[t]hese units are for use primarily in home and salon to heat, dry and store towels.” This statement creates a conflict as articles of heading 8516.79.0000 are to be used in the home, but not the commercial environment of a salon.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized Tariff Schedule of the United States (HTSUS) and are generally indicative of the proper interpretation of the headings.
EN 85.16 (E) indicates that this group includes all electrothermic machines and appliances provided they are normally used in the household. Additionally, this group excludes appliances, which are not normally used in the household.
The term "domestic" is not specifically defined in either the HTSUS or the ENs. A tariff term that is not defined is construed in accordance with its common and commercial meaning. Nippon Kogaku (USA), Inc. v. United States, 69 CCPA 89, 673 F.2d 380 (1982). The common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities and other reliable sources. C.J. Tower & Sons v. United States, 69 CCPA 128, 673 F.2d 1268 (1982). The term “domestic” is described as “of or relating to the household or the family.” Merriam-Webster’s Collegiate Dictionary, 10th Ed., (1999). (Refer to HQ 966792, dated February 18, 2004).
Courts have provided several factors to apply when determining whether merchandise falls within a particular class or kind of good. They include: (1) the general physical characteristics of the merchandise; (2) the expectation of the ultimate purchasers; (3) the channels of trade in which the merchandise moves; (4) the environment of the sale (e.g. the manner in which the merchandise is advertised and displayed); (5) the usage of the merchandise; (6) the economic practicality of so using the import; and (7) the recognition in the trade of this use. See United States v. Carborundum Co., 63 CCPA 98, 102, 536 F.2d 373, 377 (1976), cert denied, 429 U.S. 979 (1976); Lennox Collections v. United States, 20 CIT 194, 196 (1996). (Refer to HQ H243592, dated November 17, 2014).
An analysis of the Carborundum factors indicates that this towel warmer is not principally used for domestic purposes or in the household. After a review of this product on the internet, it appears principally marketed to and intended for use in a spa or salon, unlike the towel warmer of the cited NY Ruling N261906, dated March 17, 2015. This would preclude this article from meeting the definition of “domestic” and makes subheading 8516.79.0000 not applicable.
The applicable subheading for the HC-Mini Towel Warmer will be 8543.70.9960, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; Other machines and apparatus; …Other”. The rate of duty will be 2.6 percent ad valorem.
Effective August 23, 2018, the Office of the United States Trade Representative 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(d), HTSUS. For additional information see “Notice of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (August 16, 2018, 83 F.R. 40823). Products of China that are provided for in subheading 9903.88.02 and classified in one of the subheadings enumerated in U.S. note 20(d) 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 subheading 9903.88.02.
Products of China classified under subheading 8543.70.9960, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8543.70.9960, HTSUS, listed above.
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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division