CLA-2-44:OT:RR:NC:4:434
Mr. Jordyn Szepanski
Household Essentials, LLC
5895 North Lindbergh Blvd.
Hazelwood, MO 63042
RE: The tariff classification of Cedar Hangers, Boxes and Sachets from China
Dear Mr. Szepanski:
In your letter, dated October 10, 2018, you requested a tariff classification ruling. A sample was provided for review and will be returned, per your request.
The “Cedar Closet Kit” contains the following items packaged together for retail sale:
1 cedar wood storage box (15” x 15” x 4” high), open at the top, with two dividers
6 standard clothes hangers, constructed of cedar and base metal
6 “clamp” hangers, constructed of cedar and base metal
10 sachets, consisting of red cedar wood shavings inside a cotton pouch
You state the intended purpose of the cedar is to freshen clothing and protect against mustiness, mildew and pests without chemicals. The hangers will be used to store clothing in a closet, while the cedar box and dividers can be used in drawers for containing and organizing goods. The sachets can be used in dresser drawers or other locations.
In order to classify, first we must determine whether the “Cedar Closet Kit” meets the definition of a “set” within the meaning of General Rule of Interpretation 3(b) (GRI 3(b)). The Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS) constitute the official interpretation of the tariff at the international level. EN X to GRI 3(b) provides: “for the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).” Sets are classified according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character.
The “Cedar Closet Kit” consists of multiple articles classifiable under separate headings. It is packaged for retail sale. Therefore it fulfills the requirements of (a) and (c) above. However, we believe that it fails (b). The unifying material of cedar does not overcome the varying uses of the hangers, box and sachets. Further, although you market them as a “Closet Kit,” the box and sachets can also be used in dresser drawers, hampers, etc. Consequently, each item will be separately classified.
The standard clothes hangers and clamp hangers are considered to be composite goods within the meaning of GRI 3, as they are constructed of both cedar wood and base metal. The cedar is in direct contact with the clothing and helps maintain the clothes’ shape while hung. It also provides the fresh scent and pest resistance. Therefore, it is the opinion of this office that the cedar portion of the hangers provides the essential character within the meaning of GRI 3(b). The applicable subheading for the cedar hangers will be 4421.10.0000, HTSUS, which provides for “Other articles of wood: Clothes hangers.” The rate of duty will be 3.2% ad valorem.
The applicable subheading for the cedar wood box with dividers will be 4420.90.8000, HTSUS, which provides for “Wood marquetry and inlaid wood; caskets and cases for jewelry or cutlery and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling within chapter 94: Other: Other.” The rate of duty will be 3.2% ad valorem.
The applicable subheading for the cedar sachets will be subheading 3307.90.0000, HTSUS, which provides for “…pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorizers, whether or not perfumed or having disinfectant properties; 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 the World Wide Web at https://hts.usitc.gov/current.
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 subheadings 4420.90.8000, HTSUS, and 3307.90.0000, 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., 9903.88.03, in addition to subheading 4420.90.8000, HTSUS, and 3307.90.0000, 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.
We note that the submitted samples are marked, “USA cedar” in large lettering on the back of the retail packaging, with the country of origin, “Made in China” in small lettering on the side. This marking is not in conformity with Customs regulations. Part 134, Customs and Border Protection (CBP) Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. CBP has recognized that the presence of a geographic location, other than the country in which the article was produced, on an imported article or its container may mislead the ultimate purchaser as to the true country of origin. Therefore, in cases where the name of a location in the U.S. or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced appears on an imported article or its container, 19 CFR 134.46, provides that there shall appear, legibly and permanently, in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by "Made in", "Product of", or other words of similar meaning. CBP has ruled that in order to satisfy the close proximity requirement, the country of origin marking must appear on the same side(s) or surface(s) in which the name of the locality other than the country of origin appears. The purpose of this section is to prevent the possibility of misleading or deceiving the ultimate purchaser as to the actual origin of the imported good. To be in conformity you can reconfigure the marking by placing “USA Cedar” and “Made in China” on the same side of the packaging and ensuring that the lettering of China origin marking is in at least comparable size to the USA marking. Alternatively, the reference to USA can be removed.
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 Charlene Miller at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division