CLA-2-94:OT:RR:NC:N4:433
Peter Mandel
Motivo Furniture a Division of Ariston Hospitality
1124 Westminster Avenue
Alhambra, CA 91803
RE: The tariff classification of unassembled seats from China.
Dear Mr. Mandel:
In your letter dated November 13, 2020, you requested a binding tariff classification ruling. In lieu of samples, illustrative literature, product descriptions, and a manufacturing process were provided.
Item numbers A141 (Lounge Chair), A141-2 (Sofa), A146 (Occasional Chair), A151 (Lounge Chair), A166 (Lounge Chair), A169 (Lounge Chair), A176 (Lounge Chair), A178 (Lounge Chair), A177 (Occasional Chair), and SF-18 (Sofa) are unassembled seat components constructed of metal frames, plywood seat decks, and injection molded fire rated foam seat shells.
Item numbers LS-007 (Bench Sofa), LS068-R (Corner Chair-Right), LS-068-L (Corner Chair –Left), LS-068-C (Center Chair-Armless), LL-040 (Lounge Chair), LL-013-(Lounge Chair), LL-016 (Occasional Chair), and YC-110 (Dining Chair) are unassembled seats components constructed of metal frames, plywood seat decks, plywood seat panels, plywood backrest panels, injection molded fire rated foam seat shells, and foam padding.
Depending on item number and seat configuration, the widths approximate 27 to 59 inches, depths approximate 22 to 33 inches, and heights approximate 19 to 32 inches. In the condition as imported, you state “all the components are imported, and each model’s total components are in the same single carton.” Further, you state “all components ship from suppliers unassembled loose in the carton with assembly, finishing, cutting, sewing, fabrics, upholstering, cartoning and shipping executed in High Point, North Carolina.” Based on the documentation submitted, at the time of importation, an upholstery kit will not accompany the metal, wood, and foam seat components. Custom made-to-order fabric panels based on customer purchase order specifications will be upholstered onto the seats in the United States subsequent to importation.
You identify subheading 9401.90.4080 Harmonized Tariff Schedule of the United, (HTSUS), and 9401.90.5081, HTSUS, if the seat components were to be imported separately, however this is not the case for the merchandise identified above. The metal, wood, and foam seat components will be imported in a single carton for the assembly of a complete seat.
The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level.
EN I to General Rule of Interpretation (GRI) 2 (a) (Incomplete or unfinished articles) provides “the first part of Rule 2 (a) extends the scope of any heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished, provided that, as presented, it has the essential character of the complete or finished article.”
EN V to GRI 2 (a) (Articles presented unassembled or disassembled) provides “the second part of Rule 2 (a) provides the complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.”
Further, Chapter 94 ENs provides “articles of furniture presented disassembled or unassembled are to be treated as assembled articles of furniture, provided the parts are presented together.”
The unfinished and unassembled custom made-to-order chairs and sofas, absent the exterior fabric panels, are nevertheless dedicated components for incorporation into custom made furniture. Each carton will contain the respective metal frames, plywood seat decks, plywood seat panels, backrest panels, injection molded fire rated foam seat shells, along with foam padding that do not have any commercial reality apart from being presented as unassembled seat components. Custom made-to-order fabric panels will be the only missing seat components. For the convenience of packing, handling or transport, each carton contains the necessary components to assemble a complete seat. Each carton will be treated as a single assembled article of furniture. In this instance, as presented, the seat components have the essential character of complete seats.
The applicable subheading for the subject merchandise will be 9401.71.0011, HTSUS, which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Other seats, with metal frames: Upholstered: Other household.” The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9401.71.0011, HTSUS, unless specifically excluded, are subject to an additional 25 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 9401.71.0011, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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).
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 C.F.R. § 177.9(b)(1). In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and you should resubmit for a new ruling in accordance with 19 C.F.R. § 177.2.
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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division