CLA 2-94:OT:RR:NC:N4:463
Nicole Vallee
Costco Wholesale
999 Lake Drive
Issaquah, WA 98027
RE: Classification of an outdoor plastic wicker patio set made in China
Dear Ms. Vallee:
This is in reply to your letter dated February 2, 2022, requesting a tariff classification ruling for an outdoor plastic wicker patio set. In lieu of samples, illustrative literature and product descriptions were provided.
The subject merchandise is an outdoor patio set identified as the Catalina 4-piece Deep Seating Set (item #2127174), which consists of two swivel glider chairs, one sofa and one table. All of the items are made of aluminum frames covered in woven plastic plating material (wicker). The chairs and glider feature fabric-covered foam seat and back cushions. The chairs measure 74cm (W) x 91cm (D) x 86cm (H), and the glider measures 188.5cm (W) x 91cm (D) x 86cm (H). The table has a porcelain tile top and measures 121.5cm (W) x 70.5cm (D) x 50.5cm (H). The patio set is made in China. See image below:
Catalina 4-piece Deep Seating Set, Item #2127174
Classification under the Harmonized Tariff System of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes (together known as legal notes). If 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 GRIs 2 through 6 are then applied in order.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and coding System, which constitutes the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading and are generally indicative of the proper interpretation of the HTSUS. The ENs to Chapter 94 of the HTSUS state, in relevant part, that the term “furniture” means: (A): 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…. Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are included in this category. The subject patio set meets the definition of furniture.
You stated that the patio set should be classified in subheading 9403.89.6015, HTSUS, which provides for "Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other: Other household.” We are in agreement with this statement.
The ENs to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term “goods put up in sets for retail sale” means goods that: (a) consist of at least two different articles that are, prima facie, classifiable in different headings; (b) consist of articles put up 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. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component that 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. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b) they are to be classified in the heading that occurs last in numerical order among those that equally merit consideration.
The patio set meets the GRI 3(b) set criteria, and the competing HTSUS headings are 9401 (seats) versus 9403 (other furniture). Although the seats account for approximately 85% of the set’s value, the essential character of table and chair sets is usually imparted by the table. Given this conflict, we cannot determine the essential character of this set, so it will be classified in accordance with GRI 3(c), last in tariff.
The applicable classification of the Catalina 4-piece Deep Seating Set (item #2127174) will be subheading 9403.89.6015, HTSUS, which provides for "Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other: Other household.” The general 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 World Wide Web at https://hts.usitc.gov/current.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.89.6015, HTSUS, unless specifically excluded, are subject to an additional 25% 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 9403.89.6015, 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).
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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division