CLA-2-94:OT:RR:NC:N4:433
Nicole Vallee
Costco Wholesale
999 Lake Drive
Issaquah, Washington 98027
RE: The tariff classification of a theatre seating set from China.
Dear Ms. Vallee:
In your letter dated March 11, 2022, you requested a binding tariff classification ruling. In lieu of samples, illustrative literature and a product description were provided.
Item 2327766, the “6-Piece Theatre Seating Set,” consists of a 3-seater curved sofa with 4 accent pillows, 2 recliners, 1 ottoman, and 2 wedge accent side tables. The sofa and the recliners are constructed of an aluminum metal frame. Interlacing polyethylene (PE) wicker is bound to the metal frames and form the seat foundations and the backrests. The sofa and the recliners have removable textile covered cushion seat bases and removable textile covered cushion seat backrests. The dimensions for the sofa are 106.6” in length, 31.1” in width, and 34” in height. The dimensions for each recliner are 31.2” in length, 35.8” in width, and 36.6” in height. The ottoman is constructed of an aluminum metal frame and interlacing PE wicker bound to the metal frame. Additionally, the ottoman has a removable textile covered cushion seat base. The dimensions for the ottoman are 40.1” in length, 27.1” in width, and 12.9” in height. The wedge accent side tables are constructed of an aluminum metal frame and interlacing PE wicker bound to the metal frame. Tempered glass atop the tables provides a leveled surface for the placement of objects. The dimensions for each table are 20” in length, 23.2” in width, and 20” in height. The subject merchandise will be imported unassembled, packaged in 3 boxes, sold collectively as one unit, and will include all hardware for assembly. The individual pieces will not be sold separately.
You request classification of the subject merchandise in subheading 9401.79.0011, Harmonized Tariff Schedule of the United States, (HTSUS).
The Harmonized Commodity Description and Coding System Explanatory Notes
(“ENs”) constitute the official interpretation of the Harmonized System at the international level.
Chapter 94, Legal Note 2, and 2a provides: “articles (other than parts) referred to in headings 9401 to 9403 are to be classified in those headings only if they are designed for placing on the floor or ground. The following are, however, to be classified in the above-mentioned headings even if they are designed to be hung, to be fixed to the wall or to stand one on the other: 2(a) Cupboards, bookcases, other shelved furniture (including single shelves presented with supports for fixing them to the wall) and unit furniture.” A review of the facts finds the “6-Piece Theatre Seating Set” falls within the construct of Chapter 94, Legal Note 2 and 2a.
Unit furniture is not defined. In Storewall, LLC versus the United States, the United States Court of International Trade (CIT) derived the following meaning for the term “unit furniture.”
(a) fitted with other pieces to form a larger system or which is itself composed of smaller complementary items,
(b) designed to be hung, or fixed to the wall, or stand one on the other or side by side,
(c) assembled together in various ways to suit the consumer’s individual needs to hold various objects or articles, and
(d) excludes other wall fixtures such as coat, hat and similar racks, key racks, clothes brush hangers, and newspaper racks.
Further, the United States Court of Appeals for the Federal Circuit (CAFC), in Storewall, LLC versus the United States also added that unit furniture may be assembled together in various ways to suit the consumer’s individual needs to hold various objects and articles, and it was this versatility and adaptability that was the essence of unit furniture.
A review of the facts finds the sofa, recliners, ottoman, and the tables when assembled form a larger system which is itself composed of smaller complementary items. Additionally, the sofa, recliners, ottoman, and the tables may be assembled together side by side or in various ways and configurations to suit a consumer’s individual needs. The “6-Piece Theatre Seating Set” is a modular unit furniture seating system.
The “6-Piece Theatre Seating Set” (a) consists of at least two different articles which are, prima facie, classifiable in different headings [Seats, Tables, Pillows]; (b) consists of products or articles put together to meet a particular need or carry out a specific activity [seating]; and (c) are put up in a manner suitable for sale directly to end users without repacking, therefore, the subject merchandise will be considered a set for customs purposes. Additionally, the seating components are the indispensable attribute that strongly marks or serves to distinguish the structure, core or condition of the article. The essential character of the “6-Piece Theatre Seating Set” as a whole is imparted by the seating components.
The applicable subheading for the subject merchandise will be 9401.79.0011, 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: Other: Other: Outdoor: With textile covered cushions or textile seating or backing material: Household.” The rate of duty will be free.
Section 301 Trade Remedy:
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9401.79.0011, 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 9401.79.0011, 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, including information on exclusions and their effective dates, 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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division