CLA-2-94:OT:RR:NC:N4:433
John M. Peterson
Neville Peterson LLP
One Exchange Plaza
55 Broadway, Suite 2602
New York, NY 10006
RE: The tariff classification of a seat from China.
Dear Mr. Peterson:
In your letter dated May 13, 2022, you requested a binding tariff classification ruling on behalf of Delta Enterprise Corporation. In lieu of samples, illustrative literature and a product description were provided.
The “Cozee Convertible Slide & Play Game Mat” is a functional seat comprised of (1) the rectangle seat foundation component with a side storage pocket, (2) the “U” shape seat backrest component, (3) the small ottoman component with a cutout for the placement of objects, and (4) the large ottoman component. Each component is constructed of foam pieces permanently encased in man-made fiber covers with zipper enclosures. Seating is provided for one or more individuals. Soft toy checker pieces constructed of foam plastic encased in man-made fiber covers are included with the seat. The large ottoman is the convertible component, it unfolds, and the diagonal halves becomes the slide. Collectively, the seat contains no wood or metal structures. The 4 seat components are not a unitary whole, they are not permanently affixed to one another. They are 4 independent components that can be configured and reconfigured. When configured and reconfigured, the seat may alternatively function as a bed, a playmat, or a gaming surface for toddlers. The seat has a “storage mode” configuration wherein the 4 components may stand one on the other or side by side. Dependent on the configuration, the dimensions approximate 20”- 40” in length, 40”- 80” in width, and 8” to 16” in height.
The documentation provided identifies multiple surface fabric graphics that includes: (1) blue and red with a large checkerboard graphic, (2) blue and red with a tic-tac-toe graphic, (3) blue and red with a small checkerboard graphic. Regardless of the graphics, all 4 components are identical in size and shape (seat foundation, backrest, large ottoman, small ottoman). The only notable character difference is in one of the product options. In the “Option 2-Side A,” the small ottoman component does not have a cutout for the placement of objects.
In your request, you suggest classification of this merchandise under heading 9504, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Video game consoles and machines, articles for arcade, table or parlor games, including pinball machines, bagatelle, billiards and special tables for casino games” or alternately in heading 9506, HTSUS, which provides for “Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this chapter; swimming pools and wading pools; parts and accessories thereof.” We disagree.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level.
For the purposes of Chapter 94, HTSUS, the term “furniture” means: Any “moveable” 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, theatres, cinemas, offices, churches, schools, cafes, restaurants, laboratories, hospitals dentists’ surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan-trailers or similar means of transport. (It should be noted that, for the purposes of this Chapter, articles are considered “movable” furniture even if they are designed for bolting, etc., to the floor, e.g., chairs for use on ships). Similar articles (seats, chairs, etc.,) for use in gardens, squares, promenades, etc., are also included in this category.
The ENs to Chapter 94, heading 9401 include: lounge chairs, arm-chairs, folding chairs, desk chairs, infants’ high chairs and children’s seats designed to be hung on the back of other seats (including vehicle seats), grandfather chairs, benches, couches (including those with electrical heating), settees, sofas, ottomans and the like, stools (such as piano stools, draughts men’s stools, typists’ stools, and dual purpose stool-steps), seats which incorporate a sound system and are suitable for use with video game consoles and machines, television or satellite receivers, as well as with DVD, music CD, MP3 or video cassette players under the list of exemplars for seats classified in heading 9401, HTSUS.
Seats of this heading may incorporate complementary non-seat components, for example toy components, a vibration function, music or sound players, as well as lighting features.
A review of the facts finds the subject merchandise is within the construct of the ENs to Chapter 94 HTS for furniture as well as the ENs to heading 9401 HTS for seats. The “Cozee Convertible Slide & Play Game Mat” is a moveable article constructed for placing on the floor or ground, it equips a private dwelling, and is a children’s seat whether or not convertible into a bed. Additionally, the soft checker pieces are the complementary non-seat toy components.
The HTSUS, Chapter 94, Legal Note 2, 2(a) and 2(b) 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.
2(b) Seats and Beds.”
A review of the facts identifies a “storage mode” wherein the 2 ottomans are placed side by side and designed to stand on top of the seat foundation. When the seat is configured or reconfigured, it may function as a bed, a playmat, or a gaming surface for toddlers to then sit, lounge, rest, or perform some other activity. The “Cozee Convertible Slide & Play Game Mat” falls within the construct of Chapter 94, Legal Note 2, 2(a) and 2(b).
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 seat forms a larger system which is itself composed of smaller complementary items. The seat and the 2 ottomans are designed to stand one on the other for storage. Additionally, the seat may be configured and reconfigured in various ways to suit a consumer’s individual needs and hold various objects or articles. The “Cozee Convertible Slide & Play Game Mat” is a modular unit furniture seating system.
The seat (a) consists of at least two different articles which are, prima facie, classifiable in different headings [seats, games]; (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 “Cozee Convertible Slide & Play Game Mat” as a whole is imparted by the seating components.
The applicable subheading for the subject merchandise, if made of reinforced or laminated plastics, will be 9401.80.2011, HTSUS, which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Other seats: Of rubber or plastics: Of reinforced or laminated plastics: Other household.” The rate of duty will be free.
The applicable subheading for the subject merchandise, if not made of reinforced or laminated plastics, will be 9401.80.4046, HTSUS, which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Other seats: Of rubber or plastics: Other: Other: Other.” 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 9401.80.2011 or 9401.80.4046, 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 9401.80.2011 or 9401.80.4046, 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