CLA-2-94:OT:RR:NC:N5:433
Ricardo Del Campo Galina
Palliser de Mexico S. de R.L de C.V.
13819 Humphrey Road, Suite A Laredo, TX 78045
RE: The tariff classification of a seat and components from Mexico and China.
Dear Mr. Del Campo Galina:
In your letter dated June 13, 2024, you requested a binding tariff classification ruling. Samples, illustrative literature, and product descriptions were provided.
Item 1, the AC/DC Adapter, model number ZB-H290030-G, is a power supply with a female three-prong AC socket on the input side and a four-prong DC pigtail on the output side. The power supply is said to provide the primary source of power to up to five recliner motors and has an LED power indicator on the top of the plastic housing. Based on the information provided, the power supply has an output of 29 VDC at 3 A and a maximum power output of 87 Watts.
Item 2, the AC Cable, model number 49002-TR-000A00, is constructed of a length of insulated cable conductor with specific connectors on each end. The connector on one end is a standard electrical plug meant to be plugged into a wall outlet. The other end is terminated with a connector designed specifically for a power supply. The cables are rated at 240 Volts. In use, the subject cable functions to connect the wall outlet to the power supply in order to power the recliners.
Item 3, the DC Splitter Cable, model number 49002-SP-00A00 is constructed of a single cable conductor that splits into five conductors, each with a specialized barrel connector at each end. The end of the single conductor is terminated by a separate barrel connector. The cable is rated at 29 Volts. In use, the subject splitters connect the power supply to multiple recliners in order to provide the necessary electrical power.
Item 4, the Side Tabletops, part number J0762, are small table surfaces intended to be assembled onto a specific model of theater seat. They are constructed of medium density fiberboard (MDF) covered with PVC. One end tapers narrower and includes a recessed cup holder of base metal. The tabletop cannot function alone and must be installed onto the seat to function.
Item 5, the Lag Bolts, part number X6481, have an unslotted hex head, steep cutting threads that cannot accommodate a nut, and a gimlet point. This item functions to secure the table to the reclining chair once the chair is installed inside the theater.
Item 6, the Letter and Number Plates, are made wholly from clear acrylonitrile butadiene styrene(ABS) plastic. They are painted to have the appearance of metal with the letter or number left without paint to allow light from the source inside the chair to go through and illuminate the character. They are intended to identify the specific seat to the theater customer.
Item 7, the 41310 (S-Series) Encore Recliner, is a reclining wooden frame upholstered seat. Seating is provided for a single individual. The seat foundation, backrest, and armrests are constructed of plywood and the recline mechanism is constructed of metal. Collectively, they comprise the frame of the seat. The leg rest is retractable, as the seat reclines the leg rest extends away from the seat base. As the seat inclines, the leg rest returns to the seat base. The material construction of the upholstered fabric is 80% rayon and 20% polyester coated with intumescent flame retardant acrylic. After U.S. importation, the seat will be installed in a movie theater.
Sourcing Scenarios:
The AC/DC adapter, AC cable, DC splitter cable, side tabletop, lag bolts, and the letter/number plate are manufactured in China. The recliner seat is manufactured in Mexico. In Mexico, the Chinese origin components will be packed and repacked, no additional manufacturing operations will take place. The ruling request outlines 2 sourcing scenarios. Scenario 1 involves a sourcing operation where the corresponding components (AC/DC adapter, AC cable, DC splitter cable, side tabletop, lag bolts, letter/number plate, recliner) will be packaged separately, imported into the U.S. separately, and in unequal quantities. Scenario 2 involves a sourcing operation where the aforementioned components will be packaged together, imported into the U.S. together, in equal quantities, albeit unassembled.
Considering the importation scenarios presented, the binding ruling request seeks classification of item 1 in 9401.99.9081 Harmonized Tariff Schedule of the United States (HTSUS), and alternatively, 8504.40.9520 HTSUS. A classification and alternative classification request for item 2 is not identified. For item 3, classification is requested under 9401.99.9081 HTSUS and alternatively, 8544.42.9090 HTSUS. For item 4, classification is requested under 9401.99.3580 HTSUS and alternatively, 3926.90.9980 HTSUS. For item 5, classification is requested under 9401.99.9081 and alternatively, 7318.15.8055 HTSUS. For item 6, classification is requested under 9401.99.3580 and alternatively, 9405.92.0000 HTSUS. For item 7, classification is requested under 9401.61.4011 HTSUS.
For import scenario 1, the applicable subheading for item 1 will be 8504.40.9520, HTSUS, which provides for Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters other: Rectifiers and rectifying apparatus: Power supplies: with a power output exceeding 50 W but not exceeding 150 W. The general rate of duty will be free.
For import scenario 1, the applicable subheading for items 2 and 3 will be 8544.42.9090, HTSUS, which provides for Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors: Other electric conductors, for a voltage not exceeding 1,000 V: Fitted with connectors: Other: Other: Other. The general rate of duty will be 2.6% ad valorem.
For import scenario 1, the applicable subheading for item 4 will be 4421.99.9880, HTSUS, which provides for Other articles of wood: Other. The rate of duty will be 3.3 percent ad valorem.
For import scenario 1, the applicable subheading for item 5 will be 7318.11.0000, HTSUS, which provides for Screws, bolts, nuts, coach screws, . . . and similar articles, of iron or steel: Threaded articles: Coach screws. The rate of duty will be 12.5 percent ad valorem. You had proposed classification under 9401.99.9081 and alternatively, 7318.15.8055 HTSUS. We disagree. It is the opinion of this office that these wood screw fasteners with their hexagonal unslotted head, steep cutting threads, and gimlet point meet the definition for coach screws.Coach screws are eo nominee provided for in the tariff in heading 7318. Per Section 15, Note 2, goods of heading 7318 are considered parts of general use. Further, Chapter 94 legal note 1(d) states that the chapter does not cover parts of general use as defined in note 2 to section XV, of base metal, or similar goods of plastics.
For import scenario 1, the applicable subheading for item 6 will be 3926.90.9989, HTSUS, which provides for Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other: Other. The general rate of duty is 5.3 percent ad valorem.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitutes the official interpretation of the Harmonized System at the international level.
EN I to General Rule of Interpretation (GRI) 2(a) 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) 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.
Merchandise is classified based on its condition as imported. See HQ 964682 dated July 15, 2002, HQ 135335 dated April 18, 2011, and HQ H293671 dated January 6, 2023.) In import scenario 2, at the time of U.S. importation, the recliner seat, AC/DC adapter, AC cable, DC splitter cable, tabletop, letter/number plate, and the lag bolts will be imported unassembled and in equal quantities.
In import scenario 2, the recliner seat, AC/DC adapter, AC cable, DC splitter cable, tabletop, letter/number plate, and the lag bolts, although unassembled, are nevertheless dedicated components to a unified single recliner seat. The components do not have any commercial reality apart from being presented as an unassembled recliner seat. Furthermore, all the components needed to make a complete recliner seat are imported together, in this case, in equal quantities as well. For the convenience of packing, handling or transport, each component is packaged individually. Nonetheless, the unassembled recliner and the components are treated as an assembled article of furniture. For import scenario 2, the unassembled recliner and the components at issue are classified together.
For import scenarios 1 and 2, the applicable subheading for item 7 will be 9401.61.4011, HTSUS, which provides for Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Other seats, with wooden frames: Upholstered: Chairs: Other: Other 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 3926.90.9989, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty.At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 3926.90.9989, HTSUS, listed above.
Products of China classified under subheading 4421.99.9880, 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., 9903.88.03, in addition to subheading 4421.99.9880, HTSUS, listed above.
Products of China classified under subheading 7318.11.0000, 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., 9903.88.03, in addition to subheading 7318.11.0000, HTSUS, listed above.
Products of China classified under subheading 8504.40.9520, 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., 9903.88.03, in addition to subheading 8504.40.9520, HTSUS, listed above.
Products of China classified under subheading 8544.42.9090, 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., 9903.88.03, in addition to subheading 8544.42.9090, 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.
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 Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division