CLA-2-94:OT:RR:NC:N4:463
Cathy Yu Jakks Pacific 21749 Baker Pkwy. Walnut, CA 91789 RE: The classification and Section 232 applicability of an activity table set from China Dear Ms. Yu: This ruling is being issued in response to your letter dated February 19, 2025, requesting a tariff classification determination and Section 232 applicability on an activity table set with chairs. A sample, URL, and product description were provided. The subject article is identified as the Activity Table and Chair Set with item no. 61393, and it consists of one square table and two padded chairs. The table and chairs have folding tubular-steel frames and legs with non-skid rubber feet. The table measures 24.5" (L) x 24.5" (W) x 20" (H) and has a vinyl-covered foam and MDF tabletop. Each chair measures 13.5" (W) x 12.625" (D) x 21.375" (H) and has a vinyl-covered foam and MDF seat and seatback. The activity set weighs approximately 16 lbs. and is made in China. See image below: Classification under the Harmonized Tariff Schedule 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. If the goods cannot be classified solely based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. You suggest classification in subheading 9403.60.8081, HTSUS, however this subheading no longer exists in the current HTSUS. The equivalent classification in the current HTSUS would be subheading 9403.60.8093, HTSUS, which provides for “Other furniture and parts thereof: Other wooden furniture: Other: Other: Other.” We agree. 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, for the purposes of this Chapter, 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, theatres, cinemas, offices, churches, schools, cafés, restaurants, laboratories, hospitals, dentists, surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan-trailers or similar means of transport. The Activity Table and Chair Set is within the meaning of furniture as described by the General ENs to Chapter 94 of the HTSUS. The ENs to GRI 3(b) state at Note X that the term “goods put up in sets for retail sale” means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or 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 end users without repacking. Since the Activity Table and Chair Set 1) is made up of a table classified in one heading of the HTSUS (9403, furniture) and chairs classified in another (9401, seats), 2) is used to promote play and other seated activity, and 3) its components are sold together at retail as imported, this office finds that the Activity Table and Chair Set meets the terms of EN X to Rule 3(b), HTSUS, “goods put up in sets for retail sale,” and shall therefore be classified as if it consisted of the single material or component that imparts its essential character. In general, essential character has been construed to mean the attribute which strongly marks or serves to distinguish what an article is: that which is indispensable to the structure, core or condition of the article. In addition, GRI 3(b), at Note VIII, states that the factor which determines essential character will vary between different kinds of goods. It may, for example, 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 goods. In addition to these factors, the Court of International Trade (CIT) has listed other factors to be considered in determining “essential character,” including the respective indispensability of the properties of the components of the merchandise, the respective cost of the components of the merchandise, the basis for a consumer’s decision to purchase the merchandise, and the respective duration and/or frequency of the use of the components. See Better Home Plastics Corp. v. United States, 20 CIT 221, 916 F. Supp. 1265 (1996), aff’d, 119 F.3d 969 (Fed. Cir. 1997). This office finds the essential character of the Activity Table and Chair Set to be the table. (See NYRLs N336633, N337035, N334774 and N097758.) Because the articles are composed of different materials (steel, foam, MDF, etc.), they are considered composite goods for tariff purposes. The ENs to the HTSUS, GRI 3(b) (VIII) state that “the factor which determines essential character will vary between different kinds of goods. It may, for example, be
determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good. Barring significant evidence to the contrary, U.S. Customs and Border Protection (CBP) has historically found that the material comprising the tabletop imparts the essential character to a table and that when the tabletop is comprised of a wood underlayment covered with a PVC coated fabric or sheeting, the essential character of the table is imparted by the wood underlayment. (See NYRLs N336633, N337035, N334774 and N097758.) The applicable classification for the Activity Table and Chair Set, with item no. 61393, will be subheading 9403.60.8093, HTSUS, which provides for “Other furniture and parts thereof: Other wooden furniture: Other: Other: Other.” The general rate of duty will be free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.60.8093, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report Chapter 99 subheading 9903.88.03 in addition to subheading 9403.60.8093, 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. You inquired whether the Section 232 duties on derivative steel articles applies to this Activity Table and Chair Set. Articles of subheading 9403.60.8093, HTSUS, are not among those listed in Annex 1 to Presidential Proclamation 10896, “Adjusting Imports of Steel into the United States,” effective March 12, 2025. Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 9403.60.8093, HTSUS, listed above. 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 internet 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 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. If the facts are modified in any way, or if the goods do not conform to these facts at the time of importation, you should bring this to the attention of 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 Title 19 of the Code of Federal Regulations (19 C.F.R. Part 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