OT:RR:CTF:CPMMA: KSG H271649
Andrea K. Swanger
Import Documents & Billing Intercon, Inc.
635 N. Billy Mitchell Road
Salt Lake City, UT 84106
RE: Revocation of NY N004954, NY N028531, NY N021597, NY L80593, NY N085595, NY B85455, NY N255629, NY N084056, NY F82793, and NY N149696; tariff classification of dining tables sold as a unit with chairs
Dear Ms. Swanger:
This letter is in reference to New York Ruling Letter (“NY”) N255629, dated August 26, 2014, issued to you on behalf of Import Documents & Billing Intercon, Inc.
Upon review, we have also reconsidered NY N004954, dated January 19, 2007, NY N028531, dated May 20, 2008, NY N021597, dated January 28, 2008, NY L80593, dated November 1, 2004, NY N085595, dated November 25, 2009, NY B85455, dated May 14, 1997, NY N084056, dated November 23, 2009, NY F82793, dated February 22, 2000, and NY N149696, dated March 16, 2011.
In these rulings, dining chairs and a table were separately classified under the Harmonized Tariff Schedule of the United States (HTSUS), with the chairs being classified in heading 9401, HTSUS, and the table classified in heading 9403, HTSUS.
We have reviewed NY N004954, NY N028531, NY N021597, NY L80593, NY N085595, NY B85455, NY N255629, NY N084056, NY F82793, and NY N149696; and determined that the reasoning is in error. Accordingly, for the reasons set forth below, CBP is revoking NY N004954, NY N028531, NY N021597, NY L80593, NY N085595, NY B85455, NY N255629, NY N084056, NY F82793, and NY N149696.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke NY N004954, NY N028531, NY N085595, and NY N255629, was published on June 8, 2022, in Volume 56, Number 22 of the Customs Bulletin.
In response to the publication, we received one comment that asked about additional rulings on outdoor furniture in which the set was determined not to meet the criteria of GRI 3(b) because they are packaged separately. Specifically, the commentor referenced the following rulings: NY N125879, dated October 29, 2010, NY F82793, dated February 22, 2000, NY N149696, dated March 16, 2011, and NY L89035, dated December 6, 2005. First, we note that a notice of proposed or final revocation also covers any rulings on the subject merchandise which may exist, but have not been specifically identified, as well as any treatment previously accorded by CBP to substantially identical transactions. However, in response to the concerns raised by the commenter, CBP has specifically identified and is revoking six additional rulings relating to the classification of outdoor patio furniture. Specifically, the following rulings are added to this revocation: NY N021597, NY L80593, NY B85455, NY N084056, NY F82793, and NY N149696.
As concerns NY L89035, dated December 6, 2005, which the commenter cited, (classifying three (3) bar stools, a canopy and a bar in headings 9403 and 9401, HTSUS), we have determined that the articles classified in NY L89035 are different than the dining table sets made up only of chairs and a table that are the subject of this revocation. This ruling is therefore not included in the revocation.
FACTS:
Two cases involve a dining group of two chairs and a bistro table. In NY F82793, dated February 22, 2000, two plastic chairs and a plastic bistro table were sold together as a grouping but packaged separately. In NY N149696, dated March 16, 2011, two chairs and a bistro table with a steel frame and glass top were sold together as a grouping but packaged separately.
Four cases involve a dining group of four chairs and a dining table. In NY N004954, an outdoor patio dining grouping was described as follows: Five (5) piece patio set consisting of four (4) chairs with removable cushions and one (1) table. There are four aluminum chairs with textile cushions and a table with a gas firepit insert that has a marble top and a resin base. In NY L80593, the dining grouping consisted of four chairs and a dining table with a wooden top and metal frame and legs. In NY N021597, the dining group was described as four chairs and a dining table with a stone top and metal base. In NY N028531, the dining group was described as four chairs and a dining table with a granite top and aluminum base.
Two cases involve six (6) chairs and a dining table. In NY B85455, there were six chairs and a wooden dining table. In NY N085595, there were six chairs and a dining table with a slate top and aluminum base.
Two cases involve eight (8) chairs and a dining table. In NY N084056, there were eight chairs and a wooden dining table. In NY N255629, there were eight wooden chairs and a wooden dining table.
In each of the ruling letters at issue, the merchandise consisted of one table and a defined number of chairs sold together at retail as a unit. The furniture is imported either fully assembled or partially unassembled and shipped in one combined shipment, in separate boxes. In all the cases, one dining table and chairs are sold together solely as a unit.
ISSUE:
Whether the subject dining table with chair groupings are properly classifiable separately, with the chairs classified in heading 9401, HTSUS, and the table classified in heading 9403 or are the chairs and table classified together as a GRI 3(b) set in heading 9403, HTSUS, as other furniture and parts thereof.
LAW AND ANALYSIS:
Classification determinations under the HTSUS are made in accordance with the General Rules of Interpretation (“GRI”). 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. In the event that 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 may then be applied.
The HTSUS provisions under consideration are as follows:
9401 Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof:
* * *
9403 Other furniture and parts thereof:
* * *
9403.20.00 Other metal furniture….. Household:
9403.40 Wooden furniture of a kind used in the kitchen:
* * *
9403.40.80 Other…..
9403.40.80.40 Dining tables…..
* * *
9403.60 Other wooden furniture:
9403.89 Other….
The Harmonized Commodity Description and Coding System Explanatory Notes
(“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The EN to 94.03 states, in pertinent part:
This heading covers furniture and parts thereof, not covered by the previous headings. It includes furniture for general use (e.g., cupboards, showcases, tables…., etc.) and also furniture for special uses.
The EN to 94.01 states, in pertinent part :
Subject to the exclusions mentioned below, this heading covers all seats (including those for vehicles, provided they comply with the conditioned prescribed in Note 2 to this Chapter)..[.]
Separately presented cushions and mattresses …... are excluded (heading 94.04)…[.]
When these articles are combined with other parts of seats, however, they remain classified in this heading. They also remain in this heading when presented with the seats of which they form part.
GRI 3(b) provides as follows:
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
The EN for GRI 3(b) provides that:
(X) For the purposes of this Rule, the term “goods put up in sets for retail sale”
shall be taken to mean goods which :
consist of at least two different articles which are, prima facie, classifiable in different headings. Therefore, for example, six fondue forks cannot be regarded as a set within the meaning of this Rule;
consist of products or articles put up together to meet a particular need or carry out a specific activity; and
are put up in a manner suitable for sale directly to end users without repacking (e.g., in boxes or cases or on boards).
“Retail sale” does not include sales of products which are intended to be re-sold after further manufacture, preparation, repacking, or incorporation with or into other goods.
The term “goods put up in sets for retail sale” therefore only covers sets consisting of goods which are intended to be sold to the end user where the individual goods are intended to be used together. For example, different foodstuffs intended to be used together in the preparation of a ready-to-eat dish or meal, packaged together and intended for consumption by the purchaser would be a “set put up for retail sale”.
The EN for GRI 3(b) describes essential character as follows:
(VIII) The factor which determines essential character will vary as 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.
NY N125879, which includes ottomans and a sofa as well as chairs and a dining table, would not satisfy the requirement that articles be put up together to meet a particular need or carry out a specific activity and is therefore not a GRI 3(b) set. This grouping of furniture would meet more than a single particular need; dining, socializing, and seating are three different needs. Therefore, NY N125879 is affirmed and is not part of this revocation.
In NY N004954, NY N028531, NY N021597, NY L80593, NY N085595, NY B85455, NY N255629, NY N084056, NY F82793 and NY N149696, the dining table and chairs were classified separately and not as a set under GRI 3(b). In all of the rulings, the dining table and chair groupings were determined not to be a GRI 3(b) set only because the tables and chairs were packed in separate boxes.
This is inconsistent with two rulings in which dining table and chair groupings were determined to be a GRI 3(b) set although the goods were packaged for retail in more than one box. In NY N266674, dated August 12, 2015, CBP classified one table with a glass tabletop and four chairs sold only together as a unit, packaged either in one box or in two or more boxes, as a set pursuant to GRI 3(b). In NY N269023, dated October 16, 2015, CBP considered additional information that the units were only imported and sold for retail sale in three boxes and affirmed NY N266674. CBP stated that …
There is no requirement that goods put up in sets for retail sale have to be packaged in one box, case, container, bag, etc., they only have to be put up in a manner suitable for sale directly to users without repacking. See Headquarters rulings HQ 962125 dated May 5, 2000 and HQ 965927 dated August 14, 2003, in which reference is made to “C.S.D. 92-11” stating that Customs concluded that components of a set need not be packaged together at time of entry in order to be considered classifiable as a set, but all garments must be present in the entry and there must be an equal amount of components to make up the set in the shipment. Consistent with C.S.D. 92-11, we find the wicker patio set packaged in three separate boxes and ready for retail sale without repackaging and imported on the same shipment in equal quantities is not a dismissing factor when considering if goods qualify as sets for retail sale.
CBP erred when it stated in NY N085595 that “[t]aking into account that the dining set is imported in three boxes, the table and chairs will have to be separately classified.” In our view, the individualized manner of retail packaging for articles of this size, imported with several large sized components, cannot be removed from the construct of retail sets simply because the table and chairs do not fit into one retail package.
The combination of a table and a defined number of chairs imported and sold together as a unit as provided for in these cases, are put up together to meet a particular need. The table and chairs are intended for use in conjunction with dining at a table, which satisfies the criteria of carrying out a specific activity. Further, the component pieces of dining tables and accompanying chairs in these cases were ready for retail sale without repackaging and imported in the same shipment and sold at retail only as a unit. Therefore, the dining groupings are a GRI 3(b) set.
Since the dining groupings are determined to be a GRI 3(b) set, they are classified as a unit based on the article that imparts the essential character to the set. In these cases, the essential character of the GRI 3(b) sets would be imparted by the dining table since the dining table would hold the food, plates, and glasses and therefore, enables a group of people to dine together. Considering the dining tables that are composite goods, (glass, plastic, stone, slate, marble or granite tabletops with an aluminum or steel frame), the tabletop would determine the essential character since the food and drinks are placed on the tabletop, and for the stone, slate, marble or granite tabletops, the tabletop is of greater value and weight than the frame. Therefore, pursuant to GRI 3(b), the dining table and chair sets are classified in heading 9403, HTSUS. Pursuant to GRI 6, the dining chair and wooden table sets of NY L80593, NY B85455, NY N084056, and NY N0255629 are classified in subheading 9403.60.8040, HTSUS. The dining chair and table sets of NY N021597, NY N028531 NY N085595, NY N004954, and NY N149696 are classified in subheading 9403.89.6015, HTSUS. The dining chairs and bistro table of NY F82793 are classified in subheading 9403.70.8015, HTSUS.
HOLDING:
Pursuant to GRI’s 3(b) and 6, the dining chair and wooden table sets of NY L80593, NY B85455, NY N084056, and NY N0255629 are classified in subheading 9403.60.8040, HTSUS, which provides for “Other furniture and parts thereof: Other wooden furniture: Other, Dining tables.” The 2022 column one, general rate of duty is Free.
Pursuant to GRI’s 3(b) and 6, the dining chair and table sets of NY N021597, NY N028531 NY N085595 and NY N004954 and NY N149696 are classified in subheading 9403.89.6015, HTSUS, which provides for “Other furniture and parts thereof: Other: Other: Other household.” The 2022 column one, general rate of duty is Free.
Pursuant to GRI’s 3(b) and 6, the dining chair and table sets of NY F82793 are classified in subheading 9403.70.8015, HTSUS, which provides for “Other furniture and parts thereof: Furniture of plastics: Other: Other household.” The 2022 column one, general rate of duty is 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 the internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N004954, NY N028531, NY N021597, NY L80593, NY N085595, NY B85455, NY N255629, NY N084056, NY F82793, and NY N149696 , are hereby revoked.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days
after its publication in the Customs Bulletin.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division