CLA-2:OT:RR:CTF:TCM H276955 DSR
Karl F. Krueger
Radix Group International d/b/a
DHL Global Forwarding
2660 20th Street
Port Huron, MI 48060
RE: Request for reconsideration of NY N268135; Tariff classification of a Strawberry Tree and Strawberry Smart Bench from Serbia
Dear Mr. Krueger:
This letter is in reference to a request for reconsideration submitted by you on behalf of your client, 3fficient, concerning New York Ruling Letter (“NY”) N268135, dated September 23, 2015. That ruling concerned items identified as a “Strawberry Tree” and “Strawberry Smart Bench” under the Harmonized Tariff Schedule of the United States (“HTSUS”). The ruling classified the merchandise under subheading 9401.69.80, 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: Other: Other: Other….”
The facts of NY N268135 are, in relevant part, as follows:
The Strawberry Tree features: charging mobile devises and Wi-Fi, social hub, environmental sensing, and LED lights and emergency call. The Strawberry Smart Bench features: charging mobile devices, social hub, air quality sensing and panic button.” Both the Strawberry Tree and Strawberry Smart Bench are stated to be ideally suited for public and private spaces.
The Strawberry Tree’s technical details and configurations indicate that the item is solar powered and standalone and has an installed power of 900W and a battery capacity of 4500 Wh (approximately 800,000 10-minute charges per year). The device also contains a battery management system that works continuously 24 hours per day and seven days a week, both during the night and during cloudy weather; 6 USB ports; 8 cables for charging mobile devices; sensors for temperature, humidity, air quality, air pressure and noise level. The device is also Wi-Fi ready. Excluding the bench, photos depict a large rectangular shaped canopy that has a stated height of 172.8-inches, while the bench has dimensions of 165.4-inches in width by 50.4-inches in depth by 17.7-inches in height.
The Strawberry Tree is made of steel, and the battery management system supports the solar panels. Cables from the “tree” run underground through the cement foundation via conduit and to the bench, where there are eight charging cables and six USB ports. The unit is imported completely assembled, including the cement foundation. The battery management system and batteries, as well as the six USB ports are all in place and the entire unit is simply dropped into a hole in the ground and is functional.
The Strawberry Smart Bench’s technical details and configurations indicate that it is solar powered and standalone and has installed power of 100W. It contains a battery management system that works continuously 24 hours per day and seven days a week, both during the night and during cloudy weather; 2 USB ports; 2 cables for charging mobile devices; 1 wireless charger; sensors for temperature, humidity, air quality, air pressure and noise level. The Strawberry Smart Bench is not designed with a cement slab. It is designed to sit on the ground or sidewalk and has no underground connections. Excluding the bench, the entire item’s height is stated to be 103-inches by a width of 94.5-inches and a depth of 26.75-inches. No bench dimensions were provided. Marketing material cited by NY N268135 describes the items as “Strawberry energy LLC” products that are “bringing solar powered devices to urban spaces.”
You assert that the Strawberry Tree and Strawberry Smart Bench are instead classified as “other” rectifiers and rectifying apparatus under subheading 8504.40.95, HTSUS, which provides, in relevant part, for Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters: Other….”
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification is 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 on the basis of 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.
GRI 3(b) states, in pertinent part, that composite goods, 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.
The Explanatory Note* to heading 8504, HTSUS, states, in pertinent part, the following:
The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g., valves) of different types. They may also incorporate various auxiliary devices (e.g., transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternatively as conductors and non-conductors.
The fact that these apparatus often incorporated auxiliary circuits to regulate the voltage of the emerging current does not affect their classification in this group, nor does the fact that they are sometimes referred to as voltage or current regulators.
This group includes:
* * *
(D) Direct current converters by which direct current is converted to a different voltage…
This heading also includes stabilized suppliers (rectifiers combined with a regulator), e.g., uninterruptible power supply units for a range of electronic equipment.
The General ENs to Chapter 94, HTSUS, state in pertinent part, regarding the meaning of “furniture”:
For the purposes of this Chapter, the term “furniture” means:
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, cafes, restaurants, laboratories, hospitals…etc. … (It should be noted that, for the purposes of this Chapter, articles are considered to be “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 complete items are composed of different components (i.e., the solar panels and the bench components) that are independently classifiable under different HTSUS headings, so the instant products are composite goods.
The EN to 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.” You assert that the essential character of the items is provided by the benches and that the benches act as “battery chargers” that should be classified in heading 8504, HTSUS.
We do not dispute that the benches can generate energy by way of their solar panels and that there is a collection of control electronics and connections that enable the benches to supply that electricity directly to a device to charge. However, the canopy and the benches do not simply house solar panels and batteries to supply power to various electronics. They are marketed as “street smart furniture” designed to draw people to the bench components and act as gathering places for people to meet and socialize, shelter from the weather, etc. The benches are functional as furniture and are used as such regardless of whether an electronic device is connected for charging. In other words, the instant merchandise is essentially furniture. See also NY N319724, dated June 14, 2021 (classifying a picnic table with solar charging capability as furniture of heading 9403, HTSUS).
Based on the foregoing, the instant Strawberry Tree and Strawberry Smart Bench are properly classified, by application of GRIs 3(b) and 6, under heading 9401, HTSUS, and specifically under subheading 9401.69.80, 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: Other: Other: Other….” The general, column one rate of duty is free.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the U.S. International Trade Commission’s website at www.usitc.gov.
NY N268135 is hereby affirmed.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division