CLA-2 OT:RR:CTF:TCM H278188 NCD
Ms. Lesa R. Hubbard
J.C. Penney Purchasing Corporation
P.O. Box 10001
Dallas, Texas 75301-0001
RE: Revocation of HQ H044957, HQ H044959, and HQ H058924; Classification of plastic water dispensers
Dear Ms. Hubbard:
This is in reference to Headquarters Ruling Letter (HQ) HQ H044957, issued to you by U.S. Customs and Border Protection (CBP) on August 2, 2011. We have reviewed HQ H044957, which involved classification of a “mini” water dispenser under the Harmonized Tariff Schedule of the United States (HTSUS), and determined that it is incorrect. For the reasons set forth below, we are revoking that ruling.
We have additionally reviewed HQ H044959 and HQ H058924, both dated August 2, 2011, which similarly involved classification of plastic water dispensers under the HTSUS. As with HQ H044957, we have determined that HQ H044959 and HQ H058924 are incorrect and, for the reasons set forth below, are revoking those rulings.
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 of the proposed action was published in the Customs Bulletin, Vol. 50, No. 45, on November 9, 2016. No comments were received in response to the notice.
FACTS:
HQ H044957, which revoked New York Ruling Letter (NY) I82366, dated July 5, 2002, provides the following description of the “mini” water dispenser at issue:
[A] mini dispenser…comprised of a dispensing base and an inverted water bottle that essentially replicates in miniature a typical bottled water dispenser. You indicate that the dispenser is designed to hold and dispense the eight, eight ounce glasses of water that are generally recommended for daily drinking. Both the base and bottle are constructed of plastic and are imported shrink-wrapped and packaged together for retail sale. The base incorporates a hand-operated valve with a spout to control the flow of water from the storage bottle.
In HQ H044959, which revoked NY L89010, dated December 12, 2005, the Penguin Water Dispenser at issue was described as follows:
The dispenser is comprised of a dispensing base, which is in the shape of a penguin, and an inverted water bottle. Both the base and bottle are constructed of plastic and are imported packaged together for retail sale. The base incorporates a hand-operated valve with a spout to control the flow of water from the storage bottle.
HQ H058924, which revoked NY R04997, dated October 26, 2006, provides the following description of the water bottle dispenser at issue:
[A] water dispenser … comprised of a plastic water bottle and a plastic stand. The stand incorporates a hand-operated valve to control the flow of water from the bottle.
In HQ H044957, HQ H044959, and HQ H058924 alike, the various beverage dispensers at issue were classified in subheading 3926.90.99, HTSUS, which provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other.”
ISSUE:
Whether the subject water dispensers are properly classified as tableware of plastic in heading 3924, HTSUS, or as “other” articles of plastics in heading 3926, HTSUS.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes.
GRI 1 requires that classification be determined first 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 heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
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 2016 HTSUS provisions under consideration are as follows:
3924 Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics:
3924.10 Tableware and kitchenware:
3924.10.40 Other
3926 Other articles of plastics and articles of other materials of headings 3901 to 3914:
Other:
3926.90.99 Other
As a preliminary matter, the subject water dispensers can only be classified in heading 3926, HTSUS, if they are not more specifically classifiable in heading 3924, HTSUS. See EN 39.26 (“This heading covers articles, not elsewhere specified or included.”); Container Store v. United States, 145 F. Supp. 3d 1331, 1341 (Ct. Int'l Trade 2016) (characterizing heading 3926 as a “broad basket provision” that “only cover[s] articles not specified elsewhere”).
Accordingly, we initially consider heading 3924, HTSUS, which provides, inter alia, for tableware of plastics. EN 39.24 states, in pertinent part, as follows:
This heading covers the following articles of plastics:
Tableware such as tea or coffee services, plates, soup tureens, salad bowls, dishes and trays of all kinds, coffee-pots, teapots, sugar bowls, beer mugs, cups, sauce-boats, fruit bowls, cruets, salt cellars, mustard pots, egg-cups, teapot stands, table mats, knife rests, serviette rings, knives, forks and spoons.
Among the above-named exemplars in EN 39.24 of “tableware” are several items, such as soup tureens, salad bowls, and fruit bowls, that are designed for placement upon tabletops and the subsequent dispensation of food or beverages from their stationary positions. Thus, the EN 39.24 makes clear that heading 3924 applies to items designed for such use. See LeMans Corp. v. United States, 660 F.3d 1311, 1321 (Fed. Cir. 2011) (stating that use of EN exemplars to clarify the scope of a heading is “entirely proper”). Consistent with this, CBP has previously treated plastic beverage and food dispensers consisting of containers set upon stationary bases as tableware for purposes of heading 3924. For example, in HQ 958719, dated February 26, 1998, we classified a candy dispenser consisting of a top “reservoir” designed to hold and dispense candy, as well as a bottom stand upon which the reservoir was set, in heading 3924. Similarly, in NY R04736, dated September 14, 2006, CBP classified a countertop beverage dispenser made up of a plastic cylindrical beverage container and plastic base in heading 3924.
Here, like the products at issue in HQ 958719 and NY R04736, the entirety of the subject merchandise consists of plastic containers set upon plastic bases, the latter of which dispenses the water stored in the containers by operation of attached valves. Insofar as they bear these features, the subject water dispensers are designed for placement upon a tabletop and for dispensation of the stored water once set. As such, they qualify as tableware within the meaning of heading 3924, HTSUS, and are properly classified in that heading.
Lastly, we note that while the subject merchandise in HQ H044957, HQ H044959, and HQ H058924 was classified in heading 3926 by application of GRI 3(b) in those rulings, we need not apply GRI 3(b) because the merchandise is in fact described in whole by heading 3924, and is therefore classified there by application of GRI 1.
HOLDING:
By application of GRI 1, the subject water dispensers are properly classified in heading 3924, HTSUS. They are specifically classified in subheading 3924.10.4000 HTSUSA (Annotated), which provides for: “Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: Tableware and kitchenware: Other.” The 2016 column one general rate of duty is 3.5% ad valorem.
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:
Headquarters Ruling Letters H044957, HQ H044959, and HQ H058924, all dated August 2, 2011, are hereby REVOKED in accordance with the above analysis.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division
CC: Ms. Lorianne Aldinger
Rite Aid Corporation
P.O. Box 3165
Harrisburg, PA 17105
Mr. Todd Stumpf
Stonepath Logistics
1930 6th Avenue
Suite 401
Seattle, WA 98134