CLA-2 OT:RR:CTF:EMAIN H325523 PF
Joy R. Semenuk
LG Sourcing, Inc.
1000 Lowe's Blvd.
Mooresville, North Carolina 28117
RE: Tariff classification of fireplace mantels with built-in electric fireplaces from China
Dear Ms. Semenuk:
This is in reply to your request for a prospective ruling on the tariff classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of fireplace mantels with built-in electric fireplaces. Your request was forwarded by the National Commodity Specialist Division to this office for a response.
FACTS:
There are three fireplace mantels with built-in electric fireplaces at issue. They are identified by product numbers 4976260, 4976290, and 4983744. You provided the following information regarding the subject merchandise:
Product 4976260 consists of a fireplace insert and a decorative surround. You indicate both components are about equal in value. The fireplace surround consists of medium density fiberboard (MDF) for the faux stone to be placed upon as well as the top visual shelf and lower portions. The fireplace can stand on level floor where a homeowner chooses to place it. The material around the electric insert firebox offers safety and esthetics. The faux stone is comprised of magnesium oxide fiberglass with a cement binder. The electric heater/firebox is infrared quartz and has manmade logs, light-emitting diode (LED) light fire effect, and the heater has a thermostat and blower fan. It also has a remote controller powered by two AAA batteries. The product has maximum wattage of 1,500 and produces 5,100 BTUs per hour for supplemental heat up to 1,000 square feet. It measures 14 inches (depth) by 41.25 inches (height) by 43.5 inches (width) and weighs 115 pounds. This fireplace stylized heater is meant for supplemental heating and is not truly meant to be moved around much; rather, it will usually remain where it is positioned.
Product 4976260
Product 4976290 consists of a fireplace insert and a decorative surround. You indicate both components are about equal in value. The fireplace surround consists of MDF for the faux stone to be placed upon as well as the top visual shelf and lower portions. The fireplace can stand on level floor where a homeowner chooses to place it. The material around the electric insert firebox offers safety and esthetics. The faux stone is comprised of magnesium oxide fiberglass with a cement binder. The electric heater/firebox is infrared quartz and has manmade logs, LED light fire effect, and the heater has a thermostat and blower fan. It also has a remote controller powered by one CR2025 lithium battery. The product has maximum wattage of 1,500 and produces 5,100 BTUs per hour for supplemental heat up to 1,000 square feet. It measures 15.5 inches (depth) by 40.75 inches (height) by 53 inches (width) and weighs 161 pounds. This fireplace stylized heater is meant for supplemental heating and is not truly meant to be moved around much; rather, it will usually remain where it is positioned.
Product 4976290
Product 4983744 consists of a fireplace insert and a decorative surround. You indicate both components are about equal in value. The fireplace surround consists of MDF for the faux stone to be placed upon as well as the top visual shelf and lower portions. The fireplace can stand on level floor where a homeowner chooses to place it. The material around the electric insert firebox offers safety and esthetics. The faux stone is comprised of magnesium oxide fiberglass with a cement binder. The electric heater/firebox is infrared quartz and has manmade logs, LED light fire effect, and the heater has a thermostat and blower fan. It also has a remote controller powered by one CR2025 lithium battery. The product has maximum wattage of 1,500 and produces 5,100 BTUs per hour for supplemental heat up to 1,000 square feet. It measures 15.5 inches (depth) by 41 inches (height) by 44.5 inches (width) and weighs 155 pounds. This fireplace stylized heater is meant for supplemental heating and is not truly meant to be moved around much; rather, it will usually remain where it is positioned.
Product 4983744
ISSUE:
Whether the fireplace mantels with built-in electric fireplaces are classified as electric space heaters of heading 8516, HTSUS, or as other furniture of heading 9403, 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 (AUSR). The GRIs and the AUSR are part of the HTSUS, and are 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 and, unless otherwise required, according to the remaining GRIs taken in order. 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. Rule 2(a) relates to incomplete or unfinished goods. Rule 2(b) relates to mixtures and combinations of materials or substances.
Rule 3 provides, in pertinent part, that
When, by application of Rule 2(b) or for any other reason, goods are prima facie, classifiable under two or more headings, classification shall be effected as follows:
[t]he heading which provides the most specific description shall be preferred to headings providing a more general description....
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….
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
The HTSUS headings under consideration are as follows:
8516 Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electrothermic hairdressing apparatus (for example, hair dryers, hair curlers, curling tong heaters) and hand dryers; electric flatirons; other electrothermic appliances of a kind used for domestic purposes; electric heating resistors, other than those of heading 8545; parts thereof:
9403 Other furniture and parts thereof:
Legal Note 2 to Chapter 94 provides that:
The articles (other than parts) referred to in headings 9401 to 9403 are to be classified in those headings only if they are designed for placing on the floor or ground.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the HTSUS 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. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The ENs to GRI 3(b) provide, in pertinent part, that:
(VII) In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(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.
(IX) For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.
The General EN to Chapter 94 states that for the purposes of this Chapter, 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. (It should be noted that, for 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 included in this category.
(B) The following: (i) Cupboards, bookcases, other shelved furniture and unit furniture designed to be hung, to be fixed to the wall or to stand one on the other or side by side, for holding various objects or articles (books, crockery, kitchen utensils, glassware, linen, medicaments, toilet articles, radio or television receivers, ornaments, etc.) and separately presented elements of unit furniture; and (ii) Seats or beds designed to be hung or to be fixed to the wall.
…
Headings 94.01 to 94.03 cover articles of furniture of any material (wood, osier, bamboo, cane, plastics, base metals, glass, leather, stone, ceramics, etc.). Such furniture remains in these headings whether or not stuffed or covered, with worked or unworked surfaces, carved, inlaid, decoratively painted, fitted with mirrors or other glass fitments, or on castors, etc.
EN 94.03 further provides, 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, show cases, tables, telephone stands, writing desks, escritoires, book cases, and other shelved furniture, etc.), and also furniture for special uses.
The heading includes furnitures for:
Private dwellings, hotels, etc., such as: cabinets, linen chests, bread
chests, log chests; chests of drawers, tallboys; pedestals, plant stands; dressing tables; pedestal tables; wardrobes, linen presses; hall stands, umbrella stands; side boards, dressers, cupboards; food safes; bedside tables; beds (including wardrobe beds, camp beds, folding beds, cots, etc.); needlework tables; foot stools, fire screens; draught screens; pedestal ashtrays; music cabinets, music stands or desks; play pens; serving trolleys (whether or not fitted with a hot plate).
The EN to 85.16 states the following:
(B) ELECTRIC SPACE HEATING APPARATUS AND SOIL HEATING APPARATUS This group includes: (2) Electric Fires (fan heaters and radiant heaters), including portable types with parabolic reflectors and sometimes with built-in fans. Many of these fires are fitted with colored lamps and flicker devices to imitate a coal or wood fire.
As indicated above, GRI 3(b) provides guidance for mixtures, composite goods, and goods put up in sets for retail sale. EN IX to GRI 3(b) provides that “composite goods made up of different components shall be taken to mean not only those in which the component are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.” (Emphasis original). As such, the fireplace mantels are composite goods because they consist of furniture of heading 9403, HTSUS, and electric space heating apparatus of heading 8516, HTSUS.
Under GRI 3(b), composite goods must be classified according to the material or component that imparts the article with its essential character. The “essential character” of an article is “that which is indispensable to the structure, core or condition of the article, i.e., what it is.” Structural Industries v. United States, 360 F. Supp. 2d 1330, 1336 (Ct. Int’l Trade 2005). EN VIII to GRI 3(b) explains that “[t]he 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 the constituent material in relation to the use of the goods.” Several court decisions on the essential character for GRI 3(b) purposes have looked primarily to the role of the constituent material in relation to the use of the goods. See Estee Lauder, Inc. v. United States, 815 F. Supp. 2d 1287, 1296 (Ct. Int’l Trade 2012); Structural Industries, 360 F. Supp. 2d 1330; Conair Corp. v. United States, 29 C.I.T. 888 (2005); Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278 (Ct. Int’l Trade 2006), aff’d 491 F.3d 1334 (Fed. Cir. 2007). “[E]ssential character is that which is indispensable to the structure, core or condition of the article, i.e., what it is.” Home Depot USA, Inc., 427 F. Supp. 2d at 1293 (quoting A.N. Deringer, Inc. v. United States, 66 Cust. Ct. 378, 383 (1971)). 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.
We are of the opinion that neither the heating function nor the furniture function predominates to impart the essential character to the whole article. The fireplace mantel with the built-in electric fireplace functions as a heater only on occasion when heat is desired and is only suitable for heating a small space. Consumers seeking merely the function of an electric heater will avail themselves of an inexpensive portable heater. Moreover, these fireplace mantels with built-in electric fireplaces function as furniture, equipping a dwelling and providing a surface to hold or display other items in a visually appealing manner, all of the time. Nor does the application of the other factors mentioned in GRI 3(b) EN at VIII (the nature of the material or component, its bulk, quantity, weight or value) to the fireplace mantels with built-in electric fireplaces provide a predominant attribute.( As the fireplace mantels with built-in electric fireplaces serve as both heaters and furniture, and neither characteristic predominates, no essential character determination can be made, so we proceed to GRI 3(c).
GRI 3(c) EN at XII states: “When goods cannot be classified by reference to Rule 3(a) specific description or 3(b) essential character, they are to be classified in the heading which occurs last in numerical order among those which equally merit consideration in determining their classification.” Neither the heating function nor the furniture function imparts the essential character to the fireplace mantels with built-in electric fireplaces. Both functions equally contribute to the nature and character of the article. In accordance with GRI 3(c), the article will be classified last in the tariff. In this case (heading 8516 vs. heading 9403) heading 9403 occurs last in the tariff schedule and accordingly the subject merchandise is classified in heading 9403, HTSUS. Moreover, the applicable subheading for the fireplace mantels with built-in electric fireplaces will be 9403.60.80, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Other wooden furniture: Other.”
Our decision is consistent with New York Ruling (“NY”) NY N276702, (dated July 19, 2016) (classifying a fireplace mantel with a built-in electric fireplace in heading 9403, HTSUS) and NY N257086 (dated October 9, 2014) (finding that a fireplace mantel with a built-in electric fireplace was classified in heading 9403, HTSUS).
HOLDING:
By application of GRIs 1, 3(c), and 6, the subject fireplace mantels with built-in electric fireplaces are classified in heading 9403 HTSUS, and specifically in subheading 9403.60.80, which provides for “Other furniture and parts thereof: Other wooden furniture: Other.” The column one, general rate of duty for merchandise of this subheading is Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under 9403.60.80, 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 9403.60.80, 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. This ruling is being issued under the provisions of Part 177 of the Customs 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.
Sincerely,
Gregory Connor, Chief
Electronics, Machinery, Automotive, and International Nomenclature Branch