CLA-2-94:OT:RR:NC:N4:433

Karl F. Krueger
Radix Group International dba
DHL Global Forwarding
2660 20th Street
Port Huron, MI 48060

RE: The tariff classification of a Strawberry Tree and Strawberry Smart Bench from Serbia; and the country of origin pertaining to these two products.

Dear Mr. Krueger:

In your letter dated August 21, 2015, on behalf of 3fficient, you requested a tariff classification ruling for the Strawberry Tree and Strawberry Smart Bench, as well as the proper country of origin for both products. You state that both products contain solar panels made in Germany and sealed lead acid batteries made in Greece, with the balance of components including the structure, the charger and the energy management system made in Serbia. Illustrative literature was provided.

Marketing information indicates that the Strawberry Tree and Strawberry Smart Bench are “Strawberry energy LLC” products that are “bringing solar powered devices to urban spaces.” The Strawberry Tree features: charging mobile devises and WiFi, 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.

Strawberry Tree technical details and configurations are: solar powered and standalone; installed power 900W; battery capacity 4500 Wh (approximately 800,000 10-minute charges per year; battery management system works 24/7 during night and cloudy weather; 6 USB ports; 8 cables for charging mobile devices; sensors for temperature, humidity, air quality, air pressure and noise level; and WiFi 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 contains a battery management system that 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.

Strawberry Smart Bench technical details and configurations are: solar powered and standalone; installed power 100W; battery management system works 24/7 during night and 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; and fixed on ground. Excluding the bench, its 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.

The Strawberry Smart Bench has a smaller solar panel, less power, and only two USB ports and two cables. 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.

You indicate that the wood for the bench for the Strawberry Tree and the Strawberry Smart Bench may or may not be included, and in some cases the United States party may want to supply their own bench material from the United States, either because the material of wood is not desired by the buyer or recycled wood sourced in the United States is preferred. With an understanding that, without the bench for the Strawberry Tree and the Strawberry Smart Bench that the products may not fall within the meaning of furniture as defined by the Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS), because the products of the merchandise concerned may be more specifically provided for elsewhere in the tariff schedule other than heading 9401, HTSUS, the provision for seats, this office will only rule on products that contain a wooden bench upon import into the United States.

Please file a separate ruling request for the Strawberry Tree and the Strawberry Smart Bench not imported with their respective bench, with full and complete material breakdowns, bills of materials, and product information including a detailed explanation on the function and use of the products as imported.

When interpreting and implementing the HTSUS, the ENs of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The General ENs to Chapter 94 of the HTSUS, state, in relevant part, with regard to the meaning of furniture, at (A): 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, 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.

Further provided, the ENs to the HTSUS, Chapter 94, “Parts,” state: This Chapter only covers parts, whether or not in the rough, of the goods of headings 9401 to 9403 and 9405, when identifiable by their shape or other specific features as parts designed solely or principally for an article of those headings; they are classified in this chapter when not more specifically covered elsewhere.

It is our position that both the Strawberry Tree and the Strawberry Smart Bench fall within the meaning of furniture, for in their entirety (bench included at time of import) both products, although not appearing to be easily movable are in fact movable, placed on the floor or ground, and equip outdoor facilities in urban park-like environments with solar powered devices (stations) for the primary purpose of charging mobile devices, such as cell phones, laptops and tablets, while being able to sit on their respective benches. Accordingly, the Strawberry Tree and the Strawberry Smart Bench are classifiable in heading 9401, HTSUS.

The applicable subheading for the Strawberry Tree and the Strawberry Smart Bench, imported with their wooden bench, will be 9401.69.8031, Harmonized Tariff Schedule of the United States (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; Other.” The rate of duty will be 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 World Wide Web at http://www.usitc.gov/tata/hts/.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), and placed into Federal Regulation by 19 C.F.R. Part 134, provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. § 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).

Part 134 of Code of Federal Regulations implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b) of Part 134 defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of the marking laws and regulations. A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See Texas Instruments, Inc. v. United States, 69 C.C.P.A. 142, 681 F.2d 778 (1982).

In perspective, one finds that the Strawberry Tree and the Strawberry Smart Bench are solar powered charging stations each incorporating a wooden bench in the manufacture of smart furniture. The assembling of solar panels of German origin with batteries of Greek origin to components of Serbian origin may effect a substantial transformation of the merchandise concerned into new and different articles of commerce. However, there is nothing in the record as presented by DHL Global Forwarding or Strawberry Energy LLC to suggest that the solar panels of German origin and batteries of Greek origin assembled together with components of Serbian origin are further worked by means of complex assembly into new and different articles of commerce. Consequently, without step-by-step process descriptions of the manufacturing of the smart furniture, we are unable to rule upon the country of origin of the products at this time. Upon receipt of the process descriptions of all components assembled together, this office will rule upon the proper country of origin for the Strawberry Tree and the Strawberry Smart Bench.

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. If you have any questions regarding the ruling, contact National Import Specialist Neil H. Levy at [email protected].

Sincerely,

Gwenn Klein Kirschner
Director
National Commodity Specialist Division