CLA-2-94:OT:RR:NC:N4:410
Ms. Paula Connelly
Law Offices of Paula M. Connelly
100 Trade Center Suite 660
Woburn, MA 01801
RE: The tariff classification of LED wax and resin candles from China
Dear Ms. Connelly:
In your letter dated January 2, 2019, on behalf of Sterno Home, you requested a tariff classification ruling. Representative samples were submitted with your ruling request and will be returned to you.
The merchandise under consideration is five styles of LED flameless wax and resin candles. Each Style consists of a pillar-shaped, votive-shaped or tapered-shaped wax/plastic candle that is hollowed out at the top to house a wick and an LED lamp. The candles have a switch on the bottom which turns the candle off and on. The candles feature a diffuser which allows the LED glow to appear to be flickering. The merchandise is described as the following:
Style CGT54600WH01, is a 3" by 6" flameless "Black Wick" LED candle comprised of wax. The candle features an embedded LED lamp within the candle body which is attached to a printed circuit board by means of a plastic extension piece. There is no illuminated flame on the top of the candle.
Style CGT20306WH, is similar to Style CGT54600WH01 except that the candle is made of plastic resin.
Style CG10288CR06, is a package of 2 "Black Wick" mini-votives comprised of wax. The candle features an embedded LED lamp within the candle body which is attached to a printed circuit board by means of a plastic extension piece. There is no illuminated flame on the top of the candle.
Style CG10290CR4, is a package of 4 "Black Wick" votives comprised of wax covered resin. The candle features an embedded LED lamp within the candle body which is attached to a printed circuit board by means of a plastic extension piece. There is no illuminated flame on the top of the candle. These votives are also available in 1.75" size and 3" size, similarly constructed of wax covered resin.
Style CGT13109CR2, is a package of 2 "Black Wick" 9" tapers comprised of wax covered resin. The candle features an embedded LED lamp within the candle body which is attached to a printed circuit board by means of a plastic extension piece. There is no illuminated flame on the top of the candle.
Your request states you believe Styles CGT546000WH01, CG10288CR06, CG10290CR4, and CGT13109CR2 should be classified under 9602.00.4000 Harmonized Tariff Schedule of the United States (HTSUS) as “Molded articles of wax”, and Style CGT20306WH should be classified under 3926.40.0090, HTSUS, as “Other articles of plastics and articles of other materials of headings 3901 to 3914: Statuettes and other ornamental articles, Other”. You state that the candles do not feature a lit flame light and are not sufficient to illuminate the surrounding area.
We disagree. Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). When classifying the subject merchandise, we must first take into consideration GRI 1. GRI 1 states, in part, that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. Heading 9405, provides in relevant part for "Lamps and light fittings … not elsewhere specified or included." Explanatory Note (I) (1) of Heading 94.05 states: “This heading covers in particular: Lamps and lighting fittings normally used for the illumination of rooms.”
Relying on the common meaning of the term, CBP has previously determined that lamps are devices which provide an isolated source of heat or light and classifies similar LED pillar-shaped wax candles in heading 9405 (see H003217). The subject LED candle lights satisfy the definition of a lamp in that, as imported they are stand-alone illumination devices. The amount of light should not deter that in this case. Therefore, the subject LED candles are classified by application of GRI 1 under heading 9405.
Furthermore, Judgment Order entered on August 6, 2018 for the Gerson Company v. United States, CIT No. 11-00225 and the U.S. Court of Appeals for the Federal Circuit, Appeal No. 18-1011 affirmed the classification of similar merchandise. The Gerson’s imported merchandise consisted of finished decorative candle and tea light lamps made of plastic and/or wax. The lamps were designed to resemble ordinary candles, such as votive, pillar, taper, or tea light candles. The court's decision stated: “We have considered Gerson’s and its amici’s remaining arguments and find them unpersuasive. The Trade Court correctly determined that Gerson’s candles are classifiable under subheading 9405.40.80, subject to a duty rate of 3.9% ad valorem.” We found that there is no material difference in construction between the merchandise in the Gerson case and the subject LED candles. They are made of a hollowed-out wax/plasticcandle and illuminated with an LED lamp from inside of the candle. The Gerson merchandise feaeturs a “flame” while the subject merchandise has a “Black Wick”.
The applicable subheading for the subject LED wax and resin candles will be 9405.40.8440, HTSUS, which provides for “Lamps and lighting fittings…: Other electric lamps and lighting fittings: Other: Other.” The rate of duty will be 3.9 percent ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 9405.40.8440, HTSUS, unless specifically excluded, are subject to the additional 10 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 9405.40.8440, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 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. If you have any questions regarding the ruling, contact National Import Specialist Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division