CLA-2-94:OT:RR:NC:N4:463
Scott D. Hoffman
Trans American Customs Brokers
52 Sonwil Drive
Buffalo, NY 14225
RE: The classification and country of origin of three tables
Dear Mr. Hoffman:
This ruling is being issued in response to your letter dated April 23, 2024, requesting a tariff classification and country of origin determination on behalf of your client, SLK Home Ltd. In lieu of samples, pictures, drawings, product descriptions and cost data were provided.
Per the submitted information, the articles are three tables as described below:
Item 1: The Troy 48 table is a circular table with a circular pedestal. The table has a 48" diameter white artificial stone tabletop with gray veins and is 30" high. The pedestal is made of vertical wood slats, stained brown, and has a 22" diameter. The complete table weighs approximately 250 lbs.
Item 2: The Alera 72 table is an oval table with an oval pedestal. The table has a 72" long white artificial stone tabletop with gray veins and is 30" high. The oval pedestal is made of vertical wood slats, stained brown, and has a 39" length. The complete table weighs approximately 260 lbs.
Item 3: The Alera 86 table is an oval table with an oval pedestal. The table has an 86" long white artificial stone tabletop with gray veins and is 30" high. The oval pedestal is made of vertical wood slats, stained brown, and has a 47" length. The complete table weighs approximately 385 lbs.
The wood pedestals are manufactured in China and shipped to Thailand where they are packaged with their respective artificial stone tabletops (88% stone powder and 12% polyester resin) for export to the United States. See images below:
Troy 48 Alera 72 Alera 86
OPERATIONS PERFORMED IN CHINA: PEDESTAL
Molding – wood cutting – base joining – strip attaching – drilling – sanding – 1st painting – sanding – final painting – inspecting – packaging for export to Thailand.
OPERATIONS PERFORMED IN THAILAND: TABLETOP
Cutting – beveling – polishing (6 - 12 steps) – cleaning – inspecting – glueing underside –final inspecting – packaging for export with the pedestal to the United States.
CLASSIFICATION:
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be 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 based on 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.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and coding System, which constitutes the official interpretation of the Harmonized System 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. The ENs to Chapter 94 of the HTSUS state, in relevant part, for the purposes of this Chapter, that 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…. The three tables, subject of this ruling, meet this definition of furniture.
Since the articles are composed of different materials (stone, wood, etc.), they are considered composite goods for tariff purposes. The ENs to the HTSUS, 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.” 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. Barring significant evidence to the contrary, U.S. Customs and Border Protection (CBP) has historically found that the material comprising the tabletop imparts the essential character to a table. (See NYRLs N324295, N331972, N332328, N334127, N334774, N334660, N334531, and N336633.) These tables are no exception. The stone tabletops provide these tables with their functionality and account for the majority of their weight, value, visual appeal, and utility. The tables will be classified accordingly.
The applicable classification for the Troy 48, Alera 72 and Alera 86 tables will be subheading 9403.89.6020, HTSUS, which provides for “Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other, Other.” The general rate of duty will be free.
COUNTRY OF ORIGIN:
Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)), 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”. In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative.
The three pedestals are manufactured in China using the following sequential multistep process: molding, wood cutting, base joining, strip attaching, drilling, sanding, 1st painting, sanding, final painting, inspecting, and packaging for export to Thailand.
The three tabletops are manufactured in Thailand using the following sequential multistep process: slab cutting, beveling, polishing (6 - 12 steps), cleaning, inspecting, gluing underside, and final inspecting.
The tabletops and their corresponding pedestals are then packaged, unassembled, in Thailand for export to the U.S., where final assembly will take place.
Although the cost expended in one country versus that expended in another is a crude measure of the complexity, skill, or number of manufacturing operations, it may be a useful tool when comparing similar processes performed in two or more countries. With respect to each of these three tables, more than 2/3 of the material and manufacturing costs are incurred in Thailand and less than 1/3 of the material and manufacturing costs are incurred in China.
Based upon the number, complexity, and cost of the manufacturing operations performed in Thailand on the stone tabletops (the component that imparts the essential character to the table) versus the number, complexity, and cost of the manufacturing operations performed in China on the pedestal, and the sequence of operations—the Chinese pedestal is packaged with the Thai tabletop in Thailand to produce an unassembled table—this office finds that the country of origin of the three tables subject of this ruling is Thailand.
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 https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. If the facts are modified in any way, or if the goods do not conform to these facts at the time of importation, you should bring this to the attention of CBP and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division