CLA-2-94:OT:RR:NC:N4:433
John Whitson
Customs Compliance Specialist
Costco Wholesale 999 Lake Drive
Issaquah, WA 98027
RE: The tariff classification of swivel office chairs from China.
Dear Mr. Whitson:
In your letter dated February 25, 2011, you requested a tariff classification ruling. No samples were provided.
Costco item number 557836 (True Innovations item # 40174) is described as a black cushioned home “office chair” with armrests, having a swivel base, and a gas lift that adjusts the seat’s height. The seat and front center of the seat back are made of plywood, covered in Puresoft polyurethane, with foam inside the back and seat cushions and arm pads, while PVC covers the sides of cushions, arm pads and the whole back cover. The base, seat plate, and arm brackets are made of metal, and the chair rests on five casters. Based on the information you provided, the material breakdown of the chair is 39.29% metal, 23.53% plastic, 22.92% plywood, 4.99% foam, 4.82% vinyl, 1.08% mesh and 3.37% other.
Costco item number 557837 (True Innovations item # 40173) is described as a black cushioned home “office chair” with armrests, having a swivel base, and a gas lift that adjusts the seat’s height. The seat and front center of the seat back are made of plywood, covered in Puresoft polyurethane, with foam inside the back and seat cushions and arm pads, while PVC covers the sides of the cushions, arm pad sides and the whole back cover. Black sandwich mesh adorns portions of the seat and front center of the seat back. The base and seat plate are made of metal, and the chair rests on five casters. Based on the information you provided, the material breakdown of the chair is 31.13% plywood, 29.40% plastic, 21.25% metal, 8.00% foam, 6.82% vinyl, 1.23% mesh and 2.17% other.
Costco item number 557838 (True Innovations item # E40895) is described as a brown (Montana Lodge) cushioned home “office chair” with armrests, having a swivel base, and a gas lift that adjusts the seat’s height. The seat and front center of the seat back are made of plywood, covered in Cow Top (CT) leather, with foam inside the back and seat cushions and arm pads, while PVC covers the sides of the cushions, arm pad sides and the whole back cover. The base and seat plate are made of metal, and the chair rests on five casters. Based on the information you provided, the material breakdown of the chair is 33.10% plastic, 25.10% plywood, 21.87% metal, 9.25% foam, 4.70% vinyl, 4.45% leather and 1.53% other.
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) shall be governed by the General Rules of Interpretation (GRIs), GRIs 1 – 6, in accordance with the following hierarchical principles. The applicable GRIs are as follows:
1. The table of contents, alphabetical index, and titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions:
3. 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:
(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
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, insofar as this criterion is applicable.
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.
6. For legal purposes the classification of goods in the subheadings of a heading shall be
determined according to the terms of those subheadings and any related subheading notes
and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the
same level are comparable. For the purposes of this rule, the relative section, chapter and
subchapter notes also apply, unless the context otherwise requires.
There is no disagreement that the swivel office chairs are classified in heading 9401, HTSUS. The question to answer is whether these goods are classifiable under subheading 9401.30.40 (with wood frames) or 9401.30.80 (other). As the underlying surface (seat and seat back) for the upper portion of each of the office chairs is made of plywood, one can abruptly conclude that the chairs fall within the provision of swivel seats with wooden frames. However, one must also take into account the heavy-duty base composed predominately of metal resting on top of five casters. It is both the base unit made of metal and the seat and seat back having an underlying surface of plywood that make-up the framework for each of these chairs. As such, we cannot use the principle of GRI 1 to make a determination that the chairs are composed of wooden frames.
Although unable to use the principle of GRI 1, the question to be answered still remains, whether these goods are classifiable under subheading 9401.30.40 (with wood frames) or 9401.30.80 (other), in accordance with the principles of GRI 3 (b) in conjunction with GRI 6. The swivel office chairs are composed of different components (metal, plastic, wood, foam and other materials as identified above) and are considered composite goods. Regarding the essential character of the goods, the Explanatory Notes (ENs) to GRI 3 (b) (VIII) to the Harmonized Tariff Schedule of the United States (HTSUS) 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, insofar as this criterion is applicable.
Composed predominately of metal, plastic and wood none of the materials and/or components impart the essential character to each of the goods, as all of these materials and/or components are necessary in the manufacture of the chairs – see New York Rulings N055628 dated April 17, 2009 and N063712 dated July 1, 2009. The heavy duty metal base forms only the lower portion of the chairs, while the polyurethane or Cow Top leather with PVC forms only the visual upper portion of the chairs; the underlying plywood of the seat and seat back is neither visible or a selling feature for the chairs. Furthermore, various sources for these types of chairs indicate that they are for both home or office use with no indication that these chairs are primarily for use in the home. When no one material or component provides the essential character of the item or items, then by application of GRI 3(c), in conjunction with GRI 6, the goods are classified last numerical in the HTSUS amongst those headings (subheadings) of equal consideration. Accordingly, the subheading occurring last in numerical order is 9401.30.8030, HTSUS.
The applicable subheading for the swivel office chair styles 557836, 557837, and 557838 will be 9401.30.8030, 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: Swivel Seats with variable height adjustment: 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/.
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 (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division