CLA-2-46:OT:RR:NC:2:230
Ms. Heather Mooney
QVC, Inc.
1200 Wilson Drive
West Chester, PA 19380-4262
RE: The tariff classification of a decorative wheat bundle with LED lights from China
Dear Ms. Mooney:
In your letter dated May 11, 2011, you requested a tariff classification ruling.
The ruling was requested on a decorative wheat bundle with LED lights, identified as item H192564. A representative sample was submitted for our review and will be returned to you as requested.
Item H192564 is a made-up decorative article with the appearance of a uniformly cut sheaf of wheat including ears of grain. The item measures approximately 17 1/2 inches in height. The item’s diameter ranges from 5 inches at its base to 7 inches across the top. The wheat bundle consists of several wheat stalks placed side by side around a cylindrical Styrofoam column. The stalks completely conceal the Styrofoam. The stalks are held in place against the Styrofoam by wire and paper strips 1 1/2 inches from the bottom and 4 1/2 inches from the top of the item. Several grain ears are inserted into the top of the Styrofoam to give the appearance of a bundle composed completely of wheat. The Styrofoam at the base of the item has a compartment that houses a battery pack for a string of LED lights. The cord for the lights runs upward through the center of the Styrofoam, and the lights are dispersed amongst the wheat ears.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation ("GRIs"), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that 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 will be applied, in the order of their appearance.
The wheat bundle is constructed primarily of wheat stalks, LED lights, and Styrofoam. The wheat stalks constitute “plaiting materials” as set forth in Chapter Note 1 of Chapter 46, Harmonized Tariff Schedule of the United States (“HTSUS”), which states as follows:
In this chapter the expression “plaiting materials” means materials in a state or form suitable for plaiting, interlacing or similar processes; it includes straw, osier or willow, bamboos, rattans, rushes, reeds, strips of wood, strips of other vegetable material (for example, strips of bark, narrow leaves and raffia or other strips obtained from broad leaves), unspun natural textile fibers, monofilament and strip and the like of plastics and strips of paper, but not strips of leather or composition leather or of felt or nonwovens, human hair, horsehair, textile rovings or yarns, or monofilament and strip and the like of chapter 54.
Because the stalks, LED lights, and Styrofoam are materials that are prima facie classifiable in different headings, the bundle is a composite good within the meaning of General Rule of Interpretation (GRI) 3(b). GRI 3(b) states, in pertinent part:
(b) 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.
In accordance with the Explanatory Notes (ENs) for GRI 3(b), the essential character of an item may 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. According to the value and material breakdowns provided, the wheat stalks are the predominant material. The Styrofoam, while structurally significant, is completely obscured and provides no consumer appeal. Although the LED lights contribute significant value and weight to the item, Legal note 1(l) to Chapter 94, HTSUS, specifically excludes decorations other than electric garlands. Therefore, the wheat stalks impart the item with its essential character.
The applicable subheading for the wheat bundle with LED lights will be 4602.19.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601: Of vegetable materials: Other (than of bamboo or rattan): Other: Other: Other. The rate of duty will be 2.3 percent ad valorem.
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 Laurel Duvall at (646) 733-3035.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division