CLA-2-67:OT:RR:NC:N4:425
Mr. David Prata
Geodis USA at CVS Health
Mail Code 5055
1 CVS Drive
Woonsocket, RI 02895
RE: The tariff classification of artificial floral arrangements and baskets from China.
Dear Mr. Prata:
In your letter dated March 27, 2017, you requested a tariff classification ruling.
The first submitted sample, identified as CVS item 253733, 12” Pumpkin with Floral, consists of an assortment of two different artificial floral arrangements set into an artificial pumpkin. Style A features an orange polystyrene pumpkin filled with permanently affixed, bright orange colored man-made textile flowers and leaves, as well as a natural pine cone, and artificial foliage composed of plastic leaves, stems and foam berries. Although described as measuring 12”, the sample actually measures approximately 10” in diameter by 10” in in height. Style B is the same as Style A except for color. The 12” Pumpkin with Floral is considered to be a composite good within the meaning of General Rule of Interpretation (GRI) 3. The vibrantly colored artificial foliage provides the article’s ornamental and decorative appeal, and imparts the essential character to both styles.
The second submitted sample, identified as CVS Item 253723 A, 12” Basket with Floral, is comprised of artificial flowers, leaves and berries constructed of polyester fabric and plastic, arranged in a basket with one flat side to allow for hanging on a wall. The basket with arched handle includes a foam body into which the flowers and foliage are glued. The exterior of the basket is constructed of interwoven vine-like twigs. The complete floral basket measures approximately 12” wide x 11” high x 5” deep.
Item 253723 B is constructed in the same manner as 253723 A, but contains a different mix of fabric flowers, plus accents of pine cone and artificial miniature pumpkins.
The various component materials which make up the floral wall baskets are classifiable under separate headings in the Harmonized Tariff Schedule of the United States (HTSUS) and all contribute to the finished article.
The classification of merchandise under the 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. For the instant items, neither GRI 1 nor GRI 2 are applicable. Because the materials from which the samples are constructed are prima facie classifiable in different headings, the floral baskets are composite goods 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.
The type of case-by-case arguments taken into account when considering the essential character of floral baskets can be found in Headquarters ruling H147436, dated May 11, 2011. Applying this ruling analysis to the instant item, we determine that the essential character of items 253723 A and B is imparted by the woven natural basket which predominates by value, according to your submitted breakdowns. It also provides a substantial decorative appeal of its own and allows for wall hanging.
Note 1 to Chapter 46, Harmonized Tariff Schedule of the United States (HTSUS) defines the term “plaiting materials” as: 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. The vine-like twigs forming the exterior of the basket constitute plaiting materials.
The applicable subheading for the “12” Pumpkin with Floral” will be 6702.90.3500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Artificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit: Of other materials: Other: Of man-made fibers.” The rate of duty will be 9 percent ad valorem.
The applicable subheading for the floral wall baskets will be 4602.19.1700, 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 baskets and bags, whether or not lined: Other: Wickerwork.” 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 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 Wayne Kessler at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division