CLA-2-84:OT:RR:NC:N1:102
Johanna Danforth
Nature’s Mark, LLC
2358 East Walnut Avenue
Fullerton, CA 92831
RE: The tariff classification of a tabletop water fountain from China
Dear Ms. Danforth:
In your letter dated February 20, 2019, you requested a tariff classification ruling on behalf of your client, Walgreen Company of Deerfield, Illinois. A sample was provided with your request and will be returned to your office.
The product at issue is an LED Waterfall Fountain (Walgreen SKU number: WIC#564904), (Nature’s Mark Item # NM-F16639AA). You state in your request that the LED Waterfall Fountain measures 6 inches wide, 4.3 inches in depth and 10.5 inches in height, is battery powered and is designed for indoor use. The fountain includes a pump and once the fountain is filled with water and powered on, water is pumped through a tube that leads to the top of the fountain. The fountain is constructed primarily of plastic material.
In your request, you suggested that this item is correctly classified under subheading 3926.40.00, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of plastics and articles of other materials of heading 3901 to 3914: Statuettes and other ornamental articles. We disagree.
GRI 3(b) provides that mixtures and composite goods consisting of different materials or components shall be classified as if the consisted solely of the material or component that which gives them their essential character. Explanatory Note VIII to GRI 3(b) states that the factor which determines essential character will vary as between different kinds of goods. It may, for example, 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 good.
Court case Conair Corp. v. United States, Slip Op. 2005-95 (CIT August 12, 2005), discusses a similar product, in which it was determined that the pump imparts the essential character. The determination is based on the premise that the pump produces a flow of water and thus, provides the visual and auditory appeal. As such, the fountain was classified under HTSUS subheading 8413.70.2004. In this instance, the pump imparts the essential character of the fountain, as it provides the visual and auditory appeal.
It is noted that in your letter, rulings HQ 964942 (08/06/2001), HQ 964894 (08/06/2001), and NY J84151 (06/30/2003) were cited to support the suggested subheading. However, these rulings have been superseded by the decision in the Conair Corp. court case.
Therefore, in accordance with GRI 3b, the applicable subheading for the LED Waterfall Fountain (Walgreen SKU number: WIC#564904), (Nature’s Mark Item # NM-F16639AA) will be 8413.70.2004, HTSUS, which provides for Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; Other centrifugal pumps; Other; Submersible pumps. The general rate of duty will be Free.
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. Subsequently, 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. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710) and August 16, 2018 (83 F.R. 40823). Products of China that are provided for in subheading 9903.88.01 or 9903.88.02 and classified in one of the subheadings enumerated in U.S. note 20(b) or U.S. note 20(d) 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 8413.70.2004, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8413.70.2004, HTSUS, listed above at the time of importation.
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 the 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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division