CLA-2-96:OT:RR:NC:N4:422
Ms. Kimberly R. Dickson
BIC USA Inc.
One BIC Way, Suite 1
Shelton, CT 06484-6299
RE: The tariff classification of a “Multipurpose SPA Gift Set” from China.
Dear Ms. Dickson:
In your letter dated August 20, 2019, you requested a tariff classification ruling.
You submitted a photograph and detailed description of a retail gift set identified as a “Multipurpose SPA Gift Set.” The set is packaged in a cardboard box with cut-out display windows and contains a small lavender scented, vegetable based wax candle and a long-necked multipurpose butane lighter. The lighter is of a type that would be used to light barbeque grills and fireplaces. The lighter is non-refillable and is said to measure approximately 12” (L )x 1”(W) x 2”(H). The candle is said to measure 3.5” in height with a diameter of 2”. The lighter is sold ready to use, filled with butane.
In your request, you proposed that this set would be classified by the candle under subheading 3406.00.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “candles, tapers and the like” utilizing General Rule of Interpretation (GRI) 3(b). We disagree. While this office does believe this product qualifies as a set for classification purposes, we do not share the view that the candle imparts the essential character. When making the essential character determination, the Explanatory Notes provide some guidance on what factors to consider, they specifically name “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 multi-use lighter has a higher value in comparison to the candle. When reviewing the provided image of the packaging, the multi-use lighter predominates in visual space in contrast to the much smaller area held by the candle. Per your submission, this set “will be merchandised and sold in or near the candle aisle and potentially in a gift aisle during the holiday season. Since most multi-outlet retail channels do not have a dedicated space for multi-purpose lighters, they are usually placed next to something else.” In this office’s opinion, this statement further indicates that this product will not be sold as a candle that includes a multi-use lighter, but rather as a multi-use lighter that is bundled with a candle. These elements lead this office to believe it is the multi-use lighter that provides the essential character outright to this set through GRI 3(b). In the alternative, if your argument is these two components would both be deemed as meriting equal consideration, then GRI 3(b) can no longer be used and instead 3(c) would dictate the item with the last classification would provide the classification to the set. In that instance, this set would still be classified by the multi-use lighter.
The applicable subheading for the “Multipurpose SPA Gift Set” will be 9613.80.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “cigarette lighters and other lighters, whether or not mechanical or electrical…: other lighters: other: electrical: multipurpose lighters, including those used to light charcoal and gas grills and fireplaces.” The rate of duty will be 3.9% 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 the World Wide Web at https://hts.usitc.gov/current.
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. The 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. The USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g). HTSUS. Subsequently, USTR imposed additional tariffs, effective September 1, 2019, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(r). For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), September 21, 2018 (83 F.R. 47974), and August 30, 2019 (84 F.R. 45821) . See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) 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 9613.80.2010, HTSUS, unless specifically excluded, are subject to the additional 15 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15 in addition to subheading 9613.80.2010, HTSUS, listed above.
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.
As your submission indicated this set was made in China, please note, candles made in China may be subject to antidumping duties under the Antidumping Duty Order on Petroleum Wax Candles from the People’s Republic of China, case A-570-504. Written decisions regarding the scope of antidumping / countervailing duty (AD/CVD) orders are issued by the Enforcement and Compliance office in the International Trade Administration of the U.S. Department of Commerce and are separate from tariff classification and origin rulings issued by U.S. Customs and Border Protection (CBP). You can contact them at http://trade.gov/enforcement (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb.
Please be advised that the Consumer Product Safety Commission administers requirements applicable to some lighters.The candle included in your product may also be subject to prohibition and recall under the laws and regulations administered by the U.S. Consumer Product Safety Commission (CPSC). You are advised to contact the CPSC to determine if your merchandise complies with pertinent safety standards and regulations. Import compliance information may be obtained by contacting the Office of Compliance, Consumer Product Safety Commission, 4330 East West Highway, Bethesda MD 20814-4408, by calling (301) 504-7912 or by e-mail contact through their website at www.cpsc.gov.
When shipped filled with certain fuels, lighters may also be subject to requirements administered by the Department of Transportation, which may be contacted at the following location: U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, D.C. 20590 Telephone: (202) 366-4433 FAX: (202) 366-3666 Website: http://phmsa.dot.gov
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 Kristopher Burton for the candle at [email protected] and contact National Import Specialist Sandra Carlson for the lighter at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division