CLA-2-94:OT:RR:NC:N4:410
Mr. Scott Leonard
HSN
1 HSN Drive
St. Petersburg, FL 33729
RE: The tariff classification of LED pillar style paraffin wax candle set from China
Dear Mr. Leonard:
In your letter dated February 23, 2021, you requested a tariff classification ruling.
The item under consideration is identified as the LED Pillar Style Paraffin Wax Candle Set. Based on the information and pictures that you have provided, the Set consists of six pillar candles (two 4-inches, two 5 inches, and two 6 inches in size breakdown) with two remote controls packaged together in a retail box. The candles are made of 75% paraffin wax and 25% plastic, which contain an LED lamp(s) inside. The LED candles feature 12 different color changing options.
In your request, you proposed that the LED candles should be classified under subheading 9602.00.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for molded or carved articles of wax. We disagree. Please refer to The Gerson Company vs. United States, Court of International Trade Slip Op. 17-96, dated August 2, 2017, and U.S. Court of Appeals for the Federal Circuit, Appeal No. 18-1011, dated August 6, 2018. The courts affirmed that similar LED candles were appropriately classified under heading 9405. As such, classification under heading 9602 would not be appropriate.
The applicable subheading for the subject LED Pillar Style Paraffin Wax Candle Set will be 9405.40.8440, HTSUS, which provides for “Lamps and lighting fittings…: Other electric lamps and lighting fittings: Other: Other.” The rate of duty will be 3.9 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9405.40.8440, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 9405.40.8440, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division