CLA-2-94:OT:RR:NC:N4:463
Scott Hoffman
Trans American
52 Sonwil Drive
Buffalo, NY 14025
RE: The tariff classification and country of origin of four tables
Dear Mr. Hoffman:
This letter is being issued in reply to your letter dated August 7, 2023, requesting a tariff classification and country of origin determination on behalf of your client, SLK Home Ltd. In lieu of samples, illustrative literature, pictures, and product descriptions were provided.
Per the submitted information, the articles are four tables as described below.
Item 1: The Orchid 44 table is a circular table with an hour-glass shaped pedestal base. The table has a 44" diameter and is 30" high. The tabletop is made of white engineered quartz stone and the pedestal is made of white painted steel.
Item 2: The Orchid 52 table is a circular table with an hour-glass shaped pedestal base. The table has a 52" diameter and is 30" high. The tabletop is made of white engineered quartz stone and the pedestal is made of white painted steel.
Item 3: The Adelaide 72 is a rectangular table that measures approximately 72" (L) x 38" (W) x 30" (H). The tabletop is made of white engineered quartz stone, and it has wood legs at each corner. Each leg is angled slightly towards the center of the table. The two legs at either end of the table connect at floor height with two wood pieces that form a “V.” A lengthwise wood piece connects both “V’s” at floor height.
Item 4: The Luna 72 is a rectangular table that measures 72" (L) x 38" (W) x 30" (H). The
tabletop is made of a white engineered quartz stone, and it has a wood table skirt and legs. The legs stem from the four corners and are angled slightly outwards.
All four items are comprised of an engineered quartz stone tabletop (quartz sand and resin), made in Thailand, and a metal or wood base, made in China. The bases are shipped to Thailand unassembled, where they are then packaged with the stone tabletops as complete unassembled tables for export. See images below.
Orchid 44 Orchid 52
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Adelaide 72 Luna 72
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OPERATIONS PERFORMED IN CHINA:
Metal base (Orchid 44 and Orchid 52):
Molding – welding – sanding –1st coat painting – filling – 2nd coat painting – 1st sanding – 3rd coat painting – 2nd sanding – final painting – inspection – packing for export to Thailand
Wooden base (Adelaide 72 and Luna 72):
Wood cutting – machining – drilling – 1st assembly – sanding – 1st coat painting – coat sanding – final painting – final assembling – inspection – packing for export to Thailand
OPERATIONS PERFORMED IN THAILAND:
Tabletop (All models):
Slab cutting – beveling – polishing (6-12 discrete steps) – inspection – cleaning – glue underside – final inspection – packing with bases for final export
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If the goods cannot be classified solely based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and coding System, which constitutes the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading and are generally indicative of the proper interpretation of the HTSUS. The ENs to Chapter 94 of the HTSUS state, in relevant part, for the purposes of this Chapter, that the term “furniture” means: (A): Any “movable” articles (not included under other more specific headings of the Nomenclature), which have the essential characteristic that they are constructed for placing on the floor or ground, and which are used, mainly with a utilitarian purpose, to equip private dwellings, hotels, theatres, cinemas, offices…. The four articles described above meet this definition of furniture.
Since the articles are composed of different materials (metal, wood, etc.), they are considered composite goods for tariff purposes. The ENs to the HTSUS, GRI 3(b) (VIII) state that “the factor which determines essential character will vary between different kinds of goods. It may, for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good.
Barring significant evidence to the contrary, U.S. Customs and Border Protection (CBP) has historically found that the material comprising the tabletop imparts the essential character to a table. (See NYRL N324295, 2/17/22.) These tables are no exception. The stone tabletops provide these tables with their functionality and account for the majority of the weight, value and exterior surface area. They will be classified accordingly.
Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)), defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin”. In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative.
The four tables are comprised of an engineered quartz stone tabletop and either a metal or wood table base, and as indicated above, the essential character of each article is imparted by the tabletop. Although the cost expended in one country vs. that expended in another is a crude measure of the complexity, skill, or number of manufacturing operations, it may be a useful tool when comparing similar processes performed in two or more countries.
The four tabletops were manufactured in Thailand using the following sequential multistep process: slab cutting, beveling, polishing (6-12 discrete steps), inspection, cleaning, gluing, and final inspection.
The metal bases for the Orchid 44 and Orchid 52 were manufactured in China using the following sequential multistep process: molding, welding, sanding, 1st coat painting, filling, 2nd coat painting, 1st sanding, 3rd coat painting, 2nd sanding, final painting, inspection, and packing for export to Thailand.
The wood bases for the Adelaide 72 and Luna 72 were manufactured in China using the following sequential multistep process: wood cutting, machining, drilling, 1st assembly, sanding, 1st coat painting, coat sanding, final painting, final assembling, inspection, and packing for export to Thailand.
All four tabletops were manufactured in Thailand and all four table bases were made in China. In all instances, they were packaged into finished, unassembled tables in Thailand.
As discussed above, the tabletops impart the essential character upon the complete tables and the tabletops were all made in Thailand.
With respect to each of these four tables, more than 74% of the material costs correspond to the quartz stone tabletop made in Thailand, and less than 26% of the material costs correspond to the metal or wood bases made in China. Furthermore, with respect to each of these four tables, more than 79% of the processing costs were incurred in Thailand and less than 21% of the processing costs were incurred in China.
Moreover, based upon the totality of the manufacturing operations performed in China and Thailand and their sequence, first in China and then in Thailand, we find that the principal manufacturing operations are performed in Thailand, where the Chinese table bases lose their individual identities and become integral parts of their respective tables. The manufacturing operations performed in Thailand create a new and different article of commerce with a distinct character and use that were not previously inherent in the Chinese components. Therefore, the country of origin of the imported tables is Thailand.
The applicable classification for the Orchid 44, Orchid 52, Adelaide 72 and Luna 72 tables will be subheading 9403.89.6020, HTSUS, which provides for “Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other, Other.” The general rate of duty will be free.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 internet at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division