CLA-2-73:OT:RR:NC:N1:113
Mr. Harvey Vays
Schenker of Canada Limited
6555 Northwest Drive
Mississauga, Ontario L4V 1K2
Canada
RE: The tariff classification of pet cages from an unspecified country
Dear Mr. Vays:
In your letter dated January 3, 2014, on behalf of Pet Gear Inc., you requested a tariff classification ruling on pet cages for small animals. Product literature and photographs of the cages were submitted for our review.
The two articles in question are identified as Travel Lite Steel Crates and The Other Door Steel Crates. You stated in your letter that “The steel crates are pet cages intended for small animals, for use in the home and for portability. They are composed of steel, have an insulated base, integrated wheels, a pull handle, double-click locks, and fold compactly.” The Travel Lite Steel Crates measure approximately 42 inches in length by 28 inches in width by 31 inches in height and hold up to 90 pounds. The Travel Lite Steel Crate features steel wire walls and a plastic base. The Other Door Steel Crates measure approximately 42 inches in length by 28 inches in width by 28 inches in height and hold up to 90 pounds. The Other Door features a heavy duty blow-mold plastic top and base with steel inserts on the sides. The Other Door Crate has four doors including a large side door that opens out and out of the way like a garage door. A fleece pad and a storage bag are included in the Other Door Steel Crate.
The Travel Lite Steel Crate is a composite article that consists of steel wire walls and a plastic base.
The Other Door Steel Crate is a composite article that consists of steel wire inserts on the sides and a plastic base and top. The steel component and the plastic component are classified in different headings.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRI’s), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the steel and plastic components of the subject crates in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character.
As the crates are composite goods, we must apply rule 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. Explanatory Notes (EN) VIII to GRI 3(b) explains 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 the use of the goods.” We must determine whether the steel component or the plastic component imparts the essential character to the crates in question. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the function of the crates under consideration is to confine a small animal with steel wire walls that directly perform the function of enclosing the pet in the crate. The plastic base eliminates damage to your home or car. Therefore, it is the opinion of this office that the steel imparts the essential character to the crates. In accordance with GRI 3(b), the Travel Lite Steel Crates and The Other Door Steel Crates will be classified in Chapter 73, HTSUS, which provides for articles of iron or steel.
The GRI's set forth the legal framework in which merchandise is to be classified under the HTSUS. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff and any relative section or chapter notes and, unless otherwise required, according to the remaining GRI's taken in order.
In this instance, the two headings under consideration are 7323, HTSUS, which provides for table, kitchen or other household articles and parts thereof…of iron or steel, and 7326, HTSUS, which provides for other articles of iron or steel. The primary determination to be made in this case concerns the question of whether the small animal cages qualify as household articles. If the cages do qualify as household articles under heading 7323, HTSUS, then they will be classified under this heading since it is the more specific of the competing provisions.
You stated in your letter that “The steel crates will be used by domesticated pets in the household.” You have proposed classification for the Travel Lite Steel Crates and The Other Door Steel Crates under heading 7323, HTSUS. Heading 7323, HTSUS, covers a wide range of iron or steel household articles that are not more specifically provided for elsewhere in the HTSUS. All of the articles classifiable in household heading 7323, HTSUS, are utilitarian, rather than merely decorative. We must determine whether the subject crates should be classified as household articles of iron or steel under heading 7323, HTSUS.
The Harmonized Commodity Description and Coding System Explanatory Notes (EN’s) constitute the official interpretation of the Harmonized System at the international level. While not legally binding, the EN’s provide a commentary on the scope of each heading of the Harmonized System, and are generally indicative of the proper interpretation of these headings.
EN 73.23 states that heading 7323 “comprises a wide range of iron or steel articles, not more specifically covered by other headings of the Nomenclature, used for table, kitchen or other household purposes.” We note that the EN’s to heading 73.23 indicate that “other household articles” include items such as dust bins, buckets, watering-cans, ash-trays, letter boxes; clothes-hangers, shoe trees, and baskets for laundry, fruit, vegetables, etc.
In Headquarters Ruling Letter (HRL) 089558 dated July 2, 1991, Customs determined that the subject Weatherbeds consisting of an iron frame with four steel legs covered with a tarp, suitable for both outdoor and indoor use, were properly classified under HTSUS subheading 7323.99.90, as other household articles of iron or steel. Customs stated in this ruling that the Weatherbed could be deemed a household article because it will be used by domesticated pets around a household.
In New York (NY) Ruling L86040 dated July 26, 2005 and NY I86434 dated September 23, 2002, Customs and Border Protection (CBP) classified pet crates and birdcages made of iron or steel under subheading 7323.99.90, HTSUS.
It is the position of our office that the Travel Lite Steel Crates and The Other Door Steel Crates in question are classifiable under heading 7323, HTSUS, which provides for household articles of steel. The crates can be deemed household articles because they will be used by domesticated pets in or around the house. Since the small animal crates will be used by domesticated animals in the home, the crates under consideration are more specifically under heading 7323, HTSUS, which provides for household articles of iron or steel.
The applicable subheading for the Travel Lite Steel Crates and The Other Door Steel Crates will be 7323.99.9080, HTSUS, which provides for table, kitchen or other household articles and parts thereof, of iron or steel…other, other, not coated or plated with precious metal, other, other, other. The rate of duty will be 3.4 percent 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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Ann Taub at (646) 733-3018.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division