CLA-2-94:OT:RR:NC:N4:433
Elvira Eslava-Benson
Customs and Compliance Manager
Keeco LLC.
30763 Wiegman Road
Hayward, CA 94566
RE: The tariff classification of an ottoman from China.
Dear Ms. Eslava-Benson,
In your letter dated March 10, 2015, you requested a tariff classification ruling. As requested, the sample submitted will be returned to you. No material breakdown was provided.
The item is described as a storage ottoman. The ottoman is constructed of Wood-plastic Composite (WCP) board, which is wood fiber, wood flour and thermoplastics, and is entirely covered over in 100% polypropylene (plastic), except for the bottom. The ottoman is lined with 100% polyester material. The removable lid is padded with foam for comfort when used as a seat or footrest. The four sides of the ottoman measure 17-inches square with its form-fitting top measuring 18-inches square. The ottoman is collapsible. As presented in sample, the ottoman has tan and red colors, and has a floral design with a bird. This ottoman can hold a weight of up to 250 pounds, has a large storage capacity for holding objects, and can also be used as a coffee table or end table.
The storage ottoman is a combination article. It can be used in disparate activities that are prima facie classifiable under two separate headings of the tariff. When used as an ottoman for seating the article is provided for in heading 9401, Harmonized Tariff Schedule of the United States (HTSUS), and when used for resting one’s feet or storage of objects, or possibly to a lesser extent as a coffee table or end table, the article is provided for in heading 9403, HTSUS. Since no single heading sufficiently describes the whole product at issue, classification cannot be determined by reference to General Rules of Interpretation (GRI) 1, HTSUS.
The storage ottoman is composed of different components (wood, plastic and textiles), and is considered a composite good. Regarding the essential character of the ottoman, the Explanatory Notes (ENs) to the HTSUS, at 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.
When the material or component which gives the product its essential character cannot be determined, classification is determined by means of GRI 3 (c) which directs that when goods cannot be classified by reference to GRI 3 (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
In this case, the essential character of the storage ottoman {is not} readily apparent, in that the purchaser chooses the manner in which the product is used, whether it be as a seat or footrest, as a storage box, or as a coffee or end table. Consequently, the heading which occurs last in numerical order of the two competing headings is 9403, HTSUS.
As we have competing subheadings within heading 9403, HTSUS, GRI 6 in conjunction with GRI 3 (b) is implicated. GRI 6 provides that the classification of goods at the subheading level shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules [GRIs 1 - 5], on the understanding that only subheadings at the same level are comparable. Accordingly, at the subheading level it is our position that the 100% polypropylene, tan and red colors, floral design with bird, imparts the essential character to the good, in that it provides the aesthetic beauty and visual design of the furniture piece.
The applicable subheading for the storage ottoman will be 9403.70.8015, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Furniture of plastics: Other: Other household. The rate of duty will be free.
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).
You also asked about labeling requirements for the storage ottoman, which relates to CBP’s country of origin laws, statutes and regulations. The marking statute, section 304, Tariff Act of 1930, as amended 19 U.S.C. 1304 and placed into regulations in 19 CFR Part 134, provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. Please note that separate Federal Trade Commission labeling and marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items, such as cushions. You should review the Federal Trade Commission (FTC) website at “https://www.ftc.gov,” or you can write to the FTC at the: “Division of Enforcement, 600 Pennsylvania Avenue, NW Washington, DC 20580.” Additionally, “A Guide to United States Furniture Compliance Requirements” published by the National Institute of Standards and Technology, U.S. Department of Commerce, can be located and viewed at the website of “http://gsi.nist.gov/global/docs/furniture_guide.pdf.”
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 Neil H. Levy at E-mail address: [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division