CLA-2-94:OT:RR:NC:N4:410
Ms. Regina Payne
MSR Imports, Inc.
6920 Central Highway
Pennsauken, NJ 08109
RE: The tariff classification of an LED wax candle from China
Dear Ms. Payne:
In your letter dated July 25, 2019, you requested a tariff classification ruling.
The item under consideration is identified as the Battery Operated LED Decorative Candle.
Based on the information and pictures that you have provided, the item consists of a wax pillar-shaped candle that is hollowed out at the top and an LED lamp housed inside the candle. It is equipped with a switch on the bottom which turns the candle off and on. The candle is wrapped with a plastic film printed with a religious motif and song lyrics.
In your request, you proposed that this LED candle 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 Battery Operated LED Decorative Candle 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.
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. Subsequently, 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. 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), and September 21, 2018 (83 F.R. 47974). 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 9405.40.8440, HTSUS, unless specifically excluded, are subject to the 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 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.
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 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