CLA-2-94:OT:RR:NC:N4:463
Randy Swords
Panacea Products Corp.
2711 International St.
Columbus, OH 43220
RE: The tariff classification of a 3-piece planter/plant stand set from China
Dear Mr. Swords:
In your letter dated November 1, 2022, you requested a binding ruling for a 3-piece planter/plant stand set. In lieu of samples, illustrative literature and product descriptions were provided.
The subject article is described as the “Nordic Habitat Tin 3-Piece Planter/Plant Stand Set,” model #80223. It is a set of 3 pots (large, medium, and small) and three correspondingly sized plant stands that will be used to grow and display houseplants. Each cylindrical pot is made of powder-coated steel and has a drain hole sealed with a rubber stopper. The three pots are white and the three plant stands are unpainted wooden dowels. The three pots and three plant stands are nested for shipment in a single box. The artwork on the retail box depicts them with houseplants positioned on the ground in a home.
All three pots are 9" high. The large pot has a diameter of approximately 9.8" at the rim that tapers to 8.5" at the base. The medium pot has a diameter of approximately 8.4" at the rim that tapers to 7.8" at the base. The small pot has a diameter of 7" at both the rim and base.
The large plant stand is approximately 10.5" wide, 30" high, and holds the base of the pot at a height of 19". The medium plant stand is approximately 9.3" wide, 21" high, and holds the base of the pot at a height of 10". The small plant stand is approximately 8.1" wide, 15" high, and holds the base of the pot at a height of 4". The 3-piece planter/plant stand set is made in China.
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, 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…. Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are included in this category.” The subject 3-piece planter/plant stand set meets this definition of furniture and therefore will be classified in heading 9403.
A “set” is defined within the meaning of General Rule of Interpretation 3(b) (GRI 3(b)) and the Explanatory Notes (ENs) to the HTSUS, which constitute the official interpretation of the tariff at the international level. EN X to GRI 3(b) provides that “[f]or the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).” Sets are classified according to the component or components taken together, which can be regarded as conferring on the set as a whole its essential character. This article meets the definition of a set.
The Explanatory Notes (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. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among those that equally merit consideration.
The 3-piece planter/plant stand set is composed of different materials (wood, steel, rubber) and is thus considered a composite good. The two materials that merit consideration in an essential character analysis are the wood stand and steel pot, as the rubber stopper is only a minor constituent. The wood stand accounts for approximately 60% to 65% of the value and weight and the steel pot accounts for approximately 35% to 40% of the value and weight. Both the wooden stand and the metal pot contribute to the functionality and aesthetics of the set.
With respect to the comparative utility of the pots vs. the stands, it could be argued that the metal pots provide greater utility than the wooden stands if the houseplants are planted directly in the pots but that they provide equal utility if the houseplants are already potted and simply inserted into the set’s more attractive metal pots. We do not believe this to be an overriding factor in the essential character analysis.
With respect to an analysis of the weight and value breakdown of the two primary materials, we note that although the wood is somewhat heavier and more expensive than the metal, the difference in their weight and value is relatively minor. Based on the foregoing, this office finds that no essential character can be determined under GRI 3(b), so the subject article will be classified in accordance with GRI 3(c), last in tariff.
The applicable subheading for “Nordic Habitat Tin 3-Piece Planter/Plant Stand Set,” model #80223, will be subheading 9403.60.8081, HTSUS, which provides for "Other furniture and parts thereof: Other wooden furniture: Other: Other.” The general rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.60.8081, HTSUS, unless specifically excluded, are subject to an additional 25% 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 9403.60.8081, HTSUS, listed above.
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