CLA-2-94:OT:RR:NC:N4:463
Debbie A. Bell
HSN 1 HSN Drive
St. Petersburg, FL 33729
RE: The tariff classification of an outdoor PE wicker daybed from China
Dear Ms. Bell:
This letter is being issued in reply to your letter dated April 12, 2023, requesting a tariff classification determination on behalf of your affiliate, Frontgate. In lieu of samples, illustrative literature, pictures, and a product description were provided.
The subject Wave Daybed is comprised of a lounger base, a mattress and five throw pillows. The lounger base has an aluminum frame covered in extruded polyethylene (PE) wicker (non-reinforced, non-laminated). The lounger base extends upwards creating a headboard that curves overheard evoking a cresting wave. It measures 69.5" (W) x 82.75" (L) x 71" (H). The detachable polyurethane foam mattress is encased in a fabric cover with a zipper closure. The mattress measures 69.5" (W) x 82.75" (L) x 7" (H). The five 20" throw pillows are made of polyurethane foam covered in acrylic fabric. The mattress and pillows rest on the lounger’s non-articulated horizontal surface. The lounger base, mattress and cushions are all made in China. They are imported and sold together as a set and make up the Wave Daybed.
You state that the daybed is used to lounge outside by the pool or on a deck and that it is not intended to sleep on at night.
You suggest that the Wave Daybed be classified in subheading 9403.70.8015, Harmonized Tariff Schedule of the United States (HTSUS), (other plastic household furniture). We agree.
Classification under the 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 Wave Daybed meets this definition of furniture and therefore will be classified in heading 9403.
A “set” is defined within the meaning of 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).” The subject Wave Daybed meets these three conditions and, as such, shall be classified as a set.
Sets are classified according to the component, or components taken together, which can be regarded as conferring upon the set as a whole its essential character. The Wave Daybed consists of a lounger base, a mattress and five throw pillows. This office finds that the essential character of the set is imparted by the lounger base.
Because the lounger base is composed of different materials (aluminum, PE wicker, etc.), it is considered a composite good for tariff purposes. The Explanatory Notes 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.
This office finds that the essential character of the lounger’s base is imparted by the PE wicker, as it accounts for the overwhelming majority of the volume and surface area and is largely responsible for the base’s function and esthetic.
Since 1) the Wave Daybed meets the aforementioned definition of a set, and 2) the essential character of the set is imparted by the base, and 3) the essential character of the base is imparted by the PE wicker, this office finds that the PE wicker imparts the essential character to the Wave Daybed.
Customs and Border Protection (CBP) has historically classified PE wicker furniture as plastic furniture. In HQRL H192520 (9/7/17) it was noted that a wicker article is made with the technique of weaving or braiding materials such as bamboo or rattan and that plastic or resin wicker (PE wicker, PVC wicker, etc.) is dissimilar to naturally occurring cane, osier or bamboo. (See e.g., NYRLs N324138, N269023, N266674, and N248506.)
The Wave Daybed will be classified in subheading 9403.70.8015, HTSUS, which provides for "Other furniture and parts thereof: Furniture of plastics: Other: Other household.” The rate of duty will be free.
Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce (ITA) and are separate from tariff classification and origin rulings issued by CBP. The ITA’s AD/CVD landing page can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties. The ITA’s AD/CVD Reference Resources including their “Scope Ruling Application Guide” and “Scope Ruling Application” are available therein by selecting the AD/CVD Reference Resources “Learn More” button.
Products of China classified under subheading 9403.70.8015, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.04, in addition to subheading 9403.70.8015, HTSUS, listed above.
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