H309868

HQ H309868 December 28, 2021 CLA-2:OT:RR:CTF:EMAIN H309868 EKR CATEGORY: Classification TARIFF NO.: 9405.20.80 Mr. Douglas Lipski IKEA Purchasing Services U.S.A., Inc. 3200 Horizon Drive, Suite 120 King of Prussia, PA 19406 Re: Request for Reconsideration of NY N306132; Classification of SYMFONISK lamp Dear Mr. Lipski: This letter is in reference to a request for reconsideration (“Reconsideration Request”) submitted by you on behalf of IKEA Purchasing Services, U.S.A, Inc. (“IKEA”), dated March 12, 2020, concerning New York Ruling Letter (NY) N306132 issued September 24, 2019. That ruling concerned the classification of the SYMFONISK lamp (model # 00464617) and the SYMFONISK bookshelf speaker (model # 00357561) under the Harmonized Tariff Schedule of the United States (“HTSUS”). Your Reconsideration Request concerns the SYMFONISK lamp, which NY N306132 classified under subheading 9405.20.80, which provides for “Lamps and lighting fittings…, not elsewhere specified or included…: Electric table, desk, bedside or floor-standing lamps: Other.” We have determined that NY N306132 is correct, and, for the reasons set forth below, are affirming that ruling. FACTS: On September 6, 2019, IKEA requested a tariff classification ruling regarding the proper classification of the SYMFONISK lamp. The resulting ruling, NY N306132, describes the SYMFONISK lamp as follows: The SYMFONISK lamp is a combination speaker and lamp. It consists of the SYMFONISK speaker within the base of a table lamp. The SYMFONISK lamp measures 9” x 9” x 16”. It incorporates a glass shade, a polycarbonate/ABS plastic body along with aluminum knobs with a 100% polyester textile wrapped around the body of the speaker. The lamp serves as a lighting function for the room in addition to providing streaming music sounds from the speaker. * * * * * The SYMFONISK speakers are Wi-Fi enabled speakers that are controlled in conjunction with the SONOS app. The SYMFONISK supports playback of stored digital media files over the local-LAN network when set up using the Sonos Controller Desktop or mobile application, and connects to a home Wi-Fi network or existing Sonos Mesh network. The lamp and speaker operate separately from one another. CBP noted that the SYMFONISK lamp functions both as a loudspeaker and as a lamp, and that both features are of interest to the consumer. As a result, CBP considered the SYMFONISK lamp a composite good, with neither component imparting the essential character of the good. CBP classified the good pursuant to GRI 3(c), in the heading occurring last in numerical order amongst those equally meriting consideration. ISSUE: Whether the essential character of the SYMFONISK lamp is imparted by the loudspeaker, such that it is classified pursuant to GRI 3(b) in heading 8518, HTSUS, as “…loudspeakers, whether or not mounted in their enclosures…” or whether neither the loudspeaker nor the lamp imparts the essential character of the SYMFONISK lamp, such that it is classified pursuant to GRI 3(c) in heading 9405, HTSUS, as “Lamps and lighting fittings…, not elsewhere specified or included…” LAW AND ANALYSIS: Classification under the HTSUS is determined 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. In the event that the goods cannot be classified solely on the basis of 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. The HTSUS provisions under consideration are as follows: 8518 Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Loudspeakers, whether or not mounted in their enclosures: 8518.22.00 Multiple loudspeakers, mounted in the same enclosure. * * * * * 9405 Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included: 9405.20 Electric table, desk, bedside or floor-standing lamps: 9405.20.80 Other. IKEA agrees that the SYMFONISK lamp can be considered a composite good, comprised of a loudspeaker of heading 8518, HTSUS, and a lamp of heading 9405, HTSUS. GRI 3 provides, in pertinent part, as follows: When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: * * * * * (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System 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. See T.D. 89 80, 54 Fed. Reg. 35127 (August 23, 1989). The ENs to GRI 3(b) provide, in pertinent part, that: (VII) In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (VIII) 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 value, or by the role of a constituent material in relation to the use of the goods. (IX) For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts. As indicated above, GRI 3(b) provides guidance for mixtures, composite goods, and goods put up in sets for retail sale. EN IX to GRI 3(b) provides that “composite goods made up of different components shall be taken to mean not only those in which the component are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.” (Emphasis original). As such, the SYMFONISK lamp is a composite good because it consists, mainly, of a lamp of heading 9405 and a loudspeaker of heading 8518, plus various other electrical components enabling Wi-Fi connection classified under other provisions of Chapter 85. Under GRI 3(b), composite goods must be classified according to the material or component that imparts the article with its essential character. The “essential character” of an article is “that which is indispensable to the structure, core or condition of the article, i.e., what it is.” Structural Industries v. United States, 360 F. Supp. 2d 1330, 1336 (Ct. Int’l Trade 2005). EN VIII to GRI 3(b) explains t

Classification under the HTSUS is determined 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. In the event that the goods cannot be classified solely on the basis of 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. The HTSUS provisions under consideration are as follows: 8518 Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Loudspeakers, whether or not mounted in their enclosures: 8518.22.00 Multiple loudspeakers, mounted in the same enclosure. * * * * *9405 Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included:9405.20 Electric table, desk, bedside or floor-standing lamps:9405.20.80 Other.IKEA agrees that the SYMFONISK lamp can be considered a composite good, comprised of a loudspeaker of heading 8518, HTSUS, and a lamp of heading 9405, HTSUS. GRI 3 provides, in pertinent part, as follows:When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:* * * * *(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives t