H312768

HQ H312768 January 11, 2022 OT:RR:CTF:FTM H312768 PJG CATEGORY: Classification TARIFF NO.: 6303 Mr. Michael E. Murphy Baker & McKenzie LLP 815 Connecticut Avenue, NW Washington, D.C. 20006 RE: Modification of NY N010048; tariff classification of controllable shading system Dear Mr. Murphy: This is in reference to New York Ruling Letter (“NY”) N010048 that U.S. Customs and Border Protection (“CBP”) issued to you on May 3, 2007, pursuant to your request for a binding ruling on behalf of Lutron Electronics Co., Inc. The ruling pertains to the tariff classification under the Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”) of a controllable shading system and a controllable drapery track system used for commercial and residential applications that were both classified in heading 8479, HTSUS. We have reviewed NY N010048 and determined it to be in error only with respect to the classification of the controllable shading system. The controllable drapery track system did not include the drapes at the time of importation and remains classified under heading 8479, HTSUS. Accordingly, NY N010048 is modified. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. No. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed action was published on September 30, 2020, in Volume 54, Number 38, of the Customs Bulletin. CBP received one comment on October 30, 2020, in opposition to the proposed action. FACTS: In NY N010048, CBP described the controllable shading system as follows: The controllable shading …system[] [is] used for commercial and residential applications. The system[] aid[s] in reducing glare, protecting furnishings from U/V damage and maximizing HVAC efficiency. The settings …are electronically programmable so that window treatments can be programmed to stop at present positions. The system[] can also be equipped to receive infrared control signals and may be controlled by hand-held remotes in addition to the keypad controls….The complete controllable shading systems consist of fabric shades, hem bars, one (or more) quiet electronic drive units (“QEDs”), roller tubes, roller bulk idlers, brackets and associated hardware. CBP classified the merchandise under heading 8479, HTSUS, and specifically in subheading 8479.89.9897, HTSUSA, which in May 2007 provided for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Other: Other.” ISSUE: What is the proper tariff classification under the HTSUS for the controllable shading system? LAW AND ANALYSIS: Classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) is made in accordance with the General Rules of Interpretation (“GRI”). 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 may then be applied. The HTSUS provisions under consideration are as follows: 8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: 6303 Curtains (including drapes) and interior blinds; curtain or bed valances: GRI 3(a) and (b) provide 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: The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. 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. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the “official interpretation of the Harmonized System” at the international level. See 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). While neither legally binding nor dispositive, the ENs “provide a commentary on the scope of each heading” of the HTSUS and are “generally indicative of [the] proper interpretation” of these headings. See id. The EN to GRI 3(b) states, in pertinent part: (VI) This second method relates only to : (i) Mixtures. (ii) Composite goods consisting of different materials. (iii) Composite goods consisting of different components. (iv) Goods put up in sets for retail sales. It applies only if Rule 3 (a) fails. (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. Examples of the latter category of goods are : (1) Ashtrays consisting of a stand incorporating a removable ash bowl. (2) Household spice racks consisting of a specially designed frame (usually of wood) and an appropriate number of empty spice jars of suitable shape and size. As a general rule, the components of these composite goods are put up in a common packing. * * * The subject merchandise is made up of different components, i.e., fabric shades, hem bars, one (or more) QEDs, roller tubes, roller bulk idlers, brackets and associated hardware. When by application of GRI 2, HTSUS, goods are prima facie classifiable under two or more headings, GRI 3, HTSUS, is applicable. According to EN IX for GRI 3(b), a “composite good” is a good that is “made up of different components,” which may be “adapted one to the other and [be] mutually complementary and . . . together . . . form a whole which would not normally be offered for sale in separate parts.” The subject merchandise is a composite good; therefore, GRI 3(b) requires that classification be based on the product that provides the composite good with its essential character. The EN to GRI 3(b) (VIII) lists factors to help determine the essential character of such goods: “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.” The U.S. Court of International Trade (“CIT”) has indicated that the factors listed in the EN to GRI 3(b) (VIII) are “instructive” but “not exhaustive” and has indicated that the goods must be “reviewed as a whole.” Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278, 1293 (Ct. Intl’l Trade 2006), aff’d 491 F.3d 1334 (Fed. Cir. 2007) (c

Classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) is made in accordance with the General Rules of Interpretation (“GRI”). 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 may then be applied.The HTSUS provisions under consideration are as follows:8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:6303 Curtains (including drapes) and interior blinds; curtain or bed valances: GRI 3(a) and (b) provide 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: The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.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. The Harmonized Commodity Description and Coding System Explanatory Notes(“ENs”) constitute the “official interpretation of the Harmonized System” at the international level. See 54 Fed. Reg. 35127,