Application for Further Review of Protest No 1703-10-100156; Ceiling Lighting Fixtures

HQ H112720 October 22, 2010 CLA-2- OT:RR:CTF:TCM H112720 EG CATEGORY: Classification TARIFF NO.: 9405.10.80 Port Director U.S. Customs and Border Protection 1 East Bay Street Savannah, GA 31401 Re: Application for Further Review of Protest No: 1703-10-100156; Ceiling Lighting Fixtures Dear Port Director: The following is our decision regarding the Application for Further Review (“AFR”) of Protest No. 1703-10-100156, timely filed on April 7, 2010, on behalf of Kichler Lighting (“Kichler”). The AFR concerns the classification of ceiling lighting fixtures under the Harmonized Tariff Schedule of the United States (HTSUS). FACTS: The subject merchandise consists of eight different types of light fixtures. SKU # 2702TZ is a pendant style interior ceiling fixture with a satin-etched white glass shade. SKU # 2752NI is a pendant-style ceiling fixture with thin steel arms and a satin-etched white glass shade. SKU # 2754NI is a pendant-style ceiling fixture with thin straight steel arms and a satin-etched white glass shade. SKU # 3341NI is a pendant-style interior ceiling fixture with a satin-etched white glass shade. SKU # 3752NI is a pendant-style ceiling fixture with simple steel arms and a decorative etched shade. SKU # 8209NI is a mushroom-type flush mounted ceiling fixture. SKU # 8653NI is a dome-style ceiling fixture. SKU # 8655TZ is a dome style ceiling fixture with a satin-etched glass shade. There are three entries at issue in this protest. The fixtures entered at the Port of Savannah between November 26, 2008 and December 10, 2008 under subheading 9405.10.60, HTSUS. CBP liquidated the entries as entered between October 9 and October 23, 2009. The importer filed its protest on April 7, 2010, claiming that the correct classification for the fixtures is under subheading 9405.10.80, HTSUS, which provides for lighting fixtures other than the base metal lighting fixtures of 9405.10.60, HTSUS. ISSUE: Whether ceiling fan lighting fixtures should be classified under subheading 9504.10.60, HTSUS, as other electric ceiling or wall lighting fittings of base metal, or under subheading 9405.10.80, as other electric ceiling or wall lighting fittings other than of base metal? LAW AND ANALYSIS: This matter is protestable under 19 U.S.C. §1514(a)(2) as a decision on classification. The protest was timely filed, within 180 days of liquidation for entries made on or after November 26, 2008.  19 U.S.C. § 1514(c)(3). Further Review of Protest No. 1703-10-100156 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a ruling of the Commissioner of Customs or his designee, or with a decision made at any port with respect to the same or substantially similar merchandise. Specifically, the Protestant states that the port’s classification of its merchandise is inconsistent with the Court of International Trade’s decision in Home Depot, U.S.A., Inc. v. United States, 427 F. Supp. 2d 1278 (C.I.T. 2006) and with protest decisions at the Ports of Cleveland and Los Angeles. Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in their appropriate order. GRI 3(b) states that: 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: … Mixtures, composite goods consisting or 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 2008 HTSUS headings under consideration are the following: 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: 9405.10 Chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind used for lighting public open spaces or thoroughfares: Of base metal: 9405.10.60 Other: * * * 9405.10.80 Other * * * There is no dispute at GRI 1 that the merchandise is classified in heading 9405, HTSUS. The fixtures in the present case are imported packaged ready for retail sale with the metal fixture fully assembled and the glass shades individually wrapped or otherwise protected within the same box as the fixture.  Furthermore, the glass parts of the fixtures are adapted to fit the metal parts, and together they form a whole. As a result, we find that the subject light fixtures are composite goods under GRI 3(b). The Home Depot court examined certain types of interior ceiling-mounted fixtures, such as globes and domes, which are at issue here. The court found that the glass portion of the fixture had a larger weight than the fixture’s metal component and contributed more to the role of the fixture in relation to the use of the good than did the metal component. As a result, the court found that the glass formed the essential character of a globe-shaped fixture. In accordance with the holding in Home Depot, CBP published “Guidance on the Classification of Decorative Light Fixtures” to guide the classification of these fixtures in accordance with the Home Depot decision. See http://www.cbp.gov/xp/cgov/trade/trade _programs/entry_summary/light_fixtures.xml. With respect to mushroom and dome shaped fixtures, CBP’s “Guidance on the Classification of Decorative Light Fixtures” states that “interior ceiling mounted fixtures consisting of a standard metal fitter and shade are classified by the material of the shade. These usually include, but are not limited to: globe, bubble, mushroom, dome, and drum.” With regard to pendant-style fixtures, the guidance states that these are generally classified under subheading 9405.10.80, HTSUS, unless the metal components are highly stylized or more visually prominent. In the present case, all eight fixtures are interior mounted ceiling fixtures. In all eight, the glass plays a larger role in relation to the use of the good than the metal fixture because it contributes both to the fixture’s function and decorative aspects. The glass diffuses light and protects the lamp while the metal supports the structure. The glass, however, is predominant in the appearance of each of the pendant fixtures, while the metal components are simple in design and not highly stylized. As a result, we find that the glass constitutes the essential character of each of the eight styles of fixtures at issue. Therefore, the five pendant fixtures (SKU #s 2702TZ, 2752NI, 2754NI, 3341NI and 3752NI), the one mushroom-shaped fixture (SKU # 8209NI) and the two dome-shaped fixtures (SKU #s 8653NI and 8655 TZ) are classified in subheading 9405.10.80, HTSUS, as lamps and lighting fittings: electric ceiling or wall lighting fittings: other. HOLDING: By application of GRI 3(b), SKU #s 2702TZ, 2752NI, 2754NI, 3341NI, 3752NI, 8209NI, 86531NI and 8655TZ are classified in heading 9405, HTSUS, specifically under subheading 9405.10.80, HTSUS, which provides for: “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: chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind used for lighting public open spaces or thoroughfares: chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind used for lighting public open spaces or thoroughfares: other.” As such, the duty rate is 3.9% ad valorem. Since re-classification of the merchandise as indicated above will result in a lower rate of duty than claimed, you are instructed to ALLOW the protest in full. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision, the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division