Tariff classification of an artificial foliage wreath with light-emitting diodes (LEDs)

HQ H260938 September 13, 2017 CLA-2 OT:RR:CTF:TCM H260938 LWF CATEGORY: Classification TARIFF NO.: 9505.10.25 David M. Murphy Grunfeld Desiderio Lebowitz Silverman & Klesestadt LLP 399 Park Ave., 25th Floor New York, NY 10022-4877 Re: Tariff classification of an artificial foliage wreath with light-emitting diodes (LEDs) Dear Mr. Murphy: We are writing in response to your correspondence, dated August 8, 2014, in which you requested a binding tariff classification ruling from U.S. Customs and Border Protection (CBP) on behalf of your client, TJX Companies, Inc. (“TJX”). Your ruling request concerns the tariff classification of an artificial foliage wreath under the Harmonized Tariff Schedule of the United States (HTSUS). In responding to your request, this office has also reviewed and considered additional information that you provided in a supplemental letter, dated October 27, 2014. FACTS: The merchandise for which you request a binding tariff classification ruling letters is identified as a “Christmas Wreath,” Style No. 14C326KT. It is constructed of an artificial foliage front of plastic evergreen leaves and features a backing of natural twigs with iron wire that forms the article’s circular shape. The artificial foliage is interspersed with battery-powered light-emitting diode (LED) bulbs, and some of the backing twigs can be seen from the front of the wreath, which helps give the wreath a “natural” appearance. Gold glitter has been applied to the artificial foliage on the front of the wreath, and the wreath is further decorated with a large red polyester bow that is permanently attached to the top portion of the wreath. The wreath is intended for display during the Christmas season. ISSUE: Whether the artificial foliage wreath is classified under heading 9505, HTSUS, as festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof. LAW AND ANALYS: 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. 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 in their appropriate order. The HTSUS provision at issue states as follows: 9505 Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof * * * * * The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding, the ENs provide a commentary on the scope of each heading of the HS and are thus useful in ascertaining the proper classification of merchandise. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN to heading 95.05, HS, states, in relevant part, as follows: This heading covers: (A) Festive, carnival or other entertainment articles, which in view of their intended use are generally made of non-durable material. They include:       (1) Festive decorations used to decorate rooms, tables, etc. (such as garlands, lanterns, etc.); decorative articles for Christmas trees (tinsel, coloured balls, animals and other figures, etc); cake decorations which are traditionally associated with a particular festival (e.g., animals, flags). (2) Articles traditionally used at Christmas festivities, e.g., artificial Christmas trees, nativity scenes, nativity figures and animals, angels, Christmas crackers, Christmas stockings, imitation yule logs, Father Christmases. * * * * * Upon review of TJX’s ruling request, in which the company asserts that the LED-lighted, artificial foliage wreath at issue is classifiable under heading 9505, HTSUS, this office observes that CBP has previously issued a tariff classification ruling letter with respect to substantially similar merchandise. Specifically, in New York Ruling Letter (“NY”) N281672, dated December 16, 2016, CBP classified three styles of artificial foliage wreaths decorated with battery-powered LED lights under heading 9505, HTSUS. There, CBP noted that the wreaths were intended for sale during the Christmas holiday season and were decorated with features closely associated with the holiday season (for example, holly leaves, red berries, and pine cones). Similarly, this office notes that CBP has previously provided a detailed analysis concerning the U.S. Court of Appeals for the Federal Circuit’s interpretation of the term “festive articles’ as used in heading 9505, HTSUS. See Headquarters Ruling Letter (“HQ”) H256503, dated June 30, 2016 (observing that classification as a “festive article” of heading 9505, HTSUS, requires that an article satisfy two criteria: (1) it must be closely associated with a festive occasion, and (2) the article must be used or displayed principally during that festive occasion). Based on a comparison between the TJX wreath and the artificial foliage wreaths at issue in ruling letter NY N281672, this office finds that the instant merchandise is substantially similar to articles that CBP has previously classified under heading 9505, HTSUS. Specifically, similar to the artificial foliage wreaths in NY N281672, this office finds that the TJX wreath is decorated with evergreen artificial foliage “dusted” with gold glitter and interspersed with battery-powered LED lights. Additionally, the presence of a large, red bow that is permanently attached to the front of the wreath supports a finding that the wreath is intended for display during the Christmas season. Based on these physical characteristics, this office finds that the TPX wreath is substantially similar to the wreaths classified in ruling NY N281672 under heading 9505, HTSUS. Accordingly, by application of GRI 1, the TJX artificial wreath is classifiable under heading 9505, HTSUS. Specifically, it is classified in subheading 9505.10.25, HTSUS, which provides for “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Articles for Christmas festivities and parts and accessories thereof: Christmas ornaments: Other: Other.” HOLDING: By application of GRI 1, the TPX, Inc. artificial foliage wreath is classified under heading 9505, HTSUS. Specifically, it is classified in subheading 9505.10.25, HTSUS, which provides for “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Articles for Christmas festivities and parts and accessories thereof: Christmas ornaments: Other: Other.” The 2017 column one, general rate of duty for merchandise of subheading 9505.10.25, HTSUS, is free. Duty rates are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/. A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction. Sincerely, Laurance W. Frierson, Acting Chief Electronics, Manufacturing, Automotive, and International Nomenclature Branch