The tariff classification of woven baskets from Indonesia.

N332652 May 9, 2023 CLA-2-46:OT:RR:NC:N4:434 CATEGORY: Classification TARIFF NO.:4602.90.0000; 9903.88.03 Sally Gifford Geodis 5101 S. Broad StreetPhiladelphia, PA 19112 RE: The tariff classification of woven baskets from Indonesia. Dear Ms. Gifford: In your letter dated May 2, 2023, you requested a tariff classification ruling on behalf of your client, QVC Inc. A product description and photos were submitted for our review. Style S64590 is a set of two storage baskets for household use. The baskets are rectangular shaped, open-top baskets with two handles. The smaller basket measures 18 inches long x 12.5 inches wide x 10.75 inches high. The larger basket measures 24 inches long x 15 inches wide x 10.75 inches high. They are constructed of "faux leather" measuring 3 inches wide for the larger basket and 2.5 inches wide for the small basket wrapped around an iron wire frame. The faux leather material is cellular polyurethane (PU plastic) laminated to plain 100% polyester jersey fabric. The fabric acts as reinforcement for the PU. In your letter you suggest classification under heading 3924 or 9403, Harmonized Tariff Schedule of the United States (HTSUS). We disagree. The subject woven baskets, which measure 10.75” high, are insufficiently high to meet the heading 9403, HTSUS, definition of furniture. The woven baskets are not classified in heading 3924, HTSUS, because they are not of the same class or kind as the exemplars of household articles listed in EN 39.24. The “faux leather” (plastic) strips meet the definition of plaiting materials, as set forth in Note 1 to Chapter 46, HTSUS, which states: In this chapter the expression "plaiting materials" means materials in a state or form suitable for plaiting, interlacing or similar processes; it includes straw, osier or willow, bamboos, rattans, rushes, reeds, strips of wood, strips of other vegetable material (for example, strips of bark, narrow leaves and raffia or other strips obtained from broad leaves), unspun natural textile fibers, monofilament and strip and the like of plastics and strips of paper, but not strips of leather or composition leather or of felt or nonwovens, human hair, horsehair, textile rovings or yarns, or monofilament and strip and the like of chapter 54. The basket is a composite good consisting of faux leather plastic strips and a wire frame. General Rule of Interpretation (GRI) 1, HTSUS, states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3. GRI 3(a) states that the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to part only of the items in a composite good, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good is to be determined by GRI 3(b) or GRI 3(c). GRI 3(b) states in part that composite goods, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component which gives them their essential character which may 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 article. In this case, we find the essential character of the basket to be the faux leather plastic strips.  The faux leather plastic strips predominate by external surface area and provide the basket its functionality, as the basket could not function to hold items without the strips making up its sides and bottom.  The applicable subheading for the woven basket will be 4602.90.0000, HTSUS, which provides for “Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from the articles of heading 4601… Other.  The rate of duty will be 3.5 percent ad valorem. 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 World Wide Web at https://hts.usitc.gov/current.  Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4602.90.0000, 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., 9903.88.03, in addition to subheading 4602.90.0000, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.  For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 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, please contact National Import Specialist Charlene S. Miller at charlene.s.miller@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division