January 18, 2023 Customs bulletin and decisionsU.S. Customs and Border Protection is reclassifying the following products, effective for goods entered or withdrawn from storage for consumption on or after March 19.
For more information on how to seek or use classification and other rulings, contact attorney Deb Stern at (305) 894-1007 or by email.
Outdoor furniture sets
CBP reclassifies certain outdoor furniture sets as sets under HTSUS 9403.60.8040, 9403.70.8015, or 9403.89.6015 (all duty-free) instead of classifying the chair sets separately based on their constituent materials (HTSUS 9401.71.0010, 9401.79). .0005 and 9401.61.4011, all duty free).
The furniture sets in question include chairs and tables made of different materials. Furniture is imported fully assembled or partially unassembled and delivered in one combined shipment but in separate boxes.
CBP states that these items may be classified as retail sets because the table and chairs are assembled to meet a specific need and are intended to be used in combination with each other to perform a specific activity. Furthermore, they were ready for retail sale without repackaging and imported in the same shipment and sold at retail only as a unit. CBP originally held that items are considered a set only if they are packaged together, but now states that “the individualized retail packaging method for items of this size, imported with several oversized components, cannot be removed from the construction of retail sets” simply because the table and chairs do not fit into one retail package.”
HQ Decision H271649 will reverse Decisions NY N004954, NY N028531, NY N021597, NY L80593, NY N085595, NY B85455, NY N255629, NY N084056, NY F82793, and NY N149696 to reflect this change.
Items for fashion shows
CBP reclassifies haute couture items for catwalks under their own separate headings (4202, 4203, 4303, 6402, 6403, 6404, 6405, 6504, 6505, 6506, 7113, and 7116), rather than as collections of historical pieces under HTSUS 9705.00.0070 ( duty free).
The items in question are clothing, accessories, jewelry and shoes used in the semi-annual showcases. CBP initially determined that these events were only for show and credibility of the brand in question, noting that the items “are displayed and exhibited in museums around the world, are rare and change twice a year, their price reflects their rarity and often used in photographs in France and abroad after these events.”
However, CBP now states that the commercial venture in exhibiting these items twice a year serves the primary purpose of generating interest in the displayed products in attracting potential future business. A secondary objective is to anticipate, solicit and obtain commercial and retail orders for future delivery. Although the items at issue are “unique, of high value, require hours of hand-crafting, and are comprised of luxury materials,” CBP states, “there is no indication that the exceptionally high value of the particular piece is associated with any historically famous person or specific historically significant event. “
CBP concludes that the items are therefore excluded from classification in heading 9705, which excludes goods produced as a commercial endeavor to commemorate, celebrate, illustrate, or display an event or any other object, regardless of whether the production is limited in quantity or circulation.
Ruling HQ H305462 will revoke NY N297394 to reflect this change.
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