CIT Uses 2 Tests to Find Glass Items Are Lamp "Parts"
The Court of International Trade has ruled in The Pomeroy Collection, Ltd., v. U.S., that two glass components from Mexico are parts of articles (lamps) which are classifiable under Harmonized Tariff Schedule heading 9405 because the lamps could not function without the glass components and because the glass components are dedicated solely for use with the lamps.
(The Pomeroy Collection, Ltd. imported shipments of two glass items from Mexico. One item (sku 804427) is the glass component of Pomeroy's candleholder, the "Gondola Hurricane," in which a metal candleholder hangs from the inside of the glass over potpourri. The other item (sku 807329) is a similar glass structure for Pomeroy's "Cabernet Pillar Holders" and other like candleholders, which consist of a metal base supported on a metal stand with the glass item sitting on top and containing a candle.)
CBP Classified Items as Glassware for Decoration Under HTS 7013
CBP classified both glass items under HTS 7013 as glassware of a kind used for indoor decoration or similar purposes, with a 2003 NAFTA (MX)1 duty rate of 5%, 10%, or 12%. Pomeroy filed protests, which CBP denied. After paying all required duties, charges, and exactions on the entries, Pomeroy brought action in the CIT to challenge CBP's denial of its protests claiming both glass items are properly classified as parts of lamps under HTS 9405.91.602. Parts of lamps, classified under Heading 9405, were free of duty in 2003 (and later) under NAFTA (MX).
Two Tests Determine Whether Items Are Classified as Part of Article
The appellate court has adopted two tests (either of which can be met) for determining whether items may be classified as a part of an article. The first, called the Willoughby test, requires that the article of which the merchandise in question is claimed to be a part, "could not function as such article" without the claimed part. The second test, called the Pompeo test, requires that when imported, the claimed part is "dedicated solely for use" in such article and, "when applied to that use," the claimed part meets the Willoughby test.
Pomeroy Claimed Articles Couldn't Function as Intended Without the Glass Items
Pomeroy argued that sku 804427 should be classified as part of an article under heading 9405 because it is specifically designed to serve as the container for Pomeroy's Gondola Hurricane candleholder, which could not function as intended without sku 804427. Pomeroy also argued that sku 807329 was specifically designed to serve exclusively as the candle holder in a number of Pomeroy products, which could not function in their intended manner without the sku 807329 glass. Pomeroy requested the CIT direct CBP to re-liquidate the contested entries and refund the excess duties collected, with lawful interest.
CBP Said as "Gondola" Glass Item Didn't Fit Holder, Could Not Function as Depicted
CBP did not contest that the Gondola Hurricane, when assembled, is properly classified under heading 9405. However, CBP argued that sku 804427 cannot serve as the external structure of the Gondola Hurricane, as depicted on the cover of its retail packaging. A National Import Specialist for lamps and lighting fittings examined the Gondola Hurricane and attempted to assemble the item in the manner reflected by retail packaging ad determined that it was not possible to balance the arms of the metal candle holder on the rim of the subject glassware. Thus, CBP claimed that it is reasonable to conclude that sku 804427 is not specifically designed for the purpose reflected by retail packaging.
(The CIT’s decision does not elaborate on CBP’s argument for the classification of sku 807329 for the "Cabernet Pillar Holder".)
CIT Ruled "Gondola" Glass Item Met Function Test, even if Examined Item Defective
The CIT stated that the glass item sku 804427 was improperly classified under heading 7013 and that the item should be classified as part of Pomeroy’s Gondola Hurricane. Without the glass part, the metal candleholder, meant to hang over the enclosed potpourri, would have nothing to hang from. The CIT explains that because the Gondola Hurricane could not function without sku 804427, it satisfies the Willoughby function test.
The CIT explained that sku 804427 usually combines with the remaining components included in packaging in order to assemble the Gondola Hurricane. The depiction of the assembled Gondola Hurricane on the cover of the retail packaging shows the metal insert fitting on the rim of the glass, and the possible malfunction of one likely defective part does not negate the item’s normal design and function.
Found Other Glass Item Dedicated Solely for Use with the "Cabernet" Product
The CIT additionally stated that the relationship between the sku 807329 glass and the Cabernet Pillar Holders and other similar products, satisfies the Pompeo test because it is “dedicated solely for use” as the wind-breaking and protective structure of the products, and, “when applied to that use,” the Willoughby test is satisfied, as these products cannot function as protected flames without sku 807329.
Therefore the CIT concluded that both glass items are appropriately classified as parts of Pomeroy's candleholders under heading 9405.
1These duty rates are based on 2003 North American Free Trade Agreement (NAFTA) duty rates for eligible goods from Mexico. These tariff numbers are now duty-free for NAFTA goods from Mexico.
2This subheading applies to parts of glass, other than globes and shades or chimneys, for lamps and lighting fittings not elsewhere specified or included.
(Slip Op. 11-78, dated 07/06/11)