CLA-2 CO:R:C:M 956021 DWS
Mr. John M. Peterson
Neville, Peterson & Williams
2300 N Street, N.W.
Washington, DC 20037
RE: Modification of NY 892448; Travel 'N Trundle Youth Bed;
GRIs 2(a) and 3(b); Explanatory Notes 2(a)(V) and (VII),
and 3(b)(VIII), (IX) and (X); Composite Good; Set; HQ 954180
Dear Mr. Peterson:
This is in response to your letter of March 4, 1994, on behalf
of Regal + Lager, Inc., requesting reconsideration of
NY 892448, dated December 7, 1993, which dealt with the
classification of the "Travel 'N Trundle Youth Bed" under the
Harmonized Tariff Schedule of the United States (HTSUS). Pursuant
to section 625, Tariff Act of 1930 (19 U.S.C. 1625), as amended by
section 623 of Title VI (Customs Modernization) of the North
American Free Trade Agreement Implementation Act, Pub. L. 103-182,
107 Stat. 2057, 2186 (1993) (hereinafter section 625), notice of
the proposed modification of NY 892448 was published on June 1,
1994, in the CUSTOMS BULLETIN, Volume 28, Number 22.
FACTS:
The merchandise consists of the "Travel 'N Trundle Youth Bed"
portable youth bed, imported in a complete and disassembled
condition. It is comprised of a nylon bed, a vinyl-covered
polyethylene foam mattress, a fitted cotton or cotton/polyester
sheet (specially designed to cover the mattress), rectangular side
sections of polyethylene foam, and a nylon carrying case. The bed
is designed to be disassembled and rolled up for transportation and
storage in the carrying case. It is assembled by placing the side
panels in the bed pockets. The pockets then are turned down, to
be perpendicular to the bed surface, and held in that position by
"Velcro" attachments.
ISSUES:
Whether the youth bed, imported in a complete and disassembled
condition, is classifiable as if imported in an assembled
condition.
Whether the youth bed is a composite good or goods put up in
a set for retail sale.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
In NY 892448, the subject youth bed was held to be
classifiable as other furniture of plastics under subheading
9403.70.80, HTSUS, as goods put up in a set for retail sale.
Because it was held that the bed was a set, the textile components
of the bed were subject to textile quota requirements. If the
youth bed had been held to be a composite good, the textile quota
requirements would not have applied to the textile components.
There is no dispute that the youth bed is classifiable under
subheading 9403.70.80, HTSUS. However, the manner in which this
result is reached must be resolved.
First, because the youth bed is imported in a complete and
unassembled condition, we must determine whether it is to be
classifiable as if imported in an assembled condition. GRI 2(a)
states that:
[a]ny reference in a heading to an article shall be taken to
include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete or
unfinished article has the essential character of the
complete or finished article. It shall also include a
reference to that article complete or finished (or falling
to be classified as complete or finished by virtue of this
rule), entered unassembled or disassembled.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. See
T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
Explanatory Note 2(a)(V) (p. 2) states that:
[t]he second part of Rule 2(a) provides that complete or
finished articles presented unassembled or disassembled are
to be classified in the same heading as the assembled
article. When goods are so presented, it is usually for
reasons such as requirements or convenience of packing,
handling or transport.
In part, Explanatory Note 2(a)(VII) (p. 2) states that:
[f]or the purposes of this Rule, "articles presented
unassembled or disassembled" means articles the components
of which are to be assembled either by means of simple
fixing devices (screws, nuts, bolts, etc.) or by riveting or
welding, for example, provided only simple assembly
operations are involved.
We are satisfied that the youth bed, imported in a complete
and unassembled condition, imparts the essential character of an
assembled youth bed. Also, we find that the youth bed is presented
unassembled for reasons such as convenience of packing, handling,
or transport, and that the youth bed will be assembled by means of
simple fixing devices.
We must now determine whether the youth bed is a composite
good or goods put up in a set for retail sale. GRI 3(b) states
that:
[m]ixtures, composite goods consisting of 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.
In part, Explanatory Note 3(b)(IX) (p. 4) states that:
[f]or the purposes of this Rule, composite goods made up
of different components shall be taken to mean not only
those in which the components are attached to each other
to form a practically inseparable whole but also those
with separable components, provided these components are
adapted one to the other and are mutually complementary
and that together they form a whole which would not normally
be offered for sale in separate parts. . .
For classification purposes, it is our position that, based
upon the above definition, the youth bed constitutes a composite
good. The bed consists of separable components which are adapted
one to the other and together form a whole which would not normally
be offered for sale in separate parts. See HQ 954180, dated July
21, 1993.
Explanatory Note 3(b)(X) (p. 4) states that:
[f]or the purpose of this Rule, the term "goods put up in
sets for retail sale" shall be taken to mean goods which:
(a) consist of at least two different articles which are,
prima facie, classifiable in different headings . . .;
(b) consist of products or articles put up together to meet
a particular need or carry out a specific activity; and
(c) are put up in a manner suitable for sale directly to
users without repacking (e.g., in boxes or cases or on
boards).
The youth bed is not goods put up in a set for retail sale
because it does not consist of separately identifiable articles
classifiable in different headings under the HTSUS. The components
of the bed are not articles which could be sold separately and are
put up to meet a specific activity. See the exemplars to
Explanatory Note 3(b)(X). The bed components are parts adapted one
to another to form a youth bed. The parts have little utility
unless they are used together as a single article of commerce.
Explanatory Note 3(b)(VIII) (p. 4) states that:
[t]he factor which determines essential character will vary
as between different kinds of goods. It may, for example,
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 goods.
It is our position that the essential character of the youth
bed is imparted by its plastic components. They give the bed its
support and makes up the major portion of its weight. The bed also
has the appearance of being plastic, with additions of other
material.
Therefore, we find that the youth bed is a composite good
classifiable under subheading 9403.70.80, HTSUS.
HOLDING:
The "Travel 'N Trundle Youth Bed" is a composite good
classifiable under subheading 9403.70.80, HTSUS, as other furniture
of plastics. Textile quota requirements do not apply to the
textile components of the bed. Also, the youth bed, imported in
a complete and unassembled condition, imparts the essential
character of an assembled bed.
NY 892448 is modified to reflect the reasoning in this ruling.
In accordance with section 625, this ruling will become
effective 60 days after its publication in the CUSTOMS BULLETIN.
Publication of rulings or decisions pursuant to section 625 does
not constitute a change of practice or position in accordance with
section 177.10(c)(1), Customs Regulations [19 CFR 177.10(c)(1)].
Sincerely,
John Durant, Director