OT:RR:CTF:CPMM H202595 APP
Laura S. Rabinowitz, Esq.
Kelley, Drye & Warren LLP
101 Park Avenue
New York, NY 10178
RE: Tariff classification of metal step stools; Revocation of NY 855972, NY R02622, NY N022949, NY N023940, NY N024279, and NY N042721
Dear Ms. Rabinowitz:
This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered New York Ruling Letter (“NY”) 855972, dated September 12, 1990 (issued to Builders Square); NY R02622, dated October 6, 2005 (issued to The Container Store); NY N022949, dated February 12, 2008 (issued to Costco Wholesale); NY N023940, dated February 29, 2008 (issued to Dorel Juvenile Group); NY N024279, dated March 10, 2008 (issued to Dorel Juvenile Group); and NY N042721, dated October 29, 2008 (issued to Dorel Juvenile Group), regarding the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of metal step stools. CBP classified the subject step stools in heading 9403, HTSUS, specifically in subheading 9403.20.00, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture.”
We have determined that these six rulings are in error. For the reasons set forth below, we hereby revoke NY 855972, NY R02622, NY N022949,
NY N023940, NY N024279, and NY N042721.
Pursuant to section 625(c)(l), Tariff Act of 1930 (19 U.S.C. § 1625(c)(l)), 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), a notice was published in the Customs Bulletin, Volume 51, No. 48, on November 29, 2017, proposing to revoke NY 855972, NY R02622, NY N022949, NY N023940, NY N024279, and NY N042721, and to revoke any treatment accorded to substantially identical transactions. One comment in favor of and one in opposition to the instant action were received in response to the notice and are addressed below.
FACTS:
The subject merchandise consists of metal step stools, which feature two, three, or four steps, covered with plastic ribbed slip-resistant treads to improve a person’s footing when climbing up the ladder. In addition, they feature side-rails to provide stability to a person who is climbing onto the ladder’s uppermost step. All step stools are designed to be placed on the floor or ground, and are used in the household for standing, sitting, and elevating a person.
The folding metal step stool in NY 855972 has two solid steel steps whose height is 10-7/8" to 19-1/2" and folds to 2-1/2". The main frame is constructed of tubular steel and has non-slip plastic tips. The step stool is lightweight, easy to carry, and can be stored anywhere.
The folding metal two-step stool in NY R02622 is made of steel and plastic resin. The main frame is constructed of tubular steel and has non-slip plastic tips. The step stool is lightweight, easy to carry, and can be stored anywhere.
NY N023940 covers step stool models numbers 11-302, 11-303, 11-380, and 11-435. Model number 11-380 differs from the other models in that it has a plastic tool rack attached to the top loop and the top loop of the tubular frame is a foot higher. All models have two plastic steps and the main frame is made of tubular steel. In addition to being used for standing, sitting, and elevating a person, the step stools are also used for household tasks such as repair, painting, or cleaning of higher places.
The rubbermaid three-step high-back folding steel step stool in NY 022949 is lightweight, easy to carry, and can be stored anywhere. The main frame is constructed of tubular steel and has non-slip plastic tips.
NY N042721 includes five three-step folding stool ladders made of tubular steel (models numbers 11-513, 11-514, 11-515, 11-525, and 11-880). All models are collapsible to facilitate storage. Models numbers 11-515, 11-525, and 11-880 feature plastic trays to hold paint cans or other household articles.
NY N024279 covers model number 11-628 ABL1 (dimensions 39.25” H x 18.75” W x 23.25” D). It is a two-step stool made of aluminum frame with the upper step and feet made of plastic (heavy-duty injecton molded polypropylene resin steps with ribbed slip-resistant treads). The step stool is lightweight, easy to carry, and can be stored anywhere.
ISSUE:
Whether the metal step stools are classifiable in heading 9403, HTSUS, as “other furniture and parts thereof” or by their constituent material, in heading 7326, HTSUS, as “other articles of iron or steel”, or in heading 7616, HTSUS, as “other articles of aluminum.”
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation (“AUSR”). The GRIs and the AUSR are part of the HTSUS and are to be considered statutory provision of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in their appropriate order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level.
The HTSUS headings under consideration are the following:
7326 Other articles of iron or steel:
7616 Other articles of aluminum:
9403 Other furniture and parts thereof:
Note 1(k) to Section XV (which include Chapter 73), HTSUS states:
This section does not cover: …
(k) Articles of Chapter 94 (for example, furniture, mattress supports, lamps and lighting fittings, illuminated signs, prefabricated buildings)[.]
Note 2 to Chapter 94, HTSUS states:
The articles (other than parts) referred to in headings 9401 to 9403 are to be classified in those headings only if they are designed for placing on the floor or ground[.]
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 General ENs to Chapter 94, define furniture as:
(A) Any “movable” articles (not included under other more specific headings of the Nomenclature), which have the essential characteristic that they are constructed for placing on the floor or ground, and which are used, mainly with a utilitarian purpose, to equip private dwellings, hotels, theatres, cinemas, offices, churches, schools, cafés, restaurants, laboratories, hospitals, dentists’ surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan trailers or similar means of transport … Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are also included in this category.
(B) The following:
(i) Cupboards, bookcases, other shelved furniture (including single shelves presented with supports for fixing them to the wall) and unit furniture, designed to be hung, to be fixed to the wall or to stand one on the other or side by side, for holding various objects or articles (books, crockery, kitchen utensils, glassware, linen, medicaments, toilet articles, radio or television receivers, ornaments, etc.) and separately presented elements of unit furniture.
(ii) Seats or beds designed to be hung or to be fixed to the wall.
EN 94.03 provides, in pertinent part, as follows:
This heading covers furniture and parts thereof, not covered by the previous headings. It includes furniture for general use (e.g., cupboards, show-cases, tables, tables, telephone stands, writing-desks, escritoires, book-cases, and other shelved furniture (including single shelves presented with supports for fixing them to the wall), etc.), and also furniture for special uses.
The heading includes furnitures for:
Private dwellings, hotels, etc., such as: cabinets, linen chests, bread chests, log chests; chests of drawers, tallboys; pedestals, plant stands; dressing-tables; pedestal tables; wardrobes, linen presses; hall stands, umbrella stands; side-boards, dressers, cupboards; food-safes; bedside tables; beds (including wardrobe beds, camp-beds, folding beds, cots, etc.); needlework tables; stools and foot-stools … fire screens; draught-screens; pedestal ashtrays; music cabinets, music stands or desks; play-pens; serving trolleys ….
Offices, such as: clothes lockers, filing cabinets, filing trolleys, card index files, etc.
Schools, such as: school desks, lecturers’ desks, easels (for blackboards, etc.).
Churches, such as: altars, confessional boxes, pulpits, communion benches, lecterns, etc.
Shops, stores, workshops, etc., such as: counters; dress racks; shelving units; compartment or drawer cupboards; cupboards for tools, etc.; special furniture (with cases or drawers) for printing works.
Laboratories or technical offices, such as: microscope tables; laboratory benches (whether or not with glass cases, gas nozzles and tap fittings, etc.); fume cupboards; unequipped drawing tables.
The heading does not include: …
(b) Ladders and steps, trestles, carpenters’ benches and the like not having the character of furniture; these are classified according to their constituent material (headings 44.21, 73.26, etc.) ….
The General ENs to Chapter 73 state, in relevant part, that:
This Chapter covers a certain number of specific articles in headings 73.01 to 73.24, and in headings 73.25 and 73.26 a group of articles not specified or included in Chapter 82 or 83 and not falling in other Chapters of the Nomenclature, of iron (including cast iron as defined in Note 1 to this Chapter) or steel.
EN 73.26 provides in pertinent part:
This heading covers all iron or steel articles obtained by forging or punching, by cutting or stamping or by other processes such as folding, assembling, welding, turning, milling or perforating other than articles included in the preceding headings of this Chapter or covered by Note 1 to Section XV or included in Chapter 82 or 83 or more specifically covered elsewhere in the Nomenclature.
The heading includes:
Horseshoes; … ladders and steps; trestles ….
EN 76.16 provides in pertinent part:
This heading covers all articles of aluminium other than those covered by the preceding headings of this Chapter, or by Note 1 to Section XV, or articles specified or included in Chapter 82 or 83, or more specifically covered elsewhere in the Nomenclature …
This heading includes, in particular:
(5) Aluminium articles corresponding to the iron and steel articles referred to in the Explanatory Notes to headings 73.25 and 73.26.
* * * * *
If the instant step stools are properly classified under heading 9403, HTSUS, they cannot be classified under headings 7326 or 7616, HTSUS. See Note 1(k) to Section XV, HTSUS. Therefore, we must first consider whether the instant step stools are classifiable in heading 9403, HTSUS.
The subject step stools are designed to be placed on the floor or ground, and do not fall under the specified exceptions under Note 2 to Chapter 94, HTSUS. However, not all merchandise designed for placing on the floor or ground automatically qualifies as furniture within the meaning of Chapter 94. Consistent with the General ENs to Chapter 94, to qualify as “furniture,” the instant step stools must “have the essential characteristic that they are constructed for placing on the floor or ground” and must be “used, mainly with a utilitarian purpose, to equip private dwellings ….” (emphasis added).
EN 94.03 further explains that this heading “includes furniture for general use (e.g., cupboards, show cases, tables, telephone stands, writing desks, escritoires, book cases, and other shelved furniture (including single shelves presented with supports for fixing them to the wall), etc.), and also furniture for special uses.” EN 94.03 goes on to list examples of furniture for private dwellings, offices, and so forth. These exemplars are used for storage, for display, or for a person to sit, lie down, or rest on.
The first commenter contends that according to the American National Standard A14.2-2007, published in August 2007, by the American Ladder Institute, ladders are distinguishable from step stools and a step stool standard is under development. The first commenter argues that the subject articles are not ladders because they are movable articles that are purportedly not provided for under a more specific heading, are constructed to be placed on the floor/ground, and are used mainly with a utilitarian purpose to equip private dwellings. The first commenter claims that EN 94.03 is not restricted to shelved products that store or display mementoes.
We note that Standard A14.2-2007 currently covers ladder-type step stools and excludes furniture type step stools. Standard A14.2-2007 defines ladder-type step stools as “self-supporting, foldable, portable ladder, nonadjustable in length, 32 inches or less in size, with flat steps and without a pail shelf, designed so that the ladder top cap as well as all steps can be climbed on. The side rails may continue above the top cap.” The instant step stools are ladder-type because they are self-supporting, foldable, portable, non-adjustable in length, 32” or less in overall size, with flat steps, and without a pail shelf, and intended for use by one person. Even though the present standard supports our decision to equate step stools with ladders, we note that standards are developed to establish safety guidelines for products and do not guide tariff classification. Standards might help us better understand a given product, but are developed and changed without any consequence to classification in the HTSUS. Hence, Standard A14.2-2007 has no relevance to the instant matter.
We reiterate that while the instant step stools are designed to be placed on the ground or floor, and allow the user to safely complete tasks, which require reaching higher elevations in the household, e.g., cabinets, upper shelves, and walls, unlike furniture-type step stools, they are not used to equip private dwellings because they do not allow a person to sit or lie down, or to store or display articles in a permanent fashion. The instant step stools are not akin to folding chairs. The instant step stools here do not “furnish” a private dwelling. One might be able to sit on the step stools, but only for a short period of time and not comfortably. The steps are ribbed with plastic treads and the top loop does not provide enough back support. The step stools are foldable and are not designed to rest the feet. In addition, the step stools are not equipped with baskets or any other means to store or display articles in a permanent fashion. The step stools are not akin to any of the exemplars listed in EN 94.03, see supra. Accordingly, the subject stools are not classifiable as “other furniture” in heading 9403, HTSUS, because they do not share characteristics with any of the exemplars in EN 94.03, see supra, as they are not intended to be used for rest, relaxation, storage, or display.
Moreover, tools such as ladders and steps are excluded from heading 9403, HTSUS. EN 94.03 explains that “[l]adders and steps[,] and the like, not having the character of furniture” are excluded from heading 9403, HTSUS. The HTSUS and the ENs do not define “ladders” or “steps.” When terms are not defined in the HTSUS or the ENs, they are construed in accordance with their common and commercial meaning. See Nippon Kogaku (USA), Inc. v. United States, 69 C.C.P.A. 89, 673 F. 2d 380 (1982); C.J. Tower & Sons, Inc. v. United States, 69 C.C.P.A. 128, 673 F. 2d 1268 (1982). The online Oxford English Dictionary defines “ladder” as “a piece of equipment consisting of a series of bars or steps between two upright lengths of wood, metal, or rope, used for climbing up or down something” and a “step” as “[a] rung of a ladder.”
In this instance, we find that the subject step stools are similar to ladders. Specifically, the subject articles are ladder-type step stools designed to support the weight of a person, enabling that user to reach higher points, and they feature ladder-like steps that are covered with ribbed plastic to improve the user’s footing and safety. In addition, the subject metal step stools are portable like other household tools, as they are designed to be carried (by their handle), folded, and stored when not in use. They are therefore entirely dissimilar to the furniture exemplars in General ENs to Chapter 94 and EN 94.03, see supra.
We further note that the subject articles’ flat surfaces (i.e., the steps) are not suitable for storage or for the display of mementoes, unlike the wooden shelving units with storage baskets classified as “other furniture” in Headquarters Ruling Letter (“HQ”) H240196, dated July 11, 2014. Like the floor standing steel ashtray cylinders and waste receptacles that we classified as household articles in HQ 964352, dated September 11, 2000, the step stools’ intended use is more like that of an appliance, as it allows a person to accomplish household tasks more effectively. Thus, we find that the subject ladder-type step stools are not furniture-type step stools classifiable in heading 9403, HTSUS, as “other furniture,” because they are designed to serve as a household tool, or as an appendage or extension of the user, by allowing an individual to expand his or her reach. As a result, they are not excluded from classification in Chapters 73 and 76, HTSUS, by Note 1(k) to Section XV, HTSUS.
The subject steel metal stools in NY 855972, NY R02622, NY N022949, NY N023940, and NY N042721 are described by heading 7326, HTSUS, which provides for “Other articles of iron or steel.” EN 73.26 lists ladders as specifically included by heading 7326. See NY R01425, dated February 22, 2005 (classifying a two-tier step ladder made of steel in subheading 7326.90, HTSUS). The ENs to heading 7326, HTSUS, state, in relevant part, that this heading covers all iron or steel articles obtained by forging or punching, by cutting or stamping, or by other processes such as folding, assembling, welding, turning, milling or perforating other than articles included in the preceding headings of this Chapter or covered by Note 1 to Section XV, or more specifically covered elsewhere in the Nomenclature. Accordingly, the subject stool steps in NY 855972, NY R02622, NY N022949, NY N023940, and NY N042721 are classifiable under heading 7326, HTSUS because they are made of steel and are not covered elsewhere in the Nomenclature.
Finally, the aluminum stool in in NY N024279 is described by heading 7616, HTSUS, which covers “Other articles of aluminum.” EN 76.16 explains that heading 7616, HTSUS, includes aluminum articles corresponding to the iron and steel articles referred to in the ENs to headings 73.25 and 73.26 that are not covered by the preceding headings of Chapter 76, by Note 1 to Section XV, or articles specified or included in Chapter 82 or 83, or more specifically covered elsewhere in the Nomenclature. In NY R03154, dated February 3, 2006, CBP classified step ladders made of tubular aluminum in heading 7616, HTSUS. Just like the ladders in NY R03154, the step stool in NY N024279 is classifiable in heading 7616, HTSUS because it is made of aluminum and is not covered elsewhere in the Nomenclature.
Lastly, the two commenters believe that GRI 3(b) or GRI 3(c) must be applied to classify the subject step stools. We do not disagree that the step stools are composite goods (steel/plastic or aluminum/plastic) and that the component which imparts the essential character will determine their ultimate classification. The component imparting the essential character of the step stools is the metal (steel or aluminum) because the main frame is constructed of metal and the plastic components are minimal. Since the instant merchandise has an essential character under GRI 3(b), it is unnecessary to apply GRI 3(c). Thus, by application of GRIs 1 and 3(b), we conclude that the instant step stools are classifiable in heading 7326, HTSUS (the step stools in NY 855972, NY R02622, NY N022949, NY N023940, and NY N042721) and heading 7616, HTSUS (the step stool in NY N024279).
HOLDING:
By application of GRIs 1 and 6, and 3(b), the step stools in NY 855972, NY R02622, NY N022949, NY N023940, and NY N042721 are classified in heading 7326, HTSUS, specifically under subheading 7326.90.8660, HTSUSA (Annotated), which provides for "Other articles of iron or steel: Other: Other: Other: Other: Ladders." The 2018 rate of duty is 2.9% ad valorem.
By application of GRIs 1 and 6, and 3(b), the step stool in NY N024279 is classified in heading 7616, HTSUS, specifically under subheading 7616.99.5130, HTSUSA (Annotated), which provides for “Other articles of aluminum: Other: Other: Other: Ladders.” The 2018 rate of duty is 2.5% ad valorem.
Duty rates are provided for convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/current.
EFFECT ON OTHER RULINGS:
NY 855972, dated September 12, 1990, is hereby REVOKED.
NY R02622, dated October 6, 2005, is hereby REVOKED.
NY N022949, dated February 12, 2008, is hereby REVOKED.
NY N023940, dated February 29, 2008, is hereby REVOKED.
NY N024279, dated March 10, 2008, is hereby REVOKED.
NY N042721, dated October 29, 2008, is hereby REVOKED.
In accordance with 19 U.S.C. § 1625(c), these rulings will become effective 60 days after their publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division
Cc: Mr. Michael O’Neill
O’Neill & Whitaker, Inc.
1809 Baltimore Avenue
Kansas City, MO 64108
Ms. Geri Davidson
The Container Store
500 Freeport Parkway
Coppell, TX 75019
Ms. Amy Morgan
Costco Wholesale
999 Lake Drive
Issaquah, WA 98027
Mr. Jason Butelle
P.O. Box 101
Andover, MA 01810