CLA-2 OT: RR: CTF: TCM: H269233 ERB
Ms. Angie Dunsten
Expeditors Tradewin, LLC
11101 Metro Airport Center Drive
Building M2, Suite 110
Romulus, MI 48174-1694
RE: Revocation of NY N019321; Tariff classification of a backroom restocking cart
Dear Ms. Dunsten:
U.S. Customs and Border Protection (CBP) issued you, on behalf of Rite Aid Corporation, New York Ruling Letter (NY) N019321, on November 21, 2007. NY N019321 pertains to the tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) of a backroom restocking cart (Item #30232). We have since reviewed NY N019321 and found it to be in error with regards to the tariff classification.
Pursuant to Section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), 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 50, Numbers 2 & 3, on January 20, 2016, proposing to revoke NY N019321, and any treatment accorded to substantially similar transactions. No comments were received in response to the proposed revocation.
FACTS:
NY N019321 provides the following:
In your letter dated November 1, 2007, you requested a tariff classification ruling on behalf of Rite Aid Corporation of Camp Hill, Pennsylvania. The item concerned is a Backroom Restocking Cart (Item # 30232). It is a steel, rectangular, four-wheeled cart that measures approximately 6 or 7 feet high by 5 feet wide. The Cart has 5 platform shelves and four steel posts, one at each corner. The applicable classification subheading for the Backroom Restocking Cart (Item # 30232) will be 8716.80.5090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for " … other vehicles, not mechanically propelled; … : Other vehicles: Other: Other: Other". The rate of duty will be 3.2%.
ISSUE:
Whether a metal shelving restocking cart is classified as a vehicle, non-mechanically propelled, under heading 8716, HTSUS, or whether it is classified as racks, display cases, shelves, or similar fixtures, under heading 9403, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration in this case are as follows:
8716 Trailers, and semi-trailers; other vehicles, not mechanically propelled; and parts thereof:
8716.80 Other vehicles
***
9403 Other furniture and parts thereof:
9403.20.00 Other metal furniture:
Other:
Counters, lockers, racks, display cases, shelves, partitions and similar fixtures:
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the HTSUS at the international level, may be utilized. The ENs, although not dispositive or legally binding, provides a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg 35127 (August 23, 1989).
The EN 87.16 provides, in relevant part:
The heading includes:
***
(B) Hand- or foot-propelled vehicles.
This group includes:
(3) Food carts, buffet trolleys (other than the type falling in heading 94.03), of a kind used in railway stations.
The EN 94.03 provides, in relevant part:
This heading covers furniture and parts thereof, not covered by the previous heading. It includes furniture for general use…other shelved furniture…and also furniture for special uses.
The heading includes furnitures for:
(5) 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.
The General ENs to Chapter 94 state, in relevant part, with regard to the meaning of “furniture” classified therein, at Subsection (A) the following:
For the purposes of this Chapter, the term “furniture” means:
(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. …
Goods are classified in heading 8716, HTSUS, because they are used solely or principally for the transportation of goods from one location to another. See NY N201841, dated February 22, 2012 (classifying a metal cart where products are loaded onto the cart in one location and then moved via truck to a different location where the cart and its contents are unloaded. The cart is then transported by truck back to its original location where the process continues repeating itself); and see NY N059817, dated May 28, 2009 (classifying a multi-purpose hand truck).
Conversely, goods classified within the furniture provisions of chapter 94, specifically, within the shelved furniture provision of heading 9403, are not designed for the transportation of goods. These carts cannot be used solely or principally for the transportation of goods from location to location. Rather, as furniture, the carts must be of the type to fit and equip establishments with movable articles used in the readiness of an area for purposes of supporting various human activities. See NY N227676, dated August 20, 2012 (classifying various rolling metal shelves).
Upon review of the information contained in NY N019321, as well as a photograph included in the submission, the subject backroom restocking carts are not primarily constructed for the purposes of transportation of goods from one location to another, or for multiple locations, via commercial conveyance or personal vehicle. These carts are the types of carts ordinarily used by retail establishments to store items prior to their being displayed for customer purchase. They have multiple shelves for holding merchandise or other goods. Further, the sides are completely open for clear viewing of the goods contained thereon, which also makes the carts suitable for display purposes.
The carts may have a secondary use such as moving or distributing goods throughout a store, for stocking purposes. However, this intra-store movement is not equivalent to the long-haul movement associated with the trailers of heading 8716, HTSUS. Additionally, the subject goods are not described as a food carts or buffet trolleys of the kind used in railway stations which are provided for as included in heading 8716, HTSUS, pursuant to the EN 87.16(B)(3).
Accordingly, these carts fall within the definition of “furniture” and are classified in heading 9403, HTSUS, the provision which provides for racks, display cases and shelves. This is consistent with other rulings classifying identical or substantially similar goods. See NY N233415, dated October 16, 2012 (classifying rolling metal racks, referred to as food service carts).
HOLDING:
By application of GRI 1, the subject backroom restocking cart (Item #30232), is classified in heading 9403, HTSUS. It is specifically provided for under subheading 9403.20.0026, HTSUSA (Annotated), which provides for, “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Other”. The column one, general rate of duty is free.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rats are provided at www.usitc.gov
EFFECT ON OTHER RULINGS:
NY N019321, dated November 21, 2007, is hereby REVOKED.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective sixty (60) days after its publication in the Customs Bulletin.
Myles B. Harmon, Director
Commercial and Trade Facilitation Division