CLA-2-94:OT:RR:NC:N4:433
Donald S. Stein. Esq.
Greenberg Traurig, LLP
Attorneys at Law
2101 L Street, N.W., Suite 1000
Washington, DC 20037
RE: The tariff classification of component parts of beds from Vietnam.
Dear Mr. Stein:
In your letter dated June 1, 2016, on behalf of Haverty Furniture Companies, Inc., you requested a tariff classification ruling. Descriptive and illustrative literature were provided.
The merchandise under consideration are component parts of “Newport Beds.” Three styles of Newport Bed have been identified: (1) style # 5-4590-3117, King Panel Storage Bed Distressed White; (2) style # 5-4590-3116, King Panel Bed Distressed White; and (3) style # 5-4590-3120, King Poster Bed Distressed White. All three style numbers consist of a headboard, footboard and side rails – the {component parts of beds}, all made of wood. Illustrative literature depicts that the drawer-units for the King Panel Storage Bed Distressed White are contained within the footboard.
We note based on the illustrative literature that the King Panel Storage Bed Distressed White and the King Panel Bed Distressed White both use the same SKU numbers for the headboard, while the King Panel Bed Distressed White and the King Poster Bed Distressed White both use the same SKU numbers for the side rails.
It is your contention that this office confirm in a binding ruling that the headboard, footboard and side rails are classified as parts of furniture in subheading 9403.90.7080 of the Harmonized Tariff Schedule of the United States (HTSUS), regardless of whether (a) imported in equal numbers in one shipment with other components, or in equal numbers in separate shipments, so when assembled, they will form completed beds, or (b) imported in non-equal numbers, so that after assembly, there are excess numbers of left over components (“unequal quantities”).
Alternatively, you request, in the absence of confirmation of subheading 9403.90.7080, HTSUS, that the component parts of the beds, as referenced above, be classified in 9403.50.9045, HTSUS, as unassembled wooden beds, regardless of whether imported in equal or unequal quantities.
Before we examine your primary contention, followed by your alternative contention, two schools of thought are applicable to the merchandise concerned:
(1) The “Doctrine of Entireties” as used in Customs (CBP) law says that when an entry consists of parts which can be assembled to form an article that is different from any of the parts, the proper classification will be of the whole article, rather than the individual components. This principle is a corollary to the fundamental theory of customs jurisprudence that an imported article should be classified according to its true commercial character. The doctrine of entireties states that, if an entry consists of parts which, although unjoined, when assembled form an article different from any of the parts, then the proper classification is the one for the whole article and not for the parts separately.
(2) Customs {CBP} has consistently followed the long-standing classification principle stated by the Supreme Court in United States v. Citroen, 223 U.S. 407, 414-15, 32 S. Ct. 259, 56 L.Ed. 486 (1911): … [t]he rule is well established that “in order to produce uniformity in the imposition of duties, the “dutiable classification of articles imported” must be ascertained by an examination of the imported article itself, in the condition in which it is imported.” Worthington v. Robbins, 139 U.S. 337,341, 35 L. Ed. 181, 182, 11 Sup. Ct. Rep. 581; Dwight v. Merritt, 140 U.S. 213, 219, 35 L. Ed. 450, 452, 11 Sup. Ct. Rep. 768; United States v. Schoverling, 146 U.S. 76, 82, 36 L. Ed. 893, 895, 13 Sup. Ct. Rep. 24; United States v. Irwin (C.C.A. 2d C.) 24 C.C.A. 349, 45 U.S. App. 746, 78 Fed. 799, 802. [Emphasis supplied.]
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 GRI may then be applied.
Under GRI 2 (a), “any reference to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, 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.” GRI 2 (a) does not apply when unassembled components of goods are imported separately. When component parts are imported as separate items, the goods are classified separately, whereas if component goods of unassembled articles are imported together, even in separate boxes, the items are aggregated to determine the appropriate classification. See Headquarters ruling: HQ H079175 dated April 8, 2010 and New York rulings: N200657 dated January 27, 2012; N257914 dated November 4, 2014; N258940 dated December 2, 2014; and N268806 dated October 7, 2015.
We do not dispute that the subheading “wooden furniture of a kind used in the bedroom” is a principal use provision classified under subheading 9403.50, HTSUS. However, only “Parts: Of furniture of a kind used for motor vehicles” is a principal use provision classified under subheading 9403.90, HTSUS; all other parts of furniture including parts of furniture of wood (subheading 9403.90.7080) are not use provisions. Regardless of whether the “component parts of beds” are aggregated and classified as finished beds or separately classified, the principal use criterion under Additional U.S. Rules of Interpretation (AUSRI) 1 (a), HTSUS, is not germane to the merchandise concerned; it is our position that the “component parts of beds” are governed by the GRIs to the HTSUS, case law, and Headquarters and New York rulings consistent with the GRIs and case law.
By application of GRI 2 (a), HTSUS, and consistent with the “Doctrine of Entireties,” the bed frames consisting each of a headboard, a footboard and side rails, whether packaged in individual boxes or bulk packaged, when imported together in corresponding quantities and in the same shipment, are classifiable in heading 9403, HTSUS, “Other furniture and parts thereof,” with its subheading of 9403.50.9045, as finished beds. “Component parts of beds,” the headboards, footboards and side rails, not forming finished beds in the same shipment or in separate shipments (i.e., excess inventory or replacement parts) are to be classified as “separately presented elements of unit furniture” in subheading 9403.50.9045, HTSUS – this is consistent with United States v. Citroen, as well as Headquarter rulings: HQ 950246 dated November 22, 1991 and HQ 966672 dated March 8, 2004, and New York rulings: NY R05137 dated November 7, 2006 and N268806 dated October 7, 2015.
The applicable subheading for “component parts of beds,” when aggregated in entireties as finished beds; and “component parts of beds” when separately presented as unit furniture, not forming finished beds, will be 9403.50.9045, Harmonized Tariff Schedule of the United States (HTSUS), which provides for which provides for “Other furniture and parts thereof: Wooden furniture of a kind used in the bedroom: Other: Other: Beds: Other.” The rate of duty will be free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Neil H. Levy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division