CLA-2-94:OT:RR:NC:N4:433

Sergejs Prokudins
S.P. Transfer Limited
30 Winston Avenue
Coventry CV2 1EB
United Kingdom

RE: The tariff classification of a shelf from China.

Dear Mr. Prokudins:

In your letter dated December 12, 2018, you requested a tariff classification ruling. Illustrative literature and a product description were provided for review.

S.P. Transfer Limited item, the “Industrial Pipe Shelf” is a three-tier shelf composed of metal and wood components along with metal assembly hardware. Two vertical pairs of iron pipes measuring 3/4” inches in diameter and 35” in length allow the assembled shelf to be mounted to a wall. Three wood board panels measuring approximately 31.5” inches in width and 9.8” in depth are mounted horizontally to the iron pipes. Each wood board panel is spaced approximately 11.4” apart.

The Harmonized Tariff Schedule of the United States (HTSUS), Chapter 94, Legal Note 2, and 2a provide: “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 of ground. The following are, however, to be classified in the above-mentioned headings even if they are designed to be hung, to be fixed to the wall or to stand one on the other: 2(a) Cupboards, bookcases, other shelved furniture (including single shelves presented with supports for fixing them to the wall) and unit furniture.” In the opinion of this office the “Industrial Pipe Shelf” falls within the construct of Chapter 94, Legal Note 2 and 2a.

The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level. EN VIII to General Rule of Interpretation (GRI) 3(b) provides: “the 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.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good.

The structure and frame of the “Industrial Pipe Shelf” is provided by the iron pipes. The wood board panels allow for the placement of items. The components together meet a particular need, display and storage. This office finds that the essential character of the “Industrial Pipe Shelf” is imparted by the metal pipes.

The applicable subheading for the “Industrial Pipe Shelf” will be 9403.20.0080, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Other.” The rate of duty will be free.

Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS.  The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS.  Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974).  Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.

Products of China classified under subheading 9403.20.0080, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 9403.20.0080, HTSUS, listed above.

The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.

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 the World Wide Web at https://hts.usitc.gov/current.

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 Dharmendra Lilia at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division