CLA-2-94:OT:RR:NC:N4:433
Patrick Gill
Sandler, Travis & Rosenberg, P.A.
551 5th Avenue, Suite 1100
New York, NY 10176
RE: The tariff classification of metal furniture from China.
Dear Mr. Gill:
In your letter dated March 16, 2020, on behalf of NewAge Products Inc., you requested a tariff classification ruling and confirmation that the articles are not subject to China Section 301 duties, specifically US Note 20(qq) Annex (100). In lieu of samples, illustrative literature and product descriptions were provided.
Item 1, the “Bold Series,” is a group of unequipped, locking, modular, shelved, metal storage lockers and cabinets that are available in different paint finishes. First, a floor standing, 2-door shelved locker whose dimensions are 42” in width, 18” in depth, and 72” in height. Second, a floor standing, 2-door shelved locker whose dimensions are 30” in width, 18” in depth, and 72” in height. Third, a floor standing, 2-door pair of shelved lockers whose combined dimensions are 84” in width, 18” in depth, and 77.25” in height. Fourth, a floor standing, 2-door base cabinet whose dimensions are 24” in width, 16” in depth, and 35.25” in height. Fifth, a floor standing, 5-drawer project workstation and locker component whose overall dimensions are 62” in width, 18” in depth, and 35.” in height. The workstation contains four casters, two that are lockable. Sixth, a floor standing, multi-level rolling tool drawer whose dimensions are 20.75” in width, 16” in depth, and 33” in height. The tool drawer contains four casters. Seventh, a wall mounted 2-door cabinet whose dimensions are 36” in width, 12” in depth, and 19.5” in height. Eighth, a wall mounted 2-door cabinet whose dimensions are 24” in width, 12” in depth, and 18” in height.
Item 2, the “Pro Series,” is a group of unequipped, locking, modular, shelved, metal storage lockers and cabinets that are available in different paint finishes. First, a floor standing, 2-door, shelved multi-use locker whose dimensions are 36” in width, 24” in depth, and 80” in height. Second, a floor standing, 5-drawer tool cabinet whose dimensions are 28” in width, 22” in depth, and 32.25” in height. Third, a floor standing, multi-functional cabinet whose dimensions are 28” in width, 22” in depth, and 35.5” in height. Fourth, a floor standing, 2-door base cabinet whose dimensions are 28” in width, 22” in depth, and 32.25” in height. Fifth, a floor standing mobile locker on casters whose dimensions are 28” in width, 22” in depth, and 65” in height. Sixth, a floor standing sink-cabinet whose dimensions are 28” in width, 22” in depth, and 38.75” in height. The sink-cabinet is equipped with a sink and faucet. Seventh, a floor standing, single-door, adjustable-shelf locker whose dimensions are 15” in width, 24” in depth, and 80” in height. Eighth, a wall mounted single-shelf cabinet whose dimensions are 28” in width, 14” in depth, and 22” in height.
You request classification of the subject merchandise in subheading 9403.20.0050, Harmonized Tariff Schedule of the United States, (HTSUS). We disagree.
The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level.
Chapter 94, Legal Note 2, and 2a provides: “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 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.” A review of the facts finds the “Bold Series” and the “Pro Series” of lockers and cabinets to fall within the construct of Chapter 94, Legal Note 2 and 2a.
Unit furniture is not defined. In Storewall, LLC versus the United States, Slip Op. 09-146, Court No.05-00462 dated December 18, 2009, the United States Court of International Trade (CIT), derived the following meaning for the term “unit furniture.”
(a) fitted with other pieces to form a larger system or which is itself composed of smaller complementary items,
(b) designed to be hung, or fixed to the wall, or stand one on the other or side by side,
(c) assembled together in various ways to suit the consumer’s individual needs to hold various objects or articles, and
(d) excludes other wall fixtures such as coat, hat and similar racks, key racks, clothes brush hangers, and newspaper racks.
Further, the United States Court of Appeals for the Federal Circuit (CAFC), in Storewall, LLC versus the United States also added that unit furniture may be assembled together in various ways to suit the consumer’s individual needs to hold various objects and articles, and it was this versatility and adaptability that was the essence of unit furniture. A review of the facts finds the subject merchandise to be separately presented elements of unit furniture.
Subheading 9403.20.00, HTSUS, provides for “Other furniture and parts thereof: Other metal furniture.” At the eight-digit 9403.20.00, HTSUS, subheading level the subject merchandise are classified therein. The issue arises at the ten-digit subheading level as to whether or not the subject merchandise are of subheading 9403.20.0050 which provides for “Other metal furniture: Household: Other: Other” or subheading 9403.20.0081, HTSUS, which provides for “Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures.” In the condition as imported the subject merchandise are identified according to the terms of the subheading 9403.20.0081, HTSUS, specifically lockers and similar fixtures. As subheading 9403.20.0081, HTSUS, is more specific, classification in subheading 9403.20.0050, HTSUS, is precluded.
The applicable subheading for the subject merchandise will be 9403.20.0081, 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.
TRADE REMEDY
Products of China classified under subheading 9403.20.0081, HTSUS, unless specifically excluded, are subject to the additional 25 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 9403.20.0081, HTSUS, listed above. See U.S. Note 20 to Subchapter III, Chapter 99, HTSUS.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the Section 301 trade remedy, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb.
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