CLA-2-94:OT:RR:NC:N4:463
William G. Braier
Radix Group International
dba DHL Global Forwarding
6120 Ace Industrial Drive
Cudahy, WI 53110
RE: The tariff classification of a Murphy chest bed from Indonesia
Dear Mr. Braier:
In your letter dated July 2, 2020, on behalf of your client, International Furniture Imports, you requested a tariff classification and country of origin ruling. A letter with explanatory and illustrative literature and a follow up email were provided.
Per the information provided, the Murphy chest bed (The Sanibel, model #27358-4), subject of this ruling, is a hide-away bed that when not being used folds into a faux chest or dresser. It measures 67" (W) x 41" (H) x 28" (D) when closed and 81" long when fully extended. With the exception of the queen-size tri-fold foam mattress, which is manufactured in China, the Murphy chest bed is manufactured in Indonesia and is shipped complete with the mattress in one box from Indonesia to the United States. To convert the Murphy chest bed from its closed state as a chest into its open state as a bed: 1) the lower faux drawer is pulled out, extending the accordion-fold sides to form the bed frame, 2) the faux chest front is opened down to form the horizontal mattress support atop the bed frame and expose the accordion-fold mattress, 3) the mattress is then unfolded onto the bed frame.
CLASSIFICATION:
Your letter suggests that the Murphy chest bed be classified in subheading 9403.50.9045, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Wooden furniture of a kind used in the bedroom: Other: Other: Beds: Other.”
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 Murphy chest bed is composed of different components (i.e., chest/bed frame and mattress) and is considered a composite good for tariff purposes. The Explanatory Notes to the HTSUS, GRI 3 (b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, 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.
Upon review of the information provided, the essential character is imparted by the wooden chest and frame, which is responsible for the bulk of the volume, weight, function and cost of the bed. The mattress, in addition to being of less volume, weight and cost, is also less important to the unique function, look and feel of the Murphy chest bed than the wooden chest and frame.
The principle use of a Murphy chest bed is to equip a non-bedroom for temporary use by an overnight guest. The Murphy chest bed is a large, somewhat formal piece of furniture that will likely be placed in a home’s living room, family room, office or other multi-purpose room where it will serve to stow the fold-away mattress and bedding until needed, and provide an attractive surface from which to display pictures or other ornamental items.
The applicable subheading for the Murphy chest bed will be subheading 9403.60.8081, HTSUS, which provides for “Other furniture and parts thereof: Other wooden furniture: Other: Other.” The rate of duty will be free.
COUNTRY OF ORIGIN Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)) defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin.” A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use. No one factor is decisive.
Per the information provided, the Murphy chest bed is composed of an Indonesian wooden chest/bed frame and a Chinese foam mattress. The chest/bed frame is made of parawood and minor metal fittings and all of the manufacturing operations on the wood are performed in Indonesia, where the Murphy chest bed is packaged with the mattress in one box for shipment.
In view of these facts, this office is of the opinion that Indonesia is the country of origin of the Murphy chest bed, subject of this ruling.
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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division