CLA-2-94:OT:RR:NC:N4:463
Maytee Pereira
PricewaterhouseCoopers, LLP
300 Madison Avenue
New York, NY 10017
RE: The tariff classification of privacy phone booths and components.
Dear Ms. Pereira:
In your ruling request dated October 14, 2019, and resubmission received on October 14, 2020, you requested a tariff classification ruling. Additional information, including measurements, drawings, and the value and weight of materials was provided.
The subject articles are three privacy phone booths and three phone booth components (a wall-mounted table, a wall module, and an exterior cover). You suggested that the privacy phone booths be classified in subheading 9403.30.8000, Harmonized Tariff Schedule of the United States (HTSUS) and that the components be classified in subheadings 9403.90.7080, HTSUS, 9403.90.7080, HTSUS, and subheading 9403.90.8041, HTSUS, respectively. Your literature states that Framery privacy phone booths are ideal for conducting phone calls, video conferences and private discussions, without disturbing office colleagues.
The privacy phone booths come in three models: the Framery O measures 87" (H) x 40" (W) x 40" (D), the Framery Q measures 87.4" (H) x 86.6" (W) x 47.2" (D), and the Framery 2Q measures 87.3" (H) x 92.5" (W) x 110.4" (D). The three phone booths are of similar construction, have similar functionality (i.e. soundproofing) and differ mainly in size. The booths do not contain telecommunications capabilities but do provide lighting and fan-forced ventilation, as well as electrical cables and sockets for LAN and charging. The Framery O is imported with a built-in table and stool. The larger Q and 2Q are imported unfurnished.
Product information available on the Internet tells us that the privacy phone booths’ exterior is painted sheet metal or brushed stainless steel, the door is acoustic laminated glass, the frame is a Formica laminate on plywood with varnished trim, and the walls, roof and floor are a sandwich of sheet metal, plywood, acoustic foam and acoustic felt. The floor is carpeted.
The following are Internet images of the Framery O, Framery Q and Framery 2Q:
The three phone booth components subject of this ruling that may be imported separately are a wall-mounted table, a wall module, and an exterior cover. Product information available on the Internet states that the wall-mounted table measures 27.5" (W) x 11.2" (D) x 5.1" (H) (mounted at a height of 40") and is made of a Formica laminate on wood; the wall module is made of the same sandwich of sheet metal, plywood, acoustic foam and acoustic felt as the booths; the exterior cover is made of either painted sheet metal or brushed stainless steel and affixes to the privacy phone booths with magnets.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). 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.
A reading of Legal Note 2 (including 2(a) and 2(b)) to Chapter 94 of the HTSUS provides, at 2, that the articles (other than parts) referred to in headings 9401 to 9403 are classified in those headings only if they are designed for placing on the floor or ground. At 2(a) and 2(b), however, the following articles are classified in headings 9401 to 9403 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, and 2(b) Seats and beds.
When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to Chapter 94 of the HTSUS state the following with regard to the meaning of furniture:
(A): For the purposes of this Chapter, the term “furniture” means: 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., or ships, aircraft, railway coaches, motor vehicles, caravan-trailers or similar means of transport. (It should be noted that, for purposes of this Chapter, articles are considered “movable” furniture even if they are designed for bolting, etc., to the floor, e.g., chairs for use on ships). Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are also included in this category.
This office is of the opinion that the privacy phone booths are within the meaning of furniture as defined by the ENs to Chapter 94 of the HTSUS, and are a form of specialized furniture known and sold in the trade as “privacy office phone booths.” Since the subject privacy phone booths are imported unassembled, GRI 2(a) of the HTSUS applies. Under GRI 2(a) of the HTSUS, “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 failing to be classified as complete or finished by virtue of this rule) entered unassembled or disassembled.”
Because subject privacy phone booths are composed of different components (sheet metal, plywood, acoustic foam, acoustic felt, acoustic glass, cables, etc.), they are considered composite goods for tariff purposes. The ENs 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.
In NY N296271, dated May 15, 2018, in which no component breakdown by weight or value was provided, U.S. Customs and Border Protection (CBP) found that in the case of a privacy phone booth constructed of a metal frame, fabric-covered wood side and back panels, and a glass door, the fabric imparted the essential character. Specifically the ruling states that “Because the [fabric] provides the noise-dampening material or component allowing for a majority of the surface areas to fulfill their primary purpose, which is affording privacy in an open office environment, it is our opinion that the fabric which covers the outside and inside walls of the privacy pod imparts the essential character to the ‘privacy office phone booth.’”
In the United States Court of International Trade, The Home Depot, U.S.A., Inc., v. the United States, Slip Op. 06-49, Court No. 00-00061, dated April 7, 2006, the Court considered all factors in evidence to determine essential character and stated that these factors were to be reviewed as a whole. See Slip Op. 06-49 for a listing of factors reviewed.
We concur with the requester that the essential character of the three privacy phone booths, the wall module and the wall-mounted table is imparted by the wood. We arrive at this conclusion noting that the wood components predominate by both value and weight, contribute to soundproofing, and provide structure to the articles. We concur with the requester that the essential character of the metal exterior cover is imparted by the metal.
The applicable subheading for the Framery O, Framery Q and Framery 2Q privacy phone booths will be subheading 9403.30.8000, HTSUS, which provides for “Other furniture and parts thereof: Wooden furniture of a kind used in offices: Other.” The rate of duty will be free.
The applicable subheading for the wall-mounted table or wall module when not imported with a corresponding privacy phone booth will be subheading 9403.90.7080, HTSUS, which provides for “Other furniture and parts thereof: Parts: Other: Of wood: Other.” The rate of duty will be free.
With respect to the metal exterior cover when not imported with a corresponding privacy phone booth, the applicable classification will be subheading 9403.90.8041, HTSUS, which provides for “Other furniture and parts thereof: Parts: Other: Other: Other: Of metal: 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 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