CLA-2-39:OT:RR:NC:N4:415
Mr. Long Vu Walgreen Co. 304 Wilmot Road, MS # 3163 Deerfield, IL 60015
RE: The tariff classification of a two-tier keyboard stand from China.
Dear Mr. Vu:
In your letter dated August 12, 2020, you requested a tariff classification ruling.
Images were submitted in lieu of a sample.
The product under consideration is described as a two-tier keyboard stand, Walgreens Item Code (WIC) 510884, and is made wholly of clear acrylic plastic. The stand measures about 18.5 inches wide, the back support is about 10 inches high, and the upper tier and lower tier are approximately 8.5 inches and eight inches in depth, respectively. The upper tier is in a flat position while the lower tier is placed at an angle with two platform gliders, which makes it adjustable. Your submission indicates that it will be used as part of the point of sale system in the pharmacy section of your retail stores, at both the checkout and drive-through. The keyboard stand is designed to be placed on the countertop or a desk, not on the floor or ground.
In your request, you suggest the two-tier keyboard stand is properly classified in subheading 8473.29.0000, Harmonized Tariff Schedule of the United States (HTSUS), as a part or accessory of the machines of heading 8470, because you state the stand is used to hold a point of sale machine. In order for the stand to be classified in heading 8473, it must fulfill the requirements of a “part” or “accessory” pursuant to the court decisions noted below. Furthermore, the language of heading 8473 imposes the additional requirement that merchandise classified in that heading must be suitable for use “solely or principally” with the machines of heading 8470.
The courts have considered the nature of “parts” under the HTSUS, and two distinct though not inconsistent tests have resulted. (See Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, 110 F.3d 774 (“We conclude that these cases are not inconsistent and must be read together,” At 779)). The first, articulated in United States v. Willoughby Camera Stores, (Willoughby) 21 C.C.P.A. 322 (1933), requires a determination of whether the imported item is “an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article,” At 324. The second requires a determination of whether the imported item is dedicated solely for use with the article in question, United States v. Pompeo, (Pompeo) 43 C.C.P.A. 9 (1955). The stand consists entirely of molded plastic. It is not joined with the articles that are merely placed on top, and it does not have any electrical capabilities or features. Furthermore, the stand can easily and equally be used to hold other articles, and therefore its use cannot be viewed as dedicated solely or principally with the machines of heading 8470. Accordingly, we find that the stand is not a “part,” as defined in Willoughby and Pompeo. The courts have also considered the nature of “accessories,” and have found that although the HTSUS does not define the term “accessory,” “the language of the HTSUS reflects the common understanding that accessories must be ‘of’ or ‘to’ another thing.” Rollerblade, Inc. v. United States (Rollerblade), 116 F. Supp. 2d 1247 (CIT 2000), aff’d 282 F.3d 1349, 1351 (CAFC 2002). The Court of Appeals clarified that an accessory “must be ‘of’ or ‘to’ the article … listed in the heading, not ‘of’ or ‘to’ the activity … for which the article is used,” Rollerblade, 282 F.3d 1349, 1351. Applying this definition to the article under consideration, we find that the stand may fulfill the requirements to be considered an “accessory,” however the language of heading 8473 imposes the additional requirement that accessories of the heading, like parts, be suitable for use “solely or principally” with the machines of heading 8470. As was stated above, there is no indication that the stand fulfills this requirement. For this reason, we find that the stand is not an accessory as provided for in heading 8473. Therefore, as the stand is not a part or accessory to the machines of heading 8470, classification in subheading 8473.29.0000, HTSUS, is not appropriate.
The two-tier keyboard stand, WIC 510884, would be considered an article of plastic, and as it is not provided for more specifically elsewhere, the applicable subheading will be 3926.90.9985, HTSUS, which provides for “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [o]ther: [o]ther.” The column one, general rate of duty is 5.3 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3926.90.9985, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 3926.90.9985, HTSUS, listed above.
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 trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, 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.
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 at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division