CLA-2-94:OT:RR:NC:N4:463
Traci Manuel
Steelite International USA, Inc.
766 Knox Court
Yardley, PA 19067
RE: The tariff classification of a wheeled, point-of-sale display cart from China.
Dear Ms. Manuel:
In your letter dated August 13, 2020, you requested a tariff classification ruling on behalf of Campbell Soup Company. In lieu of samples, illustrative literature and product descriptions were provided.
The Pepperidge Farm Display Grill, model #1333, is a floor-standing, wheeled point-of-sale display cart used to merchandise hamburger buns, hotdog rolls and condiments in supermarkets. It is constructed of black powder-coated steel tubes, four shelves, a hood and a plated-wire shelf inside the hood. Foldable shelves of slatted wood-like plastic extend on either side of the grill. Two 8" plastic wheels provide mobility and add to the faux-grill appearance. Once assembled and with the hood open, the display cart measures 160cm (H) x 165cm (W) x 55cm (D).
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 Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (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.
The display cart is composed of metal and plastic components and is considered a composite good. The preponderant material is metal—far exceeding the plastic material—and it provides the structure, look and feel to the display cart.
The applicable subheading for the Pepperidge Farm Display Grill, model #1333 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.
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