CLA-2-94:OT:RR:NC:N4:463
Judy Awana
Inter-Orient Services
735 West Emerson Ave.
Monterey Park, CA 91754
RE: The tariff classification of a tooling machine storage rack from China
Dear Ms. Awana:
This ruling is being issued in reply to your letter dated April 6, 2023, requesting a tariff classification determination on behalf of your client, Value Wholesaler, Inc. In lieu of samples, illustrative literature, pictures, and product descriptions were provided.
Per the submitted information and photos, the article identified as a Tooling Storage Rack is a heavy-duty floor-standing metal structure with 3 rows of 4 drawers each, for a total of 12 drawers, used to store and access tooling machine extrusion dies. The rack measures 91.8" (H) x 59.1"(D) x 97.8" (W). Drawers are inserted and removed using a forklift. The storage rack is made in China. See images below:
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Classification under the Harmonized Tariff Schedule of the United States (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. If the goods cannot be classified solely based on 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.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and coding System, which constitutes the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading and are generally indicative of the proper interpretation of the HTSUS. The ENs to Chapter 94 of the HTSUS state, in relevant part, for the purposes of this Chapter, that the term “furniture” means: (A): 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 to be “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 included in this category. The subject storage rack meets this definition of furniture.
You suggest classification of this article in subheading 9403.20.0090, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture: Other: Other.” We disagree. This tariff number acts as a basket provision and would only be applicable if the article did not fit the description of counters, lockers, racks, display cases, shelves, partitions, and similar fixtures. This office finds that the Tooling Storage Rack is similar to several of the aforementioned examples (i.e., lockers, racks, and shelves) in that it is used to hold articles for future use.
You suggested the alternative classification of this article in subheading 9403.20.0075, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Boltless or press-fit steel shelving units prepackaged for sale as described in statistical note 2 to this chapter.” We disagree. This tariff number is for retail-packaged racks assembled by fitting a rivet, tab or other connector on one support into a hole, slot or similar receptacle.
The applicable classification for the subject Tooling Storage Rack, will be subheading 9403.20.0086, HTSUS, which provides “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Other.” The general rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.20.0086, HTSUS, unless specifically excluded, are subject to an additional 25% ad valorem rate of duty. At the time of importation, the importer must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 9403.20.0086, 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 subheadings. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, 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.
You inquired whether this article was subject to antidumping or 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 (ITA) and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). The ITA’s AD/CVD landing page can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties. The ITA’s AD/CVD Reference Resources including their “Scope Ruling Application Guide” and “Scope Ruling Application” are available therein by selecting the AD/CVD Reference Resources “Learn More” button.
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 internet at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 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