CLA-2-94:OT:RR:NC:N4:463
Ted Murphy
Sidley Austin LLP
1501 K St., NW
Washington, DC 20005
RE: The tariff classification of mobile computer carts from an unidentified country
Dear Mr. Murphy:
This ruling is being issued in reply to your letter dated August 2, 2023, requesting a tariff classification determination on behalf of your client Ergotron, Inc. In lieu of samples, illustrative literature, drawings, and product descriptions were provided.
Per the information provided, the SV42-6302-1 StyleView Cart (white) and the SV42-8302-01 StyleView Cart (dark grey) are easy-to-maneuver-and-adjust carts designed to provide mobility to a computer system composed of a laptop computer, display and keyboard. Additional functionality is provided by an onboard power supply, laptop drawer, keyboard light, storage bin, scanner bracket, and antimicrobial work surface. The display, work surface, and keyboard tray adjust up and down to accommodate a sitting or standing position. Four pivoting and locking castors provide mobility when unlocked and stability when locked. The carts are made primarily of metal and plastic, with the metal frame and components accounting for the majority of the articles’ weight, as well as providing the majority of the articles’ functionality, supporting the power supply, display, computer, and plastic components. Both the SV42-6302-1 StyleView Cart (white) and the SV42-8302-01 StyleView Cart (dark grey) are available with a sealed lead acid (SLA) battery or a longer lasting lithium iron phosphate (LiFe) battery, as well as with an electric or manual lift height adjustment. With the exception of their white or dark grey colors, the two carts are identical. The SV42-6302-1 StyleView Cart (white), which is marketed for health care settings, is expected to account for the predominant portion of imported articles, whereas the SV42-8302-01 StyleView Cart (dark grey), which is marketed for industrial and other non-healthcare settings, is expected to account for only a small percentage of importations. The country of production is currently unidentified.
Images of an SV42-6302-1 StyleView Cart (white) and an SV42-8302-01 StyleView Cart (dark grey) are provided 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 SV42-6302-1 StyleView Cart (white) and an SV42-8302-01 StyleView Cart (dark grey) meet this definition of furniture.
The ENs to heading 9402 of the HTSUS state, in relevant part, that the terms “medical, surgical, dental or veterinary furniture” include:
Small tables, table‑cupboards and the like, whether or not on wheels (trolleys), of a type specially designed for instruments or bandages, medical or surgical supplies or anaesthetic equipment; instrument sterilising trolleys; special disinfection wash‑basins, self‑opening sterile dressing boxes (generally on wheels) and waste bins for soiled dressings (whether or not on wheels); bottle‑holders, irrigator or douche carriers and the like, whether or not on pivoting castors; special instrument or dressing cabinets and cases.
The ENs further states, “[i]t should be noted that this group is restricted to furniture of a type specially designed for medical, surgical, dental or veterinary use; furniture for general use not having such characteristics is therefore excluded.”
In your letter, you proposed that classification of the SV42-6302-1 StyleView Cart (white), principally used in healthcare settings, and the SV42-8302-01 StyleView Cart (dark grey), principally used in non-healthcare settings, be under subheading 9402.90.0020, HTSUS, as medical furniture. We disagree. These two carts are identical in all material respects and have the exact same features and functions. At the time of importation, their only differences will be in color and SKU suffix. You mention certain features, such as drawer inserts designed to hold medical supplies, a front shelf with a fetal monitor tray attachment, and a wipe holder for disinfecting wipes. However, the subject carts pictured above do not exhibit these features. At the time of importation, both carts are equipped with a scanner holder, a storage basket, and a T-slot channel interface on the column that allows the user to integrate accessories, such as drawers. You explain that the scanner holder in the mobile cart in healthcare settings can hold a medical scanner to scan items such as medications, employee badges, etc. We note that the same scanner holder can hold a non-medical scanner and the same storage basket can hold any small tools or supplies.
It is a well-established principle that goods are classified in their condition as imported. See Mita Copystar Am. v. United States, 21 F.3d 1079, 1082 (Fed. Cir. 1994); See also HQ H197758, dated April 27, 2012; HQ H225011, dated November 5, 2013; HQ H154040, dated June 9, 2011; HQ H135335, dated April 18, 2011. Although heading 9402, HTSUS, covers medical carts specially designed for medical instruments, bandages, medical or surgical supplies or anesthetic equipment, as imported, the SV42-6302-1 StyleView Cart (white) and SV42-8302-01 StyleView Cart (dark grey) do not have the necessary features to qualify as medical carts. They are mobile computer carts and can be used as such in the condition as imported. Therefore, they will not be classified in heading 9402, HTSUS, as medical furniture. Moreover, in N212562, dated May 1, 2012, Customs and Border Protection classified a laptop cart used in a variety of work settings, such as hospitals, classrooms, warehouses, manufacturing shops, and security checkpoints, in heading 9403, HTSUS, as other furniture.
The applicable classification for the SV42-6302-1 StyleView Cart (white) and the SV42-8302-01 StyleView Cart (dark grey) will be under subheading 9403.20.0090, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture: Other: 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 9403.20.0090, HTSUS, unless specifically excluded, are subject to an additional 25% ad valorem rate of duty. At the time of importation, if the country of origin is China, the importer must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 9403.20.0090, 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.
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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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] or National Import Specialist Fei Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division