CLA-2-94:OT:RR:NC:N4:463
Ana Gomez
Veyer, LLC 6600 North Military Trail
Boca Raton, FL 33496
RE: The tariff classification of two privacy booths from China
Dear Ms. Gomez:
This ruling is being issued in response to your letter dated January 22, 2024, requesting a tariff classification determination of two privacy booths. In lieu of samples, pictures, and product descriptions were provided.
The subject articles, the Meeting Pod EPD101 and the Meeting Pod EPD201, are privacy booths with a collapsible ceiling for ease of transport. They are intended for use by students and others seeking privacy to study, make phone calls, participate in virtual meetings, etc.
With the ceiling fully extended, Meeting Pod EPD101 measures 40.16" (L) x 40.16" (W) x 89" (H) and Meeting Pod EPD201 measures 40.16" (L) x 59" (W) x 89" (H). They each have an aluminum and steel frame supporting two tempered glass walls (one with a glass door). The other two walls are made of aluminum and insulated with polyester fiber. The ceiling is made of steel and the floor is MDF covered with a metal plate. Inside each pod, there is a small fold-out table made of MDF. The privacy booths are made in China and shipped assembled, with the ceiling lowered into the base. Once the booths are placed for installation, their ceiling is raised with the aid of a built-in electric motor. Each privacy booth has one 8" LED light and two 12V ceiling fans for ventilation, as well as one 120V outlet to power a laptop and two charging ports (USB-A and USB-C) to power devices such as a cellphone. See images below:
Item EPD101
Item EPD201
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You reference NYRL N315234 and suggest that your privacy booths be classified in HTSUS subheading 9403.10.0040, “Metal furniture of a kind used in offices, Other.” We disagree.
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…. The privacy booths are within the meaning of furniture as described by the General ENs to Chapter 94 of the HTSUS.
The Explanatory Notes (ENs) to the HTSUS, at 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 that material or component which imparts the essential character to the composite good.
The ENs to the HTSUS, at GRI 3(c) (XII) state, that when goods cannot be classified by reference to GRI 3(a) or GRI 3(b), they shall be classified under GRI 3(c), the heading which occurs last in numerical order among those that equally merit consideration.
The privacy booths are composed of metal, glass, MDF, etc. Although the weight of the steel and aluminum walls and frames (metal) is not a majority of the booths’ weight, it is greater than that of the glass, plastic and polyester (other) and much greater than that of the MDF (wood). We note that the foldout worksurface—where the work that takes place in a privacy booth is performed—is made of MDF, and that the sound isolating properties are provided by all of the materials (metal, glass, MDF, polyester fiber, etc.) together, and that the privacy booths would not function effectively if any of these materials were removed. Additionally, since the privacy booths are articles of furniture, visual elements play a role in determining their essential character and, as far as their esthetic is concerned, no material is dominant. Based on the aforementioned information and analysis, no single material imparts the essential character to these privacy booths and thus they will be classified in the heading that appears last in the HTSUS, in accordance with GRI 3(c).
The applicable classification for Meeting Pod EPD101 and Meeting Pod EPD201 will be subheading 9403.89.6020, HTSUS, which provides for “Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: 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 9403.89.6020, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, 9903.88.03 in addition to subheading 9403.89.6020, 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 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 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. If the facts are modified in any way, or if the goods do not conform to these facts at the time of importation, you should bring this to the attention of 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].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division