CLA-2-94:OT:RR:NC:N4:433
Daniel A. Corlew
Compliance and Inbound Logistics Specialist
Woolrich, Inc.
Two Mill Street
Woolrich, PA 17779
RE: The tariff classification of retail display racks from China.
Dear Mr. Corlew:
In your letter dated March 14, 2014, you requested a tariff classification ruling. Photos were provided.
Fixture 528 is called the blanket ladder fixture. The item is a floor standing display rack used to hold and showcase blankets in a retail setting. The rack is constructed of a metal frame and has a Medium-density fibreboard (MDF) base. The top of the rack is capped off with a vertical facing MDF which displays the Woolrich company logo. The rack has no shelves, but does have metal wires attached between the frame which allows blankets to hang from the display unit. The rack is moveable by means of four rubber and metal casters. This rack measures 76 inches tall by 25 inches wide by 26 inches deep.
Company provided material breakdown figures indicate that the metal components represent 60% of the rack, the wooden components (MDF) represent 30% of the rack and the hardware represents 10% of the rack, while the wooden components cost more than the metal components.
Fixture 529 is called the blanket cubbie fixture. The item is a floor standing display rack used to hold and showcase blankets in a retail setting. The rack is constructed of a metal frame, has a Medium-density fibreboard (MDF) base, and one MDF shelf two thirds of the way to the top of the display unit which is enclosed on two sides by metal wire mesh forming a basket. The rack also has two vertical bars spaced beneath the shelf. The top of the rack is capped off with a vertical facing MDF which displays the Woolrich company logo. The rack is moveable by means of four rubber and metal casters. This rack measures 76 inches tall by 25 inches wide by 26 inches deep.
Company provided material breakdown figures indicate that the metal components represent 60% of the rack, the wooden components (MDF) represent 30% of the rack and the hardware represents 10% of the rack, while the wooden components cost more than the metal components.
The blanket ladder fixture and the blanket cubbie fixture are composed of different components (chiefly: metal and wood) and are considered composite goods. 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.
We recognize that the cost of the MDF components is greater than the cost of the metal components. Never the less, it is the metal components of both frames which provide the structure to the racks. In the case of Fixture 528 it is significant to note that the metal wires allow for the functionality of the rack, which is to suspend blankets for display purposes, and therefore the metal components impart the essential character to the rack. In the case of Fixture 529, the MDF shelf appears to be more significant than the two metal bars for placing blankets upon, however, the totality of metal components, not only in the frames construction, but rather the two bars allowing for display of blankets, and the sides of the basket allowing for the stacking of blankets neatly and vertically upon, bears into the totality of essential character factors to conclude that one has a metal rack with a wooden shelf; as such, we find the metal components impart the essential character to the rack.
The applicable subheading for the blanket ladder fixture and the blanket cubbie fixture will be 9403.20.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures.” The rate of duty will be free.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Neil H. Levy at [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division