CLA-2-94:OT:RR:NC:N4:433
James P. Wann
Dimensions Furniture
341 Gradle Drive
Carmel, IN 46032
RE: The tariff classification of a nightstand from China.
Dear Mr. Wann:
In your letter dated March 6, 2018, you requested a tariff classification ruling. Description, illustrative literature and photographs were provided.
The merchandise under consideration is described as item number 8822 “Nightstand.” As depicted, the item is a two tiered metal framed nightstand with a drawer unit tabletop and an underneath shelf.
The one drawer tabletop is made of Multi-density Fiberboard (MDF) and plywood, and is covered over on the top, sides, back and front in bonded leather. The underneath shelf is made of MDF and is covered over in bonded leather. The drawer and shelf are supported by a steel base frame (“steel-framework”) consisting of two legs and four cross bars made of 1” square metal tubing in a brass color, with a powder coated finish. The item measures 18 inches wide by 18 inches deep by 24 inches high, and weighs approximately 30 pounds. This nightstand is shipped in unassembled condition with all of its hardware, packed in a corrugated cardboard Kraft shipping carton.
Company provided information indicates that the weight and cost of the MDF (engineered wood) and plywood (together recognized as materials of “wood”) components exceed the weight and cost of the steel components, while the weight and cost of the wood components significantly exceed that of the bonded leather components.
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. 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 nightstand is composed of different components (wood, steel and leather) and is considered a composite good. The Explanatory Notes (ENs) to the 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.
In the United States Court of International Trade, The Home Depot, U.S.A., Inc., v. the United States, Slip Op. 06-49, Court No. 00-00061, dated April 7, 2006, the Court considered all factors in evidence to determine essential character and that these factors were to be reviewed as a whole. See Slip Op. 06-49, for a listing of factors reviewed. Consistent with The Home Depot case, we will consider all facts as presented, assign weight to those facts, and if possible decide which of the constituent materials or components impart the essential character to the item referenced above.
In spite of the increased weight and higher cost of the wood components, we note that the steel components remain appreciable to the wood components in that the cost of the steel-framework is not de minimus to the cost of the wood components, and that the steel-framework highly contributes to the ornateness of the nightstand. We further recognize, the significant weight and cost of the wood components over that of the bonded leather components, however, the cost of the bonded leather components remains appreciable compared against the cost of the wood components in that the cost of the bonded leather is not de minimis to the cost of the wood components; moreover, the bonded leather completely covers over the visible surface areas of the drawer tabletop. Because the wood components are not visible, the significant weight and cost of these components is marginalized in our essential character analysis. Consequently, the wood components do not impart the essential character to the nightstand.
In this particular instance, we observe by means of the material breakdown table and depicted photographs that the weight and cost of the steel-framework is greater than that of the bonded leather components, the steel-framework is not a composite good like the drawer tabletop, the steel-framework supports the drawer tabletop and shelf, and that the ornamental steel-framework not only contributes to the ornateness of the nightstand but also to the purchaser’s appeal of the furniture piece. We further find that without the wood components to support the drawer tabletop that the bonded leather by itself is unable to fulfill the functionality of the combined drawer unit and tabletop, which is the placing of objects inside the drawer unit and the placing of objects onto the tabletop. Based on the totality of essential character factors, it is our opinion that the steel-framework imparts the essential character to the nightstand.
The applicable subheading for item number 8822,“Nightstand,” will be 9403.20.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Other metal furniture: Household: Other: Other.” 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 https://hts.usitc.gov/current.
Company provided information indicates extensive use of wood in the construction of the drawer tabletop, which is an essential structural component of the nightstand, and as such this item may be subject to Antidumping Duties (AD) under the Department of Commerce case number A-570-890, the investigation for wooden bedroom furniture from China. See “Notice of Amended Final Determination and Antidumping Order in the Antidumping Duty Investigation of Wooden Bedroom Furniture dated February 2, 2005.” Written decisions regarding the scope of AD and Countervailing Duties (CVD) orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce, and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP).
You can contact the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce at http://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/.
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,
Steven A. Mack
Director
National Commodity Specialist Division