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 July 9, 2018, you requested a tariff classification ruling. Description, illustrative literature and photographs were provided.
The merchandise under consideration is described as item number 9995N “Nightstand.” As depicted, the item is a metal framed nightstand with a drawer and a tempered glass tabletop.
The one drawer tabletop nightstand is made of Multi-density Fiberboard (MDF) and plywood, and is covered over on the top, sides, back and front in shagreen vinyl. A tempered glass piece fits on top of the nightstand with four silicone pads to prevent slippage. The drawer tabletop is supported by a steel base frame (“steel-framework”) consisting of two finished end legs and two support legs made of 1” square metal tubing in a brass color, with a powder coated finish. The item measures 19.5 inches wide by 15 inches deep by 21.5 inches high, and has a net weight of approximately 43 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 cost of the steel components significantly exceeds the cost of the MDF (engineered wood) and plywood components; however, the weight of the MDF (engineered wood) and plywood components significantly exceeds the weight of the steel components. The cost of the MDF (engineered wood) and plywood components and the tempered glass tabletop are appreciable to each other, while the weight and cost of the shagreen vinyl is significantly lower than the weight and cost of the steel components and the MDF (engineered wood) and plywood 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, glass and vinyl) and is considered a composite good. The Explanatory Notes (ENs) to the HTSUS, GRI 3 (b) (VIII), state: “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.
We recognize that the cost of the steel components is significantly higher than the combined cost of the wood components, glass tabletop and vinyl covering 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 vinyl covering, while the vinyl completely covers over the visible surface areas of the drawer tabletop. Because the wood components are not visible, the wood components do not impart the essential character to the nightstand. Moreover, the glass tabletop serves as a covering over the top of the nightstand and does not impart the essential character to the nightstand.
In this particular instance, the steel-framework supports the drawer with glass tabletop, and more importantly, 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 with glass tabletop that the vinyl covering the drawer is unable to fulfill the functionality of the drawer nightstand, which is the placing of objects inside the drawer unit. Also without the wood components, the glass tabletop cannot fulfill its functionality, which is the placing of objects onto its surface. 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 9995N, “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 nightstand, which is an essential structural component of the nightstand, and as such, regardless of classification, 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