CLA-2-94:OT:RR:NC:N4:433
Robert W. Snyder, Esq.
Law Offices of Robert W. Snyder
6 Morgan, Suite 114
Irvine, California 92618
RE: The tariff classification of desks from China.
Dear Mr. Snyder:
In your letter dated August 2, 2019, you requested a tariff classification ruling on behalf of your client, Aspects Furniture International, Inc. (AFI). Illustrative literature and product descriptions were provided for review.
AFI item GR-113L, the “Left Facing Console Desk,” is a floor-standing multi-functional console desk, trimmed with stainless steel accents, two stainless steel cabinet handles, measures 30” in height, 88” in width, 24” in depth, is constructed of fiber board, wood veneer, solid wood edge banding, and contains an electrical cut-out on the upper right corner leg to mount the Mockett PCS68/2E/U1 electrical Flip-Up Power Grommet. The outward facing wood panels have an ash veneer white finish and the inward facing wood panels have a walnut veneer brown finish. A single, two-cavity cabinet is bolted to the lower left face of the desk. The cabinet contains two doors and also functions as the desk’s left leg. The cabinet’s left facing cavity measures approximately 24” in height, 20.93” in width, 20” in depth, and designed to accommodate a mini-refrigerator (not included). A vent cutout on the back panel of the left facing cavity assists with dispersing heat. The cabinet’s right facing cavity measures approximately 24” in height, 29.56” in width, 20” in depth, and contains a Furnlite 202P-F2 outlet surface mounted power supply. The cabinet’s right facing cavity contains a pullout tray and a pullout drawer of which both sit on a pair of soft-closing drawer slides. Item GR-113L, will be imported in two boxes, in equal quantities, and unassembled with all hardware included for assembly. AFI states both electrical power units are not packaged, shipped, or imported with the desk, but are sourced locally and installed after importation.
AFI item GR-107R, the “Right Facing Console Desk,” is a floor-standing multi-functional console desk, trimmed with stainless steel accents, two stainless steel cabinet handles, measures 30” in height, 88” in width, 24” in depth, is constructed of fiber board, wood veneer, solid wood edge banding, and contains an electrical cut-out on the upper left corner leg to mount the TA-7535 US-WN2 Clip Extender Teleadapt electrical power unit. The outward facing wood panels have an ash veneer white finish and the inward facing wood panels have a walnut veneer brown finish. A single, two-cavity cabinet is bolted to the lower right face of the desk. The cabinet contains two doors and also functions as the desk’s right leg. The cabinet’s right facing cavity measures approximately 24” in height, 20.93” in width, 20” in depth, and designed to accommodate a mini-refrigerator (not included). A vent cut-out on the back panel of the right facing cavity assists with dispersing heat. The cabinet’s left facing cavity measures approximately 24” in height, 29.56” in width, 20” in depth, and contains a Furnlite 202P-F2 outlet surface mounted power supply. The cabinet’s left facing cavity contains a pullout tray and a pullout drawer of which both sit on a pair of soft-closing drawer slides. Item GR-107R, will be imported in two boxes, in equal quantities, and unassembled with all hardware included for assembly. AFI states both electrical power units are not packaged, shipped, or imported with the desk, but are sourced locally and installed after importation.
Your office references a third party proposal to classify the subject merchandise in subheading 9403.60.8081, Harmonized Tariff Schedule of the United States, (HTSUS). This office disagrees.
The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level. For the purposes of Chapter 94, HTSUS, the term “furniture” means:
Any “moveable” 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, cafes, 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 the 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 also included in this category.
Items GR-113L and GR-107R both fall within the construct of EN 9403, HTSUS, and HQ H132495 dated July 11, 2014.
The use of the term “of a kind” is nothing more than a statement of the traditional standard for classifying importation[s] by their use, namely, that it need not necessarily be the actual use of the importation but is the use of the kind of merchandise to which the importation belongs. Subheadings 9403.30, HTSUS, 9403.40, HTSUS, and 9403.50, HTSUS, each use the term “of a kind.” As such, these subheadings are principal use provisions. Under Additional U.S. Rule of Interpretation 1(a) (AUSR 1(a)), tariff classification under a principal use provision must be determined in accordance with the use in the United States of that class or kind to which the imported goods belong.
In order to determine principal use and whether an article is included in a particular class or kind of merchandise, a variety of factors are considered, including: (1) the general physical characteristics of the merchandise; (2) the channels, class or kind of trade in which the merchandise moves (where the merchandise is sold); (3) the expectation of the ultimate purchasers; (4) the environment of the sale (i.e., accompanying accessories and marketing); (5) usage, if any, in the same manner as merchandise which defines the class; (6) the economic practicality of so using the import; and (7) the recognition in the trade of this use.
The general physical characteristics of the GR-113L and GR-107R were reviewed in Exhibit 1, each which provides for a wooden combination desk/cabinet having a pullout shelf, and a storage cavity for a mini-refrigerator. With regard to the environment of the sale in Exhibit 2, this office notes the customer’s purchase order whereby the subject merchandise is for guest rooms of different sizes located in hotels. Further, product furnishings are to be contract quality and suitable for heavy commercial use. In this instance a hotel chain is the ultimate purchaser who will purchase the GR-113L and GR-107R in order to furnish hotel guestrooms. With regard to environment of the sale, illustrative material portrays each desk in a room with a bed and other hotel bedroom furnishings. A material breakdown and bill of materials is not provided so the economic practicality is not known. Marketing and advertising literature is not provided, however pictures of the GR-113L and GR-107R as used in a bedroom is indicative of its recognition and use in the trade. For all of these reasons, items GR-113L and GR-107R are of the same class or kind of goods as wooden furniture of a kind used in the bedroom.
The applicable subheading for items GR-113L and GR-107R will be 9403.50.9080, HTSUS, which provides for “Other furniture and parts thereof: Wooden furniture of a kind used in the bedroom: Other: Other: Other.” The rate of duty will be free.
Trade Remedy
Products of China classified under subheading 9403.50.9080, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 9403.50.9080, HTSUS, listed above. See U.S. Note 20 to Subchapter III, Chapter 99, HTSUS.
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 Section 301 trade remedy, 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 World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD). Written decisions regarding the scope of AD/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 them at https://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 https://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 https://aceservices.cbp.dhs.gov/adcvdweb.
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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division