CLA-2-94:OT:RR:NC:N4:463
Mireya Ruano
Veyer LLC
6600 N. Military Trail
Boca Raton, FL 33496
RE: The classification and country of origin of a storage ottoman
Dear Ms. Ruano:
This ruling is being issued in response to your letter dated January 8, 2025, requesting a tariff classification and country of origin determination on a storage ottoman. In lieu of samples, pictures and a product description were provided.
The subject article is identified as a Folding Storage Ottoman, with SKU number 5245468, and is described as a collapsible storage ottoman, measuring 16" x 16" x 16". The ottoman is made of MDF and a removable molded foam lid, both covered in 100% polyester fabric. It has two rigid sides, while the other two fold inward to collapse the ottoman into a semi-flat square shape. It will be assembled by the user with the insertion of the MDF bottom panel. The requester states that it will be used primarily for home storage and as a footrest, and that it is not recommended for seating.
CHINESE MATERIALS
100% polyester fabric
VIETNAMESE MATERIALS
MDF
Foam
Glue, staples, thread, plastic bag, box, band
VIETNAMESE MANUFACTURING OPERATIONS
The Chinese fabric is cut. The MDF panels and foam are cut. The fabric, MDF panels and foam are manufactured into a collapsible storage ottoman, inspected and packaged for export to the United States.
CLASSIFICATION
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 subject article is within the meaning of furniture as described by the General ENs to Chapter 94 of the HTSUS.
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. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among those that equally merit consideration.
Since the subject ottoman is composed of different materials (MDF, fabric, etc.), it is considered a composite good for tariff purposes. The MDF accounts for the majority of the weight, and the fabric accounts for the ottoman’s aesthetic appeal. As such, neither material imparts the essential character. Based on the foregoing, this office finds that no essential character can be determined under GRI 3(b), so the subject article will be classified in accordance with GRI 3(c), last in tariff.
The applicable classification for the Folding Storage Ottoman, with SKU number 5245468, will be subheading 9403.89.6015, HTSUS, which provides for "Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other: Other household.” The general rate of duty will be free.
COUNTRY OF ORIGIN
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments, Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
As described above, the Chinese fabric is imported into Vietnam where it is further processed with Vietnamese materials to produce a storage ottoman. The manufacturing operations performed in Vietnam substantially transform the Chinese fabric into a distinct article with a new name, character and use. Accordingly, the country of origin of the subject Folding Storage Ottoman, with SKU number 5245468, is Vietnam.
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