CLA-2-94:OT:RR:NC:N5:433
Lauren Stevens
Crowe LLP
25 West Wacker Drive, Suite 2600
Chicago, IL 60606
RE: The tariff classification and country of origin of furniture components of metal from China
Dear Ms. Stevens:
In your letter dated August 6, 2025, you requested a binding tariff classification and country of origin ruling
on behalf of Nashville Wire Products Manufacturing. In lieu of samples, technical and illustrative literature,
product descriptions, and two manufacturing scenarios are provided for review.
Item 1, the “Assembled Shelf Tier,” is a hot rolled rectangle and square steel metal frame for a storage rack.
The assembled shelf components consist of P02 (1 Square Unit), P06 (4 Rectangle Units), P11 (4 Rectangle
Units), P13 (4 Rectangle Units), and P14 (4 Rectangle Units). The shelf tier dimensions are 40” in length,
40” in width, and has a weight capacity of 1,000 lbs. In the condition at the time of U.S. importation, the
assembled shelf tier will not incorporate wire mesh shelf decking.
Item 2, the “Unassembled Shelf Tier,” consists of hot rolled rectangle and square steel metal components that
will comprise a single tier on a metal frame storage rack. The unassembled shelf components consist of P02
(1 Square Unit), P06 (4 Rectangle Units), P11 (4 Rectangle Units), P13 (4 Rectangle Units), and P14 (4
Rectangle Units). After assembly, the shelf tier dimensions will be 40” in length, 40” in width, and will have
a weight capacity of 1,000 lbs. In the condition at the time of U.S. importation, the unassembled shelf tier
will not incorporate wire mesh shelf decking.
The ruling request seeks classification of item 1 and item 2 in subheading 9403.99.9040, Harmonized Tariff
Schedule of the United States, (HTSUS). We agree.
The applicable subheading for the subject merchandise will be 9403.99.9040, Harmonized Tariff Schedule of
the United States (HTSUS), which provides for “Other furniture and parts thereof: Parts: Other: Other:
Other: Other: Of metal: Parts for steel racks of statistical reporting number 9403.20.0082. The general rate
of duty will be free.
Sourcing Scenario:
Per the ruling submission, two sourcing scenarios are identified. Scenario 1 involves a sourcing operation for
item 1 wherein (1) 17 metal shelf components will be manufactured in China, (2) the components will be
assembled to create the single tier of a shelf, (3) the fully assembled shelf component will then be shipped to
the United States, and (4) after U.S. importation, the assembled single-tier shelf component will be painted,
packaged, and made available for retail sale. Scenario 2 involves a sourcing operation for item 2 wherein (1)
17 metal shelf components will be manufactured in China, (2) the unassembled components will be shipped
to the United States in equal quantities and in an unassembled state, and (3) after U.S. importation, the metal
components will be assembled, painted, packaged, and made available for retail sale.
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).
In the instant case, for sourcing scenario 1 and sourcing scenario 2, the hot rolled Chinese steel sheet metal
loses its identity during manufacture and undergo a substantial transformation in China to become both
assembled and unassembled metal shelf components, thereby, taking on new names, characters, and uses. In
view of these facts, the country of origin for the assembled and unassembled metal shelf components will be
China.
Trade Remedy:
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate
of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. [9903.01.24], in addition
to subheading 9403.99.9040, HTSUS, listed above.
On March 12, 2025, Presidential proclamation 10896 imposed additional tariffs on certain derivative iron or
steel products. Additional duties for derivative iron or steel products of 50 percent are reflected in Chapter
99, headings 9903.81.89, 9903.81.90, and 9903.81.91. Products provided by heading 9903.81.91, as well as
products of Chapter 73 provided by 9903.81.89 and 9903.81.90, will be subject to a duty of 50 percent upon
the value of the steel content. At the time of entry, you must report the Chapter 99 heading applicable to your
product classification, i.e. 9903.81.91, in addition to subheading 9403.99.9040, HTSUS. Derivative iron or
steel products processed in another country from steel articles melted and poured in the United States,
provided for in heading 9903.81.92, are not subject to the additional ad valorem duties.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time, products of China, Hong
Kong, and Macau will be subject to an additional ad valorem rate of duty of 10 percent. At the time of entry,
you must report the Chapter 99 heading applicable to your product classification, i.e. [9903.01.25], in
addition to subheading 9403.99.9040, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 9403.99.9040, HTSUS, unless specifically excluded, are subject to an additional xx 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 9403.99.9040, HTSUS, listed above.
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 trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including
information on exclusions and their effective dates, 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/programs-administration/trade-remedies, respectively.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly 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. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (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 the Customs and Border Protection
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, please contact
National Import Specialist Dharmendra Lilia at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division