CLA-2 CO:R:C:G 085191 KWM
Mr. Steven Sauer
Grand Basket Co., Inc.
53-06 Grand Avenue
Maspeth, N.Y. 11378
RE: Tariff classification of fern trunks
Dear Mr. Sauer:
Your letter of July 5, 1989, addressed to our New York
Office, requesting a tariff classification for fern trunks, has
been forwarded to this office for a response.
FACTS:
A photograph of the merchandise was included with your
letter. It shows two items described by you as "fern trunks",
and indicates that two sizes are available. The smaller trunk
measures 32"L x 16.5"W x 16.5"H, and the larger 36"L x 20.5"W x
20.5"H.
The hampers appear to be constructed entirely of a fern or
wicker plaiting material. However, your letter indicates that
they have a wood frame and bottom, which are covered or wrapped
with fern. The fern is a flexible shoot or wicker used to weave
baskets or furniture. Lids of similar construction are attached
to the top by metal hinges and fastened by a metal clasp. Metal
braces are also affixed to the corners for support, or
decoration, or both. Your letter indicates that the items are,
in chief value, wood. Samples of the merchandise have been
retained by the New York office.
ISSUE:
What is the proper classification of the merchandise under
the Harmonized Tariff System of the United States Annotated?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the
United States (hereinafter "HTSUSA") is made in accordance with
the General Rules of Interpretation (hereinafter "GRI(s)"). GRI
1 provides that classification is determined first according to
the terms of the headings of the tariff schedule and any relative
Section or Chapter notes, and then, if the headings and notes do
not otherwise require, in accordance with the remaining GRIs,
taken in order.
The systematic detail of the Harmonized System is such that
virtually all goods are classified by application of GRI 1, that
is, according to the terms of the headings and any relevant
Section or Chapter Notes. In applying GRI 1, our classification
of the goods in this case is made in two general steps. First,
we have identified the eligible Section(s) and Chapter(s) on a
material-related or function-related basis. Second, we have
selected the appropriate heading and subheading for
classification, also on a material- and/or function-related
basis, by applying GRI 1.
Section and Chapter
Although the Section and Chapter titles are not legally
binding, they are helpful in determining eligible headings for
classification purposes. In addition, the Legal Notes to the
Sections and Chapters provide legally binding support for
determining what goods should be included within the attendant
headings.
As noted above, your letter indicates that the component of
chief value in these goods is wood. We are of the opinion that
the essential character of the goods is that of the fern or
wicker material on the exterior of the goods. We note that your
letter, in fact, refers to the items as "fern" trunks. Since
classification in the HTSUSA is predicated not on chief value,
but on essential character, it is our opinion that, for the
purpose of classification under material-related headings and
subheadings of the HTSUSA, the goods are considered to be
composed entirely of fern or wicker or similar materials.
Since the "trunks" in this case are constructed of a fern or
wicker-like material, an examination of the tariff schedule
indicates that such goods may fall within either material-related
Chapter 46, HTSUSA - Manufactures of Straw, of Esparto or of
Other Plaiting Materials; Basketware and Wickerware, or function-
related Chapter 42, HTSUSA - Articles of Leather; Saddlery and
Harness; Travel Goods;. . .. Although the Explanatory Notes are
not legally binding for classification purposes, they do
represent the official interpretation of the tariff schedule at
the international level. We note that the Explanatory Notes to
heading 4202, HTSUSA, indicate that:
The heading does not cover:
(b) Articles of Plaiting Materials (heading 46.02)
The Notes thereby indicate an intention to exclude goods of this
type from coverage. Because these goods are so clearly
constructed of plaiting materials (i.e., fern) it is our opinion
that they should be excluded from considered for classification
in heading 4202, HTSUSA. In addition, we note that this office
has previously determined that articles classified as "luggage"
must be of the variety used in travel. Therefore, despite the
reference to these items as "trunks", their construction is such
that, in the opinion of this office, they do not fulfill the
requirements for consideration as "luggage".
In addition to the headings of Chapter 46, HTSUSA, other
eligible headings include those of Chapter 94, HTSUSA, which
classify furniture items. However, the Legal Notes to Chapter 46
state, in pertinent part:
Chapter 46, Notes
2. This chapter does not cover: . . .
(e) Articles of Chapter 94 (for example, furniture,
lamps and lighting fixtures)
Here, it is possible that the trunks in question fall within
Chapter 94, HTSUSA, as furniture items. If so, they would be
excluded from Chapter 46, HTSUSA, as the notes indicate.
Chapter 94, HTSUSA, encompasses, among other goods,
furniture, including bedding, mattresses, cushions, etc. In
reference to furniture goods, the Legal Notes provide that:
2. The articles (other than parts) referred to in headings
9401 to 9403 are to be classified in those headings
only if they are designed for placing on the floor or
on the ground.(Emphasis added)
In other words, for goods to be considered furniture within the
specified headings, there is a threshold requirement that they be
designed for placing on the floor or ground. However, this does
not require that all goods which are placed on the floor be
included in Chapter 94 headings, nor does it exclude goods which
are amenable to placement other than on the floor. Such a
distinction is important in this case, since the goods in
question are designed for possible placement on the floor, but
may be subject to classification elsewhere in the nomenclature.
Heading and Subheading
The initial determination which must be made here is whether
or not the sample goods are considered furniture within the
meaning of headings 9401 to 9403, HTSUSA. If so, they will be
excluded from classification in Chapter 46, HTSUSA. Other than
the threshold requirement set out above, the Legal Notes to
Chapter 94, HTSUSA, do not provide any guidelines for making this
determination. However, the Explanatory Notes indicate that
Chapter 94 covers:
(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, . . .(emphasis in the original).
The Explanatory Notes also include an extensive, although not
exhaustive, listing of goods which are either included or
excluded from Chapter 94. The Notes indicate that items of all
sizes and uses may be included in Chapter 94, and it is our
opinion that the terms of heading 9403 are sufficiently broad to
include the sample goods. However, we are further of the opinion
that these items are not more than prima facie classifiable as
furniture of heading 9403, HTSUSA. Consequently, these goods are
determined not to be "Articles of Chapter 94" for the purposes of
the exclusionary Note (Legal Note 2(e) to Chapter 46). They may,
however, be found to be articles of Chapter 94 on the basis of
other criteria.
Since the goods at issue are prima facie classifiable in two
different headings, specifically headings 4602 and 9403, HTSUSA,
GRI 1 fails to classify these goods. The remaining GRIs
therefore become applicable. Goods prima facie classifiable in
two or more headings are classified according to GRI 3. GRI 3(a)
provides, in pertinent part, that:
(a) The heading which provides the most specific
description shall be preferred to headings providing a
more general description.
The Explanatory Notes to Chapter 94, HTSUSA, complements GRI 3(a)
by providing that the articles not included under more specific
headings of the nomenclature may be classified as furniture. In
the instant case, the terms of the competing subheadings are, in
pertinent part:
4602.10.4000 - Basketwork, wickerwork and other articles,
made directly to shape from plaiting
materials . . .: Of vegetable materials:
Other: Other.
9403.80.3080 - Other furniture and parts thereof: Furniture
of other materials, including cane, osier,
bamboo, or similar materials: Of cane, osier,
bamboo, or similar materials: Other.
We are of the opinion that neither of the subheadings in
contention here provide a more specific description of these
goods. While the trunks are obviously articles of basketwork,
wickerwork, etc., the nature of the goods contributes to their
use as an article of furniture, in a utilitarian capacity, to
decorate or otherwise furnish a dwelling. Relative specificity,
therefore, under GRI 3(a), also fails to classify these goods.
GRI 3(b) requires that classification be made by determining
the essential character of the goods. In this case, we are of
the opinion that the essential character of the sample trunks is
that of the fern plaiting materials. While we recognize that
these items may be used as an accessory in the home, that
limited purpose does not establish their principal use. They
are, however, clearly articles of wickerwork, regardless of the
use to which they are put. We have, therefore, classified these
goods as basketwork, wickerwork, etc., of subheading
4602.10.4000, HTSUSA.
The Explanatory Notes to Chapter 46, HTSUSA, substantiate
our decision when they provide, in pertinent part:
Subject to the exclusions specified in the General
Explanatory Note to the Chapter, the heading covers:
(i) articles made directly to shape from plaiting
materials; . . .
Such articles include:
(1) . . . basketware containers of all kinds, whether
or not fitted with rollers or castors, . . .
(3) Travelling-bags and suitcases.
Although the sample trunks are not specifically named, they may
be included in the same category of goods. It has been suggested
that articles such as the sample items should not be included in
subheading 4602.10.4000, HTSUSA, because they are not of the same
type as the most of the items set out in the Explanatory Note.
The gist of the argument is that, since the terms of the Note
specifically refer items such as "suitcases" or "hampers", the
items described in the note are all of a smaller, more easily
portable variety, and that the trunks in question would not fit
that profile. We disagree for the following reasons
The list found in the Explanatory Notes is not legally
binding; it is advisory only. In addition, while many of the
items set out in the Explanatory Notes are smaller and easier to
carry or transport than the sample goods, the list is not
intended to be exclusive. Indeed, the terms of the Note are
expansive: "basketware containers of all kinds, whether or not
fitted with rollers or castors, . . ." (emphasis added),
indicating that the heading was intended to include baskets,
hampers, travelling bags or even trunks of a larger size which
would need rollers or castors to move about easily. Finally, we
note that the picture provided with the request letter shows
handles on the ends of the trunks, presumably to facilitate
their movement, and brass corner fittings to protect against
damage during movement.
Lastly, we are aware of prior rulings by this office which
classify goods of this type as furniture, albeit under the Tariff
Schedule of the United States (hereinafter "TSUS"). We note that
such rulings are informative, but are not binding toward rulings
issued under the HTSUSA. Indeed, many HTSUSA rulings may adopt
positions directly contrary to TSUS rulings, solely on the basis
that the HTSUSA terms require such treatment. In this case, we
have chosen to disregard prior rulings under the TSUS, and
classify these goods solely on the basis of the GRIs and the
terms of the HTSUSA headings to provide uniform and consistent
treatment for similar goods in the future, without attempting to
reconcile past rulings which may be incompatible.
HOLDING:
After examining the terms of the tariff headings and the
relevant Section and Chapter notes, it is the opinion of this
office that the sample goods are classified under subheading
4602.10.4000, HTSUSA - Basketwork, wickerwork and other articles,
made directly to shape form plaiting materials: Of vegetable
materials: Other: Other. These goods are dutiable at the rate of
3.0% ad valorem.
John Durant, Director
Commercial Rulings Division