CLA-2 CO:R:C:M 088958 DFC

Ms. Patricia Blasdel
Ikea, Inc.
Plymouth Commons
Plymouth Meeting, Pa. 19462

RE: Shelfs, wall hanging; NYRL 859019 modified; HRL 083435 modified; HRL 084820 modified

Dear Ms. Blasdel:

In a letter dated February 13, 1991, you asked us to reconsider the result reached in New York Ruling Letter (NYRL) 859019 dated January 14, 1991, concerning the tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of certain small wall hanging shelves produced in Denmark.

FACTS:

The merchandise which was the subject of NYRL 859019 consists of three style models of Julius small solid pine wall hanging shelves. The first, style model 081-562-05, is a shelf with drawers. It includes a top shelf and a second shelf with two drawers. Below the two drawers are knobs or hooks and the measurements are 27-1/2" x 5-3/4". The second, style model 681-564-05, is a plate shelf. It incorporates a narrow shelf for the displaying of plates with knobs or hooks for the hanging of cups. The dimensions are 34-1/4" x 3-3/4". The third, style model 881-563-05, is a small shelf constructed for the displaying of items such as spice jars. Its dimensions are 15-1/2" x 2- 3/4". The shelves are all made of clear lacquered pine and are designed to be hung on the wall.

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Customs classified style model 081-562-05 under subheading 9403.60.8080, HTSUSA, as other furniture and parts thereof, other wooden furniture, other, other. The applicable rate of duty for this provision is 2.5 percent ad valorem.

The remaining style models were classified under subheading 4420.90.8000, HTSUSA, as wooden articles of furniture not falling within Chapter 94, other, other. The applicable rate of duty for this provision is 5.1 percent ad valorem.

You claim that style models 681-564-05 and 881-563-05 are properly classifiable under subheading 9403.60.8080, HTSUSA, based on the rationale set forth in Headquarters Ruling Letter (HRL) 083435 dated April 21, 1989, and HRL 084820 dated September 20, 1989, which were addressed to your company.

ISSUE:

What is the scope of the term "other shelved furniture"?

LAW AND ANALYSIS:

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes, and, provided such headings or notes do not otherwise require, according to [the remaining GRI's taken in order]." In other words, classification is governed first by the terms of the headings of the tariff and any relative section or chapter notes.

Legal Note (LN) 2 to Chapter 94, HTSUSA, reads as follows:

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 ground.

The following are, however, to be classified in the above-mentioned headings even if they are designed to be hung, to be fixed to the wall or to stand one on the other:

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(a) Cupboards, bookcases, other shelved furniture and unit furniture;

(b) Seats and beds.

The Explanatory Notes (EN's) are the official interpretation of the Harmonized System (HS) at the international level. General EN's (A) and (B) to Chapter 94 read as follows:

For the purposes of this Chapter 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, . . .

(B) The following:

(i) Cupboards, bookcases, other shelved furniture and unit furniture, designed to be hung, to be fixed to the wall or to stand one on the other or side by side, for holding various objects or articles (books, crockery, kitchen utensils, glassware, linen, medicaments, toilet articles, radio or television receivers, ornaments, etc.) and separately presented elements of unit furniture.

(b) Seats and beds.

In HRL 083435 Customs stated that:

The term "other shelved furniture" is subject to at least two interpretations. The first requires that an item which is in and of itself "furniture," have the additional feature of being equipped, fitted or otherwise furnished with shelves, to be "shelved furniture." The second interpretation of the term "shelved furniture" includes furniture that is itself no more than a shelf in the definition of "shelved furniture."

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Customs then concluded:

The exceptions to the exclusion of Note 2 are intended to allow classification under headings 9401-9403 of shelf-type furniture and modular or unit-type furniture, all of which are intended to be supported by walls or placed on other furniture rather than placed on the floor or ground. Customs therefore believes the latter interpretation of the term "shelved furniture," which includes furniture which is itself no more than a shelf, is the correct interpretation.

In HRL 084820 Customs endorsed the interpretation of the term "shelved furniture" set out in HRL 083435 and ruled that certain wood shelves and particle board shelves with metal brackets are classifiable under subheading 9403.60.8080, HTSUSA, as other wooden furniture, other, other.

It is now our view that our interpretation of the term "other shelved furniture" is overly broad and is creating problems in classification uniformity for articles which have never been considered "furniture" by previous tariffs or by the furniture trade. Furthermore, it is our opinion that it was not the intent of the drafters of the Harmonized System (HS) to classify small furnishings or fixtures as "furniture" simply because a shelf is incorporated in their construction.

In addition, it appears that in HRL 083435 the term "other shelved furniture" was taken and used out of context. When placed in the proper context of the Chapter Notes and the EN, it becomes clear that it was not the intent of the HS to include under the furniture headings of Chapter 94 small furnishings which have essentially the character of utensils, fixtures, and ornaments rather than furniture.

With respect to the intent of the drafters of the HS, General EN to Chapter 94 at page 1574 makes the following relevant comments:

Except for the goods referred to in subparagraph (B) above, the term "furniture" does not apply to articles used as furniture but designed for placing on other furniture or shelves or for hanging on walls or from the ceiling.

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It therefore follows that this Chapter does not cover other wall fixtures such as coat, hat and similar racks, key racks, clothes-brush hangers and newspaper racks, nor furnishings such as radiator screens. Similarly, the Chapter excludes the following types of goods not designed for placing on the floor: small articles of cabinet-work and small furnishing goods of wood (heading 44.20), and office equipment. . . .

Also, EN 2 to heading 44.20 reads as follows:

The heading includes:

(2) Articles of wooden furniture other than those of Chapter 94 (see the General Explanatory Note to that Chapter). This heading therefore covers such goods as coat or hat racks, clothes brush hangers, letter trays for office use, ashtrays, pen-trays and ink stands.

It is clear that the drafters of the HS intended to limit the classification under Chapter 94 for certain articles which are constructed not to be placed on the floor or ground. The exceptions are listed. It is our view that the list of exceptions should not be interpreted so as to frustrate its original purpose.

As stated previously, the EN's and the Chapter Notes define the term "furniture." However, certain exceptions to the meaning have been added. Nevertheless, when studying the exceptions listed in LN 2(a) and (b), to Chapter 94, we find the enumerated articles to be specific and narrow in scope. They are exceptions, not the rule. We will be very cautious in our interpretation of the exceptions lest they become the rule.

HRL 083435 uses the phrase "other shelved furniture" as a term to be defined and interpreted. The key word in the phrase is "furniture." The word "shelved" is describing the similarity to the enumerated articles, that is, cupboards and bookcases. The similarity, however, does not end only in being "shelved." The specific examples stated are substantial articles having the essential characteristic that they are used to equip a home, office, etc. Furthermore, cupboards and bookcases are articles bought and sold by the furniture trade. Most important, they are not small furnishings, fixtures, or knickknacks.

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The EN to heading 94.03 at page 1578, which is where the products in question may be classified, list numerous examples of articles that are included within this heading as "furniture." Some of the examples are shelved "furniture." However, none of the listed articles are similar to the products in issue. This omission is indicative of the intent of the drafters of the HS. These examples are convincing evidence that small furnishings and knickknacks such as the articles in issue are not "furniture" notwithstanding the fact that a shelf may be present.

Further confirmation that an article which is "itself no more than a shelf" is not encompassed within the term "furniture" is found in EN (c) to heading 94.03 at page 1579 which reads as follows:

This heading does not include:

(c) Builders' fittings (e.g., frames, doors and shelves) for cupboards, etc. to be built into walls (heading 44.18 if of wood). (Emphasis added.)

Based on the foregoing it is now our position that the prior interpretation of the phrase "other shelved furniture" is not correct. It is our opinion that LN 2(a) to Chapter 94, HTSUSA, should be interpreted as follows:

Only articles which are "furniture" similar to cupboards and bookcases in that they are substantial articles having the essential characteristic that they are used to equip a home, office, etc., and incorporate shelves in their construction, whether or not they are designed to be hung or fixed to the wall, are classifiable as "furniture" under heading 9403, HTSUSA.

In view of the change in the interpretation of the phrase "other shelved furniture," it is now our position that all the style models which were the subject of NYRL 859019 dated January 14, 1991, and HRL 084820 dated September 20, 1989, are properly classifiable under subheading 4420.90.8000, HTSUSA, as wooden articles of furniture not falling within Chapter 94, other, other.

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Although our interpretation of the phrase "other shelved furniture" set forth in HRL 083435 dated April 21, 1989, has changed, we are still of the opinion that the drop-leaf table is "furniture" for the purposes of classification under Chapter 94, HTSUSA. Our position is based on the fact that the article is not shelved furniture but rather a table fixed on one side to the wall but essentially constructed for placing on the floor. This type of table is similar to unit furniture.

HOLDING:

The three style models of Julius small solid pine wall hanging shelves which were the subject of NYRL 859019 dated January 14, 1991, are dutiable at the rate of 5.1 percent ad valorem under subheading 4420.90.8000, HTSUSA.

The five styles of wood shelves and particle board shelves with metal brackets which were the subject of HRL 084820 dated September 20, 1989, are dutiable at the rate of 5.1 percent ad valorem under subheading 4420.90.8000, HTSUSA.

The drop leaf table which was the subject of HRL 083435 dated April 21, 1989, remains classifiable under subheading 9403.40.9080, HTSUSA, for the reasons stated previously. However, our interpretation of the term "other shelved furniture" has been modified based on the rationale set forth above.

This notice to you should be considered a modification of NYRL 859019, HRL 083435 and HRL 084820 under 19 CFR 177.9(d). It is not to be applied retroactively to those rulings and will not therefore, affect past transactions for the importation of your merchandise under those rulings. However, for the purposes of future transactions in the merchandise of this type, NYRL 859019 and HRL 084820 will not be valid precedent. We recognize that pending transactions may be adversely affected by these modifications, in that current contracts for importations arriving at a port subsequent to this decision will be classified pursuant to it. If such a situation arises, you may, at your discretion notify this office and apply for relief from the binding effects of this decision as may be warranted by the circumstances.
Sincerely,

John Durant, Director
Commercial Rulings Division

6cc AD NY Seaport
1cc Paul Garretto NY Seaport
1cc Larry Mushinske NY Seaport
1cc Legal Reference
cahill library/peh
088958