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.
-2-
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:
-3-
(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."
-4-
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.
-5-
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.
-6-
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.
-7-
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