CLA-2 OT:RR:CTF:TCM H230217 GA
Ms. Denise N. Yapp
Imports Entry/Classification Coordinator
Ashley Furniture Industries, Inc.
One Ashley Way
Arcadia, WI 54612
RE: Modification of NY N220458; Classification of a twin poster bed shipped complete or its headboard, footboard and side rails shipped separately from China.
Dear Ms. Yapp:
This is in reference to New York Ruling Letter (“NY”) N220458, dated June 8, 2012, issued to Ashley Furniture Industries, Inc. (“Ashley”) concerning the tariff classification of a twin poster bed shipped complete or its headboard, footboard and side rails shipped separately from China, under the Harmonized Tariff Schedule of the United States (HTSUS). In NY N220458, U.S. Customs and Border Protection (CBP) determined that the bed when shipped complete, and the headboard and footboard and side rails when shipped separately are classified in subheading 9403.50.9045, HTSUSA, which provides for “Other furniture and parts thereof: Wooden furniture of a kind used in the bedroom: Other: Other: Beds: Other.” We have reviewed NY N220458 and find the portion that relates to the classification of the headboard and footboard and rails when shipped separately to be in error. The classification of the bed when shipped complete remains unmodified. For the reasons set forth below, we hereby modify NY N220458.
On June 15, 2016, pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1), as amended by section 623 of Title VI, notice of the proposed action was published in the Customs Bulletin Vol. 50, No. 24. One comment was received in response to the notice. The commenter pointed out that the subject merchandise may be subject to antidumping duties or countervailing duties.
FACTS:
In NY N220458, the subject merchandise was described as follows:
When imported complete, the furniture piece is referenced as the B188 Exquisite Twin Poster Bed. The items consist of the following: B188-77 twin poster headboard, B188-74 twin poster footboard, and B188-81 twin poster rails. These items may be shipped together to make a complete bed or shipped separately.
The B188-77 twin poster headboard is constructed of an outer-structure of a cast poly frame and poly-posts with wood cores, and has an inner-structure of a cushion insert covered in faux leather (PU) vinyl with a wood core. Photos indicate that the underlying wood is completely covered by either the poly material or vinyl material.
The B188-74 twin poster footboard is constructed of an outer-structure of a cast poly frame and poly-posts with wood cores, and has an inner-structure of a cushion insert covered in faux leather (PU) vinyl with a wood core. Photos indicate that the underlying wood is completely covered by either the poly material or vinyl material.
The B188-81 twin poster rails (side rails) are constructed of wood.
ISSUE:
Whether the headboard and footboard are classified in subheading 9403.50, HTSUS, as wooden furniture of a kind used in the bedroom, or in subheading 9403.90, HTSUS, as parts of furniture.
LAW AND ANALYSIS:
Classification under the 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. In the event that the goods cannot be classified solely on the basis of 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.
There is no dispute that the merchandise is appropriately classified in heading 9403, HTSUS. At issue is the applicable six-digit subheading. Therefore, we must apply GRI 6 to determine the correct classification of the merchandise. GRI 6 provides:
For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.
In light of the fact that the subject headboard and footboard consists of more than one material, classification at the subheading level is governed by GRIs 3 and 6. GRI 3 provides, in pertinent part, as follows:
When, by application of rule 2(b) or for any other reason, good are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
* * * *
The HTSUS provisions under consideration are as follows:
9403 Other furniture and parts thereof:
9403.50 Wooden furniture of a kind used in the bedroom:
9403.90 Parts:
9403.90.70 Of wood:
* * * *
The Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) represent the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to GRI 3(b) provide, in pertinent part, that:
(VII) In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(VIII) The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
* * * * *
Under GRI 3(b), composite goods must be classified according to the material or component that imparts the article with its essential character. The “essential character” of an article is “that which is indispensable to the structure, core or condition of the article, i.e., what it is.” Structural Industries v. United States, 360 F. Supp. 2d 1330, 1336 (Ct. Int’l Trade 2005). EN VIII to GRI 3(b) explains that “[t]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods.” Recent court decisions on the essential character for GRI 3(b) purposes have looked primarily to the role of the constituent material in relation to the use of the goods. See Estee Lauder, Inc. v. United States, 815 F. Supp. 2d 1287, 1296 (Ct. Int’l Trade 2012); Structural Industries, 360 F. Supp. 2d 1330; Conair Corp. v. United States, 29 C.I.T. 888 (2005); Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278 (Ct. Int’l Trade 2006), aff’d 491 F.3d 1334 (Fed. Cir. 2007).
The headboard features wood components that cost more than the acrylic components and weigh significantly more than the acrylic components. The footboard features acrylic components that cost more, but weigh significantly less than the wood components. Although the headboard and footboard have detailed and ornate designs covered in acrylic, the wood components, provide the structure and shape of the headboard and footboard. It is the bulk and weight of the underlying wood that allows for the detailed and ornate designs of the acrylic to be impressed onto the surface of the headboard and footboard.
In accord with the meaning of “essential character” under GRI 3(b), we agree with the conclusion set forth in NY N220458 that wood is the essential component of the headboard and footboard. Therefore, the aforementioned components when imported together, constitute an unassembled article of wooden bedroom furniture of subheading 9403.50, HTSUS.
However, the headboard, footboard, and side rails (which are composed entirely of wood) when shipped separately do not constitute bedroom furniture of subheading 9403.50, HTSUS. Rather, they are properly classified as parts of furniture of wood under subheading 9403.90, HTSUS.
HOLDING:
By application of GRIs 1, 3(b), and 6, the headboard, footboard and side rails, when shipped separately are classified in heading 9403, HTSUS, specifically in subheading 9403.90.70, HTSUS, which provides for “Other furniture and parts thereof: Parts: Other: Of wood” by application of GRIs 3(b) and 6. By application of GRIs 1 and 6, the side rails are classified in subheading 9403.90.70, HTSUS. The general column one rate of duty is “Free.”
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
The merchandise in question may be subject to antidumping duties or countervailing duties. We note that the International Trade Administration is not necessarily bound by a country of origin or classification determination issued by CBP, with regard to the scope of antidumping orders or countervailing duties. Written decisions regarding the scope of AD/CVD orders are issued by the Import Administration in the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection. You can contact them at http://www.trade.gov/ia/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and countervailing duty investigations”), and you can search AD/CVD deposit and liquidation messages using ACE, the system of record for AD/CVD messages, or the AD/CVD Search tool at http://addcvd.cbp.gov/index.asp?ac=home.
EFFECT ON OTHER RULINGS:
NY N220458, dated June 8, 2012, is hereby MODIFIED.
In accordance with 19. U.S.C. 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division