OT:RR:CTF:EMAIN H304964 SKK
Mr. Randy Rucker
Drinker Biddle & Reath LLP
191 N. Wacker Dr., Ste. 3700
Chicago, IL 60606
RE: Revocation of NY N300132; Tariff classification of a thermoelectric wine cooler
Dear Mr. Rucker:
This ruling is in reference to your email correspondence of April 11, 2019, in which you request reconsideration of New York Ruling Letter (NY) N300132, dated September 11, 2018, in which U.S. Customs and Border Protection (CBP) classified a thermoelectric wine cooler under heading 8418, Harmonized Tariff Schedule of the United States (HTSUS), specifically subheading 8418.69.01, HTSUS, which provides for “[R]efrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps, other than the air conditioning machines of heading 8415; Parts thereof; Other refrigerating or freezing equipment; Other.”
Upon reconsideration, we have determined that the tariff classification of the subject merchandise at issue in NY N300132 is incorrect. Pursuant to the analysis set forth below, CBP is revoking NY N300132.
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, a notice proposing to revoke NY N300132 was published on December 20, 2020, in Volume 54, Number 51 of the Customs Bulletin. No comments were received in response to the proposed action.
FACTS:
The product at issue in NY N300132 is the Avanti Wine Cooler (item #EWC1201), SKU number 149466. The household cooler employs a thermoelectric cooling system and is designed to store up to 12 wine bottles in a horizontal and a standing position. The cooler features slide out shelves, a curved glass door, an interior light and an LED digital display. The Avanti Wine Cooler measures 10 inches in width by 25.2 inches in height.
LAW AND ANALYSIS:
Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will 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 will then be applied in order.
GRI 6 provides as follows:
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 and chapter notes also apply, unless the context otherwise requires.
It is undisputed that the subject merchandise is properly classified under heading 8418, HTS, provides for, inter alia, “electric refrigerators and other refrigerating equipment”. The determinative issue is at the six-digit level of heading 8418, HTSUS; specifically, whether the subject apparatus is classified under subheading 8418.50, HTSUS, as “other furniture (chests, cabinets, display counters, show-cases and the like) for storage and display, incorporating refrigerating or freezing equipment,” or under subheading 8418.69, HTSUS, as “other refrigerating or freezing equipment.”
Several online retail sources describe the subject merchandise as follows:
10 Inch Countertop Wine Cooler with 12 Bottle Capacity, Wire Racks, Thermoelectric Cooling, No Vibration, Curved Glass Door and Integrated Soft Touch Digital Display.
See https://www.ajmadison.com/cgi-bin/ajmadison/EWC1201.html (site last visited November, 2020).
The Avanti 12-Bottle Wine Cooler boasts a black cabinet and concave glass door that make it a stylish addition to any kitchen. With its compact, freestanding design, it fits easily in tight spaces, measuring just over 24 in. wide. Despite its size, it holds up to 12 bottles of wine on its slide-out chrome shelves, with a no-vibration design to carefully preserve the wine.
See https://www.homedepot.com/p/Avanti-12-Bottle-Wine-Cooler-EWC1201/308062501 (site last visited November, 2020).
As the subject merchandise is a counter-top cabinet that stores, displays and refrigerates wine bottles, classification is proper under subheading 8418.50, HTSUS. See NY N301170, dated February 6, 2019, in which CBP classified the same merchandise (Avanti Wine Cooler (item #EWC1201)) under subheading 8418.50.00, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the Avanti Wine Cooler (item #EWC1201, SKU number 149466) at issue in NY N300132 is classified under heading 8418, HTS, specifically under subheading 8418.50.00, HTSUS, which provides for “[R]efrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps, other than the air conditioning machines of heading 8415; Parts thereof; Other furniture (chests, cabinets, display counters, show-cases and the like) for storage and display, incorporating refrigerating or freezing equipment.”
The applicable rate of duty is free. 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 on the internet at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N300132, dated September 11, 2018, is hereby REVOKED.
In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days
after its publication in the Customs Bulletin.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division
CC: Ms. Laurel Talan Scapicchio
BJ’s Wholesale Club, Inc.
25 Research Drive
P.O. Box 5230
Westborough, MA 01581