OT:RR:CTF:CPMM H308036 MMM
Joseph Kenny
Geodis USA Inc.
One CVS Drive
Woonsocket, RI 02895
RE: Revocation of NY N293709, NY N295394 and NY N298740; Classification of textile hanging shelves
Dear Mr. Kenny,
This is reference to the New York Ruling Letter (NY) N293709, issued to you by U.S. Customs and Border Protection (CBP) on February 23, 2018, concerning classification of a “Locker Luxe Hanging Shelf” under the Harmonized Tariff Schedule of the United States (HTSUS). We have reviewed your ruling, and determined that it is incorrect, and for the reasons set forth below, are revoking your ruling.
We have also reviewed NY N295394, dated April 18, 2018 and NY N298740, dated July 16, 2018 and determined that they are also incorrect, and for the reasons set forth below, we are also revoking those rulings.
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 (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), a notice of the proposed action was published in the Customs Bulletin, Volume 54, No. 22, on June 10, 2020. No comment was received in response to this notice.
FACTS:
In NY N293709, CBP stated as follows with respect to the subject merchandise:
The item has a U-shaped form, and consists of two sides made of 100% polyester woven material, two cardboard inserts encased in the same material as the two sides, and two iron or steel brackets. The two textile covered inserts act as shelving for the placement and retrieval of books, notebooks, school supplies, equipment, and various other personal objects and sundries. The two iron and steel brackets allow for the item to be hung from the top shelf of a metal school locker.
CBP classified the “Locker Luxe Hanging Shelf” in heading 9403, HTSUS, specifically subheading 9403.89.6020, HTSUSA (Annotated), which provides for “Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other: Other.”
Additionally, in NY N295394, which involved the classification of similar merchandise, CBP described the merchandise as follows:
The item has five shelves and is hung by an 8-inch hook and loop closure that fits around a closet bar, and is designed to hold clothing, accessories or other articles. The item is 13 inches wide by 39 inches tall. The organizer is constructed of medium-density fiberboard (MDF) at the top and bottom to provide structure and strength. Cardboard stiffeners are at the front of each shelf opening to help the organizer hold its shape and provide additional strength. Photographs depict that the item is covered over in polypropylene non-woven textile material.
Lastly, in NY N298740, CBP described the subject merchandise as:
The merchandise concerned is made from outer materials of 70% polyester and 30% cotton (poly-cotton canvas), has a reinforced top panel and shelves sandwiched between cardboard, and attaches to a closet rod by means of two metal hooks. The merchandise concerned holds up to twelve sweaters and can also accommodate other articles of clothing, as well as provide storage capacity for handbags and accessories. This item is depicted on the company website and in sample as having three compartments, shelves, in which to organize sweaters.
In NY N295394 and NY N298740, the above referenced textile hanging shelves were classified in heading 9403 HTSUS, specifically in subheading 9403.89.6015, HTSUSA, which provides for “Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other: Other household.”
ISSUE:
Whether the subject hanging closet shelves are classified in heading 6307, HTSUS, as other made up articles or in heading 9403, HTSUS, as other furniture.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes.
GRI 1 requires that classification be determined first 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 heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 2(a) provides, in relevant part, that “[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished articles has the essential character of the complete or finished article.”
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute 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. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The 2018 HTSUS provisions under consideration are as follows:
6307: Other made up articles, including dress patterns:
9403: Other furniture and parts thereof:
Heading 6307 applies to made up articles. Note 7 to Section XI, which includes Chapters 50-63, provides that:
For the purposes of this section, the expression “made up" means: (a) Cut otherwise than into squares or rectangles; (b) Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, tablecloths, scarf squares, blankets); (c) Hemmed or with rolled edges, or with a knotted fringe at any of the edges, but excluding fabrics the cut edges of which have been prevented from unraveling by whipping or by other simple means; (d) Cut to size and having undergone a process of drawn thread work; (e) Assembled by sewing, gumming or otherwise (other than piece goods consisting of two or more lengths of identical material joined end to end and piece goods composed of two or more textiles assembled in layers, whether or not padded); or
(f) Knitted or crocheted to shape, whether presented as separate items or in the form of a number of items in the length.
Heading 9403 applies to furniture and parts thereof. Chapter 94 includes Note 2(a) which states:
2. The articles (other than parts) referred to in headings 9401 and 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:
(a) Cupboards, bookcases, other shelved furniture (including single shelves presented with supports for fixing them to the wall) and unit furniture.
Additionally, the General Explanatory Notes to Chapter 94 states that “furniture” means:
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, churches, schools, cafés, restaurants, laboratories, hospitals, dentists’ surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan trailers or similar means of transport. (It should be noted that, for the purposes of this Chapter, articles are considered to be “movable” furniture even if they are designed for bolting, etc., to the floor, e.g., chairs for use on ships). Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are also included in this category.
Courts have construed “furniture” to mean articles “for the use, convenience, and comfort of the house dweller and not subsidiary articles for ornamentation alone.” Furthermore, the courts have distinguished “furniture” from articles that are “subsidiary adjuncts and appendages designed for the ornamentation of a dwelling or business place, or which are of comparatively minor importance so far as use, comfort, and convenience are concerned.”
In NY N293709, NY N295394 and NY N298740, CBP classified the subject merchandise in heading 9403, following its interpretation of the parenthetical added to Note 2(a) in 2012, which includes single shelves presented with supports as an example of shelved furniture. However, this parenthetical does not apply to the merchandise at issue here, as the subject merchandise is hung in a closet or locker and includes shelves, and is not single shelves and not presented with supports for fixing them to the wall.
In order for the subject merchandise to be classified under heading 9403, it must fall under shelved furniture that is designed to be hung, to be fixed to the wall or to stand one on the other. For instance, NY N302160 classified an “Industrial Pipe Shelf” composed of metal and wood components along with metal assembly hardware designed to be mounted to a wall. Additionally, NY N290432 also classified a wall hanging vanity consisting of a shelf, mirror and metal hooks, where accessories can be placed on the shelf and hung on the hooks, under heading 9403, HTSUS. The merchandise in both of these rulings are shelved furniture because they are designed to equip a dwelling, and include additional materials, such as iron pipes and hanging bars with metal hooks, to allow consumers to mount or hang the shelves on the wall. They do not collapse before being hung and do not rely on gravity for their shape. The subject textile goods, however, are not furniture. Rather, they are textile articles for use in the organization of lockers and closets. Lockers and closets are typically already equipped with a rod, shelf, and floor for the storage and organization of articles kept inside them. Hence, collapsible textile cubbies, pockets or shelves are of comparatively minor importance so far as use, comfort, and convenience are concerned. The parenthetical added to note 2(a) to Chapter 9403 does not describe these goods and did not necessitate a change in their classification. Additionally, prior to 2018, the year these rulings were issued, CBP classified similar merchandise under heading 6307.
By application of GRI 3(b) the subject textile hanging shelves described in NY N293709, NY N295394 and NY N298740 are composite goods classified in heading 6307. According to GRI 3(b), composite goods consisting of different materials or made up of different components shall be classified as if they consisted of the material or component which gives them their essential character. Although the GRIs do not provide a definition of “essential character,” EN (VIII) of GRI 3(b) provides guidance. According to this EN, the essential character may 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.
It is well-established that a determination as to “essential character” is driven by the particular facts of the case at hand. Essential character has traditionally been understood as “that which is indispensable to the structure, core or condition of the article, i.e., what it is” and as “the most outstanding and distinctive characteristic of the article.” In this instance, the textile components provide the essential character to the hanging shelves. The cardboard components are merely used to hold shape and the metal hooks and brackets are only used to hang the shelves, both the cardboard and metal components serve no purpose if used alone. Additionally, the textile components are the most distinctive characteristic of the shelves, as they are the only visible component to the consumer when used. The subject merchandise is properly classified in heading 6307, HTSUS, as made-up textile articles.
HOLDING:
By application of GRI 1 and 3(b), the subject merchandise, is classified in heading 6307, HTSUS. The textile hanging shelves are specifically described in subheading 6307.90.9889, HTSUSA, which provides for: “Other made up articles, including dress patterns: Other: Other: Other.” The 2020 column one general rate of duty for subheading 6307.90.9889, HTSUSA, is 7% ad valorem.
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/tata/hts.
EFFECT ON OTHER RULINGS:
NY N293709, dated February 23, 2018, NY N295394, dated April 18, 2018, and NY N298740, dated July 16, 2018, are hereby REVOKED in accordance with the above analysis.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
for
Craig T. Clark, Director
Commercial and Trade Facilitation Division
CC: Geri Davidson
Import Department
The Container Store
500 Freeport Parkway
Coppell, TX 75019-3863