OT:RR:CTF:CPMMA H313152 AJK
TARIFF NO: 9403.20.0050
Mr. Patrick D. Gill
Sandler, Travis & Rosenberg, P.A.
675 Third Avenue, Suite 1805-06
New York, NY 10017
RE: Revocation of NY N310710; Classification of Metal Storage Lockers and Cabinets for Garage Use
Dear Mr. Gill:
This letter is in response to your submission dated May 12, 2020, on behalf of your client, NewAge Products, Inc., in which you requested reconsideration of New York Ruling Letter (NY) N310710, dated April 14, 2020, concerning the classification of metal storage lockers and cabinets for garage use under the Harmonized Tariff Schedule of the United States (HTSUS). In NY N310710, U.S. Customs and Border Protection (CBP) classified the merchandise in subheading 9403.20.0081, HTSUSA (Annotated), as other metal furniture. We have reviewed the aforementioned ruling and have determined that the classification of the metal storage lockers and cabinets was incorrect.
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, Vol. 56, No. 40, on October 12, 2022. No comments were received in response to this notice.
FACTS:
In your initial ruling request, dated March 16, 2020, you stated that the products under consideration are metal locker cabinets that are advertised and sold for use in household garages. The subject merchandise was described in NY N310710 as follows:
Item 1, the “Bold Series,” is a group of unequipped, locking, modular, shelved, metal storage lockers and cabinets that are available in different paint finishes. First, a floor standing, 2-door shelved locker whose dimensions are 42” in width, 18” in depth, and 72” in height. Second, a floor standing, 2-door shelved locker whose dimensions are 30” in width, 18” in depth, and 72” in height. Third, a floor standing, 2-door pair of shelved lockers whose combined dimensions are 84” in width, 18” in depth, and 77.25” in height. Fourth, a floor standing, 2-door base cabinet whose dimensions are 24” in width, 16” in depth, and 35.25” in height. Fifth, a floor standing, 5-drawer project workstation and locker component whose overall dimensions are 62” in width, 18” in depth, and 35.” in height. The workstation contains four casters, two that are lockable. Sixth, a floor standing, multi-level rolling tool drawer whose dimensions are 20.75” in width, 16” in depth, and 33” in height. The tool drawer contains four casters. Seventh, a wall mounted 2-door cabinet whose dimensions are 36” in width, 12” in depth, and 19.5” in height. Eighth, a wall mounted 2-door cabinet whose dimensions are 24” in width, 12” in depth, and 18” in height.
Item 2, the “Pro Series,” is a group of unequipped, locking, modular, shelved, metal storage lockers and cabinets that are available in different paint finishes. First, a floor standing, 2-door, shelved multi-use locker whose dimensions are 36” in width, 24” in depth, and 80” in height. Second, a floor standing, 5-drawer tool cabinet whose dimensions are 28” in width, 22” in depth, and 32.25” in height. Third, a floor standing, multi-functional cabinet whose dimensions are 28” in width, 22” in depth, and 35.5” in height. Fourth, a floor standing, 2-door base cabinet whose dimensions are 28” in width, 22” in depth, and 32.25” in height. Fifth, a floor standing mobile locker on casters whose dimensions are 28” in width, 22” in depth, and 65” in height. Sixth, a floor standing sink-cabinet whose dimensions are 28” in width, 22” in depth, and 38.75” in height. The sink-cabinet is equipped with a sink and faucet. Seventh, a floor standing, single-door, adjustable-shelf locker whose dimensions are 15” in width, 24” in depth, and 80” in height. Eighth, a wall mounted single-shelf cabinet whose dimensions are 28” in width, 14” in depth, and 22” in height.
ISSUE:
Whether the metal storage lockers and cabinets are classified in subheading 9403.20.0050, HTSUSA, as metal household furniture, subheading 9403.20.0078, HTSUSA, as metal exchange lockers, or subheading 9403.20.0086, HTSUSA, as other metal furniture.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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.
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The HTSUSA provisions at issue are as follows:
7324 Sanitary ware and parts thereof, of iron or steel:
7324.10.00 Sinks and wash basins, of stainless steel:
7324.10.0050 Other
9403 Other furniture and parts thereof:
9403.20.00 Other metal furniture:
Household:
Other:
9403.20.0050 Other
Other:
Counters, lockers, racks, display cases, shelves,
partitions and similar fixtures:
9403.20.0078 Storage lockers, other than exchange
lockers as described in statistical note 3
to this chapter
9403.20.0086 Other
Note 2 to chapter 94, HTSUS, provides, in pertinent part:
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:
Cupboards, bookcases, other shelved furniture (including single shelves presented with supports for fixing them to the wall) and unit furniture ….
Statistical note 3 to chapter 94, HTSUS, provides, in pertinent part:
3. For the purposes of statistical reporting number 9403.20.0078, “metal exchange lockers” are lockers with individual locking doors mounted on one master locking door to access multiple units used by commercial businesses, hospitals, police departments, condominiums, apartments, hotels, automobile dealerships, etc.
* * * * * *
The Harmonized Commodity Description and Coding System (HS) Explanatory Notes (ENs) constitute the official interpretation of the HS. While not legally binding or dispositive, the ENs provide a commentary on the scope of each heading of the HS at the international level, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989).
EN to chapter 94 provides, in pertinent part, as follows:
For the purposes of this Chapter, the term “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.
(B) The following:
Cupboards, bookcases, other shelved furniture (including single shelves presented with supports for fixing them to the wall) 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. …
Headings 94.01 to 94.03 cover articles of furniture of any material (wood, osier, bamboo, cane, plastics, base metals, glass, leather, stone, ceramics, etc.). …
EN 94.03 provides, in pertinent part, as follows:
[This heading] includes furniture for general use (e.g., cupboards, show-cases, tables, telephone stands, writing-desks, escritoires, book-cases, and other shelved furniture (including single shelves presented with supports for fixing them to the wall), etc.), and also furniture for special uses.
The heading includes furnitures for:
Private dwellings, hotels, etc., such as: cabinets, ….
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There is no dispute that the metal locker cabinets are metal furniture classified in subheading 9403.20.00, HTSUS, which is an eo nomine provision that provides for other metal furniture. See EN 94.03. The General EN to chapter 94 explains that “furniture” means any movable articles that are designed to be placed on the floor or ground and are used, mainly with a utilitarian purpose, to equip private dwellings. Furthermore, it provides that “furniture” also includes other shelved furniture that are “designed to be hung, [or] to be fixed to the wall”. See also note 2 of chapter 94. In the instant case, the metal storage lockers and cabinets are either placed directly on the floor or mounted to a wall to furnish houses—specifically, household garages. Thus, the subject merchandise constitutes metal furniture within the scope of HTSUS. Specifically, the lockers constitute metal household furniture in subheading 9403.20.0050, HTSUSA, because they are intended to be used in household garages. Although statistical note 3 to chapter 94 states that subheading 9403.20.0078, HTSUSA, specifically provides for “[s]torage lockers, other than metal exchange lockers,” the subject merchandise is precluded from this subheading because the lockers are not intended, marketed or sold to be used by commercial businesses. In addition, the subject metal storage lockers and cabinets are also precluded from subheadings subsequent to subheading 9403.20.0050, HTSUSA, because such subheadings fall under the basket provision that provides for other non-household metal furniture. Pursuant to GRI 1, therefore, the metal locker cabinets are classified in subheading 9403.20.0050, HTSUSA, as metal household furniture.
The sixth product of item #2, the “Pro Series,” however, is a floor standing combination sink-cabinet that is equipped with a steel sink and a faucet. Accordingly, the classification of the sink-cabinet is determined by the application of GRI 3(b), which applies to composite goods. To classify under GRI 3(b), CBP must identify the component of the subject merchandise that imparts the essential character of the merchandise. “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). Generally, the physical measures of bulk, quantity, weight or value are considered to determine the constituent material that imparts the essential character of the merchandise. See EN to GRI 3(b). Heading 7324, HTSUS, provides for steel sinks whereas heading 9403, HTSUS, provides for furniture, including the subject metal storage lockers and cabinets, as analyzed above. Historically, CBP has classified composite goods of consisting of a sink and cabinet in the heading that provides for cabinets by holding that the cabinet component imparts the essential character of the merchandise. Accordingly, we find that the metal cabinet component imparts the essential character of the sink-cabinet and thus, the sink-cabinet constitutes furniture in heading 9403, HTSUS. The metal combination sink-cabinet, which is a floor standing metal cabinet that is used to equip household garages, is classified in subheading 9403.20.0050, HTSUSA, as metal household furniture.
HOLDING:
By application of GRI 1, the metal storage lockers and cabinets are classified in heading 9403, HTSUS, specifically subheading 9403.20.0050, HTSUSA, which provides for “Other furniture and parts thereof: Other metal furniture: Household: Other: Other”. The 2022 column one, general rate of duty is free.
By application of GRI 3(b), the metal floor standing combination sink-cabinet is classified in heading 9403, HTSUS, specifically subheading 9403.20.0050, HTSUSA, which provides for “Other furniture and parts thereof: Other metal furniture: Household: Other: Other”. The 2022 column one, general 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 at https://hts.usitc.gov/current.
EFFECT ON OTHER RULINGS:
NY N310710, dated April 14, 2020, 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,
Yuliya A. Gulis, Director Commercial and Trade Facilitation Division