CLA-2-94:OT:RR:NC:N4:433
Eric R. Rock
Katten
Katten Muchin Rosenman, LLP
525 W. Monroe Street
Chicago, IL 60661-3693
RE: The tariff classification of utility carts, and combined office and beverage cart, from Taiwan or China.
Dear Mr. Rock:
In your letter dated July 7, 2010, on behalf of Safco Products Company, you requested a tariff classification ruling.
Model 5330GR is a two shelf molded plastic utility cart on casters imported in knockdown condition from Taiwan. The utility cart is molded of impact resistant high-density polyethylene, and has sliding side rails that easily convert the cart from a box top shelf to a flat top, thereby allowing for easy removal of heavy items. The shelves measure 28 inches long by 22 inches deep. The utility cart has 4 inch industrial rubber casters. Overall dimensions are 45 inches long by 22 7/8 inches deep and 37¼ inches high. Overall weight capacity is 400 pounds, or 200 pounds per shelf. The molded handle has built-in compartments to store writing instruments, tape guns, scanners, clipboards and other items, as well as a dedicated holder for coffee mugs. This utility cart can be used in libraries, schools, offices, mail rooms, stores, and even homes with a personal library or study. Per company, the primary uses of the utility cart are for storage, organization and transportation of bulk items, for example: office supplies, wholesale and retail stocking goods, books and literature, audio and video equipment, and other heavy and hard to handle items.
Model 5337BL is a wire utility cart on casters imported in knockdown condition from China. The utility cart comes in a black finish, has two wire shelves, on top of which each shelf has a black plastic shelf liner. Each shelf can adjust in 1 inch increments. The utility cart has 3 inch swivel casters. Overall dimensions are 43¾ inches long by 19¼ inches deep by 41 inches high. Overall weight capacity is 400 pounds, or 200 pounds per shelf. This utility cart can be used in libraries, schools, offices, mail rooms, stores, and even homes with a personal library or study. Per company, the primary uses of the utility cart are for storage, organization and transportation of bulk items, for example: office supplies, wholesale and retail stocking goods, books and literature, audio and video equipment, and other heavy and hard to handle items.
Model 8965BL is a steel office and beverage cart on casters imported in assembles condition from China. The combined cart is made from steel, has two shelves, and comes in a black finish. The top shelf measures 26 long by 15 deep and the lower shelf measures 22 inches long by 15 inches deep, with ¼ inch rims that surround each self. The combined cart has a 30 pound capacity. Overall dimensions are 26 inches long by 15 inches deep by 30 inches high. For compact storage the combined cart folds away: fold the top and bottom shelves up, legs in, and fold top down. This combined cart can be used in libraries, schools, offices, lunch rooms, stores, and even homes with a personal library, study or den. Per company, the primary uses of the combined cart are for storage, organization and transportation of bulk items, while doubling as a beverage cart.
When interpreting and implementing the Harmonized Tariff of the United States (HTSUS), the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The General Explanatory Notes to Chapter 94 state, in relevant part, with regard to the meaning of furniture, at (A): 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, . . . .” For one to classify these utility carts and combined office and beverage cart within the provision for furniture (Heading 9403), the predominant use or uses of such items must not be for the transportation of goods (Heading 8716), but rather to fit and equip establishments with movable articles used in readiness of an area for purposes of supporting various human activities.
Upon review of the descriptive and illustrative literature of the merchandise concerned, one finds that these items are not constructed for the primary purpose of transportation of goods from one location to another location via commercial conveyance or personal vehicle. Specifically noted: (1) the three or four inch casters on the carts (although “5330GR” referenced above as industrial) are not meant for sustained and continued movement with heavy and/or uneven loads of bulk stationary or other items, (2) the carts have no means to secure bulk stationary and other items during movement of the loads, and (3) the carts cannot be moved quickly or jerked suddenly without the shifting/falling of bulk and loose items. We further note, in general, that the physical movement of such goods is limited to the wheeling of loads within each particular type of establishment.
It is our opinion that the merchandise concerned meets the definition for furniture, in that the carts utilitarian function is to equip multiple establishments for the purpose of storing and displaying and retrieving bulk items, as well as any loose items, with limited capabilities for movement of such goods within a particular type of establishment. See New York rulings: N077382 dated September 30, 2009 and N087376 dated December 22, 2009. Accordingly classification of these carts falls to Heading 9403, HTSUS – the provision for other furniture.
The applicable subheading for the plastic utility cart (model 5330GR), will be 9403.70.4030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Furniture of plastic; Of reinforced or laminated plastic; Other.” The rate of duty will be free.
The applicable subheading for the metal utility cart (model 5337BL) and combined office and beverage cart (8965BL), will be 9403.20.0030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Other metal furniture; Other; Other.” The rate of duty will be 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 World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division