CLA-2-94:OT:RR:NC:N4:433
Gabriel Lawson
Trade Compliance Specialist
Life Fitness
10601 W. Belmont Avenue
Franklin Park, IL 60131
RE: The tariff classification of a desktop from China.
Dear Mr. Lawson:
In your letter dated November 20, 2015, you requested a tariff classification ruling. Within your ruling request, two photos were provided. No material breakdown was provided by percentage of composition, weight or cost. Nevertheless, by means of additional information (illustrative literature) found on the internet for the merchandise concerned, this office will make an essential character determination.
Based on photos and internet research, the merchandise concerned appears to be the Life Fitness, “InMovement® Elevate DeskTop™ DT2.” The merchandise concerned is identified by four part numbers: IM-WDESKREADY-01; IM-LTDESKREADY-01; IM-MDESKREADY-01 and IM-DKDESKREADY-01. These part numbers are differentiated based upon finish of color, i.e., white, light wood grain, medium wood grain and dark wood grain.
The InMovement® Elevate DeskTop™ DT2 is a “workstation desktop” that has a surface area capable of accommodating an extra monitor. The structural composition of the workstation desktop consists of a laminated Medium-density Fibreboard (MDF) desk-top surface and steel platform with support members. The workstation desktop is designed to be used when standing, giving the user movement-enabling space which helps the user trade the harms of sitting for the benefits of standing. The workstation desktop overall measures 41 inches across and 26 inches deep, has an adjustable desk height of up to 14-inches, and comes assembled and ready for use. This item features an executive sized desk that measures 41-inches across and 21-inches deep and a retractable keyboard tray that measures 25-inches across and 10.5-inches deep. It is stated that the workstation desktop can be set on top of nearly any existing workstation.
You indicate that the InMovement® Elevate DeskTop™ DT2 is specifically designed for placement onto a working surface, i.e., desk, cabinet and/or table, and that it is not intended for placement on the floor. You further make mention to Legal Note 2, Legal Note 2 (a) and Legal Note 2 (b) to Chapter 94 of the Harmonized Tariff Schedule of the United States (HTSUS), correctly noting that for goods to be classified as “furniture” they must be either floor or ground standing, or meeting one of the exceptions to being floor or ground standing as listed within Legal Note 2 (a) and Legal Note 2 (b), HTSUS. With emphasis placed, per Legal Note 2, the restrictions on furniture being floor or ground standing do not apply to {parts} of furniture.
In Bauerhin Technologies Limited v. United States, 19 CIT 1441, 914 F. Supp. 554 (1995), aff’d 110 F.3d 774 (Fed. Cir. 1997), the court pointed out that there are two distinct lines of cases, also known as tests, for defining the word “part” in the tariff. Starting with U.S. v. Willoughby Camera Stores, Inc., 21 CCPA 322, 324, (1933) T.D. 46075 (1933), cert. denied, 292 U.S. 640 (1934), this line of cases holds that a part of an article is something necessary to the completion of that article without which the article to which it is to be joined could not function as such article; restated: is the object an integral, constituent, or component part, without which the article itself could not function, nor operate. Another line of cases evolved from United States v. Antonio Pompeo, 43 CCPA 9, C.D. 1669 (1955), which held that a device may be a part of an article even though its use is optional and the article will function without it, if the device is dedicated solely for use upon the article, and, once installed, the article will not operate properly without it; restated: is the device being that of a part dedicated irrevocably upon such an article.
Plainly, the InMovement® Elevate DeskTop™ DT2 is “not” an integral, constituent, or component part of a workstation, desk, cabinet and/or table, as all of the listed articles of furniture will operate independently of the merchandise concerned; it therefore fails the U.S. v. Willoughby Camera Stores, Inc. test for being classified as a part of such articles. However, we are of the persuasion that the InMovement® Elevate DeskTop™ DT2 satisfies the United States v. Antonio Pompeo test for parts, in that the workstation desktop is dedicated irrevocably to working surfaces being that of articles of furniture, thereby expanding the use of one’s workstation through the process of creating a zone within one’s workstation for standing.
When interpreting and implementing the Harmonized Tariff Schedule 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 InMovement® Elevate DeskTop™ DT2 is composed of different components (MDF engineered wood and steel platform) and is considered a composite good. The ENs to the HTSUS, at GRI 3 (b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good.
We recognize that the primary purpose of any desk, workstation or table is fulfilled by its top surface, where work activities can be conducted upon and/or objects can placed upon for both domestic and business uses. After careful review of the illustrative literature, we find that the desktop surface does not impart the essential character to the merchandise concerned, in that all of the articles of furniture as listed above have their own surface for work activities to be conducted upon and/or objects to be placed upon. For the merchandise concerned, the primary function must be viewed in terms of what aspect accomplishes the work to be performed while standing, and viewed in that context, it is the steel platform that elevates the desktop up to 14-inches above the surface of the desk, workstation or table, enabling the work to be conducted in a vertical position. As such, the steel platform imparts the essential character to the InMovement® Elevate DeskTop™ DT2.
The applicable subheading for the InMovement® Elevate DeskTop™ DT2 will be 9403.90.8041, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Parts: Other: Other: Other: Of metal: 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 [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division