CLA-2-94:OT:RR:NC:N4:433
Mr. Brian Kavanaugh
Trade Advisor
Deringer Logistics Consulting Group
1 Lincoln Boulevard, Suite 225
Rouses Point, NY 12979
RE: The tariff classification of headboards and bed frame sets from China.
Dear Mr. Kavanaugh:
In your letter dated April 24, 2009, on behalf of South Shore Industries Ltd., you requested a tariff classification ruling.
At issue are upholstered headboards, style numbers 999-295 and 999-296, which will be imported alone or as part of a complete bed frame set. The headboards are composed of wood covered with polyurethane faux leather and nylon/polyester. Both styles of headboards feature the faux leather covering on the front and nylon/polyester on the back. Both headboards are adjustable to 54 or 60 inches and fit 54 or 60 inch rails or platforms. It is stated that the cost of these headboards are 40% wood, 15% upholstery, 5% hardware and 40% labor. Photos indicate that the rails and footboard are composed of wood. At time of import the headboards could be imported separately or as part of bed frame sets.
The subject headboards are composed of different components and are considered composite goods. Regarding the essential character of the headboards, when imported separately, the Explanatory Notes to 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 part that imparts the essential character to the composite good. In this case, the faux leather component imparts the essential character of the headboards when imported separately from the bed frames.
We are unable to rule on the classification of the faux leather headboards beyond the six digit subheading of the Harmonized Tariff Schedule of the United States (HTSUS), as faux leather can be manufactured by several methods, such as polyvinyl chloride (PVC) or from cloth material made of polyester or cotton that is coated with substances to replicate actual leather. At the six digit subheading, the headboards are classified under HTSUS 9403.90.
The subject bed frame sets are composed of different components and are considered composite goods. When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the part that imparts the essential character to the composite good. In the case of the complete bed frame sets (headboards, and wooden rails and footboards), the wood imparts the essential character, as the wood represents 40% of the total cost of the items, whereas the faux leather (visible only on one side) and nylon/polyester only represent 15% of the cost of the items. See HQ 088432 dated August 15, 1991 and Headquarters Ruling HQ 952032 dated July 6, 1992.
The applicable subheading for the bed frame sets composed of wood, with headboards covered in faux leather and nylon/polyester, will be 9403.50.9040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Wooden furniture of a kind used in the bedroom; Other; Other; Beds.” 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/.
The merchandise in question may be subject to antidumping duties or countervailing duties. Written decisions regarding the scope of AD/CVD orders are issued by the Import Administration in the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection. You can contact them at http://www.trade.gov/ia/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and countervailing duty investigations”), and you can search AD/CVD deposit and liquidation messages using the AD/CVD Search tool at http://www.cbp.gov (click on “Import” and “AD/CVD”).
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