CLA-2-94:OT:RR:NC:N4:433
Tina M. Jordan
Customs & Trade Compliance Manager
Mohawk Global Logistics
123 Air Cargo Road
Syracuse, NY 13212
RE: The tariff classification of merchandise display units.
Dear Ms. Jordan:
In your letter dated July 18, 2014, on behalf of Car Freshner® Corporation, you requested a tariff classification ruling. You indicate that the merchandise display units are currently being manufactured in the United States. Samples were received and will be returned to you.
Item # 76171-91889-5 is the “air freshener display Empty Magnastrip 4 hooks.” The item consists of a plastic rectangular bar, has four plastic hooks for the display of objects, and has two bar-strip magnets affixed to the backside of the rectangular bar. The magnets allow for the attachment of the display unit (hanging rack) to metal surfaces. It is stated that the shelving display must have at least one metal side for the hanging rack to be placed. Company provided information indicates that the weight of the plastic exceeds the weight of the magnets, while the cost of the magnets exceeds the cost of the plastic.
Item # 76171-92649-4 is the “Little Trees air fresheners Empty Swing Strip – Undershelf 8 hooks.” The item consists of a plastic rectangular bar, has eight plastic hooks for the display of objects, and has a bracket mounting and S-hook made of base metal. The bracket mounting swings from under the shelf and has a drilled hole for attachment of the S-hook, allowing the display unit (hanging rack) to be hung. The bracket mounting is secured to a shelving display with a bumper bolt screw, which is screwed into the peg hole on the shelf. It is stated that this specific type of shelving is called “Gondola shelving.” Company provided information indicates that the weight and cost of the metal components exceeds the weight and cost of the plastic components.
Item # 76171-933676 is the “Little Trees air fresheners Empty Swing Strip – Off Wall 8 hooks.” The item consists of a plastic rectangular bar, has eight plastic hooks for the display of objects, and has a bracket clamp mounting and S-hook made of base metal. A sign grip is included with the item which allows for the insertion of a sign. The bracket clamp mounting, known as the off-wall swing bar, attaches to the shelf wall and has a drilled hole at the end of the bracket for attachment of the S-hook, thereby allowing the display unit (hanging rack) to be hung. The hanging rack is mounted and secured by interconnecting/hooking the wing nut screw to the shelf wall. Company provided information indicates that the weight and cost of the metal components exceeds the weight and cost of the plastic components.
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 “hanging racks” of the merchandise concerned are composed of different components (i.e. plastic and magnets or plastic and base metal) and are considered composite goods. The ENs to the HTSUS, 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 for the “Little Trees air fresheners Empty Swing Strip – Undershelf 8 hooks” and the “Little Trees air fresheners Empty Swing Strip – Off Wall 8 hooks” that the weight and cost of the base metal components (brackets or bracket mountings) are greater than that of the plastic components, and that for the “air freshener display Empty Magnastrip 4 hooks,” that the cost of the magnets is greater than that of the plastic components. Nevertheless, it is the plastic rectangular bar with its plastic hooks that provides for the {functionality} of the hanging racks, which is to display objects for sale and purchase. Consequently, it is the plastic components that impart the essential character to the racks.
Unlike heading 8302 of the HTSUS, which provides in pertinent part for “Base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like; base metal hat racks, hat-pegs, brackets and similar fixtures; … base metal parts thereof,” heading 3926, HTSUS, the residual heading for “Other articles of plastic and articles of other materials of headings 3901 to 3914, with its subheading of 3926.30, HTSUS, “Fittings for furniture, coachwork or the like,” has no provision for racks made of plastic. As such, the display units (hanging racks) are not classifiable in subheading 3926.30, HTSUS.
The ENs to the HTSUS, Chapter 94, General, 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, churches, schools, cafes, restaurants, laboratories, hospitals…. Further provided, the ENs to the HTSUS, Chapter 94, Parts, state: This Chapter only covers parts, whether or not in the rough, of the goods of headings 9401 to 9403 and 9405, when identifiable by their shape or other specific features as parts designed solely or principally for an article of those headings; they are classified in this chapter when not more specifically covered elsewhere in the tariff schedule (i.e., another heading in the HTSUS).
In United States v. Pompeo, 43 CCPA 9 (1955), the issue was whether an imported supercharger was properly considered a part of an automobile. There the Court looked at the nature and function of the imported supercharger to determine if the item was part of an automobile. The Court found that because the imported supercharger was dedicated irrevocably for use upon automobiles that the supercharger was properly classified as a part of automobiles. In similar fashion, the Court in Bauerhin Technologies Limited Partnership, and John V. Carr & Sons Inc. v. The United States, 96-1275,-1276 (1997), found that canopies dedicated solely for use with child safety seats, nether designed or sold to be used independently, were properly considered parts under the HTSUS.
Upon review of the physical characteristics of the merchandise concerned, illustrative literature of the merchandise concerned and the descriptive literature of the merchandise concerned, we find that the hanging racks are principally used with either floor standing racks or floor standing palletized racks, also known as floor standing shelving displays or floor standing store shelving units. The three hanging racks, whether affixed by magnets to the side of, or attached under the shelf of, or attached to the wall of, are connected to floor standing racks, shelving displays or store shelving units, and serve no other primary purpose than to be used with these recognized articles of furniture. Although we stop short of saying that the hanging racks are permanently installed, dedicated irrevocably and solely used with racks, shelving displays and shelving units, as the information provided cannot confirm the permanency of the nature of the hanging racks to these articles only, we find that the merchandise concerned is uniquely and specially designed to be a part of display-type furniture, and therefore the hanging racks are classifiable as parts of furniture in subheading 9403.90, HTSUS.
The applicable subheading for the hanging racks will be 9403.90, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Parts.”
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 E-mail address: [email protected]
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division