CLA-2-94:OT:RR:NC:N4:433
Sara Hinst
Customs Compliance Specialist
Costco Wholesale
999 Lake Drive
Issaquah, WA 98027
RE: The tariff classification of a service cart from China.
Dear Ms. Hinst:
In your letter dated October 3, 2014, you requested a tariff classification ruling. A photo and material breakdown by composition, weight and cost were provided.
Item # 965510 is the Lelise Service Cart. The service cart consists of a rust proof aluminum frame, tile shelves, one removable wicker tray, one removable aluminum tray, one aluminum bottle holder, and two front wheels. Observation of the photo depicts the top tiled shelf with the removable wicker tray, and the bottom tiled shelf with the removable aluminum tray and aluminum bottle holder. Company provided information indicates, that the cost of the aluminum (includes aluminum tray) is significantly greater than the cost of the tiling, wicker tray, wheels and hardware, while the weight of the tiling significantly exceeds that of the aluminum frame.
The General Explanatory Notes (ENs) to Chapter 94 of the Harmonized Tariff Schedule of the United States (HTSUS), 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…etc….
For one to classify this cart within the provision for furniture of heading 9403, HTSUS, the item must not be designed for the transportation of goods of heading 8716, HTSUS. The cart cannot be used solely or principally for the transportation of goods from point A to point B, or even to points C, D, E, and beyond. To be classified as furniture, the cart must be of the type to fit and equip establishments with movable articles used in the readiness of an area for purposes of supporting various human activities. We find that the cart is not primarily constructed for the purpose of transporting goods, as it has no means of being secured to a conveyance while in transit. As such, the cart falls within the definition for furniture, and is classifiable in heading 9403, HTSUS, the provision for “Other furniture and parts thereof.”
The Lelise Service Cart is composed of different components (primarily aluminum and tiles of undisclosed composition) and is considered a composite good. The Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (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.
By further observation of the photo, we are of the opinion that the aluminum frame imparts the essential character to the good, in that the significant cost of the frame is reflective in the detailed appearance of the cart. The aluminum is visually dominant with its tiered box design frame that supports the two shelves of the cart, its decorative band wrapping around the cart beneath the top shelf, and its curved handle supports rising above the top shelf of the cart. It is our opinion that the tiling simply accents the cart, while the aluminum frame with its decorative aluminum band imparts the essential character to the good.
The applicable subheading for the Lelise Service Cart will be 9403.20.0018, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Other metal furniture, Household: 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 E-mail address: [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division