CLA-2-94:OT:RR:NC:N4:433
Justin Ryan Crowder
Simple Living Solutions, LLC
6925 E. 5th Avenue, Suite 104-106
Scottsdale, AZ 85251
RE: The tariff classification of modular shelving and storage organizers from China.
Dear Mr. Crowder:
In your letter dated August 9, 2018, you requested a tariff classification ruling. Description, illustrative literature, and photographs were furnished.
The merchandise in question is identified by Simple Living Solutions LLC as the “PAXXTM Shelving and Storage Organizers.” The merchandise concerned involves modular shelving and storage cubes that are designed to be stacked vertically or horizontally together, thereby forming various configurations of storage organizers. Magnetic frames allow the consumer to customize their shelving configuration by stacking units based on the desired decorative look of their interior design. If the consumer wants to change the color of their shelving and storage system, they simply need to switch out the cube with another cube of a different color (pattern), or use a different frame.
Each cube (shelving and storage unit) is collapsible, and comes in three parts, one collapsible shelving unit tub and two outer decorative frames. The cube makes up 90% of the total product, and is comprised of 2.0mm Medium-density fiberboard (MDF) which is completely covered over in heavy duty 600D polyester, and has a Polyvinyl-Chloride (PVC) lining. The cube also has an inner lining made of polyester fabric. The two frame units are made out of Acrylonitrile-Butadiene-Styrene (ABS) plastic, with eight ball magnets (0.5cm diameter) in the corners of the frame and two flat round magnets (1.5cm diameter wide and 0.2cm thick) inside the frame to secure the two doors.
One expands the cube into a box with the front and back acting as doors. Once expanded, the consumer would slide both frames (front and back) of the shelving unit to provide additional rigidity, enhance the decorative aesthetics of the unit, and allow one unit to magnetically attach to another unit. Once the frames are installed, the user can fold both doors into the shelving unit to create a see-thru shelving space, keeping only the front door folded inside for an enclosed shelving and display effect, or keeping both doors closed for purposes of storing and hiding personal effects.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. A reading of the Legal Note 2, and 2 (a) and 2 (b) to Chapter 94 of the HTSUS, provides: at 2, that the articles (other than parts) referred to in the headings of 9401 to 9403 are to be classified in those headings only if they are designed for placing on the floor or ground; at 2 (a) and 2 (b), the following are, however, to be classified in the above headings even if they are designed to be hung, to be fixed to the wall or to stand one on the other --- 2 (a) Cupboards, bookcases, other shelved furniture (including single shelves presented with supports for fixing them to the wall) and unit furniture, and 2 (b) Seats and beds. When interpreting and implementing the 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 (ENs) to Chapter 94 of the HTSUS state 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, cafés, restaurants, laboratories, hospitals, dentists, surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan-trailers or similar means of transport. (It should be noted that, for purposes of this Chapter, articles are considered to be “movable” furniture even if they are designed for bolting, etc., to the floor, e.g., chairs for use on ships). Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are included in this category.] (B) The following: (i) Cupboards, bookcases, other shelved furniture and unit furniture designed to be hung, to be fixed to the wall or to stand one on the other or side by side, for holding various objects or articles (books, crockery, kitchen utensils, glassware, linen, medicaments, toilet articles, radio or television receivers, ornaments, etc.) and separately presented elements of unit furniture; and (ii) Seats or beds designed to be hung or to be fixed to the wall.
The term “unit furniture” is not defined in the text of Chapter 94 or its heading 9403 of the HTSUS, nor the ENs to the HTSUS, Chapter 94 and its headings thereunder. When terms are not defined, they are construed in accordance with their common and commercial meaning – Nippon Kogasku (USA), Inc. v. United States, 69 CCPA 89, 673 F.2d 380 (1982). Common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities and other reliable sources. C.J. Tower & Sons v. United States, 69 CCPA 128, 673 F.2d 1268 (1982).
In Storewall, LLC versus the United States, Slip Op. 09-146, Court No.05-00462 dated December 18, 2009, the United States Court of International Trade (CIT), using relevant sources derived the following meaning for the term unit furniture: An item (a) fitted with other pieces to form a larger system or which is itself composed of smaller complementary items, (b) designed to be hung, or fixed to the wall, or stand one on the other or side by side, (c) assembled together in various ways to suit the consumer’s individual needs to hold various objects or articles, and (d) excludes other wall fixtures such as coat, hat and similar racks, key racks, clothes brush hangers, and newspaper racks. Further, The United States Court of Appeals for the Federal Circuit (CAFC), in Storewall, LLC versus the United State, 2010-1193, not only upheld the meaning of unit furniture as defined by the CIT, but also added that unit furniture may be assembled together in various ways to suit the consumer’s individual needs to hold various objects and articles, and it was this versatility and adaptability that was the essence of unit furniture.
It is our position that the “PAXXTM Shelving and Storage Organizers” fall within the meaning of “furniture” as stipulated by Legal Note 2 and 2 (a) to Chapter 94, and defined by the General ENs at “A” and “(B) (i)” to Chapter 94 of the HTSUS, because the merchandise concerned is floor standing, and capable of being stacked one on top of the other or side-by-side, and used for the utilitarian purposes of shelving and storage of personal effects.
Because each cube is composed of different components (i.e., wood, fabric, plastic, and magnets), it is considered a composite good for tariff purposes. 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 are of the opinion that the 600D polyester fabric imparts the essential character to the cube, in that the visible surface area of each organizer, with the exception of the two plastic frames, is made of fabric. It is the colored fabric, whether solid or print that dresses-up the cube thereby providing the attractiveness of the organizer to the purchaser. As such, the merchandise concerned under GRI 1 in conjunction with GRI 6 employing GRI 3 (b) is classifiable, in subheading 9403.89.6015, HTSUS.
The applicable subheading for the “PAXXTM Shelving and Storage Organizers,” whether presented as a complete system of cubes or individually presented, will be 9403.89.6015, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other: Other household.” 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 the World Wide Web at https://hts.usitc.gov/current.
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 neil.h.levy.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division