CLA-2-94:OT:RR:NC:N4:463
Elizabeth McGuffin
Dollar General
100 Mission Ridge
Goodlettsville, TN 37072
RE: The tariff classification of a 3-tier metal storage rack from China
Dear Ms. McGuffin,
In your letter dated July 12, 2021, you requested a tariff classification ruling for a 3-tier metal storage rack. In lieu of samples, illustrative literature and product descriptions were provided.
Per the provided information and picture, the storage rack (SKU# 30098101) is a floor-standing three-tier iron-wire rack with wooden shelf bases. It is used in the home for storage. The rack measures 9.84" (W) x 7.09" (D) x 26.18" (H), weighs 3 lbs. and is made in China. (See image below.)
(Shelves are of uniform size.)
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 (together known as legal 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 are then applied in order.
Because the subject article is composed of different materials (metal and wood), it is considered a composite good for tariff purposes. The competing HTSUS subheadings are 9403.20 (Other metal furniture) vs. subheading 9403.60 (Other wooden furniture). The Explanatory Notes 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.
The provided material breakdown indicates that the metal components of the article comprise 80% of the value and weight of the article, versus 20% of the value and weight of the wood components, therefore making the metal components significantly more substantial than the wood components. Based on the aforementioned essential character analysis, the article will be classified as metal furniture in subheading 9403.20, HTSUS.
The applicable subheading for the metal storage rack, the subject of this ruling, will be subheading 9403.20.0081, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Other.” The rate of duty will be free. (See NYRLs N311429 and N310803.)
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.20.0081, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 9403.20.0081, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division