CLA-2-94:OT:RR:NC:N4:463
Daniel Graves
AGA Displays & Fixtures Inc.
dba SAP Products Ltd
318 Avenue I, Suite 863
Redondo Beach, CA 90277
RE: The tariff classification of single and tandem supermarket checkout lane systems from China
Dear Mr. Graves:
This ruling is being issued in reply to your letter dated August 19, 2022, requesting the classification of two supermarket checkout lanes with conveyors. In lieu of samples, illustrative literature and product descriptions were provided.
The subject articles are described as a single supermarket checkout lane system (SKU# SAP-CL-300-SGL) and a tandem supermarket checkout lane system (SKU# SAP-CL-300-TDM). Each checkout lane system includes a conveyor unit (motor, controller, belt) in a large, floor-standing housing but does not include a computer, scale, or cash-handling equipment. The articles are made primarily of steel and stainless steel, although the list of materials include high density polypropylene panels with laminate sheets, powder coated milled steel and stainless-steel cladding panels, stainless-steel kick plates, a PC panel with electrical sockets, an aluminum 3-meter square tube, PVC plastic bumpers, acrylic LED signage with magnetic graphics, and PETG sneeze guards. The checkout lane systems are imported in multiple boxes on pallets but are essentially pre-assembled at the factory with minimal assembly required during installation. The single checkout lane system measures approximately 139" (L) x 60" (W) and the tandem checkout lane system measures approximately 169" (L) x 87" (W). They are made in China. See images below:
Single Checkout Lane System Tandem Checkout Lane System
(SKU# SAP-CL-300-SGL) (SKU# SAP-CL-300-TDM)
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). If 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.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and coding System, which constitutes the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading and are generally indicative of the proper interpretation of the HTSUS. The ENs to Chapter 94 of the HTSUS state, in relevant part, that the term “furniture” means: “(A): 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…. Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are included in this category.” The subject supermarket checkout lane systems meet this definition of furniture.
Although this office considered classification under HTSUS heading 8428 “Other lifting, handling, loading or unloading machinery…,” a 2014 World Customs Organization (WCO) Classification Opinion classified an essentially similar “checkout counter of aluminum, measuring 210 cm in length, featuring a conveyor belt and designed to house a cash register, of a kind used in shops and supermarkets” in subheading 9403.20, Harmonized Tariff Schedule. See image below:
Since the checkout lane systems are composed of different materials (metal, plastic, conveyor, electronics, etc.), they are considered composite goods 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. Upon review of relevant factors, this office finds that the metal components impart the essential character of the supermarket checkout lane systems.
By application of GRI 3(b), the applicable subheading for the single supermarket checkout lane system (SKU# SAP-CL-300-SGL) and the tandem supermarket checkout lane system (SKU# SAP-CL-300-TDM) will be subheading 9403.20.0086, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Other.” The general rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.20.0086, 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 9403.20.0086, HTSUS, listed above.
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 internet at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 CFR Part 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