CLA-2-94:OT:RR:NC:N4:463
Lynee McGowan
GHY USA Inc.
572 South 5th Street
Pembina, ND 58271
RE: The tariff classification, country of origin, and USMCA eligibility of four bathroom vanities
Dear Ms. McGowan:
This ruling is being issued in reply to your letter dated January 23, 2024, requesting the tariff classification, country of origin, United States-Mexico-Canada Agreement (USMCA) eligibility, and Section 301 applicability of four bathroom vanities on behalf of your client, The Vanity Store. In lieu of samples, illustrative literature, product descriptions and pictures were provided, as were dimensions, values, and component classifications under the Harmonized Tariff Schedule of the United States (HTSUS).
You inquired about the following:
1) Can the cabinet base, countertop, and sink, which will be imported together on one pallet and sold as one bathroom vanity be classified as 9403.60.8081 with the country of origin of Canada?
2) If classified as a single item under 9403.60.8081, will it qualify for USMCA preference? If so, would the preference criterion be “B”?
GENERAL:
The four bathroom vanities, subject of this ruling, are comprised of an assembled wood cabinet base, an engineered stone countertop (93% quartz, 7% resin), and either one or two ceramic sinks. The components are boxed separately to prevent damage during transit but are secured and shipped together on one pallet as one complete bathroom vanity and they are sold together as one bathroom vanity.
In some cases, a wood cabinet base will be imported and sold separately. The countertop and sink are not imported and sold separately.
STYLE 1:
Style number 1, a 72" Vanity Double Sink White Oak, with SKU TEO-008-72-OAK, is a floor-standing bathroom vanity with one ceramic sink at either end and an engineered stone countertop and backsplash. There are two cabinet doors underneath each sink and a column of three drawers (a smaller drawer above and two larger drawers below) in the center of the cabinet base. The cabinet base is made of solid wood and stands on four wood legs, one at each corner. Vanity dimensions and materials, as well as the costs, classification numbers and origins of those materials are as follows:
DIMENSIONS:
Complete Vanity 72" (L) x 22" (W) x 34.5-35" (H)
Wood Cabinet Base 71" (L) x 21.5" (W) x 33.5" (H)
Engineered Stone Countertop 72" (L) x 22" (W) x 1.18" (H)
Ceramic Sinks 15.25" (L) x 12.25" (W) x 6.5" (H)
COSTS: (Expressed as a Percentage)
Wood Cabinet Base 81%
Engineered Stone Countertop 18%
Ceramic Sinks 1%
Drawer Slides, Pulls, etc. < 1%
The principal components, their HTSUS numbers, and countries of origin are as follows:
MATERIAL HTSUS ORIGIN
Wood Ch. 44 Canada
Engineered Stone Countertop 6810.99.0040 Spain
Ceramic Sinks 6910.90.0000 China
Drawer Slides, Pulls, etc. Various Various
STYLE 2:
Style number 2, a 72" Vanity Single Sink Walnut, with SKU TEO-001-72S-WNT, is a floor-standing bathroom vanity with one ceramic sink and an engineered stone countertop and backsplash. There are two cabinet doors underneath the sink and two columns of three drawers, one on either side of the cabinet base. The cabinet base is made of wood veneer and melamine and stands on four wood legs, one at each corner. Vanity dimensions and materials, as well as the costs, classification numbers and origins of those materials are as follows:
DIMENSIONS:
Complete Vanity 72" (L) x 22" (W) x 34.5-35" (H)
Wood Cabinet Base 71" (L) x 21.5" (W) x 33.5" (H)
Engineered Stone Countertop 72" (L) x 22" (W) x 1.18" (H)
Ceramic Sink 15.25" (L) x 12.25" (W) x 6.5" (H)
COSTS: (Expressed as a Percentage)
Wood Cabinet Base 81%
Engineered Stone Countertop 18%
Ceramic Sink 1%
Drawer Slides, Pulls, etc. < 1%
MATERIAL HTSUS ORIGIN
Wood Ch. 44 Canada
Engineered Stone Countertop 6810.99.0040 Spain
Ceramic Sink 6910.90.0000 China
Drawer Slides, Pulls, etc. Various Various
STYLE 3:
Style number 3, a 60" Single Sink Mid-Century Oak, with SKU: TEO-011-60S-WALL-CENTURY, is a wall-mounted bathroom vanity with one ceramic sink and an engineered stone countertop and backsplash. There are two cabinet doors underneath the sink and two stacked drawers on either side of the cabinet base. The cabinet base is made of solid wood. Vanity dimensions and materials, as well as the costs, classification numbers and origins of those materials are as follows:
DIMENSIONS:
Complete Vanity 60" (L) x 22" (W) x 22-22.5" (H)
Wood Cabinet Base 59" (L) x 21.5" (W) x 21" (H)
Engineered Stone Countertop 60" (L) x 22" (W) x 1.18" (H)
Ceramic Sink 15.25" (L) x 12.25" (W) x 6.5" (H)
COSTS: (Expressed as a Percentage)
Wood Cabinet Base 82%
Engineered Stone Countertop 17%
Ceramic Sink 1%
Drawer Slides, Pulls, etc. < 1%
MATERIAL HTSUS ORIGIN
Wood Ch. 44 Canada
Engineered Stone Countertop 6810.99.0040 Spain
Ceramic Sink 6910.90.0000 China
Drawer Slides, Pulls, etc. Various Various
STYLE 4:
Style number 4, a 72" Vanity Single Sink Walnut, with SKU TEO-002-72S-WNT, is a wall-mounted bathroom vanity with one ceramic sink and an engineered stone countertop and backsplash. There are two cabinet doors underneath the sink and two stacked drawers on either side of the cabinet base. The cabinet base is made of wood veneer and melamine. Vanity dimensions and materials, as well as the costs, classification numbers and origins of those materials are as follows:
DIMENSIONS:
Complete Vanity 72" (L) x 22" (W) x 21-21.5" (H)
Wood Cabinet Base 71" (L) x 21.5" (W) x 20" (H)
Engineered Stone Countertop 72" (L) x 22" (W) x 1.18" (H)
Ceramic Sink 15.25" (L) x 12.25" (W) x 6.5" (H)
COSTS: (Expressed as a Percentage)
Wood Cabinet Base 80%
Engineered Stone Countertop 19%
Ceramic Sink 1%
Drawer Slides, Pulls, etc. < 1%
MATERIAL HTSUS ORIGIN
Wood Ch. 44 Canada
Engineered Stone Countertop 6810.99.0040 Spain
Ceramic Sink 6910.90.0000 China
Drawer Slides, Pulls, etc. Various Various
PROCESSING OPERATIONS:
For vanity styles 1 and 3, the raw wood for the cabinet base (interior frame, exterior panels, drawer boxes, doors, legs, etc.) is cut to size, drilled, glued, sanded, sprayed, and assembled into a finished cabinet in Canada.
For vanity styles 2 and 4, the raw wood is cut to size, wrapped in a melamine (for cabinet interior frame and drawer boxes), or wrapped in a wood veneer (for exterior panels, drawers, and doors), edge banded, sprayed, drilled, and assembled into a finished cabinet in Canada.
For all vanities, engineered stone slab (93% quartz, 7% resin) from Spain is cut to the required size, holes are cut for the sinks, holes are drilled for the faucets, and the edges are smoothed and polished in Canada. It is then packaged in Canada.
The Chinese ceramic sinks undergo no processing operations in Canada.
The finished cabinet base is then packaged and palletized with the finished stone countertop and either one or two ceramic sinks in Canada.
When a finished cabinet base is sold without the countertop and sink, it is packaged and palletized for export in Canada.
VANITY CLASSIFICATION:
You inquired whether the three components that comprise each vanity (cabinet base, countertop, and sink) can be classified as 9403.60.8081 when imported together on one pallet and sold as one bathroom vanity.
Classification under the 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. If the goods cannot be classified solely based on 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.
Since the subject articles are imported unassembled, GRI 2(a) of the HTSUS applies. Under GRI 2(a) of the HTSUS, “Any reference to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule) entered unassembled or disassembled.” The subject articles are complete unassembled vanities and will thus, by virtue of GRI 2(a) be classified as complete and assembled vanities.
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.”
Additionally, the ENs to Chapter 94 of the HTSUS state, in relevant part, that the term “furniture” means: “Cupboards, cook cases, other shelved furniture…, designed to be hung, to be fixed to the wall….”
The subject vanities meet this definition of furniture and therefore will be classified as furniture in heading 9403.
Because the articles are composed of different materials (wood, engineered stone, ceramic, 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.
With respect to these four vanities, the cabinet bases are significantly larger and more expensive than either the countertops or the sinks, and their different materials, colors, and styles provide subjective appeal and serve to distinguish one bathroom vanity from another. Additionally, barring significant evidence to the contrary, U.S. Customs and Border Protection (CBP) has historically found that the cabinet base imparts the essential character to a bathroom vanity. (See NYRL N321371, N072162, N025049, and N024951.) The essential character of the complete unassembled vanities is imparted by the wood vanity base.
The applicable classification for the subject articles, style number 1, a 72" Vanity Double Sink White Oak, with SKU TEO-008-72-OAK; style number 2, a 72" Vanity Single Sink Walnut, with SKU TEO-001-72S-WNT; style number 3, a 60" Single Sink Mid-Century Oak, with SKU: TEO-011-60S-WALL-CENTURY; and style number 4, a 72" Vanity Single Sink Walnut, with SKU TEO-002-72S-WNT, will be subheading 9403.60.8081, HTSUS, which provides for “Other furniture and parts thereof: Other wooden furniture: Other: Other.” The general rate of duty will be free.
CABINET BASE CLASSIFICATION:
You stated that in some cases, the wood cabinet bases will be imported and sold separately. GRI 2(a) provides for the classification of unfinished articles with the essential character of the finished article as if they were finished articles. This office is of the opinion that a complete wooden vanity base, sans countertop or sink retains the essential character of a completed wooden vanity and thus will be classified as complete, assembled vanities in subheading 9403.60.8081, HTSUS, which provides for “Other furniture and parts thereof: Other wooden furniture: Other: Other.” The general rate of duty will be free.
COUNTRY OF ORIGIN:
You inquired whether the three articles that comprise the vanity (cabinet base, countertop, and sink), when imported together on one pallet and sold as one bathroom vanity, can be marked with the country of origin “Canada”.
The "country of origin" is defined in 19 CFR 134.1(b) as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.” Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico.
Section 102.11 provides a hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 CFR 102.21. When applied in sequential order, 19 CFR 102.11 establishes that the country of origin of a non-textile good is the country in which: (a)(1) The good is wholly obtained or produced; (a)(2) The good is produced exclusively from domestic materials; or (a)(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in 19 CFR 102.20 and satisfies any other applicable requirements of that section.
Since neither the four complete vanities nor the cabinet base are wholly obtained or produced (19 CFR 102.11(a)(1)), nor are they made exclusively from domestic materials (102.102.11(a)(2)), we proceed to 102.11(a)(3) which directs us to the 19 CFR 102.20, Specific Rules by Tariff Classification.
With respect to the four vanities, which are classified in subheading 9403.60.8081, HTSUS, and the cabinet bases, also classified in 9403.60.8081, the applicable 19 CFR 102.20, Specific Rules by Tariff Classification, rule is as follows:
9403.10–9403.89
A change to subheading 9403.10 through 9403.89 from any other subheading outside that group, except from subheading 9401.10 through 9403.89, and except from subheading 9401.91 through 9401.99 or 9403.91 through 9403.99, when that change is pursuant to General Rule of Interpretation 2(a)
Since the wood, drawer slides, pulls, etc. used to produce the cabinet bases undergo the specified change in tariff classification in Canada, the origin of the cabinet bases is “Canada”.
Similarly, since the engineered stone slabs used to produce the countertops undergo the specified change in tariff classification in Canada, the origin of the countertops is “Canada”.
However, the specified change in classification that the ceramic sinks undergo in Canada in accordance with GRI 2(a)—when secured to a pallet with a cabinet base and countertop—is impermissible as a non-qualifying operation under 19 CFR 102.17(c) and (e), as excerpted, below:
102.17 Non-Qualifying Operations
A foreign material shall not be considered to have undergone an applicable change in tariff classification specified in Section 102 or Section 102.21 or to have met any other applicable requirements of those sections merely by reason of one or more of the following:
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(c) Simple packing, repacking or retail packaging without more than minor processing;
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(e) Collecting parts that, as collected, are classifiable in the same tariff provision as an assembled good pursuant to General Rule of Interpretation 2(a), without any additional operation other than minor processing.
Since the terms of 102.11(a) are not met for the sinks, to determine the country of origin of the four vanities, we proceed to 102.11(b), excerpted below:
(b) Except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of this section:
(1) The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good
In this instance, the good is the four vanities and the materials are the cabinet base, the countertop, and the sinks.
To identify the single material that imparts the essential character to the good, we look to 19 CFR 102.18(b)(1), which states:
(b) (1) For purposes of identifying the material that imparts the essential character to a good under § 102.11, the only materials that shall be taken into consideration are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good. For purposes of this paragraph (b)(1):
(i) The materials to be considered must be classified in a tariff provision from which a change in tariff classification is not allowed under the specific rule or other requirements applicable to the good under consideration.
Per 102.18(b)(1)(i), the only materials to be considered are those that does not meet the previously indicated 19 CFR 102.20 tariff-shift rule. As previously noted, that rule requires that the materials be from a subheading other than 9403.10 – 9403.89. The only material that fails that condition is the cabinet base because both the base and the complete unassembled vanity take the same wooden furniture classification. Therefore, the country of origin of the cabinet base—in this case Canada—conveys to the goods, the four complete vanities.
USMCA ELIGIBILITY:
You inquired whether the three components will qualify for USMCA preference if classified as one item and if the preference criterion would be “B”.
The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note ("GN") 11 of the HTSUS implements the USMCA. GN 11(a)(i) provides that: (a) Goods originating in the territory of a country named herein, pursuant to the United States-Mexico-Canada Agreement (USMCA), are subject to duty as provided herein, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the tariff schedule. For the purposes of this note, as provided in the tariff schedule— (i) Goods that originate in the territory of Mexico, Canada or the United States (hereinafter referred to as “USMCA country” or “USMCA countries” as further defined in subdivision (l)(xxiv) of this note) under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury (including Uniform Regulations provided for in the USMCA), and goods enumerated in subdivision (p) of this note, when such goods are imported into the customs territory of [sic] the United States and are entered under a subheading for which a rate of duty appears in the “Special” sub-column, followed by the symbol “S” in parentheses, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act; and…. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states: (b) For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a "good originating in the territory of a USMCA country" only if- (i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries; (ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials; (iii) the good is a good produced entirely in the territory of one or more USMCA countries using non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); As stated under “PROCESSING OPERATIONS,” above, the four the vanities will be produced in Canada using originating and non-originating materials. Therefore, they are not considered wholly obtained or produced entirely in a USMCA country under GN 11(b)(i), nor are the articles produced exclusively from originating materials per GN 11(b)(ii). Thus, we must determine whether the product qualifies under GN 11(b)(iii). As previously noted, the four vanities are classified under subheading 9403.60, HTSUS. The applicable rule of origin for goods classified under subheading 9403.60, HTSUS, is in GN 11(o)/94.04, which reads:
(A) A change to subheadings 9403.10 through 9403.89 from any other chapter; or
(B) A change to subheadings 9403.10 through 9403.89 from subheading 9403.90, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than:
(1) 60 percent where the transaction value method is used; or
(2) 50 percent where the net cost method is used.
Since the non-originating materials (wood, countertop, sink), make a permissible tariff shift under GN 11(o), Rule 4(A) to Chapter 94, HTSUS, when manufactured into vanities in Canada, the subject vanities originate under the USMCA using preference criterion “B”. The USMCA preferential rate of duty for vanities in 9403.60.8081, HTSUS, is free.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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