Plate and Sheet Storage Rack; Free Standing Rack or Module for Vertical Storage of Aluminum and Steel Plates and Sheets; Articles of Iron or Steel; Heading 7326; Furniture; Heading 9403

HQ 951367 JUNE 23, 1992 CLA-2:CO:R:C:M 951367 JAS CATEGORY: Classification TARIFF NO.: 9403.20.00, HTSUS Mr. Roger N. Turner Module 5 Systems Ltd. 9 Freshwater Drive, Lakeside West Midlands Dy5 3TP, UK RE: Plate and Sheet Storage Rack; Free Standing Rack or Module for Vertical Storage of Aluminum and Steel Plates and Sheets; Articles of Iron or Steel; Heading 7326; Furniture; Heading 9403 Dear Mr. Turner: In your letter of March 16, 1992, you inquire as to the tariff classification of steel storage racks for plates and sheets. Descriptive literature was submitted. FACTS: The articles in question are storage racks or modules of steel. They are free standing racks in a variety of lengths and widths. They have various size apertures for the in-plant vertical storage of aluminum and steel plates and sheets. The racks have no mechanical capability. The plates and sheets are inserted and removed from the racks by means of an overhead hoist. ISSUE: Whether the metal storage racks are furniture of heading 9403 or articles of iron or steel of heading 7326. LAW AND ANALYSIS: Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined - 2 - according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. Heading 7326 covers all iron or steel articles other than articles included in the preceding headings of chapter 73, or covered by note 1 to section XV or included in chapters 82 or 83, or more specifically covered elsewhere in the Nomenclature. None of these restrictions apply except the possible applicability of heading 9403. Relevant Explanatory Notes (ENs), which provide a commentary on the scope of each heading of the Harmonized System and which are useful in ascertaining the classification of goods under the System, state, at p. 1574, that the term "furniture" means 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, cafes, restaurants, laboratories, hospitals, etc. In our opinion, the sheet and plate racks in issue are designed to be placed on the floor, and serve the utilitarian purpose of storing goods. They serve to equip or furnish a particular place. Heading 9403 encompasses this merchandise. HOLDING: Under the authority of GRI 1, the metal storage racks or modules in issue are provided for in heading 9403. Actual classification is in the provision for other metal furniture, in subheading 9403.20.00, HTSUS, dutiable at the rate of 4 percent ad valorem. Sincerely, John Durant, Director Commercial Rulings Division