CBP Ruling H025869

HQ H025869 February 19, 2010 CLA-2 OT:RR:CTF:TCM H025869 JER CATEGORY: Classification TARIFF NO.: 4420.90.80; 9403.60.80 Port Director Port of Seattle U.S. Customs & Border Protection 1000 Second Avenue, Suite 2100 Seattle, WA 98104 RE: Protest number 3001-08-100049; Classification of wooden shelf with metal hooks and of wooden storage step stool Dear Port Director: The following is our decision regarding the Application for Further Review ("AFR") of Protest No. 3001-08-100049, timely filed on behalf of Target Stores, concerning the classification of the "Woolrich Shelf with Hooks" and the "Woolrich Storage Step Stool" under the Harmonized Tariff Schedule of the United States ("HTSUS"). FACTS: The "Woolrich Shelf with Hooks" is a wooden shelf with metal hooks. It is described as being a wall hanging shelf unit having an open shelf on top with a (backing) board perpendicular to the shelf and flush with the wall and contains three metal double-pronged hooks. It measures 24 inches in width 10 inches in depth and stands 7 1/2 inches in height. The shelf (less the metal hooks) is made up of solid pinewood. The "Woolrich Storage Step Stool" also referred to as a wooden storage step stool, is designed to be placed on the floor and consists of two steps with storage space underneath each step for storing small items. It measures 15" wide, 15 inches deep and stands 13 inches high. The invoices indicate that the wood shelf component is valued at $8.24 and the metal hooks are valued at $0.44. The Protest describes five entries at the Port in Seattle. The merchandise was entered on September 20, 2006, October 5, 13, 16, and 17, 2006 and was liquidated on August 3, 17, 24, and 31, 2006, respectively. The Port in Seattle liquidated the wooden shelf with hooks and the storage step stool under subheading 4420.90.80, HTSUS, which provides for: "Wood marquetry and inlaid wood: caskets and cases for jewelry or cutlery and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling within chapter 94: Other." ISSUES: 1) Whether the subject wooden wall hanging shelf unit with metal hooks is classified as other wooden articles of furniture not falling within Chapter 94, under heading 4420, HTSUS, or as a base metal hat rack and similar fixtures of base metal under heading 8302, HTSUS, or as other wooden furniture under heading 9403, HTSUS. 2) Whether the subject wooden storage stool is classified as other wooden articles of furniture not falling within Chapter 94, under heading 4420, HTSUS, or as other wooden furniture under heading 9403, HTSUS. LAW AND ANALYSIS: The matter is protestable under 19 U.S.C. §1514(a)(2) as a decision on classification and the rate and amount of duties chargeable. The protest was timely filed on January 30, 2008, within 180 days of liquidation of the entries, pursuant to 19 U.S.C. §1514(c)(3). Further review of Protest 3001-08-100049 was properly accorded to protestant pursuant to 19 C.F.R. §174.24. In accordance with Section 174.24(a), the decision against which the protest was filed is alleged to be inconsistent with New York Ruling Letter ("NY") H80640, dated May 21, 2001, NY I80889, dated May 7, 2002 (regarding the wooden shelf) and NY M84487, dated June 27, 2006 (regarding the wooden storage step stool). 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. 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. GRI 3(b) provides, in pertinent part, that composite goods consisting of different materials or made up of different components, shall be classified as if they consisted of the material or component which gives them their essential character. When goods cannot be classified by reference to 3 (a) or 3 (b), they shall be classified under which occurs last in numerical order by application of GRI 3 (c). The 2007 HTSUS provisions under consideration are as follows: 4420 Wood marquetry and inlaid wood: caskets and cases for jewelry or cutlery and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling within chapter 94: 4420.90 Other: 4420.90.80 Other.... 8302 Base metal mountings, fittings and similar articles suitable for furniture, doors, stair cases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like; base metal hat racks, hat-pegs, brackets and similar fixtures; castors with mountings of base metal; automatic door closers or base metal; and base metal parts thereof: 8302.50.00 Hat racks, hat pegs, brackets and similar fixtures, and parts thereof... * * * 9403 Other furniture and parts thereof: 9403.60 Other wooden furniture: * * * 9403.60.80 Other Note 2 to Chapter 94,HTSUS, provides that: 2. The articles (other than parts) referred to in headings 9401 to 9403 are to be classified in those headings only of they are designed for placing on the floor or ground. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding or dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). The ENs to heading 4420, HTSUS, provide in pertinent part, that: The heading includes: * * * (2) Articles of wooden furniture, other than those of Chapter 94 (see the General Explanatory Note to that Chapter). This heading therefore covers such goods as coat or hat racks, clothes brush hangers, letter trays for office use, ashtrays, pen-trays and ink stands. The ENs to heading 8302, HTSUS, provide in pertinent part, that: This group includes: * * * (G) Hat-racks, hat-pegs, brackets (fixed, hinged or toothed, etc.) and similar fixtures such as coat racks, towel racks, dish-cloth racks, brush racks, key racks. Coat racks, etc., having the character of furniture, such as coat racks incorporating a shelf, are classified in Chapter 94. The ENs to Chapter 94, HTSUS, provide in pertinent part, that: * * * For the purposes of this Chapter, 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, 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 the 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 also included in this category. * * * This matter involves the classification of two articles: the Woolrich Wooden wall shelf with metal hooks and the Woolrich (storage) step stool. Protestant asserts that according to the decisions in NY H80640 and NY I80889 that the subject wooden shelf is classified under heading 8302, HTSUS, as a composite good by application of GRI 3(c). According to the Protestant, the subject wooden shelf with metal hooks consists of two constituent components (i.e., wood and metal) and therefore concludes that the article is classifiable in two or more headings and is therefore classified by application of GRI 3. Protestant further asserts that pursuant to Note 2 to Chapter 94, HTSUS, and the decision in NY M84487, that the storage step stool is classified as wooden furniture under heading 9403, HTSUS. Wooden Wall Hanging Shelf with Metal Hooks In the instant case, if imported separately, the subject double-pronged metal hooks are prima facie classifiable under heading 8302, HTSUS. See NY I87971, dated November 14, 2002 (which classified metal hooks with adhesive backings under heading 8302, HTSUS). Likewise, if imported separately, the subject wooden wall hanging shelf would fall to be classified in heading 4420, HTSUS. See Headquarters Ruling Letter ("HQ") 088961, dated June 13, 1992, in which, CBP classified a wood knickknack shelf (without metal hooks) under heading 4420, HTSUS. Protestant contends that heading(s) 4420 and 8302, HTSUS, equally merit consideration and therefore concludes that the subject wooden shelf with metal hooks is classified under heading 8302, HTSUS, as it occurs last in numerical order. EN VIII to GRI 3(b) explains that "[t]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods." Recent Court decisions concerning essential character for purposes of GRI 3(b) have looked primarily to the role of the constituent material in relation to the use of the goods. Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278, 1295-1356 (CIT 2006), aff'd 491 F.3d 1334 (Fed. Cir. 2007); Conair Corp. v. United States, 29 C.I.T. 888 (2005); Structural Industries, Inc. v. United States, 360 F. Supp. 2d 1330, Ct. Int'l Trade, 2005. In Structural Industries, the Court noted that the essential character of an article is "that which is indispensable to the structure, core or condition of the article, i.e., what it is." Id. The Court in Structural Industries further noted that, while cost is taken into consideration that cost alone is not dispositive. The Court in Structural Industries explained that more relevant than the weight and value of the merchandise is its structure and function of the good. In keeping with the decisions asserted by the Courts, we find that those components or materials which are ancillary to the overall purpose or use of the merchandise are secondary to those components which are indispensable. In the instant case, the structure and function of the wood component of the subject article plays a more significant role in the overall purpose of the merchandise as a whole. For example, the wooden component both enables and facilitates the subject merchandise's capacity to be mounted flush against a flat wall surface without which the unit could not serve its purpose as a wall hanging shelf unit platform for which the metal hooks are mounted simultaneously serving as a shelf surface. While the metal hooks provide a means to hang apparel or other items (e.g., hats or coats) absent the wooden shelf, the entire unit could not serve its primary purpose. Finally, the wood shelf components contribute an overwhelming amount of the bulk, weight and value of the item. CBP has previously classified wooden shelving units with metal hooks or other metal components under heading 4420, HTSUS. See e.g., Headquarters Ruling Letter (HQ) 088958, dated June 18, 1991 which classified a wooden shelf with metal hooks by application of GRI 1; see also, NY R02957, dated December 27, 2005, which classified a wall hanging shelf unit composed of an open shelf on top, a shelf divided into three compartments in the middle and a board with four metal hooks on the bottom and a hook board consisting of five iron hooks mounted on a plain rectangular medium density fiberboard; NY G85923, dated February 20, 2001; NY I86637, dated November 5, 2002; NY I886638, dated November 7, 2002, J89207, dated October 8, 2003; NY K81347, dated December 19, 2003; NY K83222, dated March 12, 2004; NY K83223, dated March 15, 2004; NY R02725, dated November 14, 2005. The subject wooden wall shelf unit with metal hooks is substantially similar to wooden shelving units with hooks cited in the decisions above. As EN 44.20, HTSUS, explains, heading 4420, HTSUS, includes "[a]rticles of wooden furniture other than those of Chapter 94...[and] covers such goods as coat or hat racks, clothes brush hangers..." Therefore, we find that the subject wooden wall shelf unit is classifiable under heading 4420, HTSUS. Regarding the rulings cited by Protestant, NY H80640 and NY I80889, wherein CBP classified shelves with hooks under heading 8302, HTSUS, the description provided in those rulings are insufficient to provide a basis for classification of the instant merchandise. For instance, the merchandise in NY I80889 was described as being made of steel and vegetable material. As such, the shelving unit of NY I80889 was substantially dissimilar to the subject "wooden" shelf.1 The Wooden Step Stool The second product, the Woolrich (storage) Step Stool, is described as a storage step stool consisting of two steps with space underneath each for storing small items. In HQ 088958, CBP explained that heading 4420 includes only those articles of wooden furniture which are not within the purview of Chapter 94. Note 2 to Chapter 94 provides that "[t]he articles referred to in headings 9401 to 9403 are to be classified in those headings only if they are designed for placing on the floor or ground." Likewise, the ENs to Chapter 94, provide in relevant part, that, "[t]he term 'furniture' means: (A) Any movable articles which have the essential character that they are constructed for placing on the ground or floor, and which are used, mainly with a utilitarian purpose..." The instant Woolrich (storage) Step Stool is a utilitarian article which is designed to be placed on the ground or floor. Unlike the examples enumerated in the ENs to heading 4420, HTSUS, the subject step stool is not designed to be installed in a wall, hanging from the ceiling or placed on top other furniture. As such, we find that the Woolrich (storage) Step Stool meets the definition of furniture within the meaning of Chapter 94. Further, CBP has previously classified similar step stools under heading 9403, HTSUS, as articles suitable for use as furniture. See e.g., NY 855972, dated September 12, 1990; NY C86742, dated April 21, 1998; NY R02622, dated October 6, 2005; NY M844787, dated June 27, 2006, NY N022949, dated February 12, 2008 and NY N024279, dated March 10, 2008. In keeping with the decision in HQ 088958, the rulings cited above and the terms of heading 4420, HTSUS, the subject Woolrich (storage) Step Stool is not described therein. HOLDING: By application of GRI 3 (b), the subject wooden shelf with metal hooks is classified under heading 4420. The wooden shelf with metal hooks is specifically classified under subheading 4420.90.80, HTSUS, which provides for: "Wood marquetry and inlaid wood: caskets and cases for jewelry or cutlery and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling within chapter 94: Other: Other." The column one, general rate of duty at the time of entry was 3.2% ad valorem. By application of GRI 1 and Note 2 to Chapter 94, HTSUS, the wooden storage step stool is classified under heading 9403. The storage step stool is specifically classified under subheading 9403.60.80, HTSUS, which provides for: "Other furniture and parts thereof: Other wooden furniture: Other." The column one, general rate of duty at the time of entry was Free. To the extent reclassification of the merchandise as indicated above would result in a lower duty rate, you are instructed to ALLOW the protest in part. In accordance with the Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the Protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision Regulations and Rulings of the Office of International Trade will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division 1 We note that NY H80640, dated May 21, 2001, classified a shelf mirror with hooks also described as being a wooden shelf with metal hooks and consisting of three mirrors placed side by side above the shelf, under heading 8302, HTSUS. Due to the events of September 11, 2001, we are unable to determine whether this article is substantially similar to the subject merchandise as those files are no longer available. --------------- ------------------------------------------------------------ --------------- ------------------------------------------------------------ 7