Ruling request concerning tariff classification of steel rail support with insulated wiring

HQ H192947 April 13, 2012 CLA-2 OT:RR:CTF:TCM H192947 DSR CATEGORY: Classification TARIFF NO.: 9403.90.80 Mr. Jeremy Page, Esq. Page • Fura, P.C. 311 West Superior, Suite 306 Chicago, IL 60654 RE: Ruling request concerning tariff classification of steel rail support with insulated wiring Dear Mr. Page: This is in response to your request on behalf of Steelcase, Inc., (“Steelcase”) originally dated August 16, 2011, for a binding ruling on the tariff classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of an article described as the “Answer Powerkit.” We also note that you submitted additional substantial information regarding the product on January 2, 2011. We have examined the submitted information and our ruling follows. FACTS: The subject article is described as the “Answer Powerkit” (hereinafter “Powerkit”) which is a subassembly consisting of a steel rail supporting an attached wire harness. The wire harness contains insulated wiring housed within a metal sheath, and two housings for either 15 or 20 ampere receptacles used to conduct electricity to power attached devices. The wiring supports 120 volts. At the locations of the two housings, the wire harness is connected to the rail by removable clips. The harness is not imported with electrical receptacles. The Powerkit also acts as a structural brace that reinforces individual wall panels of modular office furniture by providing cross-member support within each individual panel. ISSUE: Whether the Powerkit is classified under heading 9403, HTSUS, as a part of furniture; under heading 8544, HTSUS, as an insulated conductor for a voltage not exceeding 1,000 volts; or under heading 7326, HTSUS, as an article of iron or steel. LAW AND ANALYSIS: The following HTSUS provisions are under consideration: 7326 Other articles of iron or steel: * * * 8544 Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electrical conductors and fitted with conductors: * * * 9403 Other furniture and parts thereof: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI's). 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 based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI’s 2 through 6 may then be applied in order. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System 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. See T.D. 8980, 54 Fed. Reg. 35127 (August 23, 1989). The steel rail component of the Powerkit acts as a support/track element for the wire harness, as well as provides support to wall panels of modular workstations. The PowerKit is designed solely for use with the modular workstations. Heading 9403, HTSUS, provides for “other furniture and parts thereof.” General EN to Chapter 94 states that for purposes of Chapter 94, HTS, the term “furniture” means the following: 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., … Furthermore, [Chapter 94] only covers parts, whether or not in the rough, of the goods of headings 94.01 to 94.03 and 94.05, when identifiable by their shape or other specific features as parts designed solely or principally for an article of those headings. They are classified in this Chapter when not more specifically covered elsewhere. Here, the modular workstations that the Powerkit is designed for are constructed for placement on the floor or ground and are used to equip offices. They are eo nomine provided for in heading 9403, HTSUS, as “other furniture.” The Powerkit is designed solely for use with such furniture and is thus a part that is eo nomine provided for in heading 9403, HTSUS, as well. “[A]n imported item dedicated solely for use with another article is a ‘part’ of that article within the meaning of the HTSUS.” Bauerhin Technologies v. United States, 110 F.3d 774, 779 (citations omitted), (Fed. Cir. 1997); See HQ 956969, dated April 4, 1995; HQ 958320, December 20, 1996. In it submission, Steelcase asserts that a competing provision – heading 8544, HTSUS, which covers insulated electrical conductors for a voltage not exceeding 1,000 volts – does not apply to the instant product because, per application of GRI 3(b), the Powerkit’s “essential character” is provided by the steel rail component. According to Steelcase, the steel rail provides the overall structural integrity for the Powerkit and without it the PowerKit would be unable to perform its “indispensable role in ensuring the structural soundness not only of those components, but also the wall systems of which they become a part.” Although unstated by Steelcase, such analysis would also warrant an inquiry into the potential applicability of heading 7326, HTSUS, which covers other articles of iron or steel. We believe Steelcase’s argument to be moot and such analyses unnecessary. While the wiring component may be described as being prima facie classifiable in heading 8544, HTSUS, and the steel rail component may be potentially classifiable in heading 7326, HTSUS, the article is covered in its entirety by heading 9403, HTSUS, by the application of GRI 1. As such, there is no need to analyze the essential character of the article under GRI 3. HOLDING: By application of GRI 1, the Answer PowerKit is classifiable under heading 9403, HTSUS – specifically under subheading 9403.90.80, HTSUS, which provides for “Other furniture and parts thereof: Parts: Other: Other.” The column one, general rate of duty is “Free.” Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov. Sincerely, Ieva O’Rourke, Chief Tariff Classification and Marking Branch