The tariff classification of nightstands from China.

N073516 September 22, 2009 CLA-2-94:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 9403.50.9080 Randy Rucker Drinker Biddle & Reath LLP 191 North Wacker Drive, Suite 3700 Chicago, IL 60606-1698 RE: The tariff classification of nightstands from China. Dear Mr. Rucker: In your letter dated August 24, 2009, on behalf 0f DJR Industries, Inc., you requested a tariff classification ruling. Two nightstands have been identified by model numbers: CA-103 and CA-104. One model has a drawer front, while the other model has a door front. Reference is made that DJR Industries imports furniture from abroad, including various models of nightstands intended for use in hotels. The nightstands are composite goods made up of agricultural waste-based boards, solid wood trim, wood veneers, and hardware. The agricultural waste-based boards are manufactured by combining particles ground from grain husks and stalks (straw, rice, etc) and mixing the grain husks particles with a binder – no material breakdown by weight/cost was furnished for the components used in the manufacture of the boards. It is stated that the overall agricultural waste-based boards account for 84% of the total weight for each nightstand and 36% of the total value for each nightstand. In comparison on the value only, the remaining 64% of the total value falls as followed: wood veneer (26%), solid wood trim (34%) and hardware (4%). Counsel suggests that the nightstands composed of agricultural waste-based boards covered in wood veneers and solid wood trims should be classified under Harmonized Tariff Schedule of the United States (HTSUS) subheading 9403.89.6020, the provision for furniture of other materials. The following three reasons in support of this position were offered: (1) the boards form the structural integrity of both nightstands to function as an article of furniture, (2) the weight of the boards at 84% far exceeds the combined weight of all of the remaining components, and (3) the value of the boards at 36% exceeds the value of any other single component (wood veneer, solid wood trim and hardware) of the nightstands. It is also noted within Counsel’s position paper that the value of the nightstands made from expensive and exotic wood veneers and solid wood trims are in disproportion as a percentage of the total value of the furniture pieces, for the veneers and solids represent only a small portion of the total weight of the nightstands – approximately 16%. Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) shall be governed by the General Rules of Interpretation (GRI) in accordance with the following hierarchical principles: 1. The table of contents, alphabetical index, and titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions: 2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, 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. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. 3. When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. The Explanatory Notes state that the 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 a constituent material in relation to the use of the goods. Recent court decisions on the essential character for 3(b) purposes have looked primarily to the role of the constituent material in relation to the use of the goods. See Better Home Plastics Corp. v. U.S., 915 F. Supp. 1265 (CIT 1996), aff’d 119 F. 3d 969 (Fed. Cir. 1997); Mita Copystar America, Inc. v. U.S., 966 F.Supp. 1245 (CIT 1997), rehear’g denied, 994 F. Supp. 393 (1998); Vista Int’l Packing Co. v. U.S., 890 F. Supp. 1095 (CIT 1995). By application of GRI 3(b), the nightstands are composite goods made up of agricultural waste-based boards, solid wood trims, wood veneers and hardware. Counsel argues that there is case law and rulings that have found the essential character of articles to be based upon the structure or core material of those articles versus their external makeup. In New York Ruling N063740 dated June 12, 2009, we found that “two and four drawer corn husk dressers” consisting of: a wood bottom and top for the frame itself, a wood shelf, support pieces and corn husk baskets, to be classified as articles of wood; the wood of the dresser units not only provided the structure for which the drawers to function by, but rather the wood was a highly visible element with significant cost in relation to the total cost of the items. In contrast the core of the nightstands are not visible, are substantially covered by solid wood trims and veneers, and have a significant cost – see Headquarters Rulings, HQ 952032 dated July 6, 1992 and HQ 087193 dated May 30, 1990, in which combination wrought iron and wicker, chairs and tables, were classified according to their material component that predominated by area and overall appearance. New York Ruling, N069332 dated August 11, 2009, found a “sitbox” composed of Medium Density Fiberboard entirely covered in 100% polyester fabric, not to be classified based on its structure, but rather an article of furniture made up from textile material. The applicable subheading for the nightstands, small table or cabinet designed to stand beside a bed, will be 9403.50.9080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Wooden furniture of a kind used in bedrooms: Other; Other; Other.” The rate of duty will be free. 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 World Wide Web at http://www.usitc.gov/tata/hts/. The merchandise in question may be subject to antidumping duties or countervailing duties. Written decisions regarding the scope of AD/CVD orders are issued by the Import Administration in the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection. You can contact them at http://www.trade.gov/ia/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and countervailing duty investigations”), and you can search AD/CVD deposit and liquidation messages using the AD/CVD Search tool at http://www.cbp.gov (click on “Import” and “AD/CVD”). This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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 Neil H. Levy at (646) 733-3036. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division