The tariff classification of an “elite shoe fence” from Canada.

N168776 June 29, 2011 CLA-2-94:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 9403.90.8041; 7604.21.0000; 8302.42.3065 Stephen J. Lawson President Tag Hardware Systems Ltd. Unit 100 – 19072 26th Avenue Surrey, British Columbia V3S 3V7 Canada RE: The tariff classification of an “elite shoe fence” from Canada. Dear Mr. Lawson: In your letter dated May 31, 2011, you requested a tariff classification ruling. Illustrative photos were received. Item 300.3166 is described as a 24 inch elite shoe fence. The fence of Taiwanese origin is an extruded hollow profile made from aluminum alloy. It is cut to a specific length of 22.5 inches. There are two end posts of Vietnamese origin that are die cast and made from zinc. The end posts are designed to press fit into the ends of the fence. The center post of Vietnamese origin is die cast and made from zinc. When assembled together the elite shoe fence attaches to the end of a slanted shelf to prevent shoes from sliding off the end of the shelf. These elite shoe fences are packaged in a poly bag and will be boxed 25 sets to a cardboard box.


Classification of goods under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 GRI may then be applied. Under GRI 2 (a), “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 falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.” By application of GRI 2 (a), the unassembled elite shoe fence has the essential character of a furniture part, which is used at the end of a slanted shelf to prevent shoes from slipping off the end of the shelf. As such, the item is classifiable within subheading 9403.90, HTSUS – the provision for other furniture and parts thereof. An examination of the individual components that comprise the elite shoe fence indicates that the extruded hollow aluminum alloy fence is classifiable under subheading 7604.21, HTSUS – the provision for aluminum bars, rod and profiles; and that the end posts and center post of zinc are classifiable under subheading 8302.42, HTSUS – the provision in pertinent part, for base metal mountings and fittings, and similar articles suitable for furniture. The applicable subheading for the elite shoe fence, will be 9403.90.8041, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Parts: Other: Other: Other: Of metal: Other.” The rate of duty will be free. The applicable subheading for the aluminum alloy fence, will be 7604.21.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Aluminum bars, rods and profiles: Of aluminum alloys: Hollow profiles.” The rate of duty will be 1.5% ad valorem. The applicable subheading for the end posts and center post, of zinc, will be 8302.42.3065, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Base metal mountings, fittings and similar articles suitable for furniture…..: Other mountings, fittings and similar articles, and parts thereof: Other, suitable for furniture: Of iron or steel, of aluminum or of zinc.” The rate of duty will be 3.9% ad valorem. 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 country of origin of the elite shoe fence imported from Canada into the United States is governed by the NAFTA Rules of Origin as stipulated by Title 19, Part 102 of the Customs Regulations. With the exception of Sections 102.21 through 102.25 which govern textiles, this part sets forth rules for determining the country of origin of imported goods for the purposes specified in paragraph 1 of Annex 311 of the North American Free Trade Agreement (NAFTA). In pertinent part, these specific purposes are country of origin marking and determining the rate of duty. See Section 102.0 of the Customs Regulations. Section 102.20 provides “specific rules by tariff classification” for determining country of origin. The specific tariff classification rule for parts of furniture states: a change to subheading 9403.90 from any other heading, except from subheading 9401.90. At first glance one could conclude that since the parts (aluminum profile of heading 7604 and posts of heading 8302) are classified outside of heading 9403, and not being of heading 9401.90, the country of origin for the elite shoe fence is Canada. However, Section 102.17, for non-qualifying operation, in pertinent part, provides that a foreign material shall not be considered to have undergone an applicable change in tariff classification specified in Section 102.20 or 102.21 or to have met any other applicable requirements of those sections merely by reason of simple packing, repacking or retail packaging without more than minor processing. As the descriptive literature provided by Tag Hardware Systems Ltd., specifies only “labor to pack” together the unassembled parts of the elite shoe fence, without any further manufacturing processes beyond minor processing operations as listed in Section 102.1 (m), we are of the opinion that the specific rule by tariff shift for 9403.90 is inapplicable, and therefore negated. Section 102.19 (a), the “NAFTA preference override” is also inapplicable as the elite shoe fence does not undergo production other than minor processing. Consequently, one must continue to follow the hierarchy of Part 102.11 (Rules of Origin) of the Customs Regulations in order to determine the country of origin of imported goods from a NAFTA party. Using Section 102.11, Rules of Origin, we find that the proper country of origin principle after ruling out Section 102 (a), (b) and (c) is [rule (d)] which states in part if the good was produced only as a result of minor processing, the country of origin of the good is the country or countries of origin of each material that merits equal consideration for determining the essential character of the good. By means of information provided in the descriptive literature, we find that the aluminum fence of Taiwanese origin imparts the essential character to the good, in that the fence weighs and costs more than the posts, and provides the barrier in which the shoes are unable to fall off the shelf. Accordingly, the “elite shoe fence” is country of origin Taiwan. General Note (GN) 12, North American Free Trade Agreement, at paragraph 12 (a) (i), HTSUS, is interpreted to mean: goods that originate in the territory of a NAFTA party under the terms of subdivision (b) of this note and that qualify to be marked as goods of Canada under the terms of the marking rules set forth in regulations issued by Secretary of the Treasury are to be considered originating goods within the territory of Canada, and as such are eligible for NAFTA preferential duty treatment. We find that the elite shoe fence, merely packaged in a poly bag and boxed 25 sets to a cardboard box, not further worked beyond minor processing, does not qualify to be marked a good of Canada and therefore is not eligible for NAFTA preferential duty treatment. 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