The tariff classification of a decorative multipurpose box from China.

N173135 July 8, 2011 CLA-2-94:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 9403.89.6010 David Larson Customs Compliance Coordinator Kohl’s, Inc. N56 W17000 Ridgewood Drive Menomonee Falls, WI 53051 RE: The tariff classification of a decorative multipurpose box from China. Dear Mr. Larson: In your letter dated June 24, 2011, you requested a tariff classification ruling. As requested, the sample submitted will be returned to you. You describe the item as a decorative storage cube. The item is constructed of cardboard with fabric lining the inside and covering the outside of the box. The cover of the storage box is constructed of cardboard, with the outer covering lined in a striped fabric, while the underneath section is composed of the same fabric as the inside and outside of the box. The bottom insert, cardboard lined in fabric, provides rigidity to the structure of the item. All fabrics are a blend of 65% polyester and 35% cotton. The item is collapsible. When formed into a box, without the cover, the item measures approximately 19 inches long by 12 inches wide by 11¾ inches high. With the cover to the box placed on top of the item, the box increases in height to approximately 12½ inches. This item does not have the measurements of a cube, but rather that of a rectangular box. The Harmonized Commodity Description and Coding System Explanatory Notes (EN’s) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the EN’s provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the system. CBP believes the EN’s should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). The General Explanatory Notes to Chapter 94 state, in relevant part, with regard to the meaning of furniture, at (A): for the purposes of this Chapter, the term [furniture] means: 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, . . . . Classification of goods under the Harmonized Tariff Schedule of the United States (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 may then be applied. GRI 3 states in pertinent part that: 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: GRI 3(b)… Mixtures, composite goods consisting or 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. GRI 3(c)… 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. Providing insight on the term “essential character,” the EN VIII to GRI 3(b) provides: 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. When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of that material or component which imparts the essential character to the composite good. It is our opinion that no one heading completely describes the decorative multipurpose box falling within the meaning of furniture. The multipurpose box is for placing on the floor or the ground, and can be used as a seat, as a footrest, or for storage in a household. Seats (including ottomans), for placing on the floor or ground are provided in heading 9401, HTSUS; and footrests and storage boxes and the like, for placing on the floor or ground, are provided in heading 9403, HTSUS. With no essential character at the heading level, the multipurpose box is classifiable under the principle of GRI 3 (c), resulting in the item being classified under heading 9403, HTSUS – the provision for other furniture and parts thereof. With the multipurpose box being classified under heading 9403, HTSUS, the issue becomes the proper ten-digit subheading classification of the item. The multipurpose box at the subheading level is a composite good, and as such, GRI 6 is implicated. GRI 6 provides that the classification of goods at the subheading level shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules [GRIs 1 - 5], on the understanding that only subheadings at the same level are comparable. Because the item is a composite good GRI 3 is necessary. Using GRI 3 (b) – at the subheading level, we find that the multipurpose box is classifiable under subheading 9403.89.6010, HTSUS, as the essential character of the item is imparted by the fabric, which completely obscures any of the underlying cardboard structure and provides the appearance of a fabric covered multipurpose box. See New York Rulings: N051635 dated February 27, 2009 and N069332 dated August 11, 2009. The applicable subheading for the decorative multipurpose box, for placing on the floor or ground, will be 9403.89.6010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other: Household.” 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/. 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