The tariff classification of a portable catalog rack with metal carrying case from China.

N242764 June 25, 2013 CLA-2-94:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 9403.20.0020 Erol Fikri Customs Compliance Manager George Patton Associates, Inc. 55 Broad Common Road Bristol, RI 02809 RE: The tariff classification of a portable catalog rack with metal carrying case from China. Dear Mr. Fikri: In your letter dated June 4, 2013, you requested a tariff classification ruling. SKU # LITG7A is a portable, floor standing, catalog rack with metal carrying case. The rack is collapsible and when removed from its case easily lifts up to lock into place. The rack is made from aluminum, has five pockets with sturdy clear plastic (polycarbonate) inserts, and features three different height settings. The rack comes with a hard carrying case consisting of an outer surface of aluminum, has an inner lid backing made of plastic (black styrene), and is lined with molded protective foam made from plastic (Ethylene-vinyl acetate). This rack is marketed as a must for any trade show event, and can be used to display magazines, catalogs, brochures, or any other literature. You suggest that the catalog rack should be classified in subheading 9403.20.0030 of the Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other metal furniture: Other: Other.” Your rational is based on the General Rules of Interpretation (GRIs) to the HTSUS, specifically GRI 3 (b), in that, the catalog rack qualifies as a “set” for tariff purposes. The Explanatory Notes (ENs), which constitute the official interpretation of the Harmonized Tariff Schedule at the international level, state in Note X to Rule 3 (b) that the term “goods put up in sets for retail sale” means goods which: consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put up together to meet a particular need and carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. In this instance, we do not find that the catalog rack falls within the meaning of a set as defined by the ENs, in that, the set is composed of only one item falling within one heading of the tariff schedule. The aluminum case is not an element of the set, and the aluminum frame with plastic pockets forms a composite good, rather than a set. See United States Court of International Trade, Estee Lauder, Inc. v. United States, Slip Op – 12 – 1, dated January 3, 2012. Accordingly, the essential character of the catalog rack is imparted by the aluminum frame, which most likely costs more than the plastic pockets, provides the structure for the rack, and allows its contents to be displayed in a vertical, accordion-like position. Furthermore, as the hard carrying case with foam inserts holds the mobile catalog rack within its confines, we are of the opinion that the case is not separately classifiable from that of the catalog rack. The applicable subheading for the catalog rack will be 9403.20.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for ‘Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures. 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, Thomas J. Russo Director National Commodity Specialist Division