The tariff classification of Tech Tub Carts from Canada, and basic and premium Tech Tubs from China.

N250323 March 7, 2014 CLA-2-94:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 9403.20.0030; 3926.10.0000 Sheri G. Lawson, LCB Senior Regulatory Analyst, Client Transition and Compliance Services, U.S. Willson International, Inc. 160 Wales Avenue, Suite #100 Tonawanda, NY 14150 RE: The tariff classification of Tech Tub Carts from Canada, and basic and premium Tech Tubs from China. Dear Ms. Lawson: In your letter dated February 3, 2014, you requested on behalf of Copernicus Educational Products, Inc. (Copernicus), a tariff classification ruling. You indicate that the purpose of the Tech Tubs is to provide a solution for schools to secure and charge electronic hand-held devices, such as iPads /Tablets and Chromebooks. In the Copernicus advertising literature: “Tech Tubs offer a direct alternative to high cost, heavy and oversized tech storage and charging solutions.” TEC510 is described as a Tech Tub Cart with 2 Premium Tech Tubs (see TEC500 description for contents of Premium Tech Tub). The cart holds 2 Premium Tech Tubs – 10 devices, is mobile enough to fit through 30 inch door frames, comes with a large handle for moving the cart from either the back or side position, and has four 3-inch casters. The handle also provides support for the lid when opened. Per tub there is a locking bracket that attaches to the cart and connects to a metal padlock eye, thereby securing each Tech Tub to the cart. It is stated that the cart is made in Canada from steel tubing. This cart with its Premium Tech Tubs measures 27¾ inches wide by 21½ inches deep by 35 5/8 inches high. TEC510B is described as a Tech Tub Cart with 2 Base Model Tech Tubs (see TEC 57 description for contents of Base Model Tech Tub). The cart holds 2 Base Model Tech Tubs – 10 devices, is mobile enough to fit through 30 inch door frames, comes with a large handle for moving the cart from either the back or side position, and has four 3-inch casters. The handle also provides support for the lid when opened. Per tub there is a locking bracket that attaches to the cart and connects to a metal padlock eye, thereby securing each Tech Tub to the cart. It is stated that the cart is made in Canada from steel tubing. This cart with its Base Model Tech Tubs measures 27¾ inches wide by 21 5/8 inches deep by 35 5/8 inches high. TEC520 is described as a Tech Tub Cart with 4 Premium Tech Tubs (see TEC500 description for contents of Premium Tech Tub). The cart holds 4 Premium Tech Tubs – 20 devices (two tubs on the lower shelf and two tubs on the middle shelf), and consists of a top shelf for laptops or other instructional devices, two secure doors with a padlock eye (padlock and key included), external cable management fixtures, and four 4-inch casters. The frame is made of steel tubing and has metal shelves. It is stated that the cart is made in Canada. This cart with its Premium Tech Tubs measures 32 5/8 inches wide by 19¾ inches deep by 42 inches high. TEC57 is described as a Base Model Tech Tub. The Base Model Tech Tub consists of a plastic tub (bin) with plastic lid and has a metal padlock eye on the top part of the bin. None of the other items of the TEC 500 are supplied with the base model. Per the company provided specification sheet, optional items to be purchased are: the Belkin 7 Outlet USB Sync Hub, the 5 Chromebook insert device holder (wire insert holder positioned inside and at the bottom of bin), and the 7 iPad/Tablet device holder (wire insert holder positioned inside and at the bottom of bin). This item measures 12½ inches wide by 16 1/8 inches deep by 14 inches high. TEC500 is described as the Tech Tub Premium Model. The Premium Tech Tub consists of a plastic tub (bin) with plastic lid, has a metal padlock eye on the top part of the bin, and comes with a five iPad/Tablet device holder (wire insert holder positioned inside and at the bottom of bin), a metal divider with cable routing, cable hooks and Velcro cable ties, six-outlet power bar and power strip tray, a locking block and pin to lock the tub to counters and tables, and two padlocks with the same keys. This item measures 13¾ inches wide by 17¾ inches deep by 14 inches high. All contents for the Premium Tech Tub are stated on the packaging box to be made in China. For the TEC57 Base Model Tech Tubs, a skid of bottoms and a skid of tops and a box of hinge pins (bulk components/bulk packed) are assembled in Canada forming the Tech Tubs, and then placed in packaging boxes in Canada to be exported to the United States. In accordance with the Marking Regulations of 19 CFR 134, at 19 CFR 134.26 “Imported Articles Repacked or Manipulated,” and at 19 CFR 134.11 “Country of Origin Marking Required,” a repackaging certificate is required, and in this case, country of origin China must be marked on the individual repackaged boxes in a conspicuous place as legibly, indelibly, and permanently as the nature of the boxes will permit, in such manner as to indicate in the United States the English name of the country of origin of the Base Model Tech Tubs, at time of importation into the United States. For the TEC500 Premium Tech Tubs, they are exported into Canada from China and then exported from Canada into the United States in the same packaging boxes. The country of origin marking “Designed in Canada, Made in China” appears appropriate. Currently, in Canada an instruction sheet is added to each of the packaging boxes, with no other changes or additions made. Copernicus states that the carts are boxed separately from the tubs, even when they are sold together. Copernicus further states that the carts and tubs (basic or premium) are marketed and sold together, as well as marketed and sold separately, and that the tubs (basic or premium) do not require the carts for purposes of storing and charging iPads/Tablets and Chromebooks. When the carts and tubs are marketed and sold together the model numbers are identified as TEC510, TEC510B and TEC520, and when the carts are sold separately the model numbers are identified as TEC2-0 and TEC4-0 (see New York ruling letter: N246892 dated November 13, 2013 for classification of the TEC2-0 and TEC4-0). It is a long standing CBP (former Customs) practice that when components in unassembled or disassembled condition are exported on one shipment, even in separate boxes, and have the essential character of the completed good, the classification of the good is that of the completed article – see General Rules of Interpretation (GRI 2 (a)) to the Harmonized Tariff Schedule of the United States (HTSUS). However, as the carts and Tech Tubs (basic or premium) are marketed and sold separately, and moreover the Tech Tubs can be used without their carts, we do not find that a GRI 2 (a) determination is applicable to the import transactions. These furniture carts primarily appear to be accessories for the Tech Tubs for ease of movement within a school or educational facility. Accordingly, the carts and Tech Tubs (basic or premium) are classified separately. The Tech Tub Base Model and Tech Tub Premium Model are composed of different components (Tech Tub Base Model: plastic bin and lid, and metal padlock eye; Tech Tub Premium Model: plastic bin and lid, metal padlock eye, wire insert holder, metal divider, and locking block and pin), and are considered composite goods. The Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS), at GRI 3 (b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, 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 the material or component that imparts the essential character to the composite good. Although a complete material breakdown by composition of the materials, weight of the materials and cost of the materials was not provided, an essential character determination will be conducted by physical observation of the Tech Tub Base Model and Tech Tub Premium Model, and by the descriptive and illustrative literature provided. It is our opinion for the Tech Tub Base Model that the {plastic bin} imparts the essential character to the good, in that the bin provides a repository for the storing and charging of the iPads /Tablets and Chromebooks, thereby fulfilling the functionality of this item. For the same reason as the Tech Tub Base Model, it is our opinion that the essential character of the Tech Tub Premium Model is imparted by the plastic bin. It is the two components, the plastic bins and plastic lids for the Tech Tubs (basic or premium), that provide “a versatile locking and re-charging solution designed to support various combinations of iPads, Chromebooks and other Tablets.” The applicable subheading for the TEC510, TEC510B and TEC 520 Carts, not packaged together with their Tech Tubs in individual boxes, will be 9403.20.0030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other Furniture and parts thereof: Other metal furniture: Other: Other.” The rate of duty will be free. The applicable subheading for the Tech Tub Base Model and Tech Tub Premium Model, will be 3926.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914: Office or school supplies.” The rate of duty will be 5.3% 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/. 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, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division