The tariff classification of a “collapsible sortation container” from unspecified country of origin.

N296687 May 16, 2018 CLA-2-94:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 9403.89.6020 Robert D. Stang, Esq., Partner Hush Blackwell, LLP 750 17th Street N.W., Suite 900 Washington, DC 20006-4675 RE: The tariff classification of a “collapsible sortation container” from unspecified country of origin. Dear Mr. Stang: In your letter dated May 2, 2018, on behalf of Sunrise Identity LLC (Sunrise), you requested a tariff classification ruling. Description, illustrative literature, and a sample were provided. The merchandise concerned is identified by you as the “Collapsible Sortation Container.” The outer and inner four-side panels of the container are constructed from 140 gr./m2 opaque woven polypropylene fabric, and between each of the outer and inner four-side panels is a 4mm polypropylene (plastic) corrugated panel. The corners of the four-side panels, the “skid plates,” are made of black fabric, and extend the full height of the container. The bottom and zippered top of the container are also constructed from 140 gr./m2 opaque woven polypropylene fabric, of which the flap of the zippered top folds back and secures to the back side panel by means of Velcro. The floor of the container situated above the bottom of the container is made of the same construction as the outer and inner four-side panels, and has a polypropylene corrugated panel sandwiched between the top and bottom layers. The floor of the container pulls-up, which allows the side panels to fold inwards, thereby collapsing the sortation container. This item measures approximately 30 inches wide by 20 inches deep by 24 inches high, and has six handles, two handles on each of the longer side panels and one handle on each of the shorter side panels. You indicate that the sortation container is placed on a warehouse floor, the floor of a delivery vehicle or the shelf of a storage rack, with a majority of its time being allocated to being placed on a warehouse floor or being placed inside of a delivery vehicle. While the sortation container can be placed inside of a delivery vehicle, additional information provided by you on behalf of Sunrise indicates that the sortation container is positioned next to and around a conveyer belt system on a warehouse floor so that an associate can sort product into the container. Multiple sortation containers would be placed around the conveyer belt systems for purposes of sorting products. This item can be stacked two-high, if necessary, however when stacked inside of a delivery vehicle it has no means of securing in place. Classification 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 2 through 6 may then be applied in order. A reading of the Legal Note 2, and 2 (a) and 2 (b) to Chapter 94 of the HTSUS, provides: at 2, that the articles (other than parts) referred to in the headings of 9401 to 9403 are to be classified in those headings only if they are designed for placing on the floor or ground; at 2 (a) and 2 (b), the following are, however, to be classified in the above headings even if they are designed to be hung, to be fixed to the wall or to stand one on the other --- 2 (a) Cupboards, bookcases, other shelved furniture (including single shelves presented with supports for fixing them to the wall) and unit furniture, and 2 (b) Seats and beds.When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The General Explanatory Notes (ENs) to Chapter 94 of the HTSUS state 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, cafés, restaurants, laboratories, hospitals, dentists, surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan-trailers or similar means of transport. (It should be noted that, for purposes of this Chapter, articles are considered to be “movable” furniture even if they are designed for bolting, etc., to the floor, e.g., chairs for use on ships). Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are included in this category.](B) The following: (i) Cupboards, bookcases, other shelved furniture and unit furniture designed to be hung, to be fixed to the wall or to stand one on the other or side by side, for holding various objects or articles (books, crockery, kitchen utensils, glassware, linen, medicaments, toilet articles, radio or television receivers, ornaments, etc.) and separately presented elements of unit furniture; and (ii) Seats or beds designed to be hung or to be fixed to the wall. The collapsible sortation container shares in the characteristics of the following four New York rulings: (1) N050824 dated February 18, 2009 (Collapsible Bin), (2) N107372 dated June 4, 2010 (Pop-Up Yard Bag), (3) N146243 dated February 25, 2011 (Pop-Up Laundry Hamper), and (4) N240077 dated April 5, 2013 (Pop-Up Organizer) – in that all of the goods pop-up and collapse, and can be used for placement and storage of products. The fact that the sortation container is not for household use like the goods of the cited four rulings does not change the primary purpose of such a class or king of good, which is the placement, storage and eventual retrieval of whatever objects are placed inside the bin, bag, hamper, organizer or container. Therefore, it is our opinion that the sortation container used on the warehouse floor for sorting and placing goods into, before being placed onto possibly a rack or a delivery vehicle, falls within the meaning of furniture as defined by the General Explanatory Notes to Chapter 94 of the HTSUS, and as such the merchandise concerned is classifiable within heading 9403, HTSUS. The collapsible sortation container is composed of different components (i.e., woven polypropylene fabric and plastic) and is considered a composite good for tariff purposes. The ENs to the 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. We are of the opinion that the woven polypropylene fabric imparts the essential character to the sortation container, over that of the plastic inserts between the side panels and the plastic insert of the floor, and over that of the skid-plates, because the outside and inside surface areas of the container are either covered over (wholly or in part) or backed entirely of the woven polypropylene fabric. Even without the rigid plastic supports, the merchandise concerned retains its form of being a container. The applicable subheading for the collapsible sortation container will be 9403.89.6020, 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: Other.” The rate of duty will be free under Column 1, General, HTSUS, provided that the country of origin is one that the United States has “normal trade relations.” 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 the World Wide Web at https://hts.usitc.gov/current. 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 neil.h.levy@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division