The tariff classification of storage units from China.

N308614 January 14, 2020 CLA-2-94:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 9403.20.0050; 9903.88.03 Breena L. Bakey Flexsteel Industries Inc. 385 Bell Street Dubuque, Iowa 52001 RE: The tariff classification of storage units from China. Dear Ms. Bakey: In your letter dated December 27, 2019, you requested a tariff classification ruling. In lieu of samples, illustrative literature and product descriptions were provided for review. Item 20050500074, the “Storage Shelf Unit,” is constructed of a metal frame and 5 wooden shelf panels. The article measures 77.5” in height, 38” in width, and 15.75” in depth. Item 20050500075, the “Closet Wall Drawer Unit,” is constructed of a metal frame, 6 wooden shelf panels, and depicts 3 independent metal bin wire baskets. The article measures 92” in height, 25” in width, and 20” in depth. Five shelves make the upper half of the article. The remaining shelf along with the three metal wire baskets make the lower half of the article. Item 20050500076, the “Closet Wall Shelf Unit,” is constructed of a metal frame and 9 wooden shelf panels. The article measures 92” in height, 25” in width, and 20” in depth. Item 20050500077, the “Closet Wall Hanging Unit,” is constructed of a metal frame, 3 wooden shelf panels, and depicts two independent metal racks. The article measures 92” in height, 36” in width, and 20” in depth. The upper half of the article contains a single metal rack. The lower half of the article contains a single metal rack. You request classification of item 20050500074 in subheading 9403.60.8081, Harmonized Tariff Schedule of the United States, (HTSUS). You further request classification of items 20050500075, 20050500076, and 20050500077 in subheading 9403.20.0050, HTSUS, respectively. The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level. Chapter 94, Legal Note 2, and 2a provides: “articles (other than parts) referred to in headings 9401 to 9403 are to be classified in those headings only if they are designed for placing on the floor or ground. The following are, however, to be classified in the above-mentioned 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.” A review of the facts finds the storage units within the construct of Chapter 94, Legal Note 2 and 2a. Unit furniture is not defined. The United States Court of International Trade (CIT) derived the following meaning for the term “unit furniture.” (a) fitted with other pieces to form a larger system or which is itself composed of smaller complementary items, (b) designed to be hung, or fixed to the wall, or stand one on the other or side by side, (c) assembled together in various ways to suit the consumer’s individual needs to hold various objects or articles, and (d) excludes other wall fixtures such as coat, hat and similar racks, key racks, clothes brush hangers, and newspaper racks. Further, the United States Court of Appeals for the Federal Circuit (CAFC) also added that unit furniture may be assembled together in various ways to suit the consumer’s individual needs to hold various objects and articles, and it was this versatility and adaptability that was the essence of unit furniture. A review of the facts finds the subject merchandise to be separately presented elements of unit furniture. Each storage unit is a composite good comprised of different components (wood, metal). Wooden shelves of different quantities, sizes, and weight capacities provide a flat surface for the storage of items. The metal frames and rails provides the articles their structural support, stability, allow each wooden shelf to support a respective load capacity, and the metal offers an aesthetic appeal. The bulk, quantity, and value of the metal is substantial when comparing material costs to that of the wood. The metal construction permits the wood panels to function as shelves and allow for storage and organization of items. For items 20050500074, 20050500075, 20050500076, and 20050500077, the essential character of each article as a whole is imparted by the metal components. The applicable subheading for each storage unit will be 9403.20.0050, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture: Household: Other: Other.” The rate of duty will be free. TRADE REMEDY Products of China classified under subheading 9403.20.0050, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 9403.20.0050, HTSUS, listed above.  See U.S. Note 20 to Subchapter III, Chapter 99, HTSUS.  The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.  For background information regarding the Section 301 trade remedy, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. 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 Dharmendra Lilia at dharmendra.lilia@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division