Tariff classification of a folding storage bin with lid made in China

N316812 January 28, 2021 CLA-2-94:OT:RR:NC:N4:463 CATEGORY: Classification TARIFF NO.: 9403.89.6015; 9903.88.03 Suzanne Lagay Kay Director of Treasury Services Franco Manufacturing Co., Inc. 555 Prospect St. Metuchen, NJ 08840 RE: Tariff classification of a folding storage bin with lid made in China Dear Ms. Kay: In your ruling request dated December 16, 2020, you requested a binding ruling on the tariff classification of a folding storage bin. You provided a list of its constituent materials and a sample. The subject of this ruling request is a covered folding storage bin measuring 15" (W) x 15" (D) x 15" (H). All sides of the bin, including the removable lid, are composed of 0.5 cm medium-density fiberboard (MDF) covered in 100 percent polyester, 600 denier, 80 grams per square meter, oxford cloth. The lid has 2.5 cm of foam padding. The lid is removable, as is the sheet of fabric-covered MDF that fits into the bin’s base to form a rigid bottom. On two sides of the bin, at the midpoint, the MDF has a vertical split allowing the box to fold flat once the lid and bottom are removed. The opposite unsplit sides of the storage bin have cutout handles with plastic rims to facilitate moving the bin when full. In its assembled state, with the rigid bottom and lid in place, the storage bin is significantly sturdier than one would infer by looking at its constituent materials, easily holding an average person’s weight without flexing. The requester states that although the sample storage bin is covered in a solid fabric, the imported bins will be covered in a print fabric to coordinate with children’s bedding. The assembled storage bin with its amply padded lid can function as an ottoman for resting one’s feet or sitting, for storing moderately-sized household articles such as toys or bedding, as a stool to reach high objects or even as a flat surface to hold items or to play on. The storage bin is a combination article. It can be used in disparate activities, making it prima facie classifiable under two separate headings of the tariff. When used for seating, the article is provided for in heading 9401, Harmonized Tariff Schedule of the United States (HTSUS), and when used for resting one’s feet, for storage, as a stool, or possibly as a small table or play surface, the article is provided for in heading 9403, HTSUS. Since no single heading sufficiently describes the whole product, classification cannot be determined by reference to General Rules of Interpretation (GRI) 1, HTSUS.The storage bin is composed of different components (MDF and textiles), and is considered a composite good. Regarding the essential character of the storage bin, the Explanatory Notes (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 solely of the material or component that imparts the essential character to the composite good.When the material or component that gives the product its essential character cannot be determined, classification is determined by means of GRI 3 (c), which directs that when goods cannot be classified by reference to GRI 3 (b), they shall be classified under the heading that occurs last in numerical order among those that equally merit consideration.In this case, the essential character of the storage bin is not readily apparent in that the purchaser chooses the manner in which the product is used, whether it be as a seat or footrest, as a storage bin, as a stool, or as a small table. Consequently, the heading which occurs last in numerical order of the two competing headings is 9403, HTSUS. As we have competing subheadings within heading 9403, HTSUS, 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, GRIs 1 - 5, with the understanding that only subheadings at the same level are comparable. Accordingly, by application of GRI 3(b) at the subheading level, composite goods consisting of different materials that cannot be classified by reference to GRI 3(a) shall be classified as if they consisted of the material or component that gives them their essential character. It is our position that the outer fabric imparts the essential character to the article in that it covers the complete surface area, holds the structural MDF components in place, and provides the storage bin with its visual and aesthetic appeal. (See New York Ruling Letter N263058.) The applicable subheading for the storage bin, the subject of this ruling, will be subheading 9403.89.6015, HTSUS, which provides for “Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other: Other household.” The rate of duty will be free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.89.6015, HTSUS, unless specifically excluded, are subject to an 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 9403.89.6015, HTSUS, listed above. 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 trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, 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 Seth Mazze at seth.mazze@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division