Classification of a combination bed and desk made in China

N320517 July 23, 2021 CLA2-OT:RR:NC:N4:463 CATEGORY: Classification TARIFF NO.: 9403.89.6015; 9903.88.03 Mr. Kevin Park Hecny Brokerage Services, Inc. 141-07 20th Avenue, Suite 302 Whitestone, NY 11357 RE: Classification of a combination bed and desk made in China Dear Mr. Park: This is in reply to your letter dated July 14, 2021, requesting a tariff classification ruling on behalf of your client, Timothy Oulton Retail USA Corp., for the Atoll Bed. In lieu of samples, illustrative literature and product descriptions were provided. The Atoll Bed US King 193 x 203—Vintage Bianco & Moonstone (“Atoll Bed”) is a combination slat bed and storage desk with built-in side tables and lights. The desk projects horizontally behind the headboard and the desktop opens to reveal a storage compartment. Two pedestal-style side tables with round stone tabletops are attached to either side of the bedframe. Two swiveling LED reading lamps extend from the corners of the desktop, which can be used as in-bed reading lights or to illuminate the desk. With the exception of the tables and lamps, the totality of the bed frame and desk surfaces are covered in leather. The Atoll Bed measures 314 cm (L) x 233 cm (W) x 80 cm (H) and is made in China. You state that it will be imported without the mattress, pillows, quilts or sheets. See images below:

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 (together known as legal 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 are then applied in order. In its discussion of the GRI 3(b) analysis, the Court of International Trade (CIT) in Home Depot notes: Case law provides other possible considerations for an essential character inquiry. This court's predecessor, the United States Customs Court ("Customs Court"), stated that "the best evidence of the essential character of the article is the representative sample." United China & Glass Co. v. United States, 293 F. Supp. 734, 61 Cust. Ct. 386, 389, C.D. 3637 (1968). In its analysis, the United China court also considered the article's "name… other recognized names… invoice and catalogue descriptions… size, primary function, uses… and ordinary common sense." Id. (emphasis added). This Court concludes that this exemplary list is useful for the forthcoming analyses. In a subsequent decision, the Customs Court explained that "the character of an article is that attribute which strongly marks or serves to distinguish what it is. Its essential character is that which is indispensable to the structure, core or condition of the article, i.e., what it is." A.N. Deringer, Inc. v. United States, 66 Cust. Ct. 378, 383, C.D. 4218 (1971). The court reiterated, however, that in an essential character determination, "the situation must be reviewed as a whole." Id. at 384 (citation omitted). Taking into account the totality of the information presented and the on-line information reviewed, the essential character of the Atoll Bed is imparted by the bed and not the desk. Because the Atoll Bed is composed of different materials (steel, wood, leather, etc.), it is considered composite goods for tariff purposes. The ENs to the HTSUS, 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.This office finds that the essential character of the Atoll Bed is imparted by the leather surface. We note that the bed frame, headboard and desk, including the desktop, are all covered in leather, providing the Atoll Bed with its unique visual aesthetic. Leather is also the bed’s single most expensive component, accounting for 38% of the cost, followed by metal, 34%, and wood, 13%. The applicable subheading for the Atoll bed frame 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 Household.” 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 https://hts.usitc.gov/current. 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, including information on exclusions and their effective dates, 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. The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb. 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