The tariff classification, country of origin, and USMCA eligibility of four bathroom vanities

N337700 February 5, 2024 CLA-2-94:OT:RR:NC:N4:463 CATEGORY: Classification; Country of Origin; USMCA Eligibility TARIFF NO.:  9403.60.8081 Lynee McGowan GHY USA Inc. 572 South 5th Street Pembina, ND 58271 RE:      The tariff classification, country of origin, and USMCA eligibility of four bathroom vanities Dear Ms. McGowan: This ruling is being issued in reply to your letter dated January 23, 2024, requesting the tariff classification, country of origin, United States-Mexico-Canada Agreement (USMCA) eligibility, and Section 301 applicability of four bathroom vanities on behalf of your client, The Vanity Store.  In lieu of samples, illustrative literature, product descriptions and pictures were provided, as were dimensions, values, and component classifications under the Harmonized Tariff Schedule of the United States (HTSUS). You inquired about the following: 1)     Can the cabinet base, countertop, and sink, which will be imported together on one pallet and sold as one bathroom vanity be classified as 9403.60.8081 with the country of origin of Canada? 2)     If classified as a single item under 9403.60.8081, will it qualify for USMCA preference?  If so, would the preference criterion be “B”? GENERAL: The four bathroom vanities, subject of this ruling, are comprised of an assembled wood cabinet base, an engineered stone countertop (93% quartz, 7% resin), and either one or two ceramic sinks.  The components are boxed separately to prevent damage during transit but are secured and shipped together on one pallet as one complete bathroom vanity and they are sold together as one bathroom vanity. In some cases, a wood cabinet base will be imported and sold separately.  The countertop and sink are not imported and sold separately. STYLE 1: Style number 1, a 72" Vanity Double Sink White Oak, with SKU TEO-008-72-OAK, is a floor-standing bathroom vanity with one ceramic sink at either end and an engineered stone countertop and backsplash.  There are two cabinet doors underneath each sink and a column of three drawers (a smaller drawer above and two larger drawers below) in the center of the cabinet base.  The cabinet base is made of solid wood and stands on four wood legs, one at each corner.  Vanity dimensions and materials, as well as the costs, classification numbers and origins of those materials are as follows: DIMENSIONS: Complete Vanity                                 72" (L) x 22" (W) x 34.5-35" (H) Wood Cabinet Base                            71" (L) x 21.5" (W) x 33.5" (H) Engineered Stone Countertop             72" (L) x 22" (W) x 1.18" (H) Ceramic Sinks                                     15.25" (L) x 12.25" (W) x 6.5" (H) COSTS:                                               (Expressed as a Percentage) Wood Cabinet Base                              81% Engineered Stone Countertop              18% Ceramic Sinks                                      1% Drawer Slides, Pulls, etc.                    < 1% The principal components, their HTSUS numbers, and countries of origin are as follows:           MATERIAL                                        HTSUS                      ORIGIN Wood                                                  Ch. 44                         Canada Engineered Stone Countertop            6810.99.0040              Spain Ceramic Sinks                                    6910.90.0000              China Drawer Slides, Pulls, etc.                   Various                       Various STYLE 2: Style number 2, a 72" Vanity Single Sink Walnut, with SKU TEO-001-72S-WNT, is a floor-standing bathroom vanity with one ceramic sink and an engineered stone countertop and backsplash.  There are two cabinet doors underneath the sink and two columns of three drawers, one on either side of the cabinet base.  The cabinet base is made of wood veneer and melamine and stands on four wood legs, one at each corner.  Vanity dimensions and materials, as well as the costs, classification numbers and origins of those materials are as follows: DIMENSIONS: Complete Vanity                                 72" (L) x 22" (W) x 34.5-35" (H) Wood Cabinet Base                            71" (L) x 21.5" (W) x 33.5" (H) Engineered Stone Countertop            72" (L) x 22" (W) x 1.18" (H) Ceramic Sink                                      15.25" (L) x 12.25" (W) x 6.5" (H) COSTS:                                               (Expressed as a Percentage) Wood Cabinet Base                              81% Engineered Stone Countertop              18% Ceramic Sink                                        1% Drawer Slides, Pulls, etc.                    < 1%           MATERIAL                                        HTSUS                        ORIGIN Wood                                                  Ch. 44                          Canada Engineered Stone Countertop            6810.99.0040               Spain Ceramic Sink                                     6910.90.0000               China Drawer Slides, Pulls, etc.                   Various                       Various STYLE 3: Style number 3, a 60" Single Sink Mid-Century Oak, with SKU:  TEO-011-60S-WALL-CENTURY, is a wall-mounted bathroom vanity with one ceramic sink and an engineered stone countertop and backsplash.  There are two cabinet doors underneath the sink and two stacked drawers on either side of the cabinet base.  The cabinet base is made of solid wood.  Vanity dimensions and materials, as well as the costs, classification numbers and origins of those materials are as follows: DIMENSIONS: Complete Vanity                                 60" (L) x 22" (W) x 22-22.5" (H) Wood Cabinet Base                            59" (L) x 21.5" (W) x 21" (H) Engineered Stone Countertop             60" (L) x 22" (W) x 1.18" (H) Ceramic Sink                                      15.25" (L) x 12.25" (W) x 6.5" (H) COSTS:                                               (Expressed as a Percentage) Wood Cabinet Base                              82% Engineered Stone Countertop              17% Ceramic Sink                                        1% Drawer Slides, Pulls, etc.                    < 1%           MATERIAL                                        HTSUS                        ORIGIN Wood                                                  Ch. 44                         Canada Engineered Stone Countertop            6810.99.0040               Spain Ceramic Sink                                      6910.90.0000              China Drawer Slides, Pulls, etc.                   Various                        Various STYLE 4: Style number 4, a 72" Vanity Single Sink Walnut, with SKU TEO-002-72S-WNT, is a wall-mounted bathroom vanity with one ceramic sink and an engineered stone countertop and backsplash.  There are two cabinet doors underneath the sink and two stacked drawers on either side of the cabinet base.  The cabinet base is made of wood veneer and melamine.  Vanity dimensions and materials, as well as the costs, classification numbers and origins of those materials are as follows: DIMENSIONS: Complete Vanity                                 72" (L) x 22" (W) x 21-21.5" (H) Wood Cabinet Base                            71" (L) x 21.5" (W) x 20" (H) Engineered Stone Countertop             72" (L) x 22" (W) x 1.18" (H) Ceramic Sink                                      15.25" (L) x 12.25" (W) x 6.5" (H) COSTS:                                               (Expressed as a Percentage) Wood Cabinet Base                              80% Engineered Stone Countertop              19% Ceramic Sink                                        1% Drawer Slides, Pulls, etc.                     < 1%           MATERIAL                                        HTSUS                        ORIGIN Wood                                                  Ch. 44                          Canada Engineered Stone Countertop            6810.99.0040               Spain Ceramic Sink                                      6910.90.0000              China Drawer Slides, Pulls, etc.                   Various                       Various PROCESSING OPERATIONS: For vanity styles 1 and 3, the raw wood for the cabinet base (interior frame, exterior panels, drawer boxes, doors, legs, etc.) is cut to size, drilled, glued, sanded, sprayed, and assembled into a finished cabinet in Canada. For vanity styles 2 and 4, the raw wood is cut to size, wrapped in a melamine (for cabinet interior frame and drawer boxes), or wrapped in a wood veneer (for exterior panels, drawers, and doors), edge banded, sprayed, drilled, and assembled into a finished cabinet in Canada. For all vanities, engineered stone slab (93% quartz, 7% resin) from Spain is cut to the required size, holes are cut for the sinks, holes are drilled for the faucets, and the edges are smoothed and polished in Canada.  It is then packaged in Canada. The Chinese ceramic sinks undergo no processing operations in Canada. The finished cabinet base is then packaged and palletized with the finished stone countertop and either one or two ceramic sinks in Canada. When a finished cabinet base is sold without the countertop and sink, it is packaged and palletized for export in Canada. VANITY CLASSIFICATION: You inquired whether the three components that comprise each vanity (cabinet base, countertop, and sink) can be classified as 9403.60.8081 when imported together on one pallet and sold as one bathroom vanity. Classification under the 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.  If the goods cannot be classified solely based on 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. Since the subject articles are imported unassembled, GRI 2(a) of the HTSUS applies.  Under GRI 2(a) of the HTSUS, “Any reference to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article.  It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule) entered unassembled or disassembled.”  The subject articles are complete unassembled vanities and will thus, by virtue of GRI 2(a) be classified as complete and assembled vanities. In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and coding System, which constitutes the official interpretation of the Harmonized System at the international level, may be utilized.  The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading and are generally indicative of the proper interpretation of the HTSUS.  The ENs to Chapter 94 of the HTSUS state, in relevant part, that the term “furniture” means: “(A): 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….  Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are included in this category.” Additionally, the ENs to Chapter 94 of the HTSUS state, in relevant part, that the term “furniture” means: “Cupboards, cook cases, other shelved furniture…, designed to be hung, to be fixed to the wall….”  The subject vanities meet this definition of furniture and therefore will be classified as furniture in heading 9403. Because the articles are composed of different materials (wood, engineered stone, ceramic, etc.), they are 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. With respect to these four vanities, the cabinet bases are significantly larger and more expensive than either the countertops or the sinks, and their different materials, colors, and styles provide subjective appeal and serve to distinguish one bathroom vanity from another.  Additionally, barring significant evidence to the contrary, U.S. Customs and Border Protection (CBP) has historically found that the cabinet base imparts the essential character to a bathroom vanity.  (See NYRL N321371, N072162, N025049, and N024951.)  The essential character of the complete unassembled vanities is imparted by the wood vanity base. The applicable classification for the subject articles, style number 1, a 72" Vanity Double Sink White Oak, with SKU TEO-008-72-OAK; style number 2, a 72" Vanity Single Sink Walnut, with SKU TEO-001-72S-WNT; style number 3, a 60" Single Sink Mid-Century Oak, with SKU:  TEO-011-60S-WALL-CENTURY; and style number 4, a 72" Vanity Single Sink Walnut, with SKU TEO-002-72S-WNT, will be subheading 9403.60.8081, HTSUS, which provides for “Other furniture and parts thereof: Other wooden furniture: Other: Other.”  The general rate of duty will be free. CABINET BASE CLASSIFICATION: You stated that in some cases, the wood cabinet bases will be imported and sold separately.  GRI 2(a) provides for the classification of unfinished articles with the essential character of the finished article as if they were finished articles.  This office is of the opinion that a complete wooden vanity base, sans countertop or sink retains the essential character of a completed wooden vanity and thus will be classified as complete, assembled vanities in subheading 9403.60.8081, HTSUS, which provides for “Other furniture and parts thereof: Other wooden furniture: Other: Other.”  The general rate of duty will be free. COUNTRY OF ORIGIN: You inquired whether the three articles that comprise the vanity (cabinet base, countertop, and sink), when imported together on one pallet and sold as one bathroom vanity, can be marked with the country of origin “Canada”. The "country of origin" is defined in 19 CFR 134.1(b) as “the country of manufacture, production, or growth of any article of foreign origin entering the United States.  Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.”   Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 CFR 102.21.  When applied in sequential order, 19 CFR 102.11 establishes that the country of origin of a non-textile good is the country in which: (a)(1) The good is wholly obtained or produced; (a)(2) The good is produced exclusively from domestic materials; or (a)(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in 19 CFR 102.20 and satisfies any other applicable requirements of that section. Since neither the four complete vanities nor the cabinet base are wholly obtained or produced (19 CFR 102.11(a)(1)), nor are they made exclusively from domestic materials (102.102.11(a)(2)), we proceed to 102.11(a)(3) which directs us to the 19 CFR 102.20, Specific Rules by Tariff Classification. With respect to the four vanities, which are classified in subheading 9403.60.8081, HTSUS, and the cabinet bases, also classified in 9403.60.8081, the applicable 19 CFR 102.20, Specific Rules by Tariff Classification, rule is as follows: 9403.10–9403.89 A change to subheading 9403.10 through 9403.89 from any other subheading outside that group, except from subheading 9401.10 through 9403.89, and except from subheading 9401.91 through 9401.99 or 9403.91 through 9403.99, when that change is pursuant to General Rule of Interpretation 2(a) Since the wood, drawer slides, pulls, etc. used to produce the cabinet bases undergo the specified change in tariff classification in Canada, the origin of the cabinet bases is “Canada”. Similarly, since the engineered stone slabs used to produce the countertops undergo the specified change in tariff classification in Canada, the origin of the countertops is “Canada”. However, the specified change in classification that the ceramic sinks undergo in Canada in accordance with GRI 2(a)—when secured to a pallet with a cabinet base and countertop—is impermissible as a non-qualifying operation under 19 CFR 102.17(c) and (e), as excerpted, below: 102.17 Non-Qualifying Operations A foreign material shall not be considered to have undergone an applicable change in tariff classification specified in Section 102 or Section 102.21 or to have met any other applicable requirements of those sections merely by reason of one or more of the following: *** (c) Simple packing, repacking or retail packaging without more than minor processing; *** (e) Collecting parts that, as collected, are classifiable in the same tariff provision as an assembled good pursuant to General Rule of Interpretation 2(a), without any additional operation other than minor processing. Since the terms of 102.11(a) are not met for the sinks, to determine the country of origin of the four vanities, we proceed to 102.11(b), excerpted below: (b) Except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of this section: (1) The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good In this instance, the good is the four vanities and the materials are the cabinet base, the countertop, and the sinks. To identify the single material that imparts the essential character to the good, we look to 19 CFR 102.18(b)(1), which states: (b) (1) For purposes of identifying the material that imparts the essential character to a good under § 102.11, the only materials that shall be taken into consideration are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good.  For purposes of this paragraph (b)(1): (i) The materials to be considered must be classified in a tariff provision from which a change in tariff classification is not allowed under the specific rule or other requirements applicable to the good under consideration. Per 102.18(b)(1)(i), the only materials to be considered are those that does not meet the previously indicated 19 CFR 102.20 tariff-shift rule.  As previously noted, that rule requires that the materials be from a subheading o