H336040

HQ H336040 July 31, 2024 OT:RR:CTF:CPMMA H336040 NAH CATEGORY: Classification TARIFF NO.: 9403.20.0050; 9903.88.03 Mr. Patrick D. Gill, Esquire Sandler, Travis & Rosenberg, P.A. 675 Third Avenue, Suite 1805-06 New York, NY 10017 RE: Classification of Unfinished Household Metal Cabinets; Applicability of Section 301 Duties Dear Mr. Gill: This letter is in reference to your correspondence, dated November 14, 2023, and November 30, 2023, submitted on behalf of your client, NewAge Products Inc., to U.S. Customs and Border Protection (CBP), seeking a binding ruling concerning the application of certain exemptions from the additional duties on products of China under Section 301 of the Trade Act of 1974 (Section 301 duties). In Headquarters Ruling Letter (HQ) H313152, dated March 9, 2023, the subject unfinished household metal cabinets were classified under subheading 9403.20.0050, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as “Other furniture and parts thereof: Other metal furniture: Household: Other: Other”. While you do not dispute CBP’s tariff classification of the subject merchandise in HQ H313152, you claim that the subject unfinished household metal cabinets are excluded from Section 301 duties, as applied by subheading 9903.88.03, HTSUS. Specifically, you assert that the subject merchandise meets the exclusion described in U.S. note 20(ttt)(iii)(178) to Subchapter III of Chapter 99, HTSUS, as “Household furniture of metal and high-pressure laminated bamboo (other than ironing boards, furniture for infants or children or bed frames) (described in statistical reporting number 9403.20.0050).” FACTS: The products at issue are metal modular cabinet sets that are manufactured in and imported from China. The subject merchandise was described in HQ H313152, as follows: Item 1, the “Bold Series,” is a group of unequipped, locking, modular, shelved, metal storage lockers and cabinets that are available in different paint finishes. First, a floor standing, 2-door shelved locker whose dimensions are 42” in width, 18” in depth, and 72” in height. Second, a floor standing, 2-door shelved locker whose dimensions are 30” in width, 18” in depth, and 72” in height. Third, a floor standing, 2-door pair of shelved lockers whose combined dimensions are 84” in width, 18” in depth, and 77.25” in height. Fourth, a floor standing, 2-door base cabinet whose dimensions are 24” in width, 16” in depth, and 35.25” in height. Fifth, a floor standing, 5-drawer project workstation and locker component whose overall dimensions are 62” in width, 18” in depth, and 35.” in height. The workstation contains four casters, two that are lockable. Sixth, a floor standing, multi-level rolling tool drawer whose dimensions are 20.75” in width, 16” in depth, and 33” in height. The tool drawer contains four casters. Seventh, a wall mounted 2-door cabinet whose dimensions are 36” in width, 12” in depth, and 19.5” in height. Eighth, a wall mounted 2-door cabinet whose dimensions are 24” in width, 12” in depth, and 18” in height. Item 2, the “Pro Series,” is a group of unequipped, locking, modular, shelved, metal storage lockers and cabinets that are available in different paint finishes. First, a floor standing, 2-door, shelved multi-use locker whose dimensions are 36” in width, 24” in depth, and 80” in height. Second, a floor standing, 5-drawer tool cabinet whose dimensions are 28” in width, 22” in depth, and 32.25” in height. Third, a floor standing, multi-functional cabinet whose dimensions are 28” in width, 22” in depth, and 35.5” in height. Fourth, a floor standing, 2-door base cabinet whose dimensions are 28” in width, 22” in depth, and 32.25” in height. Fifth, a floor standing mobile locker on casters whose dimensions are 28” in width, 22” in depth, and 65” in height. Sixth, a floor standing sink-cabinet whose dimensions are 28” in width, 22” in depth, and 38.75” in height. The sink-cabinet is equipped with a sink and faucet. Seventh, a floor standing, single-door, adjustable-shelf locker whose dimensions are 15” in width, 24” in depth, and 80” in height. Eighth, a wall mounted single-shelf cabinet whose dimensions are 28” in width, 14” in depth, and 22” in height. In your email correspondence with this office on January 22, 2024, you indicated that the scope of your request involves the products that were examined and classified in HQ H313152, except for the fact that the products “are unfinished because they are imported without their countertops.” After importation, certain subunits of the metal cabinet series will have countertops attached. The countertops are of either stainless steel or bamboo. ISSUE: Whether the subject unfinished household metal cabinets from China are excluded from Section 301 duties. LAW AND ANALYSIS: Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule, and any relative section or chapter notes. In the event 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. GRI 2 provides, in relevant part: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, 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 falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. GRI 6 provides that for legal purposes, classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. * * * * * * The 2024 HTSUS subheadings under consideration are the following: 9403 Other furniture and parts thereof: 9403.20.00 Other metal furniture: Household: Other: 9403.20.0050 Other 9903.88.03 Except as provided in headings 9903.88.13, 9903.88.18, 9903.88.33, 9903.88.34, 9903.88.35, 9903.88.36, 9903.88.37, 9903.88.38, 9903.88.40, 9903.88.41, 9903.88.43, 9903.88.45, 9903.88.46, 9903.88.48, 9903.88.56, 9903.88.64, 9903.88.66, 9903.88.67 or 9903.88.68, articles the product of China, as provided for in U.S. note 20(e) to this subchapter and as provided for in the subheadings enumerated in U.S. note 20(f). 9903.88.67 Effective with respect to entries on or after October 12, 2021 and through May 31, 2024, articles the product of China, as provided for in U.S. note 20(ttt) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative. U.S. Note 20 to Subchapter III of Chapter 99, HTSUS, states, in part: (e) For the purposes of heading 9903.88.03, products of China, as provided for in this note, shall be subject to an additional 25 percent ad valorem rate of duty. The products of China that are subject to an additional 25 percent ad valorem rate of duty under heading 9903.88.03 are products of China that are classified in the subheadings enumerated in U.S. note 20(f) to subchapter III. All products of China that are classified in the subheadings enumerated in U.S. note 20(f) to subchapter III are subject to the additional 25 percent ad valorem rate of duty imposed by heading 9903.88.03, except products of China granted an exclusion by the U.S. Trade Representative and provided for in (1) heading 9903.88.13 and U.S. note 20(p) to subchapter III of chapter 99; (2) heading 9903.88.18 and U.S. note 20(w) to subchapter III of chapter 99; (3) heading 9903.88.33 and U.S. note 20(ll) to subchapter III of chapter 99; (4) heading 9903.88.34 and U.S. note 20(mm) to subchapter III of chapter 99; (5) heading 9903.88.

Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule, and any relative section or chapter notes. In the event 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.GRI 2 provides, in relevant part:Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, 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 falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.GRI 6 provides that for legal purposes, classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. * * * * * *The 2024 HTSUS subheadings under consideration are the following:9403 Other furniture and parts thereof:9403.20.00 Other metal furniture: Household: Other:9403.20.0050 Other9903.88.03 Except as provided in headings 9903.88.13, 9903.88.18, 9903.88.33, 9903.88.34, 9903.88.35, 9903.88.36, 9903.88.37, 9903.88.38, 9903.88.40, 9903.88.41, 9903.88.43, 9903.88.45, 9903.88.46, 9903.88.48, 9903.88.56, 9903.88.64, 9903.88.66, 9903.88.67 or 9903.88.68, articles the product of China, as provided for in U.S. note 20(e) to this subchapter and as provided for in the subheadings enumerated in U.S. note 20(f).9903.88.67 Effective with respect to entries on or after October 12, 2021 and through May 31, 2024, articles the product of China, as provided for in U.S. note