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HQ 088432


August 15, 1991

CLA-2 CO:R:C:T 088432 CC

CATEGORY: CLASSIFICATION

TARIFF NO.: 9403.20.0010, 9403.60.8080

Mr. Cosimo La Rosa
Vice President
Everlite
451 Alliance Ave.
Toronto, Ontario
Canada M6N 2J1

RE: Classification of cedar lined storage trunks

Dear Mr. La Rosa:

This letter is in response to your request for the tariff classification of cedar lined storage trunks. Samples were submitted for examination.

FACTS:

The merchandise at issue consists of trunks lined with genuine Tennessee red aromatic cedar, a layer (veneer) approximately 1/8-inch to 3/8-inch thick, to protect clothes, linens, and woolens from undesirable effects of insects, moisture and dust. The aroma of the cedar has a repelling effect on insects, like moths and flies, as well as rodents. The trunks are made of wood frames and bottoms. The sizes of the trunks are normally about 34 inches by 19 inches by 15 inches. This merchandise has interlocking tongue and groove closures that make it completely dustproof. Large stop hinges allow the top to remain open unassisted. There are foam pads at the bottom, which protect underlying surfaces, handles on the sides, and a lock with keys.

You have submitted three representative samples for examination. Two of them have the exterior made of vinyl. One of these has a white vinyl exterior. The other is black and is rounded at the top, with decorative wood strips on the top and around the sides. The third trunk has a metal exterior that is made to look like brass.

ISSUE:

Whether the submitted merchandise is classifiable as travelling goods of Heading 4202 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) or as furniture in Heading 9403, HTSUSA?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Chapter 42, HTSUSA, provides for travel goods, handbags and similar containers, among other articles. Note 1(k) to this chapter states that it does not cover articles of Chapter 94 (for example, furniture, lamps and lighting fittings). Heading 4202, HTSUSA, provides for trunks, among other articles.

Chapter 94, HTSUSA, provides for furniture, among other articles. Note 2 to Chapter 94 states that the 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. According to the Explanatory Notes, the official interpretation of the HTSUSA at the international level, for purposes of this chapter, the term "furniture" means 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, ....

Heading 9403, HTSUSA, provides for other furniture and parts thereof. The Explanatory Notes state that Heading 9403 covers furniture and parts thereof, not covered, by the previous headings. It includes furniture for general use (e.g., cupboards, show-cases, tables, telephone stands, writing-desks, escritoires, book-cases, and other shelved furniture, etc.) and also furniture for special uses. The heading includes furniture for: 1) private dwellings, hotels, etc.; 2) offices; 3) schools; 4) churches; 5) shops, stores, workshops, etc.; 6) laboratories or technical offices. Examples of different furniture covered by the specific settings are listed. In addition, the Explanatory Notes to Heading 9403 state, "This heading does not include: travelling chests, trunks and the like, not having the character of furniture (heading 42.02)."

You contend that the merchandise at issue should be classified as furniture in Heading 9403 and make three main arguments in support of this contention. First, this merchandise meets the definition of furniture. The trunks are movable articles designed to be placed on the floor, which is evidenced by the foam pads at the bottom that protect underlying surfaces. In addition, the trunks are used with a utilitarian purpose to equip private dwellings, namely the storage and protection of clothes and linens. Second, it is not designed for travel, but instead for use in the home. The cedar veneer is present so that the trunks can store and protect clothes and linens for a long period of time. This cedar would not be necessary for trunks designed and used for transporting goods. In addition, the decorative exterior and bottom pads are features that distinguish this merchandise as furniture, as opposed to travel goods. Third, this merchandise is marketed and advertised as furniture. You have submitted advertising from Everlite and retailers showing that the merchandise at issue, along with similar cedar lined trunks, is marketed as furniture. This advertising indicates that the trunks can be used as a coffee table, end table, lamp or plant stand, and foot of the bed unit. In addition, these trunks are advertised for storing "precious clothing and linens."

Although Heading 4202 specifically provides for trunks, we have previously determined that articles classified as "luggage" must be of the variety used in travel. In addition, the Explanatory Notes to Heading 9403 state that this heading does not cover travelling chests, trunks and the like, not having the character of furniture (heading 42.02). This note would indicate that trunks not used for travelling, but having the character of furniture, would be classifiable in Heading 9403. (See Headquarters Ruling Letter (HRL) 086657, dated July 13, 1990.) Thus the issue in this case is whether the merchandise in question is designed and used for travel or as furniture.

Based on the construction and style of the merchandise at issue, along with the marketing information concerning it, we believe that this merchandise is classifiable as furniture in Heading 9403, HTSUSA. These units are lined with cedar veneer that would be very useful for long term storage and protection of linen and clothing. The cedar lining would be much less useful for travel, and would not warrant the increase in cost associated with the addition of the cedar veneer. The outer surface is decorative and its construction is such that it could be easily scratched and dented while used to transport goods. The overall style of this merchandise, e.g., the decorative features, would also indicate that this merchandise is designed for home storage and not for travel. For example, the brass look of one style and the outer wood strips on another style would be unnecessary for travel and could easily be damaged while the trunks were being transported. Finally, the submitted advertising shows that this merchandise is marketed and sold as furniture. Therefore, we conclude that the merchandise at issue is classifiable in Heading 9403, HTSUSA.

All of the submitted trunks are made of wood frames and bottoms, and have cedar linings. Two of the trunks have a vinyl exterior, and one has a metal exterior. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. The Explanatory Notes state that the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

For the trunks with the vinyl exterior, the wood (wooden frame and cedar lining) makes up most of its quantity, weight, and value, whereas the vinyl application is very thin. Therefore we believe that the wood imparts the essential character to this merchandise, making it classifiable under subheading 9403.60, HTSUSA, which provides for other wooden furniture.

For the trunk with the metal exterior, the metal is fairly substantial, supplying a good deal of quantity, weight, value, and decoration to this merchandise. Therefore we believe that the metal imparts the essential character to this trunk, making it classifiable under subheading 9403.20, HTSUSA, which provides for other metal furniture.

HOLDING:

The trunks with the vinyl exterior are classified under subheading 9403.60.8080, HTSUSA, which provides for other furniture and parts thereof, other wooden furniture, other. Articles that meet the definition of "goods originating in the territory of Canada" (see General Note 3(c)(vii)(B), HTSUSA) are normally subject to reduced rates of duty under the United States-Canada Free Trade Agreement Implementation Act of 1988. If the merchandise constitutes "goods originating in the territory of Canada," the applicable rate of duty is normally 1 percent ad valorem (otherwise, the general rate of duty is 2.5 percent ad valorem).

The trunk with the metal exterior is classified under subheading 9403.20.0010, HTSUSA, which provides for other furniture and parts thereof, other metal furniture, household. If the merchandise constitutes "goods originating in the territory of Canada," the applicable rate of duty is normally 1.6 percent ad valorem (otherwise, the general rate of duty is 4 percent ad valorem).

Sincerely,

John Durant, Director

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