HQ 0089342 - Shelf, rattan, bath; HRL 085753 modified - United States International Trade Commision Rulings

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HQ 089342

June 18, 1991

CLA-2 CO:R:C:M 089342 DFC

CATEGORY: CLASSIFICATION

TARIFF NO.: 4420.90.8000

Ms. Diana Leatherwood
Import Department
World Bazaar, Inc.
P.O. Drawer X
Atlanta, Georgia 30364

RE: Shelf, rattan, bath; HRL 085753 modified

Dear Ms. Leatherwood:

We have been asked to reconsider the result reached in Headquarters Ruling Letter (HRL) 085753 dated February 21, 1990, issued to you, concerning the tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of a rattan bath shelf produced in China.

FACTS:

The merchandise which was the subject of HRL 085753 may be described as a rattan bath unit with sides and supports made of rattan peel wrapped around a rattan pole. All of the design weaving is made of rattan. The shelves are made of thin plywood boards with strips of peeled rattan used to hold the boards in place. The dimensions of the unit are approximately 6-3/4 inches in width by 17-1/4 inches in height by 18-3/4 inches in length. The shelf is intended for use as a bathroom accessory.

This merchandise was classified under the provision for other furniture of rattan in subheading 9403.80.3010, HTSUSA, which was a modification of the result reached in HRL 084040 dated June 30, 1989, holding the rattan bath shelf to be classified under subheading 4420.90.8000, HTSUSA, as wooden articles of furniture not falling within Chapter 94, other, other.

ISSUE:

What is the scope of the term "other shelved furniture"?

LAW AND ANALYSIS:

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided such headings or notes do not otherwise require, according to [the remaining GRI's taken in order]." In other words, classification is governed first by the terms of the headings of the tariff and any relative section or chapter notes.

Legal Note (LN) 2 to Chapter 94, HTSUSA, reads as follows:

2. 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.

The following are, however, to be classified in the above mentioned headings even if they are designed to be hung, to be fixed to the wall or to stand one on the other:

(a) Cupboards, bookcases, other shelved furniture and unit furniture;

(b) Seats and beds.

The Explanatory Notes (EN's) are the official interpretation of the Harmonized System (HS) at the international level. General EN's (A) and (B) to Chapter 94 read as follows:

For the purposes of this Chapter 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, theatres, cinemas, offices, . . .

(B) The following:

(i) Cupboards, bookcases, other shelved furniture and unit furniture, designed to be hung, to be fixed to the wall or to stand one on the other or side by side, for holding various objects or articles (books, crockery, kitchen utensils, glassware, linen, medicaments, toilet articles, radio or television receivers, ornaments, etc.) and separately presented elements of unit furniture.

LN 2 to Chapter 94, HTSUSA, set forth above, excludes from headings 9401 to 9403 articles not designed to be placed on the floor or ground, but allows certain exceptions to this exclusion. One of these exceptions, provided in subparagraph (A) above, is "other shelved furniture." Consequently, if the bath shelf meets the definition of "other shelved furniture," it is not barred from classification in heading 9403 by Note 2 to Chapter 94, and should be classified as other furniture, of rattan under subheading 9403.80.3010, HTSUSA.

In previous rulings, Customs stated that the term "other shelved furniture" is subject to at least two interpretations. The first requires that an item which is in and of itself "furniture," have the additional feature of being equipped, fitted or otherwise furnished with shelves, to be "shelved furniture." The second interpretation of the term "shelved furniture" includes furniture that is itself no more than a shelf in the definition of "shelved furniture." The exceptions to the exclusion of LN 2 are intended to allow classification under headings 9401 to 9403 of shelf-type furniture and modular or unit-type furniture, all of which are intended to be supported by walls or placed on other furniture rather than placed on the floor or ground. Customs has taken the position that the latter interpretation of the term "shelved furniture," which includes furniture which is itself no more than a shelf, is the correct interpretation.

It is now our view that our interpretation of the term "other shelved furniture" is overly broad and is creating problems in classification uniformity for articles which have never been considered "furniture" by previous tariffs or by the furniture trade. Furthermore, it is our opinion that it was not the intent of the drafters of the HS to classify small furnishings or fixtures as "furniture" simply because a shelf is incorporated in their construction.

With respect to the intent of the drafters of the HS, General EN to Chapter 94 at page 1574 makes the following relevant comments:

Except for the goods referred to in subparagraph (B) above, the term "furniture" does not apply to articles used as furniture but designed for placing on other furniture or shelves or for hanging on walls or from the ceiling.

It therefore follows that this Chapter does not cover other wall fixtures such as coat, hat and similar racks, nor furnishings such as radiator screens. Similarly, the Chapter excludes the following types of goods not designed for placing on the floor: small articles of cabinet-work and small furnishing goods of wood (heading 44.20), and office equipment. . . .

Also, EN 2 to heading 44.20 reads as follows:

The heading includes:

(2) Articles of wooden furniture other than those of Chapter 94 (see the General Explanatory Note to that Chapter). This heading therefore covers such goods as coat or hat racks, clothes brush hangers, letter trays for office use, ashtrays, pen-trays and ink stands.

It is clear that the drafters of the HS intended to limit the classification under Chapter 94 for certain articles which are constructed not be placed on the floor or ground. The exceptions are listed. It is our view that the list of exceptions should not be interpreted so as to frustrate its original purpose.

As stated previously, the EN's and the Chapter Notes define the term "furniture." However, certain exceptions to the meaning have been added. Nevertheless, when studying the exceptions listed in LN 2(a) and (b) to Chapter 94, we find the enumerated articles to be specific and narrow in scope. They are exceptions, not the rule. We will be very cautious in our interpretation of the exceptions lest they become the rule.

Customs has used the phrase "other shelved furniture" as a term to be defined and interpreted. The key word in the phrase
is "furniture." The word "shelved" is describing the similarity to the enumerated articles, that is, cupboards and bookcases. The similarity, however, does not end only in being "shelved." The specific examples stated are substantial articles having the essential characteristic that they are used to equip a home, office, etc. Furthermore, cupboards,and bookcases are articles bought and sold by the furniture trade. Most important, they are not small furnishings, fixtures, or knickknacks.

The EN to heading 94.03 at page 1578, which is where the product in question may be classified, list numerous examples of articles that are included within this heading as "furniture." Some of the examples are shelved "furniture." However, none of the listed articles are similar to the product in issue. This omission is indicative of the intent of the drafters of the HS. These examples are convincing evidence that small furnishings such as the article in issue are not "furniture" notwithstanding the fact that a shelf may be present.

Further confirmation that an article which is "itself no more than a shelf" is not encompassed within the term "furniture" is found in EN (c) to heading 94.03 at page 1579 which reads as follows:

This heading does not include:

(c) Builders' fittings (e.g., frames, doors and shelves) for cupboards, etc. to be built into walls (heading) 44.18 if of wood. (Emphasis added.)

Based on the foregoing, it is now our position that the prior interpretation of the phrase "other shelved furniture" is not correct. It is our opinion that LN 2(a) to Chapter 94, HTSUSA, should be interpreted as follows:

Only articles which are "furniture" similar to cupboards and bookcases in that they are substantial articles having the essential characteristic that they are used to equip a home, office, etc. and incorporate shelves in their construction, whether or not they are designed to be hung or fixed to the wall, are classifiable as "furniture" under heading 9403, HTSUSA.

In view of the change in the interpretation of the phrase "other shelved furniture," it is now our position that rattan bath shelf which was the subject of HRL 085753 dated February 21, 1990, is properly classifiable under subheading 4420.90.8000, HTSUSA, as wooden articles of furniture not falling within Chapter 94, other, other.

HOLDING:

The rattan bath shelf which was the subject of HRL 085753 dated February 21, 1990, is dutiable under subheading 4420.90.8000, HTSUSA, at the rate of 5.1 percent ad valorem.

This notice to you should be considered a modification of HRL 085753 under 19 CFR 177.9(d). It is not to be applied retroactively to that ruling and will not therefore, affect past transactions for the importation of your merchandise under that ruling. However, for the purposes of future transactions in merchandise of this type, HRL 085753 will not be valid precedent. We recognize that pending transactions may be adversely affected by this modification, in that current contracts for importations arriving at a port subsequent to this decision will be classified pursuant to it. If such a situation arises, you may, at your discretion notify this office and apply for relief from the binding effects of this decision as may be warranted by the circumstances.

Sincerely,

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