The tariff classification of computer server relay racks from Mexico

N333727 July 21, 2023 CLA-2-94:OT:RR:NC:N4:463 CATEGORY: Classification TARIFF NO.: 9403.20.0086 Robert Skaggs Lynam Industries 11027 Jasmine St. Fontana, CA 92337 RE:      The tariff classification of computer server relay racks from Mexico Dear Mr. Skaggs: This ruling is being issued in reply to your letter dated June 27, 2023, requesting a tariff classification determination.  In lieu of samples, pictures and product descriptions were provided. The 19" Rackable 2-Post Relay Rack is available in 48", 72", 84", 96", and 108" heights with part numbers RR1904, RR1906, RR1907, RR1908, and RR1909, respectively, and the 23" Rackable 2-Post Relay Rack is available in the same heights with part numbers RR2304, RR2306, RR2307, RR2308, and RR2309, respectively.  The 19" rackable units measure 20.25" (W) x 15" (D) and the 23" rackable units measure 24.25" (W) x 15" (D).  Irrespective of size, the articles are floor-standing metal racks used to secure computer server equipment and components.  Each relay rack consists of a rectangular metal base that either sits on or is bolted into the floor.  On either side of the base are two vertical posts (48", 72", 84", 96", or 108") that are connected at the top by a horizontal 19" or 23" rail.  Additional horizontal rails can be installed between the posts to hold various computer server components.  The relay racks are made of high-strength aluminum, rated for an 800 lbs. static load, powder coated in black or white, and conform to EIA-310-E. The relay racks are made in Mexico and will be imported unassembled with hardware kits but without servers, cables, electrical switching apparatus or other electronic components included in the images below.   Representative Images of Assembled 2-Post Relay Racks (Servers and other components not included)     
          
The relay racks can be used in a data center or data closet/back office. 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.  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. 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, for the purposes of this Chapter, 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, theatres, cinemas, offices, churches, schools, cafés, restaurants, laboratories, hospitals, dentists, surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan-trailers or similar means of transport.  (It should be noted that, for purposes of this Chapter, articles are considered to be “movable” furniture even if they are designed for bolting, etc., to the floor, e.g., chairs for use on ships).  Similar articles (seats, chairs, etc.) for use in gardens, squares, promenades, etc., are included in this category.  The relay racks meet this definition of furniture. The applicable classification for the 19" Rackable 2-Post Relay Rack with part numbers RR1904, RR1906, RR1907, RR1908, and RR1909, and the 23" Rackable 2-Post Relay Rack with part numbers RR2304, RR2306, RR2307, RR2308, and RR2309, will be subheading 9403.20.0086, HTSUS, which provides “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Other”.  The general 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 the internet at https://hts.usitc.gov/current. This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 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 [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division