The tariff classification of a multi-compartment storage bin from China

N338927 March 26, 2024 CLA-2-94:OT:RR:NC:N4:463 CATEGORY: Classification TARIFF NO.: 9403.20.0086; 9903.88.03 Meg Osuch Lawson Products Inc. 8770 Bryn Mawr Ave., Suite 900 Chicago, IL 60631 RE:      The tariff classification of a multi-compartment storage bin from China Dear Ms. Osuch: This ruling is being issued in response to your letter dated March 15, 2024, requesting a tariff classification determination for a multi-compartment storage bin.  A sample, pictures, and a product description were provided. The subject article is identified as the 40 Compartment Storage Bin, Lawson Item # A40.  It is described as a rectangular carbon steel storage unit consisting of 40 compartments, each measuring 4 1/4" (W) x 4 1/8" (H) x 12" (D).  The complete storage bin measures 35 1/4" (W) x 21 1/2" (H) x 12" (D) and weighs 49 lbs.  It will be used to hold inventory or other small tools and accessories.  The article is made in China.  See image below:
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. This office notes that the bin will be floorstanding when paired with a base and it will be modular (unit) furniture when stacked upon and affixed to an identical bin or other storage shelves/bin systems.  The storage bin is within the meaning of furniture as described by the General ENs to Chapter 94 of the HTSUS. You suggested classification in subheading 9403.20.0086, HTSUS. We agree. The applicable classification for the 40 Compartment Storage Bin, Lawson Item # A40, will be subheading 9403.20.0086, HTSUS, which provides for “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. You asked whether antidumping or countervailing duties will apply.  While the subject merchandise does not appear to be within the scope of any current order, written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce (ITA) and are separate from tariff classification and origin rulings issued by CBP.  The ITA’s AD/CVD landing page can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties.  The ITA’s AD/CVD Reference Resources, including their “Scope Ruling Application Guide” and “Scope Ruling Application,” are available therein by selecting the AD/CVD Reference Resources “Learn More” button. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.20.0086, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, 9903.88.03 in addition to subheading 9403.20.0086, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. 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. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request.  This position is set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1).  This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect.  If the facts are modified in any way, or if the goods do not conform to these facts at the time of importation, you should bring this to the attention of CBP and submit a request for a new ruling in accordance with 19 CFR 177.2.  Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. 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