HQ 959513

June 16, 1997

CLA-2 RR:TC:MM 959513 HMC

CATEGORY: Classification

TARIFF NO.: 7323.99.9060

Ms. Mona Webster

Target Stores

33 South Sixth Street

P.O. Box 1392

Minneapolis, Minnesota 55440-1392

RE: Stackable CD Racks; Headings 7323, 7326 and 4421;

subheadings 7323.99.9060 and 7326.20.0050; Other Articles of

Wood; Table, Kitchen or Other Household Articles of Iron or

Steel; Other Articles of Iron or Steel; NY 896635, revoked.

Dear Ms. Webster:

This is in response to your letter, dated June 28, 1996, on

behalf of Target Stores, requesting reconsideration of NY 896635,

dated April 12, 1994. In NY Ruling Letter 896635, Customs

classified stackable compact disc (CD) racks, items 128-258 and

128-259, under subheading 7326.20.0050 of the Harmonized Tariff

Schedule of the United States (HTSUS), as articles of iron or

steel.

FACTS:

The two models of CD racks are made of steel wire and wood

sides that together are capable of holding 25 single, or 21

single and two double CDs. They measure approximately 16 inches

long by 6.5 inches wide by 5.5 inches high. The CD racks are

identical in all respects, but for the finish on the wooden side

panels. The wooden sides have a black finish (item number 128-258) or a
natural finish (item number 129-259). The CDs will be

placed between and supported by the steel wires. Although they

are sold individually, the CD racks are designed to be stacked

one upon the other. The CD racks are packaged and sold in a box

displaying a CD rack on a shelf of a wall unit along with books,

a candle, and what appears to be a stereo or video component.

The provisions under consideration are as follows:

4421 Other articles of wood\...4%

\* \* \* \*

7323 Table, kitchen or other household articles

and parts thereof, of iron or steel; iron or

steel wool; pot scourers and scouring or

polishing pads, gloves and the like, of iron

or steel;

7323.91 Other:

Of cast iron, not enameled:

7323.99 Other:

Coated or plated with precious

metal:

Not coated or plated with precious

metal:

Other:

7323.99.9060 Other\...3.4%

\* \* \* \*

7326 Other articles of iron or steel:

Forged or stamped but not further

worked:

7326.20.0050 Articles of iron or steel wire

Other\...4.6%

ISSUE:

Whether the CD racks are classifiable as household articles

of iron or steel under heading 7323, HTSUS, as other articles of

iron or steel under heading 7326, HTSUS, or as articles of wood

under heading 4421, HTSUS.

LAW AND ANALYSIS:

Merchandise is classifiable under the HTSUS, in accordance

with the General Rules of Interpretation (GRIs). GRI 1 states in

part that for legal purposes, classification shall be determined

according to the terms of the headings and any relative section

or chapter notes, and provided the headings or notes do not

require otherwise, according to GRIs 2 through 6.

The CD racks are made of steel wire and wooden sides that

together are capable of holding single or double CDs. The

articles are described under heading 4421, as \"Other articles of

wood,\" heading 7323, as \"\...Other household articles of iron or

steel\" and heading 7326, as \"Other articles of iron and steel.\"

GRI 2(b) states that any reference in a heading to a

material or substance shall be taken to include a reference to

mixtures or combinations of that material or substance with other

materials or substances. Any reference to goods of a given

material or substance shall be taken to include a reference to

goods consisting wholly or partly of such material or substance.

The classification of goods consisting of more than one material

or substance shall be according to the principles of rule 3.

GRI 3(a) states that when, by application of rule 2(b) or

for any other reason, goods are, prima facie, classifiable under

two or more headings, the heading which provides the most

specific description shall be preferred to headings providing a

more general description. However, when two or more headings

each refer to part only of the materials or substances contained

in mixed or composite goods or to part only of the items in a set

put up for retail sale, those headings are to be regarded as

equally specific in relation to those goods, even if one of them

gives a more complete or precise description of the goods. The

CD racks are made up of two different components which together

form an inseparable whole. Since the CD racks are composite

goods, described in part by two or more headings, we must apply

rule 3(b) which requires that composite goods are to be

classified according to the component which gives the good its

essential character.

The Harmonized Commodity Description And Coding System

Explanatory Notes (ENs) constitute the official interpretation of

the Harmonized system. While not legally binding on the

contracting parties, and therefore not dispositive, the ENs

provide a commentary on the scope of each heading of the

Harmonized System and are thus useful in ascertaining the

classification of merchandise under the System. Customs believes

the notes should always be consulted. See T.D. 89-80, 54 Fed.

Reg. 35127, 35128 (Aug. 23, 1989).

Explanatory Note (VIII) to GRI 3(b), at page 4, states 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.

We believe the steel component imparts the essential

character to the CD racks. The steel component is the largest,

heaviest and most visually and structurally significant part of

the article. The steel component provides the main function of

holding the CDs and without it there could not be a rack. The

wooden sides simply assist in this function, by providing support

to the steel part and acting as a base to the article. In

accordance with GRIs 3(b), the CD racks are properly classified

according to the constituent component of steel. Articles of

steel are provided in Chapter 73, HTSUS. It was suggested that

the merchandise is appropriately classified under subheading

7323.99.9060, HTSUS, based on the premise that the articles are

intended to be used in the home to hold compact discs.

EN 73.23, at page 1123, indicates that heading 7323

comprises a wide range of iron or steel articles, not more

specifically covered by other headings of the Nomenclature, used

for table, kitchen or other household purposes. The EN further

provides that this group includes other household articles such

as wash coppers and boilers; dustbins, buckets, coal scuttles and

hods; watering-cans; ash-trays; hot water bottles; bottle

baskets; movable boot-scrapers; stands for flat irons; baskets

for laundry, fruit, vegetables, etc; letter-boxes; clothes-hangers, shoe
trees; luncheon boxes. Accordingly, we must

determine whether the CD racks are household articles.

The U.S. Court of International Trade (CIT) has noted

Webster\'s New World Dictionary of American English 654 (3d

College ed. 1988)\'s definition of the term \"household\" as \"of a

household or home; domestic.\" The Court determined that when

\"household\" is used with the term \"articles\" a use provision is

created. Hartz Mountain Corp. V. United States, 903 F.Supp. 57,

59, CIT Slip Op. 95-154(Sept. 1, 1995). The Court found the

phrase \"household articles\" to be a use provision within the

context of subheading 3924.90.50. Similarly, we believe that,

within the context of heading 7323, when \"household\" is used with

the term \"articles\" a use provision is created.

Additional U.S. Rule of Interpretation 1(a), HTSUS, states

that in the absence of special language or context which

otherwise requires, a tariff classification controlled by use

(other than actual use) is to be determined in accordance with

the use in the United States at, or immediately prior to, the

date of importation, of goods of that class or kind to which the

imported goods belong, and the controlling use is the principal

use. The subject articles will thus fall under heading 7323 if

they belong to the class or kind of articles principally used in

the home. The Court has established various factors, which are

indicative but not conclusive, to apply when determining

principal use within a particular class or kind. They include:

general physical characteristics, the expectation of the ultimate

purchaser, channels of trade, environment of sale (accompanying

accessories, manner of advertisement and display), use in the

same manner as merchandise which defines the class, economic

practicality of so using the import, and recognition in the trade

of this use. See Hartz Mountain Corp., 903 F.Supp. at 59. In

this instance, these factors are helpful in determining whether

the CD racks are intended for home use.

The CD racks are made to hold CDs. They are packaged and

sold in a box displaying a CD rack on a shelf of a wall unit

along with books, a candle, and what appears to be a stereo or

video component. They are sold by a retailer directly to the

consumer as a merchandise which would organize a collection of

CDs. The consumer will generally be expected to store such

articles within the home. The evidence presented indicates that

the CD racks are principally used in the home and that it would

be impracticable to give them a different use. We therefore find

that, since the CD racks will be used for household purposes,

they are classifiable under subheading 7323.99.9060, as other

household articles of iron or steel.

NY 896635 classified the subject merchandise in heading

7326, which provides for \"Other articles of iron or steel.\" EN

73.26 states that this heading covers all iron or steel articles

obtained by forging or punching, by cutting or stamping or by

other processes such as folding, assembling, welding, turning,

milling or perforating other than articles included in the

preceding headings of this Chapter or covered elsewhere in the

Nomenclature. Since the CD racks are included in heading 7323,

we find that they are precluded from classification under heading

7326\. Accordingly, NY 896635 must be revoked.

HOLDING:

The stackable CD racks, items 128-258 and 128-259 are

provided for in heading 7323. They are classifiable under

subheading 7323.99.9060, HTSUS, as \"table, kitchen or other

articles of iron or steel: Other: Other: Not coated or plated

with precious metal: Other: Other\... Other.\" The rate of duty is

3.4% ad valorem.

EFFECT ON OTHER RULINGS:

NY 896635, dated April 12, 1994, is revoked.

Sincerely,

John Durant, Director

Tariff Classification Appeals Division