Opinion ID: 213695
Heading Depth: 2
Heading Rank: 2

Heading: The Classification of storeWALL's Wall Panels and Locator Tabs

Text: StoreWALL contends that, although the Court of International Trade correctly determined that a completed storeWALL system with shelves could satisfy the definition of unit furniture, it clearly erred in its determination that a completed system accessorized only with hooks is merely a rack, which is expressly excluded from coverage under Heading 9403 by the Explanatory Notes. The government disagrees and argues that the Court of International Trade correctly determined that a storeWALL system using only hooks is a rack. The government contends that neither the wall panels nor the HangUp locator tabs are classifiable as parts of unit furniture because they are not designed solely or principally for use with unit furniture (i.e. a storeWALL system with shelves, baskets, cupboards, etc.), but may also be used with racks (i.e. a storeWALL system accessorized with hooks). We agree with storeWALL that the Court of International Trade clearly erred in its determination that a completed storeWALL system utilizing only hooks is merely a rack, and therefore, excluded from the Court of International Trade's definition of unit furniture. The Court of International Trade determined that the wall panels and locator tabs were not parts of unit furniture because a completed storeWALL system is too fungible at the time of importation to possess one fixed and certain application as unit furniture. storeWALL, 675 F.Supp.2d at 1205. However, the fact that a storeWALL system is fungible is due entirely to the system's versatility and adaptability, characteristics that are the hallmark of unit furniture. As the Court of International Trade's definition notes, unit furniture may be assembled together in various ways to suit the consumer's individual needs to hold various objects or articles. The 1971 Brussels Nomenclature Committee Report confirms this definition by stating that unit furniture is arranged to suit the tastes and needs of [its] users and the shape and size of the rooms to be furnished. Nomenclature Committee, 26th Session, Report (Apr. 14, 1971); (J.A. 279). The versatility and adaptability of a completed storeWALL system is the reason that such a system, equipped only with hooks, is dissimilar to wall fixtures such as coat, hat and similar racks. An end user may add shelving, cupboards, baskets, etc. to a storeWALL system initially equipped only with just hooks. Indeed, the end user could remove all of the hooks and replace them with other accessories. However, a coat rack, a hat rack, or any conceivable similar rack does not possess that same flexibility. One day a storeWALL system could only have hooks, the next it could only contain shelvingbut a coat rack will always be just a coat rack. The fact that the end user has the option with the storeWALL system to add or subtract accessories is the very reason any such system is unit furniture under the Court of International Trade's definition. Even if equipped only with hooks, the storeWALL system retains the essential versatility and adaptability that is the very essence of unit furniture. Therefore, because both the wall panels and HangUp locator tabs are dedicated solely for use with a completed storeWALL system, and such a system is unit furniture, the Court of International Trade clearly erred by not classifying the products as parts of unit furniture under Subheading 9403.90.50, HTSUS. [1]