CBP Rules Hand Sanitizer Dispensing Stations From China Are ‘Furniture,’ Not Appliances

CBP affirmed an earlier ruling that hand sanitizer dispensing stations manufactured in China should be classified for tariff purposes as “other furniture” instead of parts of mechanical appliances suited for projecting liquids, according to an agency decision rendered April 26.

The recently released April ruling was addressed to CBP’s Center of Excellence and Expertise in Chicago, which had received a May 2022 application for further review from The Alchemist Group, which was protesting CBP’s earlier decision on dispensing stations liquidated between Dec. 3 and Dec. 21, 2021.

As a product of China, the dispensing stations classified as other furniture under subheading 9403.70.40 are subject to an additional 25% ad valorem rate of duty.

According to the ruling, the automatic hand sanitizer dispensers are held in an upright position using stations made predominantly of plastic. The stations enable the dispensing machine to remain upright, and the stations allow for placement in different locations.

The protestant argued that the dispensing station is a “part” of the mechanical device for projecting, dispersing or spraying liquids, which means that it would fall under heading 8424. The protestant admitted that the dispensing machines can also be fitted onto a separately sold wall mount, and they can release sanitizer without the use of a station.

But CBP disagreed, continuing to hold that the dispensers should be classified as other furniture because the dispensing stations have been designed to be placed on the floor and the stations enable a space for sanitizing users’ hands.

Although the dispensers’ main function is to project sanitizer liquid and the machines have all the internal components to carry out that function, the stations and the wall mounts can't be considered as “parts” of the dispensing machines, CBP said. The stations and the wall mounts don't materially change the dispensing machine's function, the agency said.

“The protestant contends that ... we must consider both the stations and the wall mounts as parts since they both can be used to support the machine at a proper height for normal use. But this view contradicts the plain meaning of ‘integral,’” CBP said. “The subject dispensing station cannot be wholly replaceable by an entirely different article and yet be ‘necessary’ for the dispensing machine’s completion. In reality, nothing about the subject dispensing stations contributes to the dispensing machine’s function, and therefore, the stations cannot be ‘parts’ of the dispensing machines.”