Classification of racks and cabinets turns on proof of sole or principal use with specified electronic apparatus; furniture heading applied.

Racks, cabinets and card frames used to house electronic apparatus were held not to qualify as parts under Chapter Heading 85.38 because the manufacturer failed to prove that the underlying apparatus were themselves classifiable under Chapter Headings 85.35, 85.36 or 85.37, and that the items were suitable for sole or principal use with such goods. In the absence of that proof, the goods were treated as furniture under Chapter Heading 94.03, and the Revenue's classification prevailed. The Tribunal also followed its earlier identical decision on the same classification question.

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Issues: Whether racks, cabinets and card frames manufactured for housing electronic apparatus were classifiable under Chapter Heading 85.38 as parts suitable for use solely or principally with goods of Chapter Headings 85.35, 85.36 or 85.37, or under Chapter Heading 94.03 as furniture.

Analysis: The goods were only racks and cabinets, and the appellants did not establish that the apparatus for which they were designed and supplied were themselves classifiable under Chapter Headings 85.35, 85.36 or 85.37. Classification under Heading 85.38 required proof that the items were parts suitable for use solely or principally with such apparatus. The absence of such proof was decisive, and the Tribunal followed the earlier identical decision rendered on the same issue.

Conclusion: The racks and cabinets were not classifiable under Chapter Heading 85.38 and the Revenue's classification prevailed.

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