CLA-2 CO:R:C:G 084603 DFC
Ms. Donna L. Allard
Marquel Ltd.
1864 Rollins Road
Burlingame, California 94010
RE: Tariff classification of a fabric covered box
Dear Ms. Allard:
Your letter dated April 28, 1989, addressed to our New York
office concerning the tariff classification of a fabric covered
box made in Korea, has been referred to this office for a direct
reply to you. A sample was submitted for examination.
FACTS:
The sample is a hexagonal shaped paperboard box consisting
of a lower section and a separate, removable upper section or
lid. Both sections are completely covered and lined with textile
fabric. Also, the horizontal surfaces of both sections are
padded with polyester fiberfill. The fabric is 100 percent
cotton while the lining is 65 percent polyester/35 percent cotton
fabric.
ISSUE:
What material imparts the essential character to the
trinket box?
LAW AND ANALYSIS:
In applying the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), the Customs Service must follow the
terms of the statute. Classification of goods under the HTSUSA
is governed by the General Rules of Interpretation (GRI's). GRI 1
provides that "classification shall be determined according to
the terms of the headings and any relative section or chapter
notes, and, provided such headings or notes do not otherwise
require, according to [the remaining GRI's taken in order]. In
other words classification is governed first by the terms of the
headings of the tariff and relative section or chapter notes.
-2-
GRI 2(b), HTSUSA, provides in part that "[t]he
classification of goods consisting of more than one material or
substance shall be according to the principles of Rule 3."
GRI 3, HTSUSA, reads in pertinent part as follows:
3. When, by application of rule 2(b) or for any other
reason, goods are, prima facie, classifiable under
two or more headings, classification shall be
effected as follows:
(a) 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. . . 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.
(b) Mixtures, composite goods consisting of
different materials or made up of different
components, . . . , which cannot be classified
by reference to 3(a), shall be classified as if
they consisted of the material or component
which gives them their essential character,
insofar as this criterion is applicable.
(c) When goods cannot be classified by reference to
3(a), they shall be classified under the
heading which occurs last in numerical order
among those which equally merit consideration.
The Explanatory Notes for GRI 3(b) state in pertinent part
as follows:
(VIII) 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.
-3
It is generally true that the material which represents the
structure of a composite good is likely to represent the
essential character of the product, while the material which
covers the surface of the product will generally be regarded as
less significant. However, there are exceptions to this
principle. Specifically, there may be instances in which an
expensive or fancy surface may represent the most marketable
aspect of the composite good. Thus, the surface material may
impart the essential character to the article
In this instance what is being marketed seems to involve
much more than a cardboard box. There are elements of beauty,
plushiness, elegance, texture and good taste that provide much of
the product's appeal. It is our observation that although the
paperboard provides structural integrity, it may not be superior
to the textile with respect to bulk and value. We have not
subjected the sample to any physical tests or measuring
procedures, but it appears from a casual examination that the
combined bulk of the fabric and padding may be about the same as
that of the paperboard. As for value, you state that the "fabric
charge" is $.38, while the "cardboard charge" is $.50. We do not
think this breakdown is reasonable. It is unlikely that the cost
of the cardboard would exceed that of the textile and it isn't
clear whether the value of the polyester fiberfill padding is
included in the "fabric charge." Furthermore, the large ($1.65)
"making charge" is unexplained and we are reluctant to assume
that it should simply be prorated over the other figures.
In view of the foregoing it is our opinion that the sample
box cannot be classified with reference to GRI 3(b)..
Consequently, it must be classified following GRI 3(c). under
subheading 6307.90.9030, HTSUSA, as other made up articles of
textile materials, other.
HOLDING:
The paperboard box is classifiable under subheading
6307.90.9030, HTSUSA, with duty at the rate of 7 percent ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc AD NY Seaport
1cc A Falcone NY Seaport
1cc C Abramowitz NY Seaport
1cc John Durant
1cc Legal Reference
cahilllib/peh