CLA-2 CO:R:C:G 087760 KWM
Mr. Thomas J. O'Donnell
Sonnenberg, Anderson, O'Donnell & Rodriguez
200 West Adams Street
Chicago, Illinois 60606
RE: Revocation of HRL 086775; Jewelry boxes; Wholly or mainly
covered with textile materials; Outer surface.
Dear Mr. O'Donnell:
This letter is in regard to your request for reconsideration of
Headquarters Ruling Letter (HRL) 086775, dated July 9, 1990. We
are in receipt of your letter of August 14, 1990, and the
accompanying samples. In addition, we have also received your
letter dated September 27, 1990, regarding the topics discussed at
our meeting of September 26th. After careful consideration of all
arguments raised by you, we have determined that HRL 086775 is
incorrect and we hereby revoke it.
FACTS:
The goods at issue here are jewelry boxes. The boxes have a
plastic frame or structure, and are designed or fitted to hold one
or more pieces of jewelry. The exterior of the box presents a
covering of textile dust to which a stenciled pattern had been
applied. During manufacture, the dust is adhered to a sheet of
paper by means of glue, which is then itself glued to the plastic
box. Your original request covered three styles of jewelry box,
the particulars of each is presented in HRL 086775. Your letter of
September 27, 1990, provides detailed value and weight breakdowns
for each of the component materials. They are presented below
where relevant.
HRL 086775 classified the jewelry boxes in subheading
4202.92.9020, HTSUSA, which provides for jewelry boxes and other
containers wholly or mainly covered with textile material and
having an outer surface of textile material. Your request
questions that classification, asserting grounds for
reconsideration.
ISSUE:
Are the goods classified as jewelry boxes of heading 4202,
HTSUSA?
If not, what is the proper HTSUSA classification?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) is made in accordance with the
General Rules of Interpretation (GRI's). The systematic detail of
the harmonized system is such that virtually all goods are
classified by application of GRI 1, that is, according to the terms
of the headings of the tariff schedule and any relevant Section or
Chapter Notes.
Your request asserts three grounds for reconsideration of HRL
086775. First, you assert that our characterization of the boxes
as wholly covered with textile material is in error. Second, you
assert that "textile materials" does not include the textile dust
present on these boxes. Third, you believe that the tariff rate
resulting from the classification in HRL 086775 is in violation of
the intent of the HTSUSA conversion to be trade neutral.
Classification in heading 4202, HTSUSA
Heading 4202, HTSUSA, provides for, in pertinent part:
Trunks, suitcases, . . .holsters and similar containers;
toiletry bags, knapsacks, purses, map cases, cigarette cases,
tobacco pouches, toolbags, sports bags, bottle cases, jewelry
boxes, powder case, cutlery cases and similar containers, of
leather or of composition leather, of plastic sheeting, of
textile materials, of vulcanized fiber or paperboard, or wholly
or mainly covered with such materials.
(Emphasis added). The heading contains two parts separated by a
semicolon. To be classified under heading 4202, HTSUSA, those
items listed after the semicolon must be of or wholly or mainly
covered with the materials enumerated in the heading; i.e., leather
or composition leather, plastic sheeting, textile materials,
vulcanized fiber, or paperboard. In HRL 086775, we held that the
subject boxes were "jewelry boxes" as described in the Explanatory
Notes, and that they were "of textile materials." Your letter
takes issue with the second part of that holding, that the boxes
are "of textile materials."
In HRL 086775, we did not hold that the covering of a jewelry
box is that portion which is tactile and visible, or that the
tactile and visible material will determine classification. At the
four-digit level, heading 4202, HTSUSA requires that a good be "of"
or "wholly or mainly covered with" a specified material. However,
at the six-digit level the nomenclature classifies goods by the
material which comprises the "outer surface." As HRL 086775
states, "[t]he 'outer surface' is that which is both tactile and
visible." In classifying goods such as these, we must distinguish
between the requirements of the four- and six-digit headings,
since they dictate different criteria for classifying goods.
You assert that the boxes here are covered with a flocked
paper, and that paper is not one of the specified materials of
heading 4202, HTSUSA. As in your original submission, you argue
that the flocked paper, if imported separately would be classified
as paper. The classification of flocked paper as an independent
article of commerce is not, in and of itself dispositive of the
jewelry boxes' classification. However, Customs recognizes that
heading 4202, HTSUSA, is material specific in providing for certain
items. Therefore, we have reconsidered whether the flocked paper,
as a constituent material used as an element of the boxes should be
considered a textile material or a paper covering. We determine
here that it is in fact a paper covering and on that basis we
revoke HRL 086775.
The terms "wholly or mainly covered" are not defined in either
the legal or Explanatory notes. Customs has, in classifying other
goods, considered "covers" of flatgoods to include that material
which constitutes the outermost layer. The outermost layer may be
a composite material, as in this case. Here we have a plastic box
covered with a paper and textile material which has been cut from
stock considered to be a paper product. The paper is the medium
which binds and makes useful the textile dust; The paper allows
the textile to be cut to shape and manipulated for easier
incorporation into the finished product. Against this we weigh the
visual and tactile contribution of the textile dust. We find that,
used as a covering, the paper and textile material should be
considered a paper for purposes of heading 4202, HTSUSA. As such
it is excluded from classification in that heading. We note that
this finding does not address what the outer surface of the article
might be for purposes of subheading classification.
Classification as a composite good
Failing classification in heading 4202, HTSUSA, the instant
goods are considered to be composite goods, consisting of two
elements: a flocked paper covering and the frame or structure.
For style numbers 6307 and 6161, the frame is a plastics material.
For style number 6269, the frame is wood. Any other miscellaneous
components are considered de minimis for purposes of
classification. Your letter of September 27, 1990, indicates that
the predominant component in terms of both weight and value is the
shell material. In addition, we find that the shell gives shape
and form to the completed merchandise. Therefore, in accordance
with GRI 3(b), the essential character of the jewelry boxes is
provided by the shell.
Style numbers 6307 and 6161 are considered articles of plastic
classified in subheading 3926.90.9050, HTSUSA, as other articles of
plastic. Style number 6269 is considered an article of wood,
classified in subheading 4420.90.4000, HTSUSA, as jewelry boxes,
not lined with textile fabrics.
Remaining issues
Since we revoke HRL 086775 on other grounds, we need not
address the remaining issues raised in your letter. We take no
position with regard to your assertions that the textile dust is
not considered a textile material, or those assertions regarding
the intent of Congress to provide rate neutrality in adopting the
HTSUSA.
HOLDING:
The jewelry boxes at issue are classified depending on the
component material which makes up their shell/frame/structure.
Those items with frames of plastic are classified in subheading
3926.90.9050, HTSUSA, as other articles of plastic. The applicable
rate of duty will be 5.3 percent ad valorem. Those items with
frames of wood are classified in subheading 4420.90.4000, HTSUSA,
as jewelry boxes of wood, not lined with textile materials. The
applicable rate of duty for that classification is 6.7 percent ad
valorem.
This notice to you should be considered a revocation of HRL
086775 under 19 CFR 177.9(d)(1). For the purposes of future
transactions in merchandise of this type. HRL 086775 will not be
valid precedent. We recognize that pending transactions may be
adversely affected by this modification in that current contracts
for importation arriving at a port subsequent to this decision will
be classified pursuant to it. If such a situation arises, you may,
at your discretion, notify this office and may apply for relief
from the binding effects of this decision as may be warranted by
the circumstances. However, please be advised that in some
instances involving import restraints, such relief may require
separate approvals from other government agencies.
Sincerely,
John A. Durant, Director
Commercial Rulings Division