CLA-2 CO:R:C:T 954072 SK

Norman Katz
Barnes, Richardson & Colburn
475 Park Avenue South
New York, N.Y. 10016

RE: Affirmation of HRL 953458 (4/16/93); classification of soft- sided cooler under 4202.92.3030, HTSUSA; Sports Graphics, Inc. v. U.S., 806 F. Supp. 268 (CIT 1992); Prepac, Inc. v. U.S., 78 Cust. Ct. 108,433 F.Supp. 339 (1977); Aladdin Int'l Corp. v. U.S., 13 CIT 1038 (1989); HRL 087281 (10/29/90); food is considered a "personal effect" for purposes of classification within heading 4202, HTSUSA.

Dear Mr. Katz:

On April 16, 1993, this office issued you Headquarters Ruling Letter (HRL) 953458 in which we classified a soft-sided insulated cooler-bag under subheading 4202.92.3030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Upon review, that classification is affirmed. Our analysis follows.

FACTS:

The article at issue is a soft-sided insulated cooler-bag used to transport food and beverages. It is made from a 210 denier nylon oxford acrylic coated shell with a .15 millimeter polyvinylchloride lining containing foam on the inside and a removable interior lining of plastic sheeting. The top is secured by a zippered interlocking flap. This article has an adjustable woven shoulder strap, woven handle and an exterior pocket secured by means of a zipper.

ISSUE:

What is the proper classification of the subject merchandise?

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LAW AND ANALYSIS:

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (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, taken in order. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's.

In HRL 953458, this office classified the soft-sided cooler- bag under review in subheading 4202.92.3030, HTSUSA, which provides for, in pertinent part, "travel and sports bags: other: with outer surface of plastic sheeting or of textile materials: travel, sports and similar bags: with outer surface of textile materials: other, other: of man-made fibers: other." In that ruling it was determined that the soft-sided cooler-bag at issue was akin to travel, sport and similar bags with outer surfaces of plastic sheeting. The applicable rate of duty was 20 percent ad valorem and the textile quota category was 670.

In your submission to this office, dated April 29, 1993, you contest the holding in HRL 953458 and state that the subject merchandise is not properly classifiable under heading 4202, HTSUSA, and that classification should be under either heading 3923, 3926 or 6307, HTSUSA. In support of this contention, you state:

1) Customs' reliance on the definition of "backpack" as set forth in Webster's New Collegiate Dictionary (1977) was misplaced;

2) the comparison of an insulated cooler as being similar to a shopping bag or a backpack as a container used for carrying food during travel is without foundation;

3) the conclusion that food and beverages are "personal effects" for the purposes of Chapter 42, HTSUSA, is erroneous; and

4) Customs failed to consider the essential characteristic of the imported article (i.e., its use in storing and preserving perishable food and maintenance of refrigerated temperatures).

Your assertion that Customs misguidedly relied on the definition of "backpack" as set forth in Webster's New Collegiate Dictionary (1977) has no legal bearing and provides no grounds for revocation of HRL 953458. You state that other definitions of the word "backpack" vary from the definition set forth in Webster's New Collegiate Dictionary and do not expressly state

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that backpacks are used to carry food. You further state that as backpacks could only carry non-perishable foods, the Webster's New Collegiate Dictionary definition cited in HRL 953458 is "incorrect, or at least extremely incomplete." Customs has a valid and longstanding practice of referring to bona fide lexicographic sources in order to determine the common meaning of a word or phrase or to resolve confusion or ambiguities. There is no error, therefore, in Customs referring to a legitimate lexicographic source for guidance as to the commonly accepted definition of the word "backpack", nor is there any requirement that all lexicographic sources provide identical definitions of that word. The Webster's New Collegiate Dictionary is a legitimate lexicographic source and the definitions contained therein are valid and may be used by this office for purposes of aiding in classification.

In your second and third arguments, you state that this office erroneously held that the insulated cooler-bag at issue was similar to a shopping bag or a backpack used for carrying food during travel and that we improperly deemed food and beverages to be "personal effects" for purposes of classification under heading 4202, HTSUSA. You state:

"[B]ased upon the dictionary definition of the term "backpack' as a container used to transport food ... it was concluded [in HRL 953458] that food and beverages are 'personal effects' for the purposes of Chapter 42. It was further concluded that an insulated cooler-bag is similar to a backpack ... in that it is designed to carry food and beverages during travel pursuant to Heading 4202 of the HTS."

This is an accurate interpretation of our position in HRL 953458, however it in no way provides a basis for revocation of that ruling. In HRL 953458, this office stated that the cooler-bag at issue was similar to a backpack in two respects: both were used to 1) transport food, 2) during travel. The capacity to transport food is significant because the issue had been raised as to whether food is a "personal effect" for purposes of classification as a travel, sport or similar bag under heading 4202, HTSUSA. U.S. Additional Note 1 to Chapter 42, states:

"For purposes of heading 4202, the expression 'travel, sports and similar bags' means goods ... of a kind designed for carrying clothing and other personal effects during travel, including backpacks and shopping bags of this heading..." [emphasis added].

As set forth above, the common definition of a backpack is an

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article that is designed to carry food and equipment. As backpacks are eo nomine provided for in heading 4202, HTSUSA, it may logically be inferred that containers which transport food are included within the purview of heading 4202, HTSUSA, and that food is considered a "personal effect" for purposes of classification in this heading.

You also contend that cooler-bags are not similar to backpacks because "a backpack can never be used to carry any food requiring refrigeration." While this may be true, it has no bearing on the issue before us. Customs' premise is that a cooler-bag is similar to a backpack inasmuch as they both transport food (whether perishable or not) during travel. No further analogy between backpacks and the cooler-bag at issue was intended.

You correctly state that there is no definition of the term "personal effects" within the tariff schedule. Citing Sturm, Customs Law and Administration, page 49, you reason that as there is no tariff definition, such a term must be construed in accordance with its common meaning. In order to establish the common meaning of this term, you cite several lexicographic sources, including Blacks Law Dictionary 5th Edition. These definitions suggest that the term "personal effects" usually connotes objects to which an individual has some sort of intimate or personal relation. While we agree that this is one acceptable interpretation of this term, it is not the common meaning of the term for purposes of the classification of articles under heading 4202 or 3923, HTSUSA. Although the tariff does not provide an explicit definition of the term "personal effect," it does provide a clear sense of what is intended by that term. A comparison of the language of heading 3923 and heading 4202, HTSUSA, reveals that the former heading provides for goods of a commercial nature (i.e., containers for packing and shipping bulk or commercial goods), whereas heading 4202 provides for containers used to convey personal articles in general (i.e., articles belonging to a person). Heading 3923, HTSUSA, provides for "articles for the conveyance or packing of goods, of plastics." Enumerated among that heading's exemplars are such articles as boxes, cases, crates, sacks, bags, carboys, bottles, flasks, spools, cops, bobbins, stoppers, lids, caps, other closures and similar articles. It is clear that this heading provides for cases and containers of bulk goods and commercial goods and not personal items. Conversely, heading 4202, HTSUSA, provides for a variety of containers ranging from luggage to sports and travel bags, to fitted cases, and assorted similar articles. Its scope extends to various containers that are used to store and/or transport the belongings of an individual, as

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opposed to bulk goods or commercial goods. It is too restrictive to interpret the term "personal effects" for purposes of classification within heading 4202, HTSUSA, as pertaining only to objects to which an individual has an "intimate" relation. That standard is too subjective. Similarly, for purposes of classifying goods under the HTSUSA, the legal definition of "personal effects," as set forth in Blacks Law Dictionary, is too narrow; it is in testamentary terms and has no bearing on the meaning of this term for classification purposes. The key distinction is that heading 3923, HTSUSA, provides for more industrial or commercial type containers intended to transport bulk or commercial articles while heading 4202, HTSUSA, provides for, in part, containers designed to transport the assorted personal belongings of an individual whether it be food, clothing, documents, tools, etc... . Food is therefore within the realm of "personal effects" that are transportable by the containers of heading 4202, HTSUSA. (We note that heading 4202, HTSUSA, is not limited in scope to containers used to convey or transport goods; this heading also provides for containers which store and display goods. See HRL 951028, dated March 3, 1993 [jewelery boxes], and HRL 952451, dated December 23, 1992 [denture storage case]).

Even assuming, arguendo, that food is not deemed a "personal effect," classification of the cooler-bag at issue would still be appropriate within heading 4202, HTSUSA, as a container similar to luggage. There is no requirement that the containers enumerated in the first part of heading 4202, HTSUSA, be for the transport of "personal effects"; this prerequisite exists only for travel, sports and similar bags, as mandated by U.S. Additional Note 1 to Chapter 42. Customs has previously held that containers for the transport of food (i.e., lunchboxes) were properly classifiable in heading 4202, HTSUSA, as containers similar to luggage. See HRL 087281, dated October 29, 1990. In that ruling this office held:

"[W]hile the lunchbox allows for short-term storage and protection of food and beverages, it is designed primarily for the convenience of the traveler. Consequently, it is more properly classifiable as a similar container of heading 4202."

The cooler-bag at issue is similar to a lunchbox in that both are articles used to carry food, and are easily transportable for the convenience of the user. Since the function of the cooler-bag is to carry and store food, it is ejusdem generis with the containers of heading 4202 and consequently is excluded from headings 3923 and 3924 by virtue of Chapter Note 2(h) of Chapter 39. Chapter Note 2(h) of Chapter 39, HTSUSA, excludes from coverage within this chapter:

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(h) Saddlery or harness (heading 4201) or trunks, suitcases, handbags or other containers of heading 4202." [emphasis added].

Your fourth argument is that Customs allegedly failed to consider the "essential characteristic" of the cooler-bag (i.e., its use in storing and preserving perishable food and maintenance of refrigerated temperatures) when classifying the subject merchandise. When classifying merchandise under the tariff schedule, pursuant to GRI 3, the issue of "essential character" only arises when there are two or more competing headings which equally merit consideration. There is only one heading which provides for the subject merchandise in the instant case; as set forth above, heading 4202, HTSUSA, provides for containers similar to the cooler-bags at issue which are used during travel for the transport of food. Chapter Note 2(h) to Chapter 39 excludes containers of heading 4202 from Chapter 39. There is no mutually exclusive corollary in Chapter 42. Accordingly, the cooler-bags at issue cannot be classified in Chapter 39 and the issue of "essential character" is moot as there is only one applicable heading for the classification of these articles.

Even if an analysis of the subject merchandise's essential character were relevant, this office is not of the opinion that it is the insulation which imparts this attribute. While we recognize that insulation may play an important role in the use of this article, the fact that it will maintain perishable foods longer than an uninsulated container is not determinative of classification. There is no provision in the current tariff schedule which specifically provides for insulated food containers (other than thermoses and refrigerators). The dominant characteristic of the subject article is that the cooler-bag is transportable. Were transportability not required, perishable food would be stored in a refrigerator. There is no doubt that food contained in the cooler-bag at issue will be moved, whether it is merely from kitchen to backyard or far greater distances. Not all food that is transported will be perishable. It is on this basis that Customs deems the transportability of the subject merchandise, for the convenience of the user, as imparting the motivating impetus for the purchase of this article. Accordingly, classification is based on the article's ability to transport food during travel and not on the fact that the container can maintain food at regulated temperatures. You direct our attention to the Explanatory Notes (EN) to heading 9403, HTSUSA, which specifically exclude from this heading (a) "travelling chests, trunks and the like..." but in subparagraph (h) specifically include within said heading "ice-

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boxes, ice-chests and the like, and also insulated cabinets not equipped or designed to contain an active refrigerating element but insulated simply by glass fiber, cork, wool, etc." You state that "the difference in the treatment of the insulated articles as compared to the non-insulated articles adds credence to the removal of the imported articles from consideration under heading 42." Heading 9403, HTSUSA, provides for "other furniture and parts thereof." Whether a distinction between insulated and non- insulated articles exists for purposes of classification within this heading has no bearing on whether insulated articles are precluded from classification in heading 4202, HTSUSA. The Explanatory Notes are heading specific and any particulars set forth therein are not universally applicable. GRI 1 states that for legal purposes, classification shall be determined according to the terms of the pertinent headings. In the instant case, we are not bound to consider the EN to heading 9403, HTSUSA, as that heading provides for "other furniture" and is not pertinent to the classification issues in the case at hand.

And lastly, we wish to stress that under the Tariff Schedules of the United States (TSUSA), the Court in Sports Graphics, Inc. v. United States, 806 F. Supp. 268 (CIT 1992), held that soft-sided cooler-bags were classifiable under item number 772. This heading provided for articles chiefly used for preparing, serving, or storing food or beverages. This provision was not carried over into the HTSUSA and no longer exists under the current terms of the tariff schedule.

HOLDING:

HRL 953458 is affirmed.

The soft-sided cooler-bag at issue is classifiable under subheading 4202.92.3030, HTSUSA, which provides for, in pertinent part, travel and sports bags: other: with outer surface of plastic sheeting or of textile materials: travel, sports and similar bags: with outer surface of textile materials: other, other: of man-made fibers: other. The applicable rate of duty is 20 percent ad valorem. The textile quota category is 670.

The designated textile and apparel categories may be subdivided into parts. If so, the visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available we suggest your client check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service which is updated weekly and is available for inspection at the local Customs office.

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Due to the nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, your client should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director