CLA-2 CO:R:C:T 957060 ch
James Caffentzis, Esq.
Fitch, King and Caffentzis
116 John Street
New York, New York 10038
RE: Classification of carrying cases with day planners;
essential character.
Dear Mr. Caffentzis:
This is in response to your letter, dated September 20,
1994, requesting tariff classification under the harmonized
Tariff Schedule of the united States (HTSUS) for
two articles described as leather planners. Samples were sent to
this office for
examination.
FACTS:
The first sample, style 3328, measures approximately 10 «
inches by 13 «
inches by 2 inches and is comprised of a zippered leather case
with a three ring binder
permanently affixed at the spine. The binder encloses paper
inserts which form a daily
planning system. The planner is comprised mainly of sections for
notes, appointments
and tasks. The binder also includes two clear plastic business
card holders and a
plastic pouch with various office supplies such as a plastic
ruler, rubber bands and
paper clips. A note pad with a pre-printed calendar has been
slipped into a slot located
inside one interior wall. The opposite interior wall features
two pen holder, a zippered
pocket, two pockets secured by means of hook and loop fasteners
and an expandable
full wall pocket with tapered gussets. The exterior possesses
two open full wall
pockets and a top carrying handle.
The second sample, style 3329, measures approximately 11 «
inches by 14
« inches by 2 « inches and is comprised of a zippered leather
case with a three ring
binder permanently affixed at the spine. The binder encloses
paper inserts which form
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a daily planning system. The planner is comprised mainly of a
calendar with spaces for
daily appointments, a section for journal entries and a
telephone/address directory.
The binder also includes two clear plastic business card holders
and a plastic pouch
with various office supplies. A note pad with a pre-printed
calendar has been slipped
into a slot located inside one interior wall. The opposite
interior wall features three pen
holders, a zippered pocket, two pockets secured by means of hook
and loop fasteners
and an expandable full wall pocket with tapered gussets. The
exterior possesses two
open full wall pockets and retractable handles.
ISSUE:
What is the proper tariff classification for the subject
merchandise?
LAW AND ANALYSIS:
Heading 4820, HTSUS, provides in part for diaries,
notebooks, memorandum
pads and other articles of stationery, of paper or paperboard.
The Explanatory Note
(EN) to heading 4820 states in pertinent part, at page 687, that:
This heading covers various articles of stationery, other
than
correspondence goods of heading 4817 and the goods referred
to in Note
9 to this Chapter. It includes:
* * *
(1) Registers, account books, note books of all kinds,
order
books, receipt books, copy books, diaries, letter pads,
memorandum pads, engagement books, address books
and books, pads, etc. for entering telephone numbers.
* * *
(3) Binders designed for holding loose sheets, magazines,
or the like (e.g. clip binders, spring binders, screw
binders,
ring binders), and folders, file covers, (other than
box
files) and portfolios.
(8) Book covers (binding covers and dust covers), whether
or not printed with characters (title, etc.) Or
illustrations.
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The goods of this heading may be bound with materials other
than
paper (e.g. leather, plastics or textile material) and have
reinforcements or fittings of metal, plastics, etc.
(Emphasis added).
This language indicates that articles of 4820, HTSUS, include
diaries, address books
and telephone books. In addition, goods classifiable within the
heading may be bound
with leather or textile material which have reinforcements or
fittings of metal or plastics.
In HRL 955636, dated April 6, 1994, we addressed the scope
of subheading
4820.10.2010, HTSUS, which provides for bound diaries and address
books:
We think it is imperative to recognize that there are many
forms of
"diaries." Many are similar to the instant articles.
Others, may be bound
with expensive materials such as leather and may contain
additional
components such as pens, pencils, calculators, business card
holders
and assorted inserts that are used either for providing
information or as a
means of recording specific types of information (i.e.,
sections for fax
numbers, car maintenance information, person finance data,
etc. ... ). As
the court in Brooks Bros. noted, citing Hancock Gross, Inc.
v. United
States, 64 Cust. Ct. 97, C.D. 3965 (1970), "[T]he primary
design and
function of an article controls its classification." Hence,
the
determinative criteria as to whether these types of articles
are
deemed "diaries" for classification purposes is whether they
are
primarily designed for use as, or primarily function as,
articles for
the receipt of daily notations, events and appointments.
(Emphasis in
original).
Furthermore, in HRL 955516, dated April 8, 1994, we
observed:
The next issue is whether ring binders make a diary "bound"
so as to
warrant classification within subheading 4820.10.2010,
HTSUS. This
office has consistently held that they do. See HRL 089960
(2/10/92;
952691 (1/11/93); and 953172 (3/19/93). This position is
supported by
the EN to heading 4820, HTSUS, which state that "goods of
this heading
may be bound with materials other than paper (e.g., leather,
plastics or
textile material) and have reinforcements or fittings of
metal, plastics, etc."
It is clear that metal binders were contemplated to fit
within this heading's
definition of bound articles. We do not agree with
protestant's argument
that merely because a metal loose leaf ring binder was not
expressly cited
as an exemplar of a "bound" article in the EN to heading
4820, that it is
precluded from classification as such.
Style 3328 and 3329 feature three ring binders which secure
paper inserts
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comprising a daily planning system. The planner is composed
primarily of paper
inserts which are designed for the receipt of daily notations,
events and appointments.
Based upon the foregoing, we conclude that these articles are
prima facie classifiable
as bound diaries of subheading 4820.10.2010, HTSUS.
Heading 4202, HTSUS, provides in part for attache cases,
briefcases and similar
containers. In prior ruling letters, we have concluded that
portfolio diaries, organizers,
agendas or planners are not classifiable in heading 4202, HTSUS.
For example, in
Headquarters Ruling Letter (HRL) 950325, dated December 27, 1991
(modified on
other grounds in HRL 953143, dated January 11, 1993) we addressed
the classification
of an organizer consisting of a leather case enclosing a six-ring
binder, with paper
inserts for personal record-keeping. In that decision, we
stated:
We do not believe that heading 4202, HTSUS, describes a type
of
merchandise which would bring these goods within the
"similar
containers" of that heading. Although the "planner" may
appear to be
related to the containers of heading 4202, HTSUS, they are
not similar
in that they are not designed or intended for use in a
similar manner,
nor do they exhibit the requisite physical attributes that
Customs
has found common to goods of heading 4202, HTSUS. (Emphasis
added).
Similarly, in HRL 950397, dated January 23, 1992, in
connection with the
classification of a portfolio planner, we observed that:
Although the planner may appear to be related to the
containers of
heading 4202, HTSUS, they are not designed or intended for
use in a
similar manner, nor do they exhibit the requisite physical
attributes
that Customs has found common to goods of heading 4202,
HTSUS.
(Emphasis added).
Thus, we have determined that diaries, organizers, agendas or
planners are generally
excluded from heading 4202 as they are not used in a manner
similar to, nor do they
possess the physical characteristics of, articles of that
heading.
However, in this instance the carrying handles, exterior
pockets and interior
gussetted pockets are features which are characteristic of
attache cases or briefcases
and are unrelated to the use of styles 3328 and 3329 as
organizers. In addition, the
article is large enough to accommodate standard size papers and
documents, as well
as many of the articles normally carried in a briefcase or
attache case (e.g. a book, a
newspaper, pens, notebook, etc.). The cases serve a dual purpose
of providing a
cover for their contents and as a means by which to carry various
items. Consequently,
we are of the opinion that the submitted samples are also prima
facie classifiable within
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heading 4202, HTSUS, as articles similar to an attache case.
General Rule of Interpretation (GRI) 3 provides that when
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 or to part
only of the
items in a set put up for retail sale, 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, and goods put up in sets
for retail sale,
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) or
3(b), they
shall be classified under the heading which occurs last in
numerical order
among those which equally merit consideration.
Headings 4202 and 4820, HTSUS, are equally specific in relation
to one another. Each
heading encompasses a limited class of goods. Moreover, these
headings describe
only a portion of the physical characteristics incorporated into
styles 3328 and 3329.
Hence, we cannot resolve the classification of these items on the
basis of GRI 3(a).
In this instance, we conclude that the physical
characteristics described by
heading 4202, HTSUS, impart the essential character to styles
3328 and 3329. These
articles have been designed to accommodate most of the articles
normally carried in a
briefcase or attache case (e.g. papers, documents, newspaper,
book, pens). Although
the goods possess the features of an organizer or planner (e.g.
ring binder, paper
inserts with spaces for daily notations), the leather cases are,
in our judgment, more
than mere covers. The planner components add additional features
to what are
otherwise articles similar to a briefcase. Accordingly, styles
3328 and 3329 are
classifiable in heading 4202, HTSUS.
The subject merchandise should be contrasted with similar
articles which have
been classified by virtue of GRI 3 as goods of heading 4820.
See HRL 956497,
dated August 3, 1994; HRL 955655, dated July 14, 1994; HRL
955656, dated July 14,
1994. In these decisions, the merchandise exhibited features
consistent with both a
carrying case and an organizer. However, we noted that the
carrying capacity of the
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merchandise was limited inasmuch s the cases or covers were flat.
Hence, we
concluded that the organizer and carrying case components
contributed equally to the
finished articles.
HOLDING:
The subject merchandise is classifiable under subheading
4202.11.0030,
HTSUS, which provides for attache cases, brief cases, school
satchels, occupational
luggage cases and similar containers, with outer surface of
leather, of composition
leather, or of patent leather. The applicable rate of duty is 8
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division