CLA-2 R:C:T 957667 ch
Ruby L. Wood
Evans and Wood & Co., Inc.
P.O. Box 610005
D/FW Airport, Texas 75261
RE: Modification of NYRL 864822; tariff classification of
diaries, notebooks and address books, bound.
Dear Ms. Wood:
New York Ruling Letter (NYRL) 864822, dated July 5, 1991,
concerned the classification of an organizer/address book under
the Harmonized Tariff Schedule of the United States (HTSUS). We
have had occasion to review this ruling and find that the
classification of this article under subheading 4820.10.4000,
HTSUS, is in error.
Pursuant to section 625, Tariff Act of 1930 (19 U.S.C.
1625), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993)
(hereinafter section 625), notice of the proposed revocation of
NYRL 864822 was published April 12, 1995, in the Customs
Bulletin, Volume 29, Number 15.
FACTS:
In NYRL 864822, the subject merchandise was described as
follows:
It is a 2 x 10 x 17 cm looseleaf book consisting of a metal
six ring binder, complete with pages (paper inserts),
permanently mounted inside a cover made essentially of
plastic and cotton fabric.
The pages are, for the most part, blank sheets that are
lined and captioned to permit written entries of various
kinds. With the aid of tabbed dividers, they are grouped
into a number of different sections, including those for
yearly, weekly and daily planning, notes, and
telephone/address listings. A few pages are printed with
handy reference information, such as a world time chart, a
calorie/carbohydrate guide, and a 1991-1992 calendar.
The inside of the cover is fitted with an inexpensive ball
point pen, and also incorporates pockets for carrying
business cards and loose papers. In addition, the book
features a strap/snap closure.
In NYRL 864822, the article was classified under subheading
4820.10.4000, HTSUS, as an article similar to a diary.
ISSUE:
Whether the subject merchandise is classifiable in
subheading 4820.10.2010, HTSUS, which provides for diaries,
notebooks and address books, bound; or subheading 4820.10.4000,
HTSUS, which encompasses in part articles similar to diaries,
notebooks and address books, and unbound diaries, notebooks and
address books?
LAW AND ANALYSIS:
Following the enactment of the HTSUS in 1989, the Area
Director of Customs, New York Seaport, issued a number of ruling
letters in which merchandise described as organizers, planners,
agendas or engagement calendars were not regarded as diaries. At
that time, the provision for diaries was reserved for books used
as personal journals and suitable for extensive notations or
narratives. As the submitted sample was not suitable for these
purposes, it was classified as an article similar to a diary.
However, these early decisions were superseded by a series
of rulings from Customs headquarters. See Headquarters Ruling
Letter (HRL) 089960, dated February 10, 1992; HRL 952691, dated
January 11, 1993; HRL 953172, dated March 19, 1993; HRL 953413,
dated March 29, 1993; HRL 955253, dated November 10, 1993; HRL
955199, dated January 24, 1994. The headquarters decisions made
reference to the Compact Edition of the Oxford English Dictionary
(1987), which defined the term "diary" as:
2. A book prepared for keeping a daily record, or
having spaces with printed dates for daily memoranda
and jottings; also applied to calendars containing
daily memoranda on matters of importance to people
generally, or to members of a particular profession,
occupation, or pursuit.
Based upon this language, engagement books, agendas, organizers
and planners designed primarily for the receipt of daily
memoranda and jottings were classified as diaries.
Furthermore, in recent rulings we have made reference to
judicial authority in this area. For example, in Baumgarten v.
United States, 49 Cust. Ct. 275 (1962), the merchandise was
described in part as a:
[P]lastic covered book, approximately 4 1/4 by 7 3/8
inches in dimensions. Its first few pages contain,
successively, the date "1961," the notation "Personal
Memoranda," calendars for the years 1960, 1961, and
1962, and a few statistical tables. The following 20-odd pages contain spaces for addresses and telephone
numbers, each page more or less set aside for each
letter of the alphabet. The remaining portion of the
book consists of ruled pages allocated to the days of
the year and the hours of the day and each headed with
calendars for the current and following months. A
blank-lined page, inserted at the end of each month's
section, is captioned "Notes."
In Baumgarten, the Court observed that:
[T]he particular distinguishing feature of a diary is
its suitability for the receipt of daily notations;
and, in this respect, the books here in issue are well
described. By virtue of the allocation of spaces for
hourly entries during the course of each day of the
year, the books are designed for that very purpose.
That the daily events to be chronicled may also include
scheduled appointments would not detract from their
general character as appropriate volumes for the
recording of daily memoranda.
Accordingly, the Court classified an appointment/telephone book
with calendars and statistical information as a diary.
Similarly, in Brooks Bros. v. United States, 68 Cust Ct. 91
(1972), the submitted sample was an 8 inch by 10 inch spiral
bound leather book which included pages suitable for use as a
diary, but also possessed a significant amount of printed
informational material. Citing Baumgarten, the Court noted that
the "particular distinguishing feature of a diary is its
suitability for the receipt of daily notations." As the
informational material did not alter the essential nature of the
article, it was classified as a diary.
In light of the foregoing administrative and judicial
precedent, we conclude that the instant merchandise is properly
classifiable as a diary, as the article functions primarily as a
place for the receipt of daily notations. Diaries are
classifiable in subheading 4820.10.2010, HTSUS, if they are
regarded as bound. However, unbound diaries devolve to
subheading 4820.10.4000, HTSUS. In HRL 955516, dated April 8,
1994, we stated that:
As the "Filofax" diaries contain ring binders that hold
loose sheets in place, they are undoubtedly
classifiable within heading 4820, HTSUSA. The next
issue is whether ring binders make a diary "bound" so
as to warrant classification within subheading
4820.10.2010, HTSUSA. 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, HTSUSA, 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.
Accordingly, Customs has determined that diaries incorporating
ring binders are regarded as bound for classification purposes.
See also HRL 957148, dated October 21, 1994; HRL 955937, dated
October 21, 1994. Based on our administrative precedent, the
subject merchandise is classifiable as a bound diary of
subheading 4820.10.2010, HTSUS.
In a submission, dated February 17, 1995, filed in
connection with another matter, you contend that loose sheets of
paper secured by means of spiral or metal fasteners are not
"bound," as that term is used in heading 4820. You argue that
prior administrative decisions in this area do not constitute
"legal argument" and imply that they should be disregarded.
However, pursuant to Customs Regulation 177.9(a) (19 CFR
177.9(a)), a principle set forth in previous ruling letters may
be cited as authority in the disposition of transactions
involving the same circumstances. Consequently, we regard the
prior ruling letters in this area as legally significant.
Citing lexicographic sources, you note that the term "bound"
is associated with words such as "secured," "firm or fast,"
"fastened," "tied." On the other hand, the term loose connotes
"flexible," "changeable," "unfettered," "free." You assert that
looseleaf and spiral fasteners do not secure paper inserts.
Rather, they allow their contents to be flexible or changeable.
Consequently, you reason that diaries possessing looseleaf or
spiral fasteners should be regarded as unbound.
However, ring and spiral fasteners function to secure their
contents. They are in fact designed to hold paper in place. In
this regard, we direct your attention to subheading 4820.30,
HTSUS, which provides in part for binders. The Explanatory Note
to the heading, at page 687, states that the heading includes:
Binders for holding loose sheets, magazines, or the like
(e.g. clip binders, spring binders, screw binders, ring
binders). (Emphasis added).
Thus, heading 4820 specifies that the term "binders" include ring
binders, and by implication spiral binders, designed for holding
loose sheets. The note makes it clear a "binder" is not limited
to more traditional bookbinding.
You claim that the term "binders" should be distinguished
from the term "bound," as the latter is used in a more limited
sense elsewhere in the Note. However, there is no indication
that the Explanatory Note draws such a distinction. For this
reason, we are of the opinion that the terms "binders" and
"bound" should be interpreted in a manner consistent with one
another. Thus, loose sheets of paper held together in a
looseleaf binder are regarded as bound for classification
purposes.
As noted above, the Explanatory Note to heading 4820, at
page 687, states that:
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.
The first portion of this passage indicates that goods of the
heading may be bound with materials other than paper, such as
leather, plastics or textile material. It is important to
recognize that these binding materials are merely examples and do
not purport to be all inclusive. We have concluded that a ring
binder is such a binding material. The second part of the
passage goes on to state that goods of the heading may have
reinforcements or fittings of such materials as metal or
plastics. A metal ring binder may also be regarded as a metal
fitting.
You have identified bound articles possessing metal
fittings. Specifically, you observe that bound ledgers and
manuals may possess metal fittings for the purpose of placing
them on racks. We agree that bound goods of heading 4820 may
possess extraneous fittings of metal. However, this point does
not bear on the issue of whether a metal binder constitutes
binding material. In addition, you have not indicated why a
metal ring binder may not also be regarded as a metal fitting.
Therefore, we see no need to disturb our findings in this area.
Our attention is also directed to subheading 4820.10.4000,
HTSUS, which encompasses in part unbound diaries. You contend
that under Customs analysis, the subheading would essentially be
an empty provision. Subheading 4820.10.4000, HTSUS, is a
residual provision for certain stationery articles and would
describe items such as registers and account books. In addition,
we note that the breakout for bound diaries occurs at the eight-digit national classification level. National breakouts were
frequently inserted into the HTSUS to carry over the tariff
treatment of identical merchandise from the prior tariff, the
Tariff Schedule of the United States (TSUS). Item 256, TSUS,
provided in part as follows:
Blank books, bound
256.56 Diaries, notebooks and address books...4%
256.58 Other...Free
Thus, under the TSUS, articles classifiable as diaries, notebooks
and address books were required to be bound. We have been
advised that under the TSUS spiral and ring bound diaries were
classified in item 256.56, TSUS. It should be noted that in
Brooks Bros., supra., a spiral bound leather book was classified
as a bound diary. Therefore, our findings in this area are in
accord with past Customs practice.
HOLDING:
NYRL 864822, dated July 5, 1991, is hereby modified. The
subject merchandise is classifiable under subheading
4820.10.2010, HTSUS, which provides for bound diaries, notebooks
and address books. The applicable rate of duty is 3.6 percent ad
valorem.
In accordance with 19 U.S.C. 1625, this ruling will become
effective 60 days after its publication in the Customs Bulletin.
Publication of rulings or decision pursuant to section 625 does
not constitute a change of practice of position in accordance
with section 177.10(c)(1), Customs Regulations (19 CFR
177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division