CLA-2 RR:CR:TE 961047 GGD
Mr. Douglas W. Adams
Bowline Family Products
1564 Elmira
Aurora, Colorado 80010
RE: "Bottle Totes;" Bags for Single Bottled Beverage; Heading
4202, HTSUS; SGI, Incorporated v. United States, 122 F.3d
1468 (Fed. Cir. 1997)
Dear Mr. Adams:
This letter is in response to your request of October 8,
1997, concerning the classification under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) of bags designed
to carry a single bottled beverage. The articles are
manufactured in China. Samples were submitted with your request.
FACTS:
Although the three samples, identified as "Bottle Totes,"
vary somewhat in color and features, each bag has a webbed
textile adjustable shoulder strap, each is designed to contain
and transport a single bottled beverage, and each measures
approximately 8 inches height by 12 inches in circumference.
Two of the samples are insulated and composed of three
layers of material. The outer surface and inner lining are
composed of textile materials of man-made fibers. A man-made
foam insulation comprises the middle layer. A bottle may be
inserted into each of the insulated bags by means of a zippered
opening which extends around most of the bag's circumference.
Each of the bags also has a small pocket for coins, keys, etc.
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The third bag is composed of one layer of man-made textile
materials, is not insulated, and contains no additional pocket.
A zippered opening extends approximately 5 inches down from the
top of the bag.
ISSUE:
Whether the bottle bags designed to carry a single bottled
beverage are classified under heading 4202, HTSUS, as containers
used to organize, store, protect and carry various items; or are
classified under heading 6307, HTSUS, as other made up (textile)
articles to which the principles of the decision in SGI,
Incorporated v. United States apply.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRI). GRI 1 provides that
the classification of goods shall be determined according to the
terms of the headings of the tariff schedule and any relative
Section or Chapter Notes. In the event that the goods cannot be
classified solely on the basis of GRI 1, and if the headings and
legal notes do not otherwise require, the remaining GRI may then
be applied. The Explanatory Notes (EN) to the Harmonized
Commodity Description and Coding System, which represent the
official interpretation of the tariff at the international level,
facilitate classification under the HTSUS by offering guidance in
understanding the scope of the headings and GRI.
The classification of certain portable, soft-sided,
insulated cooler bags with outer surface of plastics, was
examined by the Court of Appeals for the Federal Circuit
(CAFC) in SGI, Incorporated v. United States, 122 F.3d 1468 (Fed.
Cir. 1997). The CAFC focused on whether food or beverages were
involved with the eo nomine exemplars set forth in the tariff
provisions at issue and, without discussion of heading 4202
exemplars that organize, store, protect, and/or carry food or
beverages, the CAFC held that the appropriate classification for
the cooler bags was subheading 3924.10.50, HTSUS, the provision
for "Tableware, kitchenware, other household articles...of
plastics: Tableware and kitchenware: Other." The Court stated
that this classification "does encompass exemplars that are
ejusdem generis with the coolers because their purpose is to
contain food and beverages." The exemplars (specifically
enumerated in subheading 3924.10.10) which the Court noted in
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particular were the "various household containers for foodstuffs
such as salt, pepper, mustard, and ketchup dispensers and serving
pieces for food."
This office concluded that the CAFC's decision in SGI should
be implemented. Instructions were issued to Customs field
personnel on March 18, 1998 (and approved for dissemination to
members of the importing community), by which the principles of
the CAFC's decision were expressly extended to portable, hard or
soft-sided, insulated coolers and similar insulated containers
with outer surface of plastics or with outer surface of textile
materials (the latter of which are classified in subheading
6307.90.9905, 6307.90.9907, or 6307.90.9909, HTSUSA, depending
upon whether the article's outer surface is composed of cotton,
man-made fibers, or other textile materials, respectively); and
to such articles that feature exterior or interior pockets,
webbing, straps, etc., provided that the additional features do
not alter the container's primary purpose to store and preserve
food and/or beverages.
The instructions issued in March 1998 also stated, however,
that the classification of bottle cases, insulated bottle bags,
and similar containers (if designed to contain only one bottle or
similar single unit of a beverage, regardless of the unit's
capacity) was unaffected by SGI. It was noted that a bottle case
is an exemplar container of heading 4202 and (unlike the articles
before the Court in SGI) is not designed to contain food or
multiple beverages.
The subject bottle bags are not similar to the soft-sided,
insulated cooler bags at issue in SGI. The bottle bags are
designed to transport a single bottled beverage and are thus
similar to the exemplar bottle cases properly classified under
heading 4202, HTSUS. In light of the principles of the SGI
decision and the instructions noted above, the three "Bottle
Totes" are classified in subheading 4202.92.9026, HTSUSA.
HOLDING:
The insulated and uninsulated bottle bags identified as
"Bottle Totes" are classified in subheading 4202.92.9026, HTSUSA,
textile category 670, the provision for "Trunks...holsters...
bottle cases...and similar containers...: Other: With outer
surface of sheeting of plastic or of textile materials: Other:
Other, With outer surface of textile materials: Other: Of man-made fibers." The general column one duty rate is 19 percent ad
valorem.
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The designated textile and apparel category may be
subdivided into parts. If so, 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 that you 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 available for
inspection at your local Customs office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you 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
Commercial Rulings Division