CLA-2 RR:CR:TE 961418 GGD
Paula M. Connelly, Esquire
Middleton & Shrull
44 Mall Road, Suite 208
Burlington, Massachusetts 01803-4530
RE: Revocation of New York Ruling Letter (NY) C83772; Articles
of Stationery; Letter Pads; Memorandum Pads; Portfolio; Not
Attache Case, Briefcase, School Satchel; Headings 4820,
4202; Avenues in Leather v. United States, Slip Op. 98-54,
Decided April 24, 1998
Dear Ms. Connelly:
In New York Ruling Letter (NY) C83772, issued February 2,
1998, on behalf of The Gem Group, Incorporated, Customs
classified a portfolio with writing pad in subheading
4202.12.8030, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), textile category 670, which provides for
"Trunks...attache cases, briefcases, school satchels and similar
containers: With outer surface of textile materials: Other,
Attache cases...occupational luggage cases and similar
containers: Other: Of man-made fibers." We have reviewed that
ruling and have found it to be in error. Therefore, this ruling
revokes NY C83772.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C.
1625(c)(1)), 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),
notice of the proposed revocation of NY C83772 was published on
July 1, 1998, in the Customs Bulletin, Volume 32, Number 26.
FACTS:
The goods at issue, although identified by several different
style numbers (2550, 2551, 2552, and 2553), apparently differ
from each other only in the color of their fabric. The
merchandise is described as a "padfolio" and consists of a lined
memorandum pad or writing pad (which measures approximately 8-1/2
inches in width by 11-3/4 inches in height by 1/4 inch in
thickness) that is attached to the right interior side of a
zippered jacket or case. The jacket, with pad inserted, measures
approximately 13 inches in height by 10-1/2 inches in width by 1
inch in depth (in the closed position). The case is zippered on
3 sides and is composed of 100 percent polyester textile material
with a leather-like trim of plastics.
The interior left side of the case features 2 flat, full-width slots for papers, 1 zippered, full-width pocket, and 6
slots (1 with a see-through plastic window) for business or
credit cards. There is a pen holder sewn onto the interior
spine. The article's exterior front has 1 flat, full-width slot.
ISSUE:
Whether the article is classified in subheading
4202.12.8030, HTSUSA, the provision for attache cases,
briefcases, school satchels, and similar containers; or in
subheading 4820.10.2020, HTSUSA, the provision for letter pads,
memorandum pads, and other articles of stationery, including
jackets.
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.
Among other merchandise, chapter 48, HTSUS, covers articles
of paper or of paperboard. Note 1(h) to chapter 48, HTSUS,
states that "[t]his chapter does not cover: Articles of heading
4202 (for example, travel goods)." Among the items covered by
heading 4820, HTSUS, are notebooks, letter pads, memorandum pads,
diaries and similar articles, binders (looseleaf or other),
folders...and other articles of stationery...including cover
boards and book jackets.... The EN to heading 4820 indicate that
the heading covers various articles of stationery including (in
addition to the examples noted above) notebooks of all kinds,
file covers, files (other than box files), and portfolios. The
EN also suggest that the goods of the 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.
Heading 4202, HTSUS, provides, in part, for attache cases,
briefcases, and similar containers. The exemplars named in
heading 4202 have in common the purpose of organizing, storing,
protecting, and carrying various items. EN (c) to heading 4202
indicates that the heading does not cover articles which,
although they may have the character of containers, are not
similar to those enumerated in the heading, for example, book
covers and reading jackets, file-covers, document-jackets...and
which are wholly or mainly covered with leather, sheeting of
plastics, etc. Such articles fall in heading 4205 if made of (or
covered with) leather or composition leather, and in other
chapters if made of (or covered with) other materials.
In several Headquarters Ruling Letters (HQ), Customs has
considered the classification of goods featuring certain
characteristics common to the enumerated exemplars of headings
4202 and 4820, HTSUS. In HQ 959791 and HQ 959792, dated February
11, 1997, and issued to modify HQ 955655 and HQ 955656 (dated
July 14, 1995), respectively, this office found that competition
between headings 4202 and 4820 was resolved by note 1(g) to
chapter 48 (now note 1(h) to chapter 48), which excludes articles
of heading 4202 from Chapter 48. We noted the requirement of GRI
1, that "classification shall be determined according to the
terms of the headings and any relative section or chapter notes,"
and that other GRI may be used "provided such headings or notes
do not otherwise require."
Since the exclusionary note to chapter 48, HTSUS, did
require that other GRI not be used to determine classification,
the fact that certain of the articles subject to HQ 955655 and HQ
955656 were prima facie classifiable in heading 4202, should have
precluded classification of those goods under heading 4820,
HTSUS. Analysis pursuant to any GRI other than GRI 1 was
therefore inappropriate. On that basis, HQ 955655 and HQ 955656
were modified by HQ 959791 and HQ 959792, respectively. The
above analysis was reiterated and fully supported in a decision
by the Court of International Trade (CIT) in Avenues in Leather
v. United States, Slip Op. 98-54, decided April 24, 1998
(hereinafter Avenues).
There remain a small number of rulings in which the
exclusionary note to chapter 48 was applicable but not cited, and
in which articles were found to be prima facie classifiable under
both headings 4202 and 4820, HTSUS. In those rulings, the
exclusionary note should have been applied to preclude
classification within chapter 48. Rulings that have been issued
by Customs under the provisions of 19 CFR Parts 174 or 177, that
are inconsistent with the principles of the Avenues decision are
revoked/modified by operation of law.
With regard to whether the "padfolio" is prima facie
classifiable under heading 4202, HTSUS, it must be determined
whether the article merely has the character of a 4202 container,
or whether its purpose is to organize, store, protect, and carry
various items. The "padfolio" is designed to organize and
perhaps protect small and/or flat items in addition to the
writing pad. The case's depth of only 1 inch, however, and its
lack of handles or straps, indicate that the article is not
designed to easily store, protect, and carry additional items
such as a newspaper, a book, and/or other objects normally
carried in an attache case or briefcase. Although the case has
the character of a container, with perhaps more features than a
simple jacket or cover, it does not have the requisite physical
attributes Customs has found common to the containers of heading
4202. We find that the jacket's added features serve to enhance
the "padfolio's" primary purpose, which is to provide a
convenient and organized method by which to take notes in various
locations under a variety of circumstances.
In HQ 956940, issued November 25, 1994, this office
classified in subheading 4820.10.2020, HTSUSA, two styles of
portfolios whose dimensions (13-1/2 inches by 10 inches by 1
inch), features (zippered closure, pockets, slots, and pen
holder), and contents (an 8-1/2 inch by 11 inch writing pad) were
essentially the same as those of the "padfolio." Although those
cases also possessed some features that might be found in an
attache case, it was noted that the exterior and interior pockets
were essentially flat and suitable only for loose papers,
business cards, and other small, flat items. We concluded that
the cases functioned primarily as organizational aids for note
taking and that they retained the character of jackets and covers
that are not covered by heading 4202. Since heading 4820 covers
letter pads, memorandum pads, and other articles of stationery
with jackets or covers, the pad and its case, as a whole,
constitute an article of stationery. The "padfolio" is
classified in subheading 4820.10.2020, HTSUSA.
HOLDING:
The zippered portfolio with pad, identified as a "padfolio,"
and further identified by style nos. 2550, 2551, 2552, and 2553,
is classified in subheading 4820.10.2020, HTSUSA, the provision
for "Registers...diaries and similar articles: Diaries...and
similar articles, Memorandum pads, letter pads and similar
articles." The general column one duty rate is 2.8 percent ad
valorem.
NY C83772, issued February 2, 1998, is hereby revoked. In
accordance with 19 U.S.C. 1625(c)(1), this ruling will become
effective 60 days after its publication in the Customs Bulletin.
Publication of rulings or decisions pursuant to 19 U.S.C.
1625(c)(1) does not constitute a change of practice or position
in accordance with section 177.10(c)(1), Customs Regulations
(19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division