CLA-2 RR:CR:TE 962023 GGD
Mr. Floyd Sirico
Rogers & Brown Custom Brokers, Inc.
Post Office Box 20160
Charleston, South Carolina 29413-0160
RE: Portable, Soft-Sided, Insulated Cooler Bags; SGI,
Incorporated v. United States, 122 F.3d 1468 (Fed. Cir.
1997); Cooler Bags with an Outer Surface of Fabric-backed,
Compact Plastics
Dear Mr. Sirico:
This letter is in response to your request of June 26, 1998,
on behalf of your client, Shakespeare Fishing Tackle, concerning
the classification under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) of soft-sided, insulated cooler
bags manufactured in China. Samples were submitted with your
request.
FACTS:
The two samples differ essentially only in size and in the
number of main compartments they possess. The larger bag has two
insulated compartments while the smaller bag has only one. Both
articles are portable, soft-sided, insulated cooler bags that are
primarily designed to store and preserve food and/or beverages.
The larger cooler bag measures approximately 12 inches in
width by 7 inches in depth by 10 inches in height. The bag
features 2 separate insulated compartments (each with its own
zippered closure), a webbed textile shoulder strap, 2 webbed
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textile carrying handles, and an exterior front pocket made from
an open work knit textile fabric. The outer layer of the bag's
bottom and sides is composed of a polyester fiber woven fabric
that has been coated, covered or laminated with a non-cellular
(compact) plastic said to be polyvinyl chloride (PVC). The
plastic surface of this outer layer faces outward and is embossed
to simulate the appearance of woven fabric. The outer layer of
the bag's top flap is composed of a nylon woven fabric that is
backed with PVC plastic. The fabric surface of the top flap
faces outward. The middle layer of the bag is composed of
plastic foam which measures approximately 3/8 inch in thickness
and which functions to both insulate and cushion contents. The
inner layer of the bag is a waterproof lining composed of a sheet
of PVC plastic.
The smaller cooler bag measures approximately 12 inches in
width by 6 inches in depth by 6 inches in height. Although it
has only one main insulated compartment, it's composition and
features are otherwise similar in all material respects to those
of the larger bag.
ISSUE:
Whether the portable, soft-sided, insulated cooler bags 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 with outer surface of fabric-backed compact plastics, 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.
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The classification of certain portable, soft-sided,
insulated cooler bags with outer surface of plastics, was
recently 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
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.
On September 10, 1998, an additional instruction was issued
to Customs field personnel (and approved for dissemination to
members of the importing community), by which the principles of
the CAFC's decision were expressly extended to foodstuff-related,
insulated containers whose exterior layer is composed of a
textile fabric that is coated, covered or laminated with compact
plastics, with the plastic surface of the layer facing outward.
Such containers are classified in subheading 6307.90.9989,
HTSUSA, a provision which is currently not subject to quota/visa
requirements.
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In light of the principles of the SGI decision, the
instructions noted above, and the fact that each cooler bag has
an outer layer that is essentially composed of fabric-backed
compact plastics, the articles are classified in subheading
6307.90.9989, HTSUSA.
HOLDING:
The two portable, soft-sided, insulated cooler bags are
classified in subheading 6307.90.9989, HTSUSA, the provision for
"Other made up articles, including dress patterns: Other: Other:
Other, Other: Other." The general column one duty rate is 7
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division