CLA-2 OT:RR:CTF:TCM H007653 EMS
Avon Products Incorporated
1251 Avenue of the Americas
New York, NY 10020-1196
ATTN: Irena Parker, Customs Compliance Manager
RE: The tariff classification of a "Portable Office" compact tool
Dear Ms. Parker:
This letter is in response to your correspondence, received on January 26, 2007 by U.S. Customs and Border Protection in New York, in which you requested a binding ruling pertaining to the classification of an item described as a "Portable Office" under the Harmonized Tariff Schedule of the United States (HTSUS). Your correspondence was referred to this office for a response. You provided a supplemental submission on March 29, 2007. Our response follows.
FACTS:
The merchandise at issue consists of a plastic container, measuring approximately 4.5 x 1.75 x 1.5 inches, into which the following items are integrated: a calculator (with keypad and screen), a pair of scissors, a stapler, and a tape measure. The plastic container also contains a small plastic pull out drawer that might be used for storage of items like safety pins or paper clips. Neither the four tools nor the plastic drawer is intended to be fully separated from the plastic container.
All of these compact tools can function independently of each other, and can be concealed within the plastic container. The top of the plastic container is decorated with sparkling plastic stones that form the shape of a heart. The plastic container is pink in color. This merchandise is identified as a "Portable Office" and is also described in literature provided by Avon as "[t]he perfect accessory for the multitasking Mom."
Avon provided certain information regarding the bulk weight of the constituent materials, the value of those materials, and the value of the four tools. That information indicates that the majority of the bulk of the item is attributable to the plastic housing, and that the most valuable constituent material is the decorative beading on top of the good. Collectively, the four tools are more valuable than the beading. The most valuable tool is the calculator, followed by the stapler, the scissors, and the tape measure (the least valuable component). All of these tools are of relatively low value.
The electronic calculator is located on the top of the plastic housing. The eight-digit display screen flips up and also makes accessible a numeric keypad with mathematical function keys. The calculator is battery-powered. The length and width of the plastic housing are intended to accommodate the size of the calculator. The depth of the housing accommodates the remainder of the tools.
The scissors consist of two metal blades, which may be pushed out from the side of the plastic housing by means of a sliding button. The scissors may be used to cut paper or other items by using the bottom plate of the plastic housing as the handle to push on while scissoring. The scissors are retractable and intended for storage inside of the plastic housing.
The stapler slides out from the plastic housing when pressure is exerted on the top of the device, pushing it away from the plastic housing. The stapler is constructed of metal parts with a plastic covering. The stapler functions when pressure is exerted on the top portion. The small base of the stapler is only assessable when the stapler is in use. The stapler is intended for storage inside of the plastic housing.
The tape measure is accessed by pressing down on a button and pulling the metal hook on the end of the tape measure away from the plastic housing. The tape measure is retracted back into the plastic housing by depressing the same button. The tape measure is 40 inches in length. It is the least valuable and lowest bulk of the four tools. The tape measure is intended for storage inside of the plastic housing.
ISSUE:
What is the tariff classification of the "Portable Office" compact tool under the HTSUS?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding on the contracting parties, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the Harmonized System. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The HTSUS provisions under consideration are as follows:
8205 Handtools (including glass cutters) not elsewhere specified or included; blow torches and similar self-contained torches; vises, clamps and the like, other than accessories for and parts of machine tools; anvils; portable forges; hand- or pedal-operated grinding wheels with frameworks; base metal parts thereof:
*****
Other handtools (including glass cutters and parts thereof):
*****
8205.59 Other:
*****
Other:
*****
Other
Of iron or steel
*****
8205.59.55 Other
*****
8205.59.5560 Other (including parts)
8213 Scissors, tailors' shears and similar shears, and blades and other base metal parts thereof:
*****
Valued over $1.75/dozen:
*****
8213.00.9000 Other (including parts)
8470 Calculating machines and pocket-size data recording, reproducing and displaying machines with calculating functions; accounting machines, postage-franking machines, ticket-issuing machines and similar machines, incorporating a calculating device; cash registers:
8470.10.00 Electronic calculators capable of operation without an external source of electric power and pocket-size data recording, reproducing and displaying machines with calculating functions
*****
8470.10.0060 Other
9017 Drawing, marking-out or mathematical calculating instruments (for example, drafting machines, pantographs, protractors, drawing sets, slide rules, disc calculators); instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, calipers), not specified or included elsewhere in this chapter; parts or accessories thereof:
****
9017.80.0000 Other instruments
The "Portable Office" compact tool consists of four different components. The stapler is described by heading 8205, which provides in relevant part for: "[h]andtools ... not elsewhere specified or included."1 The scissors are described by heading 8213, which provides for scissors. The calculator is described by heading 8470, which provides for calculating machines. The tape measure is described by heading 9017, which provides in relevant part for: "instruments for measuring length, for use in the hand." Accordingly, there is no single heading that specifically and completely describes the good at issue. Because the good is prima facie classifiable under two or more headings, it cannot be classified according to GRI 1. GRI 2 is inapplicable in this case.
GRI 3(a) states that when goods are prima facie classifiable under two or more headings, classification shall be effected as follows:
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.
The four headings at issue in this case each refer to part only of the "Portable Office" tool, and GRI 3(a) directs that these headings are equally specific in relation to one another. The good cannot be classified pursuant to GRI 3(a), and thus we turn to GRI 3(b), which states:
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.
To determine whether the merchandise constitutes a composite good, we look to Explanatory Note IX to GRI 3(b), which states in pertinent part:
For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.
The "Portable Office" tool is composed of four compact tools that are integrated into the plastic housing to form an inseparable whole. Consequently, the articles are composite goods. Thus, we must determine which component imparts the essential character to the good. Explanatory Note (EN) VIII to GRI 3(b) states:
The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
The courts apply these criteria as the "essential character test." See e.g. Home Deport U.S.A., Inc. v. United States, No. 2006-1459, slip op. at 4-5 (Fed. Cir. June 21, 2007). In the instant case, the final criteria is moot because the "Portable Office" tool is a composite good without a clear unifying function that is attributable to any one component. The intended use of the good is to provide on-the-go access to a variety of tools in a single, small unit that can be easily carried around when away from an office. The role of each component in relation to the whole is not controlling in our analysis in the instant case because the "Portable Office" tool does not have any discrete primary use.
Upon examination, we also find that the other factors identified in EN VII to GRI 3(b) do not reveal that any one component manifests the essential character of the "Portable Office" tool. The nature of each tool is to perform a separate function that may be utilized in an "office" setting. These functions could be used together in some cases, but there is no specific activity in which these tools are collectively intended, in whole or in part, to assist the user. The form of the plastic housing has been designed such that it accommodates all four components, each of which may be used alone, without accessing any of the others. Further, the bulk, quantity, and weight of each compact component do not appear to be criteria that would suggest an essential character in the instant case. A determination of the essential character on the basis of the value of these components is not conclusive because none of the items is of particularly significant value, even though some components are more valuable than others.
In light of the aforementioned, we find that no one component imparts the essential character in this case. Therefore, it is reasonable to proceed to GRI 3(c), which provides as follows:
(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.
Of those which merit equal consideration, heading 9017, HTSUS, is the last in numerical order. By application of GRIs 6 and 1, classification at the ten-digit level will be under subheading 9017.80.0000, which provides for: "Drawing, marking-out or mathematical calculating instruments (for example, drafting machines, pantographs, protractors, drawing sets, slide rules, disc calculators); instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, calipers), not specified or included elsewhere in this chapter, parts or accessories thereof: Other instruments."
HOLDING:
By application of GRI 3(c), the "Portable Office" compact tool is classifiable under heading 9017, HTSUS. It is specifically provided for under subheading 9017.80.0000, HTSUS, which provides for: "Drawing, marking-out or mathematical calculating instruments (for example, drafting machines, pantographs, protractors, drawing sets, slide rules, disc calculators); instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, calipers), not specified or included elsewhere in this chapter, parts or accessories thereof: Other instruments." The column one, general rate of duty is 5.3 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the Internet at www.usits.gov/tata/hts/.
Sincerely,
Gail A. Hamill, Chief
Tariff Classification and Marking Branch
1 In its ruling request, Avon alleged that the subject stapler is classifiable under heading 8472, HTSUS. This is incorrect. The stapler lacks a suitable base for placement on a table, desk, etc. and is therefore excluded from classification under heading 8472, HTSUS. Cf. NY L85179 dated June 20, 2005 and NY K87599 dated July 30, 2004. The subject stapler is classifiable under heading 8205, HTSUS. See NY M86525 dated September 13, 2006.
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