CLA-2 OT:RR:CTF:TCM H064875 TNA
Troy D. Crago, Import Specialist
Atico International, USA, Inc.
501 South Andrews Avenue
Ft. Lauderdale, FL 33301
RE: Request for Reconsideration of NY N053837; Tariff Classification of Trunk
Organizers
Dear Mr. Crago:
This is in response to your request for reconsideration, made on behalf of Atico International, USA, dated April 28, 2009, of New York Ruling Letter (“NY”) N053837, dated March 30, 2009, as it pertains to the classification of a trunk organizer under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The trunk organizer at issue is identified as style A002AA00637. It is a trunk organizer constructed with an outer surface of 600D nylon textile material. It is intended to provide storage, protection, organization and portability to car accessories and other personal belongings during travel. The bottom of the organizer contains hook-and-loop strips to be fastened to a car floor or trunk area. The interior of the organizer is lined with textile and is divided into three sections. The exterior has two flap pockets and four open mesh pockets. It does not contain carrying handles. It measures approximately 21” (W) x 10” (H) x 15” (D).
ISSUE: Whether textile and mesh trunk organizers should be classified under heading 4202, HTSUS, as a container; under heading 8708, HTSUS, as accessories for motor vehicles; or under heading 6307, HTSUS, as other made up articles of textiles?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) 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 GRIs may then be applied.
The HTSUS provisions under consideration are as follows:
4202 Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper:
Other:
4202.92 With outer surface of sheeting of plastic or of textile materials:
Other:
4202.92.90 Other….
4202.92.9060 Other….
* * * * * * * * * * * *
6307 Other made up articles, including dress patterns
* * * * * * * * * * * *
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705
* * * * * * * * * * * *
Additional U.S. Rule of Interpretation 1(c) states, in relevant part:
In the absence of special language or context which otherwise requires-
(c) a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for “parts” or “parts and accessories” shall not prevail over a specific provision for such a part or accessory;
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The EN to heading 4202 provides, in relevant part, that:
This heading covers only the articles specifically named therein and similar containers.
These containers may be rigid or with a rigid foundation, or soft and without foundation.
* * * * * * * * *
The articles covered by the second part of the heading must, however, be only of the materials specified therein or must be wholly or mainly covered with such materials or with paper (the foundation may be of wood, metal, etc.)... The expression “similar containers” in this second part includes note cases, writing cases, pen cases, ticket cases, needle cases, key cases, cigar cases, pipe cases, tool and jewellery rolls, shoe cases, brush cases, etc….
The EN to heading 6307, HTSUS, states, in relevant part:
This heading covers made up articles of any textile material which are not included more specifically in other headings of Section XI or elsewhere in the Nomenclature.
EN III(C) to Section XVII, HTSUS, which covers heading 8708, HTSUS, states, in relevant part:
Parts and accessories covered more specifically elsewhere in the Nomenclature.
Parts and accessories, even if identifiable as for the article of this Section, are excluded if they are covered more specifically by another heading elsewhere in the Nomenclature.
You claim classification under heading 8708, HTSUS, as car accessories, or, in the alternative, under heading 6307, HTSUS, as other made up articles, including dress patterns. In accordance with the terms of heading 6307, HTSUS, and Additional U.S. Rule of Interpretation 1(c), as illustrated by the ENs, however, if the trunk organizer is classifiable in heading 4202, HTSUS, it cannot be classified in heading 6307, HTSUS, or in heading 8708, HTSUS.
Inasmuch as trunk organizers are not named in heading 4202, HTSUS, we must determine whether it is a similar container. “In order to classify the subject goods as ‘similar’ under 4202, we must look to factors which would identify the merchandise as being ejusdem generis (of a similar kind) to those specified in the provision.” See HQ 964318, dated October 11, 2001. In Totes, Inc. v. United States, 69 F.3d 495 (Fed. Cir. 1995), the Federal Circuit stated that “as applicable to classification cases, ejusdem generis requires that the imported merchandise possess the essential characteristics or purpose that unite the articles enumerated eo nomine [by name] in order to be classified under the general terms.” Totes, 69 F.3d. 495, 498.
In Totes, the Federal Circuit affirmed the Court of International Trade’s finding that the rule of ejusdem generis requires only that the subject merchandise share “the essential characteristics” of the goods listed eo nomine in 4202, and that these characteristics were those of “organizing, storing, protecting, and carrying various items.” Id. at 498. In fact, the merchandise that was at issue in Totes was one style of the company’s trunk organizer. See Totes, Inc. v. United States, 18 C.I.T. 919. At trial, Plaintiff argued that the merchandise should be classified under heading 8708, HTSUS, as car accessories, or under Heading 6307, HTUS, as “Other” made up articles of textiles. The court addressed these arguments and overruled them, affirming CBP’s classification of the merchandise under Heading 4202, HTSUS. Id. at 928. In doing so, the court noted that:
whether portability of the import is a primary or ancillary feature, is not legally controlling in its classification as ‘similar containers’ under Heading 4202. Thus, even assuming that the trunk organizer's portability or design for carrying is ancillary to its storage purpose, the trunk organizers are nonetheless ejusdem generis with the exemplar containers in Heading 4202 - precisely the purpose of jewelry boxes that are used primarily to organize, store and protect articles, and only incidentally (if at all) to transport the contents. Id. at 926.
Prior CBP rulings have adhered to this standard, clasifying products similar to the subject merchandise under heading 4202, HTSUS, regardless of whether the items have handles. See, e.g., HQ 963473, dated March 22, 2002 (“like the Totes organizers, the console organizer is not principally designed to be carried, but the fact that it is designed to fit on the floor between the seats (with hook attachment strips to secure it in place) indicates that the container is suitable to effectively transport various items in a vehicle, while it organizes, stores, and protects them.”); NY L81831, dated January 11, 2005; NY L80488, dated November 8, 2004 (classifying a trunk organizer under subheading 4202.92.90, HTSUS); NY I87171, dated October 11, 2002 (classifying “Bed Baskets” organizer bags designed for use in the trunk of a car under subheading 4202.92.90, HTSUS); and HQ 086884, dated August 13, 1990 (classifying another model of Totes’ trunk organizers under subheading 4202.92.90, HTSUS.)
In HQ 956140, dated October 29, 1994, we stated that “to the extent that portability is a requirement, articles classifiable in heading 4202 need not be primarily designed for this purpose. Thus, the fact that the tool cases may primarily be used to store their contents does not remove them from the scope of the heading. Similarly, the fact that the cases may more easily be carried if a handle were present is not dispositive. Rather, to satisfy the portability requirement it is sufficient if, in terms of their design, it is reasonable and foreseeable that the articles may be used to transport their contents…. there is no absolute requirement that these containers possess handles (e.g. a spectacle case, which is enumerated in the first part of the heading, does not ordinarily possess handles).”
In the present case, the subject merchandise is intended to be used to store various items in the trunk of a car, both for the convenience of the owner and to keep these items from shifting during travel. The hook-and-loop strips on the bottom of the item are designed to secure it to the bottom of the trunk. There can be little doubt that the merchandise is “suitable to effectively transport various items in a vehicle, while it organizes, stores, and protects them.” See HQ 963473.
It is distinguishable from NY J86790, dated July 24, 2003; NY L81789, dated January 14, 2005; and L81790, dated January 15, 2005, which were merely designed to store the merchandise and did not possess the remaining characteristics of goods of heading 4202, HTSUS. As a result, CBP finds that it meets the Totes standard of ejusdem generis with the merchandise listed in heading 4202, HTSUS, and can be classified under that heading.
In accordance with the terms of heading 6307, HTSUS, and Additional U.S. Rule of Interpretation 1(c), because the trunk organizer is classifiable in heading 4202, HTSUS, it cannot be classified in heading 6307, HTSUS, or in heading 8708, HTSUS.
HOLDING:
Under the authority of GRI 1, the trunk organizer style A002AA00637 is provided for in heading 4202, HTSUS. More specifically, it is classified under subheading 4202.92.9026, as “…traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers: other: With outer surface of sheeting of plastic or of textile materials: other: other: of man made fiber.” The applicable duty rate is 17.6% 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.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N053837, dated March 30, 2009, is AFFIRMED.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division