CLA-2: OT: RR: TCM: H209830ERB
Port Director, Port of Cleveland
U.S. Customs and Border Protection
6747 Engle Road
Middleburg Heights, OH 44130-7907
Attn: Susan Coleman, Import Specialist
RE: Application for Further Review of Protest No. 4101-11-100141; Collectable coin display box
Dear Port Director:
The following is our decision regarding the Application for Further Review (AFR) of Protest No. 4101-11-100141, timely filed on November 15, 2011, on behalf of The World Reserve Monetary Exchange (WRME). The AFR concerns the classification of a decorative display case for coins, (referred to in the submission as a “BOXBLURG Box”, hereinafter referred to as “coin case”) under the Harmonized Tariff Schedule of the United States (HTSUS). In reaching our decision, we have taken into account information provided in WRME’s submission dated November 15, 2011, we well as supplemental information emailed to this office on June 9, 2014, including a sample that was provided to this office for inspection and analysis.
FACTS:
The subject merchandise is a decorative display case for coins, invoiced as a “466 Boxblulrg plastic box.” It is rectangular in shape, with a domed cover featuring a snap-action type opening and closure. It measures 5 7/8” in length, by 4 15/16” in width and 1 ½” at its highest point in height. It is comprised of a two-piece molded plastic lid and base held together with metal snap-close hinges. Lid and base are fully covered with a dyed textured paper. The interior has white paperboard on the base and a sheet of man-made fiber textile that features a gold embossed seal encircled by the words “World Reserve Monetary Exchange” inside the lid. It is has one open compartment, with no additional compartments or specially shaped or fitted features to secure the coins in place. According to WRME, it is predominantly used as a decorative, collectable coin display case.
This AFR concerns one entry of the subject merchandise made on November 22, 2010. WRME entered the goods under subheading 3923.90.00, HTSUS, which provides for, “Articles for the conveyance or packing of goods, of plastics.” CBP liquidated the goods on May 27, 2011, under subheading 4202.99.90, HTSUS, which provides for containers and cases, of materials (other than leather, composition leather, sheeting of plastics, textile materials, vulcanized fiber or paperboard) wholly or mainly covered in paper, other. WRME argues in its AFR that the coin case should be classified in heading 3924, HTSUS, which provides for “Tableware, kitchenware, other household articles…of plastics,” or in the alternative, under heading 3926, HTSUS, which provides for, “Other articles of plastics,” or in the alternative, in heading 4823, HTSUS, which provides for, “Other paper, paperboard…”.
ISSUE:
What is the classification of the subject coin cases?
LAW AND ANALYSIS:
Initially, we note that the matter is protestable under 19 U.S.C. § 1514(a)(2) as a decision on classification. The protest was timely filed, within 180 days of liquidation for entries made on or after December 18, 2004. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2)(B)(ii), (iii)(codified as amended at 19 U.S.C. § 1514(c)(3)(2006)). Further Review of Protest No. 4101-11-100141 is properly accorded to WRME pursuant to 19 C.F.R. § 174.24(a) because it is alleged that the ruling is inconsistent with a ruling of the Commissioner of Customs or his designee, or the ruling is inconsistent with a decision made at a port with respect to the same or substantially similar merchandise.
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 HTSUS provisions under consideration are as follows:
3924 Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics
3926 Other articles of plastics and articles of other materials of headings 3901 to 3914
4202 Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling-bags, insulated food or beverage bags, toiled bags, rucksacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder boxes, 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. [Emphasis added]
4202.92 Other: With outer surface of sheeting of plastic or of textile materials:
4202.92.90 Other
4202.99 Other: Of materials (other than leather, composition leather, sheeting of plastics, textile materials, vulcanized fiber or paperboard) wholly of mainly covered with paper:
4202.99.10 Of plastics
4823 Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers
Note 2(m) to Chapter 39 states the following:
This Chapter does not cover:
(m) Saddlery or harness (heading 4201) or trunks, suitcases, handbags or other containers of heading 4202;
Note 2(h) to Chapter 48 states the following:
This Chapter does not cover:
(h) Articles of heading 4202 (for example, travel goods);
Therefore, if the subject merchandise is prima facie classifiable in heading 4202, HTSUS, it is precluded from classification in Chapter 39 or Chapter 48.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not 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. 89-89, 54 Fed. Reg. 35127 (Aug. 23, 1989).
The EN to heading 42.02 states the following in relevant part:
This heading covers only the articles specifically named therein and similar containers.
***
Subject to Notes 2 and 3 to this Chapter, the articles covered by the first part of the heading may be of any material. The expression “similar containers” in the first part includes hat boxes, camera accessory cases, cartridge pouches, sheaths for hunting or camping knives, portable tool boxes or cases, specifically shaped or internally fitted to contained particular tools with or without their accessories, etc.
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.). [Emphasis added]
***
The term “jewellery boxes” covers not only boxes specially designed for keeping jewellery, but also similar lidded containers of various dimensions (with or without hinges or fasteners) specially shaped or fitted to contain one or more pieces of jewellery and normally lined with textile material, of the type in which articles of jewellery are presented and sold and which are suitable for long-term use. [Emphasis added]
By its terms, heading 4202, HTSUS, encompasses the containers specifically enumerated. In addition, containers similar to these exemplars are also classified under this heading. Coin cases are not specifically provided for in heading 4202, HTSUS. However they are classifiable in this heading if they are ejusdem generis with the enumerated containers.
WRME argues that the coin case is not similar to jewelry boxes, but rather, “may only have features or uses considered as characteristics to Heading 4202,” and WRME cites to Totes, Inc. v. United States, 865 F. Supp. 867 (Ct. Int’l Trade 1994) as support for this argument. Yet, in that case the Court of International Trade (CIT), and later the Court of Appeals for the Federal Circuit (CAFC) in affirming the CIT, held that goods sharing the same essential characteristics of organizing, storing, protecting, and carrying various items, are properly classified in heading 4202, HTSUS. Totes, Inc. v. United States, 69 F.3d 495, 498 (Fed. Cir. 1995). The subject merchandise shares these traits with jewelry boxes, and satisfies the above EN to 42.02. The coin case is a lidded container, with hinges, designed to organize, store, protect, and carry an object. It is similar to the type of case in which jewellery is presented or sold. Lastly, it is suitable for long term use given the durable plastic molded base, and it is appropriate for continuous use when open, given the gold decorative interior featuring WRME’s seal. See Headquarters Ruling Letter (HQ) 089825, dated April 9, 1993 (“…a coin case is ejusdem generis with the articles of heading 4202, and is a container similar to a jewelry box.”) See also Jewelpak Corp. v. United States, 297 F.3d 1326, 1337 (Fed. Cir. 2002), (Thus, “for the boxes at issue here to be classified…in this heading, fitting with the rest of the items in the list, the boxes must be usable on a repeated basis.”).
WRME also argues against classification in Chapter 42 by inferring that in order for a container to be similar to a jewelry box, it must be specially shaped or fitted to contain something, for example, a pad with an indentation, or some other means of securing the coin in place within the interior of the case. As the subject coin case is not specially fitted to hold either jewelry or a coin, WRME concludes that it cannot be classified as a container similar to a jewelry box. This conclusion is based on the premise that the phrase “similar lidded containers” found in ENs 42.02 explicates the term “similar containers” found in heading 4202, HTSUS. However, this is not the case. The EN to 42.02 cited above clarifies the term “jewellery box” and not the term “similar containers,” found in heading 4202, HTSUS. This passage makes it clear that the term “jewellery boxes” encompasses not only the traditional compartmentalized jewelry cases used to store numerous articles of jewelry, but also the lidded containers in which jewelry is often presented and sold at a department store, or jewelry store. So long as a container is “specially shaped or fitted to contain one or more pieces of jewellery,” it meets the definition of “jewellery box.” Thus, the phrase “similar lidded containers” refers to a class of “jewelry boxes”. And the term “similar containers” as used in heading 4202 refers to containers which are not jewelry boxes at all; they are merely similar enough that they ejusdem generis are classified alongside jewelry boxes. There are no limitations, such as the requirement of a specially fitted compartment, on goods that are similar to jewelry boxes. See HQ 089825, dated April 9, 1993 (classifying a coin case with a metal plate and paperboard base, covered with a velvet man-made textile in subheading 4202.92.90, HTSUS). The subject coin case is classifiable ejusdem generis with the enumerated containers of the second clause of the heading text of 4202, HTSUS.
At the six-digit level, the majority of goods under heading 4202, HTSUS, are classified by the material that comprises the “outer surface” of the good. CBP addressed this in HQ 963618, dated August 2, 2002 (citing HQ 087760, dated October 31, 1991), wherein we explained:
At the four-digit level, heading 4202, HTSUSA, requires that a good be “of or “wholly or mainly covered with” a specified material. However, at the six-digit level, the nomenclature classifies goods by the material which comprises the “outer surface.” In classifying goods such as these, we must distinguish between the requirements of the four and six-digit headings, since they dictate different criteria for classifying goods. This distinction was also discussed in (HQ) 954021[dated November 1, 1993], wherein Customs, noting HQ 087760 [dated October 31, 1991], stated: “Evident in the above are two important distinctions: (1) a covering vs. an outer surface, and (2) classification at the four-digit (or heading) level vs. classification at the six-digit (or subheading) level.”
The term “outer surface of” is not defined in Chapter 42, or anywhere else in the HTSUS. But Customs stated in HQ 086775, dated July 9, 1990, that the outer surface “is that which is both visible and tactile.” Here the outer surface of the coin case consists of dyed blue paper wholly covering the molded plastic lid and base. There is no plastic sheeting or textile impregnated or coated with plastic. Thus, as the subject coin case falls outside the scope of Note 2 to Chapter 42, and applying the principals set forth in previous CBP rulings on similar merchandise, we conclude that the coin case is provided for in subheading 4202.99.10, HTSUS, as “…jewelry boxes…and similar containers…, wholly or mainly covered with…paper: Other: Other: Of materials (other than leather…) wholly or mainly covered with paper: Of plastics.” See New York Ruling (NY) N222975, dated July 12, 2012 (classifying a jewelry box covered in paper); see also NY N117215, dated August 31, 2010 (classifying a plastic jewelry box with an outer constituent material of paper).
HOLDING:
By application of GRI 1, the subject coin case is classified in heading 4202, HTSUS. By application of GRI 1 and GRI 6, the subject merchandise is specifically provided for in subheading 4202.99.10, HTSUS, as “Trunks, suitcases, vanity cases, attaché cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling 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 sheetings of plastics, of textile materials of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper: Other: Of materials (other than leather, composition leather, sheetings of plastics, textile materials, vulcanized fiber or paperboard) wholly or mainly covered with paper: Of plastics.” The general column one rate of duty, for merchandise classified in this subheading is 3.4% ad valorem.
You are instructed to GRANT the protest.
In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division