OT:RR:CTF:CPMM H287875 MMM
Mr. William A. Helms
Vice President Schmidt, Pritchard & Co. Customhouse Brokers
9801 West Lawrence Avenue
Schiller Park, IL 60176
RE: Revocation of NY L81614 and HQ 950525 and Modification of NY M80150, NY C89303 and NY A87718; classification of automotive organizers
Dear Mr. Helms:
This is in regard to New York Ruling Letter (NY) M80150, dated February 24, 2006, regarding the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of the automobile organizer. In NY M80150, CBP classified the automobile organizer in heading 8708, HTSUS, as a motor vehicle accessory. We have reviewed your ruling, and determined that it is incorrect, and for the reasons set forth below, are modifying your ruling.
We have also reviewed NY L81614, dated January 4, 2005, NY C89303, dated June 25, 1998, NY A87718, dated October 15, 1996, and HQ 950525, dated February 7, 1992, and determined they are also incorrect, and for the reasons set forth below, we are revoking NY L81614, and HQ 950525 and modifying NY C89303 and NY A87718.
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), a notice of the proposed action was published in the Customs Bulletin, Volume 54, No. 49, on December 16, 2020. No comment was received in response to this notice.
FACTS:
In your ruling NY M80150, CBP stated as follows in reference to the subject merchandise:
The third item (your stock number sku # 25110) is a container that fits in a trunk and has convenient handles. It has no zippered closure and no cover.
CBP classified the merchandise in heading 8708, HTSUS, as an accessory of a motor vehicle.
The subject merchandise in NY L81614 (automobile cooler), NY C89303 (backseat pocket and center seat organizer), NY A87718 (backpack backseat organizer (Item #14510) and glove box litter bag (Item #14521)), and HQ 950525 (automobile trash container) are similar to the merchandise in NY M80150 and were all classified in heading 8708, HTSUS.
ISSUE:
Are the automobile organizers solely or principally suitable for use in a motor vehicle and thus classifiable as an accessory of heading 8708, HTSUS, or as a travel bag of heading 4202, HTSUS?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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, the remaining GRIs may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes
(EN), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The 2020 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:
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705
* * * * * * *
Note 3 to Section XVII states as follows:
References in chapters 86 to 88 to "parts" or "accessories" do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those chapters. A part or accessory which answers to a description in two or more of the headings of those chapters is to be classified under that heading which corresponds to the principal use of that part or accessory.”
The General EN to Section XVII, states, in pertinent part:
It should, however, be noted that these headings apply only to those parts or accessories which comply with all three of the following conditions :
They must not be excluded by the terms of Note 2 to this Section (see paragraph (A) below).
and (b) They must be suitable for use solely or principally with the articles of Chapters 86 to 88 (see paragraph (B) below).
and (c) They must not be more specifically included elsewhere in the Nomenclature (see paragraph (C) below).
* * *
(C) Parts and accessories covered more specifically elsewhere in the Nomenclature.
Parts and accessories, even if identifiable as for the articles of this Section, are excluded if they are covered more specifically by another heading elsewhere in the Nomenclature, e.g.:
. . . .
(12) Vehicle seats of heading 94.01.
The EN to 8708 states, in pertinent part:
This heading covers parts and accessories of the motor vehicles of headings 87.01 to 87.05, provided the parts and accessories fulfill both the following conditions:
They must be identifiable as being suitable for use solely or principally with the above mentioned vehicles;
and (ii) They must not be excluded by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note).
* * * * * * *
In Bauerhin Techs. Ltd. P’ship. v. United States, 110 F.3d 774 (Fed. Cir. 1997), the court identified two distinct lines of cases defining the word “part.” Consistent with United States v. Willoughby Camera Stores, Inc., 21 C.C.P.A. 322, 324 (1933) (citations omitted), one line of cases holds that a part of an article “is something necessary to the completion of that article. . . . [W]ithout which the article to which it is to be joined, could not function as such article.” The other line of cases evolved from United States v. Pompeo, 43 C.C.P.A. 9, 14 (1955), which held that a device may be a part of an article even though its use is optional and the article will function without it, if the device is dedicated for use upon the article, and, once installed, the article will not operate without it. The definition of “parts” was also discussed in Rollerblade, Inc. v. United States, 282 F.3d 1349, 1353 (Fed. Cir. 2002), wherein the United States Court of Appeals for the Federal Circuit (“CAFC”) defined parts as “an essential element or constituent; integral portion which can be separated, replaced, etc.” This line of reasoning has been applied in previous CBP rulings.
Insofar as the term “accessory” is concerned, the Court of International Trade (“CIT”) has previously referred to the common meaning of the term because the term is not defined by the HTSUS or its legislative history. We also employ the common and commercial meanings of the term “accessory”, as the CIT did in Rollerblade, Inc., wherein the court derived from various dictionaries “that an accessory must relate directly to the thing accessorized.” In Rollerblade, Inc., the CAFC noted that “an ‘accessory’ must bear a direct relationship to the primary article that it accessorizes.”
The subject merchandise in this case is not a “part” under any of the tests provided in the judicial decisions described above. It is not a “part” under the Willoughby test because a car can function without a automobile organizer, litter bag, cooler, etc. It is also not a “part” under the Pompeo test because the subject merchandise is not “installed,” and the car can still operate without the subject merchandise once stored in the car. Lastly the subject merchandise is not a “part” because it is not an essential, constituent, or integral part to the vehicle.
The subject merchandise is also not an “accessory” of motor vehicles. Like the protective gear in Rollerblade, Inc. and the truck tents classified in HQ H242603, dated April 3, 2015, the subject merchandise at issue does not directly affect the car’s operation nor does it contribute to the car’s effectiveness. Instead, the subject merchandise merely allows the driver and its passengers to store items needed for their enjoyment or convenience, or dispose of items while driving. The subject merchandise is not classified in heading 8708, HTSUS.
Heading 4202, HTSUS, provides for, among other items, spectacle cases, camera cases, holsters, traveling bags and similar containers of textile materials such as the subject article. In classifying goods under the residual provision of "similar containers" of heading 4202, HTSUS, the Court of International Trade has stated as follows: “As applicable to classification cases, ejusdem generis requires that the imported merchandise possess the essential characteristics or purposes that unite the articles enumerated eo nomine [by name] in order to be classified under the general terms.” The court found that the rule of ejusdem generis requires only that the imported merchandise share the essential charcter or purpose running through all the containers listed eo nomine in heading 4202, HTSUSA., i.e., "…to organize, store, protect and carry various items."
In Totes, the CIT held that a trunk organizer, used to store automotive tools and supplies, was correctly classified in heading 4202. The trunk organizer in Totes had handles for carrying and Velcro strips that gripped carpeted surfaces and held it in place inside a trunk. The trunk organizer was comprised of a storage section which could be divided into three storage areas using dividers. The subject mercandise is similar to the merchandise in Totes, and is designed to organize, store, protect, and carry personal items. The varying merchandise are all comprised of a single storage section. The subject merchandise in M80150 and L81614 include handles for carrying and the subject merchandise in A87718 includes a closure to the main storage section in order to protect and store. The subject merchandise thus shares the essential character and purpose of the containers of heading 4202, HTSUS, and is therefore ejusdem generis with those articles. Past rulings have also classified similar articles in Heading 4202, despite their claimed use as motor vehicle accessories.
Lastly, according to Note 3 to Section XVII and the ENs to Section XVII, parts and accessories that are more specifically described outside of HTSUS Section XVII should be classified under the other, more specific provision. If the subject merchandise is also prima facie classifiable in 8708, HTSUS, it is still correctly classsifed in heading 4202, HTSUS, because the merchandise is more specifically described by heading 4202, HTSUS.
HOLDING:
By application of GRI 1, the automobile organizers found in NY M80150, NY C89303, NY A87718, and HQ 950525 are classified in heading 4202, HTSUS, specifically 4202.92.91, HTSUS, which provides for: “Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; … of textile materials: Other: With outer surface of sheeting of plastic or of textile materials: Other: Other: With outer surface of textile materials: Other: Of man-made fibers.” The automobile cooler in NY L81614 is specifically classified in subheading 4202.92.08, HTSUS, which provides for: “Insulated food and beverage bags…with outer surface of textile materials: Other: of man-made fibers.” The rate of duty for 4202.92.91 is 17.6% ad valorem. The rate of duty for 4202.92.08 is 7% 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 World Wide Web at http://www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY M80150, dated February 24, 2006, NY C89303, dated June 25, 1998, and NY A87718, dated October 15, 1996 are hereby MODIFIED in accordance with the above analysis.
NY L81614, dated June 1, 2005 and HQ 950525, dated February 7, 1992 are hereby REVOKED in accordance with the above analysis.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
for
Craig T. Clark, Director
Commercial and Trade Facilitation Division