OT:RR:CTF:CPMM H312216 MMM
Mr. Jim Ghedi
Ghedi International, Inc.
8002 Burleson Road
Austin, TX 78744
RE: Revocation of NY N087915, NY N018628, NY M80150, NY J83474, NY H87607, NY G86716, NY H82730, NY G88263, NY G84567, NY C89303, NY A87718, NY 886254, and NY 869451; tariff classification of textile backseat automobile organizers
Dear Mr. Ghedi:
This is in regard to New York Ruling Letter (NY) N087915, dated January 13, 2010, regarding the classification of an over-the-seat car organizer under the Harmonized Tariff Schedule of the United States (HTSUS). In NY N087915, CBP classified the backseat 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 N018628, dated November 8, 2007, NY M80150, dated February 24, 2006, NY J83474, dated April 25, 2003, NY H87607, dated February 8, 2002, NY G86716, dated February 6, 2001, NY H82730, dated June 26, 2001, NY G88263, dated March 19, 2001, NY G84567, dated December 5, 2000, NY C89303, dated June 25, 1998, NY A87718, dated October 15, 1996, NY 886254, dated May 20, 1993, and NY 869451, dated December 17, 1991 and determined they are also incorrect, and for the reasons set forth below, are revoking NY N018628, NY J83474, NY H87607, NY G86716, NY H82730, NY G88263, NY G84567, NY 886254 and NY 869451 and modifying NY M80150, 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 N087915, CBP stated as follows in reference to the subject merchandise:
Item 20446 is an over-the-seat car organizer made of nylon fabric with plastic pockets and mesh pockets. It is designed with a snap clip and drawstring that enable the organizer to be attached to the car seat.
CBP classified the merchandise in heading 8708, HTSUS, as an accessory of a motor vehicle. The subject merchandise in NY N018628, NY M80150, NY J83474, NY H87607, NY G86716, NY H82730, NY G88263, NY G84567, NY C89303, NY A87718, NY 886254, and NY 869451 are also backseat automobile organizers and all classified in heading 8708.
ISSUE:
Whether the subject backseat automobile organizers are classifiable in heading 4202, HTSUS, which provides for “similar containers,” under heading 6307, HTSUS, which provides for “Other made up articles, including dress patterns,” or under heading 8708, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705.”
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes.
GRI 1 requires that classification be determined first 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 heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 2(a) provides, in relevant part, that “[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished articles has the essential character of the complete or finished article.”
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 2020 HTSUS provisions under consideration are as follows:
4202 Trunks, suitcases, vanity cases, attaché cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers
6307 Other made up articles, including dress patterns:
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.
EN to Section XVII states, in pertinent part:
(III) PARTS AND ACCESSORIES
It should, however, be noted that these headings apply only to those parts or accessories which comply with all three of the following conditions:
(a) 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).
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 fulfil both the following conditions:
(i) 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 backseat automobile organizer. It is also not a “part” under the Pompeo test because firstly it is snap clipped onto the back of a seat, which would not constitute being “installed,” and even if it were considered “installed,” the car can still operate without the organizer once attached to the seat. 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 backseat automobile organizers at issue do not directly affect the car’s operation nor do they contribute to the car’s effectiveness. Instead, the automobile organizers merely allow the driver and its passengers to store items needed for their enjoyment or convenience but not for the operation of the automobile. The subject merchandise is not classified in heading 8708, HTSUS.
In classifying goods under the residual provision of "similar containers" of heading 4202, HTSUS, the Court of International Trade (CIT) 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 character 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 merchandise in this case is different than the merchandise in Totes. The backseat automobile organizer’s physical characteristics are particularly dissimilar. They are not comprised of a main storage section, but are a flat-backed organizer to be fastened unto the back of a seat. They include additions such as pockets or pull-down tables but do not include handles. Although the backseat organizers organize and store items, they would not be used to carry items. Additionally, they do not have the same physical characteristics as the containers in heading 4202. The subject merchandise is not classified in heading 4202, HTSUS.
As the subject merchandise in the above rulings are comprised of textile and plastic components and not classifiable at GRI 1, they are composite goods classified at GRI 3(b). According to GRI 3(b), composite goods consisting of different materials or made up of different components shall be classified as if they consisted of the material or component which gives them their essential character. Although the GRIs do not provide a definition of “essential character,” EN (VIII) of GRI 3(b) provides guidance. According to this EN, the essential character may 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.
It is well-established that a determination as to “essential character” is driven by the particular facts of the case at hand. Essential character has traditionally been understood as “that which is indispensable to the structure, core or condition of the article, i.e., what it is” and as “the most outstanding and distinctive characteristic of the article.” In this instance, the textile components provide the essential character to the backseat organizers. The textile components are the most distinctive characteristic of the organizers, as they make up the bulk of the product while the plastic components are mere additions for the structure of the pockets and the clasps, etc. The subject merchandise is properly classified in heading 6307, HTSUS, as made-up textile articles, specifically under subheading 6307.90.98, HTSUS, which provides for “Other made up articles, including dress patterns: Other: Other: Other.”
HOLDING:
Under the authority of GRIs 1 and 3(b) the subject textile backseat automobile organizers are classified under heading 6307, HTSUS, specifically under subheading 6307.90.98, HTSUS, which provides for “Other made up articles, including dress patterns: Other: Other: Other.” The 2020 column one, general rate of duty is 7 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.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N087915, dated January 13, 2010, 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 N018628, dated November 8, 2007, NY J83474, dated April 25, 2003, NY H87607, dated February 8, 2002, NY G86716, dated February 6, 2001, NY H82730, dated June 26, 2001, NY G88263, dated March 19, 2001, NY G84567, dated December 5, 2000, NY 886254, dated May 20, 1993, and NY 869451, dated December 17, 1991, 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