CLA-2 RR:CR:SM 561020 KSG

Area Port Director
U.S. Customs Service
Providence, Rhode Island

RE: Application for Further Review of Protest No. 0502-97-100013; Nairobi Protocol; articles specifically designed or adapted for the use or benefit of the blind or other physically or mentally handicapped; subheading 9817.00.96, HTSUS; diabetes

Dear Sir:

This is in reference to a protest and application for further review filed by Medport Inc., contesting the denial of duty free treatment under subheading 9817.00.96, of the Harmonized Tariff Schedule of the United States ("HTSUS"), to imported diabetes organizers and mobility organizers.

FACTS:

The imported articles included in this protest are eight different products involving two lines of merchandise. The first line of merchandise consists of diabetes organizers. The second line of merchandise consists of mobility organizers. The protestant in this case is Medport, Inc., a company that specializes in the health care/ disabilities market. We are informed that Medport worked with focus groups, pharmacists, other health care experts and people with disabilities to develop products that would meet the specialized needs of disabled people.

Both these lines are sold over the counter in drugstores and medical supply stores, as well as by mail. The diabetes organizers are advertised in two specialized publications dealing with issues of interest to people with diabetes. The diabetes organizers have specialized features such as separate compartments equipped with a plastic mini ice pack for the purpose of maintaining insulin at the proper temperature, and another compartment containing elastic straps to hold syringes and insulin bottles, temperature devices and pockets to hold a meter. The diabetes organizers are sold in sleeves that advertise the product as designed for a person with diabetes in large bold lettering. The protest involves three diabetes organizers: styles 10006, 10007 and 10008.

Style 10006 is called the wallet organizer. It is a zippered case that measures 7 3/4" x 3 3/4" x 3/4". The wallet organizer is designed to carry up to three syringes for insulin and two insulin bottles. The organizer has a center divider that creates two compartments. One compartment contains elastic straps that hold the syringes and insulin bottles. The other compartment has a vinyl pocket that holds a freezable mini ice pack.

Style 10007 is called the daily organizer. It measures 6.75" x 5.5" x 2.5". It is designed to hold enough insulin and related supplies to last up to three days. It also has two compartments, elastic straps to hold syringes and insulin, a log book, a zippered pocket designed to hold a meter, and a clear plastic pouch designed to hold syringes and insulin. The other compartment is designed to hold insulin, a plastic mini ice pack, and a plastic pouch.

Style 10008 is called the travel organizer. It measures 9" x 6" x 2.5". It is designed to hold enough insulin and related supplies for up to two weeks. It also has two compartments: a cool side with two plastic mini ice packs and a room temperature side designed to hold a meter, supplies and a detachable plastic waste pouch.

The other line, the mobility organizers, consists of five styles: styles 30001, 30002, 30003, 30004, and 30005. You state that the mobility organizers are designed specifically for persons with chronic ambulatory impairments. These products are packaged in cardboard boxes which indicate that the articles are for use with products like walkers, wheelchairs, canes or crutches.

Style 30001 is called the fold-away carrypak for walkers and wheelchairs. It is nylon and measures 15" x 11" x 9". It has three straps so that it can be attached to a walker or wheel chair. This product would not be usable as a backpack because the straps are too short and inconveniently placed for carrying by an individual. It also has no flap that would allow it to be closed. There is one large main compartment as well as outside pockets that could be used to carry various items. It has panels that give it more strength so that it can be used to carry heavier items.

Style 30002 is called a carrypak for canes and crutches. It is nylon and measures 10" x 5 1/2" x 1 3/4". It is designed to be attached to a cane or crutches by means of a slip proof hook and loop system. It has a main storage compartment pocket, a beverage holder and pockets for pens.

Style 30003 is called a carrypak for walkers. It is nylon and measures 14" x 12" x 2". It has three straps that allow it to be attached to center crossbar walkers. It has a main compartment and exterior pockets that could be used to carry items. This product also has an adjustable shoulder strap that would allow it to be carried by a person.

Style 30004 is called a carrypak for wheelchairs. It is nylon and measures 12 1/2" x 14" x 5". It has two circular straps that attach to the back handles of wheelchairs. It would not be usable as a backpack since it would be unbalanced and would not fit on a person's back.

Style 30005 is called a carrymate for canes and crutches. It is designed to be attached to a cane or crutches by means of a slip proof hook and loop system. It stays gripped to the cane, walker, or crutch because of its tread- like construction. It has a loop that is designed to hold keys and a jacket or gloves.

ISSUE: Whether the three diabetes organizers and the five mobility organizers are eligible for duty-free treatment under subheading 9817.00.96, HTSUS.

LAW AND ANALYSIS: The Agreement on the Importation of Educational, Scientific and Cultural Materials, known as the Florence Agreement, is an international agreement drafted by the United Nations Educational, Scientific, and Cultural Organization (UNESCO) and adopted by it in Florence, Italy, in July 1950 (17 UST 1835; TIAS 6129).

It provides for duty-free treatment and the reduction of trade obstacles for imports of educational, scientific, and cultural materials in the interest of facilitating the international free flow of ideas and information. Materials falling within the coverage of the Florence Agreement include: books, publications and documents; works of art and collector's pieces; visual and auditory materials; scientific instruments and apparatus; and articles for the blind.

The Nairobi Protocol to the Florence Agreement on the Importation of Educational, Scientific, and Cultural Materials Act of 1982 expanded the scope of the Florence Agreement primarily by expanding duty-free treatment for certain articles for the use or benefit of the handicapped in addition to providing duty-free treatment for articles for the blind. The 97th Congress passed Pub. L. 97-446 to ratify the Nairobi Protocol in the U.S. The Senate stated in its Report that one of the goals of this law was to benefit the handicapped and show U.S. support for the rights of the handicapped. The Senate, however, did state that it did not intend "that an insignificant adaptation would result in duty-free treatment for an entire relatively expensive article... the modification or adaptation must be significant so as to clearly render the article for use by handicapped persons." S. Rep. No. 97-564, 97th Cong. 2nd Sess. (1982). The Senate was concerned that persons would misuse this tariff provision to avoid paying duties on expensive products.

Section 1121 of the Omnibus Trade and Competitiveness Act of 1988 and Presidential Proclamation 5978 provided for the implementation of the Nairobi Protocol by inserting permanent provisions, subheadings 9817.00.92, 9817.00.94, and 9817.00.96 into the HTSUS. These tariff provisions specifically state that "articles specifically designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons" are eligible for duty-free treatment.

U.S. Note 4(a), Chapter 98, HTSUS ("U.S. Note 4(a)"), states that the term "blind or other physically or mentally handicapped persons" includes any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working.

U.S. Note 4(b), Chapter 98, HTSUS ("U.S. Note 4(b)"), states that subheadings 9817.00.92, 9817.00.94 and 9817.00.96 do not cover (I)articles for acute or transient disability; (ii) spectacles, dentures, and cosmetic articles for individuals not substantially disabled; (iii) therapeutic and diagnostic articles; or (iv) medicine or drugs.

People who suffer from kidney failure are considered "handicapped." See Travenol Laboratories, Inc. v. United States, 813 F. Supp. 840 (CIT 1993), and HRL 559120, dated October 20, 1995. Customs ruled in HRL 556090, dated November 8, 1991, that individuals who suffer from chronic arthritis, scoliosis, severe hernia problems and post-polio syndrome and who need heavy-duty support corsets are "handicapped" within the meaning of this provision because without the corsets, they are substantially limited in their ability to walk and perform manual tasks. Individuals who suffer from chronic incontinence are considered "handicapped" because this condition can interfere with working. See HRL 960056, dated January 30, 1997.

Section 3 of the Americans with Disabilities Act of 1990 ("ADA"), 42 U.S.C. 12102(2) defines a disability as "a physical or mental impairment that substantially limits one or more of the major life activities of such individual." Because this definition uses language similar to the definition set forth above in U.S. Note 4(a), chapter 98, HTSUS, it is instructive to examine the case law under the ADA. The federal courts have held that diabetes substantially limits one or more of the major life activities of an individual. See Canon v. Clark, 883 F. Supp. 718 (S.D. Fla. 1995), Sarsycki v. United Parcel Service, 862 F. Supp. 336 (W.D. Okla. 1994), and EEOC v. The Chrysler Corporation, 917 F. Supp. 1164 (E.D. Mich. 1996). In the Chrysler Corporation case, the District Court ruled that an industrial electrician who suffered from diabetes was disabled within the meaning of the ADA because he had an impairment which significantly restricted his ability to perform either a class of jobs or a broad range of jobs in various classes.

As discussed in the cases above, people with diabetes are limited in their ability to perform a broad range of jobs because they must be able to monitor their blood sugar, inject insulin if prescribed, and have work restrictions due to excessive urination, possible nausea, dizziness and fainting. Like chronic incontinence, this interferes with working-- a major life activity. Therefore, persons with diabetes suffer from a permanent or chronic physical impairment which substantially limits a major life activity and therefore, are considered physically handicapped persons under U.S. Note 4(a). In Headquarters Ruling Letter ("HRL") 556532, dated June 18, 1992, Customs ruled that persons who use canes and forearm crutches are handicapped persons under U.S. Note 4(a) which includes individuals who have difficulty walking. Further, Customs has held that persons who use walkers and wheelchairs are handicapped persons under U.S. Note 4(a). See HRL 557712, dated June 27, 1994, HRL 557734, dated April 18, 1994, HRL 557798, dated June 17, 1994, and HRL 556995, dated February 25, 1993. Accordingly, we find that people who have limited or no ability to walk without assistance suffer from a permanent or chronic physical impairment which substantially limits a major life activity and therefore, are also considered physically handicapped persons under U.S. Note 4(a). The last issue is whether the eight products involved in this case are "specially designed or adapted" for the use or benefit of handicapped persons, which is required by the superior text in subheading 9817.00.96, HTSUS. The meaning of the phrase "specially designed or adapted" has been decided on a case-by-case basis. In HRL 556449, dated May 5, 1992, Customs set forth factors it would consider in making this case-by-case determination. These factors include: 1)the physical properties of the article itself, i.e., whether the article is easily distinguishable, by properties of the design, form, and the corresponding use specific to this unique design, from articles useful to non-handicapped persons; 2) whether any characteristics are present that create a substantial probability of use by the chronically handicapped so that the article is easily distinguishable from articles useful to the general public and any use thereof by the general public is so improbable that it would be fugitive; 3) whether articles are imported by manufacturers or distributors recognized or proven to be involved in this class or kind of articles for the handicapped; 4) whether the articles are sold in specialty stores which serve handicapped individuals; and 5) whether the condition of the articles at the time of importation indicates that these articles are for the handicapped.

Customs has held that a two-handed mug, a nail file with a lightweight handle and pen with a wide base have a general public use; therefore, these articles were not considered specially designed or adapted for the handicapped. A bedside toilet, a plate with a raised edge, a potato peeler designed for one- handed use, and a shower stool were determined to be specially designed or adapted for the handicapped.

In this case, we have examined the samples and literature prepared by Medport and find that the three diabetes organizers have distinctive design features, and characteristics which easily distinguish them from articles useful to the general public so that any use thereof by the general public would be so improbable that it would be fugitive. Examples of these distinctive features are: the separate cool compartment for insulin, the elastic straps for insulin bottles and syringes, compartments for meters, items to measure temperature and a detachable medical waste pouch. Further, Medport has stated that it primarily sells these products in specialized sections of drugstores, by mail, and it advertises the products in specialized publications targeted to people with diabetes. We also note that Medport specializes in the health care area and specifically, with articles for people with diabetes. We find that the three diabetes organizers are specially designed or adapted for the use or benefit of handicapped persons and are entitled to duty-free treatment under subheading 9817.00.96, HTSUS.

The mobility organizers involved in this case are designed to be used with wheelchairs, walkers, canes and crutches. While Customs has not specifically ruled on such organizers, there is a line of cases dealing with the eligibility of the wheelchairs, walkers, canes and crutches for duty free treatment under subheading 9817.00.96. In HRL 556532, dated June 18, 1992, Customs considered the issue of whether the canes and crutches in that case were of a kind or class which are primarily associated with use by the permanently handicapped as opposed to use by individuals with acute or transient disabilities (i.e. sprained ankles, broken legs). Customs determined that the canes at issue and the forearm crutches were of class or kind which are primarily associated with use by the chronically or permanently handicapped while the crutches at issue in that case were of a class or kind which are predominantly used by individuals with acute or transient disabilities. Therefore, the canes and forearm crutches were determined to be "specially designed or adapted" within the meaning of the Nairobi Protocol.

In HRL 557712, dated June 27, 1994, Customs determined that wheelchairs with special design features, although they may be used by persons with acute or transient disabilities, were predominantly used by persons with permanent or chronic physical handicaps and therefore, were specially designed or adapted for the handicapped. Also see HRL 557798, dated June 17, 1994.

Customs ruled in HRL 556995, dated February 25, 1993, that four styles of wheelchairs and two styles of walkers were designed for long-term use and to provide the maximum mobility, independence and comfort to the users, and therefore, were specially designed or adapted for persons with permanent disabilities. In HRL 557734, dated April 18, 1994, Customs determined that aluminum folding walkers were predominantly used by the chronically and permanently handicapped and were specially designed or adapted for the handicapped.

With regard to the mobility organizers involved in this case that are designed to be attached to wheelchairs, walkers, canes and crutches, we believe that although these products could be used by persons with acute or transient disabilities who use wheelchairs, walkers, canes or crutches, such persons would be unlikely to invest in such a product. Based on the specific design features of each product, which are discussed below, we find that four of the styles are specially designed or adapted for the use or benefit of handicapped persons and are entitled to duty-free treatment under subheading 9817.00.96, HTSUS.

Style 30001, the fold-away carrypak for walkers and wheelchairs, has specialized design features: it has three straps so it can be attached to a walker or wheel chair. As discussed infra, this product would not be used as a backpack because the straps are unsuitable. It also has no flap that would allow it to be closed. It has specialized panels that give it more strength to be used to carry heavier items, which would have little use to a person that is not disabled.

Style 30004, a carrypak for wheelchairs, has two circular straps that attach to the back handles of wheelchairs. It could not be conveniently carried as a backpack since it would be unbalanced and awkward to carry and the straps are unsuitable for that use.

Style 30002, a carrypak for canes and crutches, is specially designed to be attached to a cane or crutches by means of a slip proof hook and loop system and provides the handicapped individual with a storage pocket. Style 30005, a carrymate for canes and crutches, is designed to be attached to a cane or crutches by means of a slip proof hook and loop system and provides the handicapped person with a loop. Neither article has any other likely use than being attached to a cane or crutches. Further, these articles can be distinguished from the crutches in HRL 556532 because a person who has a transient disability is unlikely to need these articles on a short-term basis. Therefore, we find that these styles of mobility organizers are of a class or kind which are primarily associated with use by the chronically or permanently handicapped.

In contrast with the above styles, style 30003, a carrypak for walkers, has an adjustable shoulder strap that would allow it to be carried by anyone, whether handicapped or not, in addition to a strap that fits on a walker. The outside sleeve states that the carrypak has a main compartment, exterior pockets and water-repellent nylon. None of these features are uniquely designed or useful only for a handicapped person. Therefore, we find that style 30003 is not specially designed or adapted for the use or benefit of handicapped persons. Accordingly, style 30003 is not entitled to duty-free treatment under subheading 9817.00.96, HTSUS.

Classification of Style 30003 carrypak

In the alternative, counsel argues that style 30003 should be classified at subheading 9021.19.85, HTSUS, and not at subheading 4202.92.3030, HTSUS, as Customs determined. Subheading 9021.19.85, HTSUS provides for

Orthopedic appliances, including crutches, surgical belts and trusses, splints and other fracture appliances; artificial parts of the body; hearing aids and other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; parts and accessories thereof: Artificial joints and other orthopedic or fracture appliances; parts and accessories thereof: other: other:

Note 2 to Chapter 90, HTSUS, provides that :

Subject to note 1 above, parts and accessories for machines, apparatus, instruments, or articles of this chapter are to be classified according to the following rules:

(a) Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85 or 91 (other than heading 8485, 8548 or 9033) are in all cases to be classified in their respective headings;

(b) Other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 90310 are to be classified with the machines, instruments or apparatus of that kind;

(c) All other parts and accessories are to be classified in heading 9033.

(Emphasis added.)

Although the two top straps of the bag render it suitable for strapping onto a walker, it could as easily be strapped onto a bicycle, stroller etc. The presence of the shoulder strap further indicates that the bag is not intended for use "solely or principally" with a walker as required by Note 2(b) to Chapter 90, HTSUS. In short, for the same reasons that style 30003 is not entitled to duty-free treatment under subheading 9817.00.96, HTSUS, the protestant has not established that this article is suitable for use solely or principally with a particular kind of machine, instrument or apparatus, which in this case is a walker. Accordingly, we affirm Customs determination that the style 30003 bag is properly classified at subheading 4202.92.3030, HTSUS. HOLDING:

The three types of diabetes organizers and styles 30001, 30002, 30004, and 30005 in the mobility organizer line are entitled to duty-free treatment under subheading 9817.00.96, HTSUS. Accordingly, the portion of the protest relating to these articles should be granted.

With regard to style 30003 in the mobility organizer line, we find that this article is not entitled to duty-free treatment under subheading 9817.00.96, HTSUS, or classification in subheading 9021.19.85, HTSUS. It is properly classified at subheading 4202.92.3030, HTSUS. Accordingly, the portion of the protest relating to this article should be denied.

In accordance with Section 3a(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, this decision should be attached to Customs Form 19, Notice of Action, and be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of this decision. Sixty days from the date of this decision, the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and to the public via the Diskette Subscription Service, the Freedom of Information Act, and other public access channels.

Sincerely,


John Durant, Director
Commercial Rulings Division