CLA-2 CO:R:C:T 952487 NLP
Mr. Richard Moody
Discware Systems Inc
100-5960 Minoru Blvd.
Richmond, B.C.
Canada V6X3J3
RE: Compact disc storage unit; cases used for storing,
protecting and transporting; Legal Note 2(h) to Chapter 39;
heading 3923; heading 4202; Explanatory Notes to heading
4202; HRL 951218; HRL 951080; HRL 950397; NYRL 868933; HRL
085519; HRL 083441
Dear Mr. Moody:
This is in reply to your letter dated July 8, 1992, to our
New York office, in which you requested a tariff classification
for a compact disc storage unit under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
The compact disc storage unit, called a "Discwallet", is
produced in Korea. The Discwallet is bi-fold style with a middle
snap tab closure. It measures approximately 8-1/2 inches square
with a gusset capacity of 2 inches. The exterior of the
Discwallet is made from a cellular plastic sheeting backed with a
uniformly dyed woven fabric. The next layer is foamed plastic
padding, followed by a layer of cardboard. The innermost layer
is unsupported plastic sheeting. The article is assembled by
gluing, heat sealing and sewing. The four corners are reinforced
with protective metal edges.
The Discwallet has a sleeve on each inside cover. Into each
sleeve a rigid plastic covered cardboard tab containing four
plastic wings is inserted. Each wing is capable of holding two
compact discs, for a total capacity of 16 discs. Each tab with
wings can be removed and/or replaced when its usefulness is
exhausted. The Discwallet is packaged in a box printed with a
picture of a woman holding the product as she is about to enter
or leave a car. The product is labelled, "Music on the Move."
The interior of the Discwallet contains a clear plastic
compartment with an identification card in case of the loss of
the article.
ISSUE:
Is the Discwallet similar to enumerated articles such that
it is classifiable in heading 4202, HTSUS?
LAW AND ANALYSIS:
The classification of goods under the HTSUS is governed by
the General Rules of Interpretation (GRI's), taken in order. GRI
1 provides that classification shall be determined according to
the terms of the headings 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 GRI's may be applied, taken in
order.
Heading 3923, HTSUS, provides for "[a]rticles for the
conveyance or packing of goods, of plastics,...". Legal Note
2(h) to Chapter 39, HTSUS, precludes from classification therein
"...trunks, suitcases, handbags or other containers of heading
4202." Therefore, if the compact disc holder is an item
classifiable in heading 4202, HTSUS, then it is precluded from
classification in heading 3923, HTSUS.
Heading 4202, HTSUS, provides for the following:
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,
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 plastic sheeting, of textile materials, of
vulcanized fiber or of paperboard, or wholly or mainly
covered with such materials.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) to heading 4202 state, on page 613, that
this heading does not cover "[a]rticles which, although they may
have the character of containers, are not similar to those
enumerated in the heading..." It is our position that the
compact disc holder is similar to several items enumerated in
heading 4202, HTSUS. We note that there is no prerequisite that
cases of heading 4202, HTSUS, be specially fitted to accommodate
particular articles or have handles or straps to facilitate
carrying. In addition, the containers of heading 4202, HTSUS,
also may have hard or soft exteriors. For example, one of the
listed exemplars is a camera case. Many camera cases are not
specially fitted, do not have straps and may have soft exterior
surfaces. The function of the case is to provide protection so
that a camera may be stored or transported until the time it is
used. Similarly, the Discwallet protects, stores and provides a
means of transport for compact discs. The fact that it does not
have a handle or a shoulder strap does not remove it from
classification in this heading.
Furthermore, various Customs ruling letters have classified
articles that are similar to the Discwallet in heading 4202,
HTSUS. For example, New York Ruling Letter (NYRL) 868933, dated
December 18, 1991, classified a 100% cotton textile compact disc
case with a snap closure designed to store and protect compact
discs in subheading 4202.92.6000, HTSUS. Headquarters Ruling
Letter (HRL) 951080, dated May 14, 1992, held that cassette tape
and compact disk carrying cases were classified in subheading
4202.92.90, HTSUS. In addition, HRL 085519, dated September 27,
1989, also classified a cassette carrying case made of burlap and
having an adjustable shoulder strap in subheading 4202.92.90,
HTSUS.
Moreover, it is our position that the subject compact disc
holder is not similar to other types of protective covers often
referred to as "organizers" or "portfolios". See, HRL 951218,
dated July 28, 1992 and HRL 950397, dated January 23, 1992, which
classify and describe various types of organizers and portfolios.
The organizers and portfolios are usually fitted with special
design features, such as interior slits into which note pads are
held in place, loops which accommodate pens and pencils, and
means by which such items as calculators or day planners are
affixed. These items, by design, actively organize their
internal contents and form an integral unit with them. That is
not the case with the Discwallet, whose primary purpose is not
organizational, but to protect, store and enable the convenient
transport of the compact discs.
In addition, even if the Discwallet was not classified in
heading 4202, HTSUS, heading 3923, HTSUS, would still not provide
for this article. The Discwallet is primarily used to store and
protect compact discs. Customs has ruled that articles primarily
used to protect or store goods are not classifiable in heading
3923, HTSUS, as that heading provides for articles for "packing"
and "conveying". See, HRL 083441, dated October 23, 1989.
The Discwallet is made of plastic sheeting, which is one of
the specified materials included in heading 4202, HTSUS, and it
is similar to articles enumerated in heading 4202, HTSUS.
Accordingly, the compact disc holder falls clearly within the
purview of the term "similar containers" as set forth in heading
4202, HTSUS. Specifically, the Discwallet is classified in
subheading 4202.92.9040, HTSUS.
HOLDING:
The Discwallet is classified in subheading 4202.92.9040,
HTSUS, which provides for "[t]runks, suitcases... binocular
cases, camera cases, musical instrument cases... and similar
containers;...[o]ther: [w]ith outer surface of plastic sheeting
or of textile materials: [o]ther: [o]ther: [o]ther." The rate of
duty is 20% ad valorem.
Sincerely,
John Durant, Director