CLA-2 CO:R:C:T 955655 ch
James Caffentzis, Esq.
Fitch, King and Caffentzis
116 John Street
New York, New York 10038
Re: Classification of portfolio planners; attache cases;
briefcases from China or India; notebooks; diaries.
Dear Mr. Caffentzis:
This is in response to your letter of December 29, 1993,
requesting tariff classification under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) for certain
articles described as portfolio planners. Samples were provided
to this office for examination.
FACTS:
Five samples were submitted for examination. Four samples
are cases with an exterior of leather and a polyurethane coating
measuring, on average, between 0.014 and 0.015 mm:
Style 3352 measures approximately 7 3/4 inches by 10 1/4
inches by 1 3/4 inches. It consists of a case with a zipper
closure and a three ring binder permanently affixed at the spine.
The binder is designed to accommodate a clear plastic insert
imprinted with an 8 inch ruler and paper pages which include a
daily appointment calendar, as well as weekly and monthly
calendars, with spaces and lines for personal notations. In
addition, the binder will hold a personal address and telephone
directory, an expense ledger, a vinyl business card holder and a
vinyl supply pouch with certain insignificant office supplies
such as paper clips. It features a note pad, which may be placed
in the binder or slipped into a pocket on the inside of the case.
The interior of the case also includes two pen holders, two flat
pockets and a pocket with tapered accordion style gussets
suitable for holding small objects. The exterior possesses a
full wall pocket which is designed to accommodate papers.
Style 2303 measures approximately 7 1/2 inches by 10 1/2
inches by 1/2 inch. It features a case with a zipper closure and
a three ring binder permanently affixed at the spine. This
article contains paper inserts substantially similar in design
and function to those of style 3352. The interior includes a
pocket designed to accommodate a small note pad, a flap to secure
papers, a small flat pocket for holding notes and a pen holder.
The exterior possesses a full wall pocket which is designed to
accommodate papers.
Style 3334 measures approximately 10 inches by 14 1/2 inches
by 1 inch. It possesses a zipper closure with a combination note
pad and one page pre-printed calendar inserted into a slot on the
inside of the case. The interior includes a pocket with tapered
accordion style gussets running the length and width of one of
the interior walls for holding personal effects. The front of
the gussetted pocket features two flat pockets measuring
approximately 14 inches in length, a zippered flat pocket
measuring approximately 8 inches in length and three open small
flat pockets. A pen holder is located on either side of the
spine.
Style 3342 measures approximately 11 1/4 inches by 14 1/2
inches by 2 3/4 inches. It possesses a zipper closure with a
three ring binder permanently affixed at the spine. A
combination note pad and one page pre-printed calendar may be
inserted into a slot on the inside of the case or placed in the
binder. The opposite interior wall possesses two tapered
gussetted pockets with snap tab restraints. It also includes two
smaller pockets with hook and loop fastener closures and three
pen holders. The exterior features retractable handles and a
full length pocket on each side.
Style 3877 is comprised of a case possessing an exterior
surface of what appear to be man-made fibers with leather trim.
This article measures approximately 10 1/2 inches by 13 3/4
inches by 1 3/4 inches. It possesses a zipper closure with a
three ring binder permanently affixed at the spine. A
combination note pad and one page pre-printed calendar may be
inserted into a slot on the inside of the case or placed in the
binder. A full wall pocket has been sewn behind the slot for the
note pad. The opposite interior wall features an open full wall
pocket, a zippered pocket measuring approximately 7 1/2 inches in
length, a gussetted pocket closed by means of hook and loop
fasteners measuring approximately 4 1/2 inches by 5 inches and
four pen holders. It also includes an exterior handle sewn to
the spine so that the article may be carried in an inverted
position.
ISSUE:
Whether the subject merchandise is classifiable in heading
4820, HTSUSA, which provides in pertinent part for diaries,
notebooks and similar articles; or heading 4202, HTSUSA, which
provides in pertinent part for attache cases, briefcases and
similar articles?
LAW AND ANALYSIS:
In prior ruling letters, we have concluded that portfolio
diaries, organizers, agendas or planners are not classifiable in
heading 4202, HTSUSA. For example, in Headquarters Ruling Letter
(HRL) 950325, dated December 27, 1991, we addressed the
classification of an organizer consisting of a leather case
enclosing a six-ring binder, with paper inserts for personal
record-keeping. In that decision, we stated:
We do not believe that heading 4202, HTSUSA, describes
a type of merchandise which would bring these goods
within the "similar containers" of that heading.
Although the "planner" may appear to be related to the
containers of heading 4202, HTSUSA, they are not
similar in that they are not designed or intended for
use in a similar manner, nor do they exhibit the
requisite physical attributes that Customs has found
common to goods of heading 4202, HTSUSA. (Emphasis
added).
Similarly, in HRL 950397, dated January 23, 1992, in
connection with the classification of a portfolio planner, we
observed that:
Although the planner may appear to be related to the
containers of heading 4202, HTSUSA, they are not
designed or intended for use in a similar manner, nor
do they exhibit the requisite physical attributes that
Customs has found common to goods of heading 4202,
HTSUSA. (Emphasis added).
Thus, we have determined that portfolio diaries, organizers,
agendas or planners are generally excluded from heading 4202 as
they are not used in a manner similar to, nor do they possess the
physical characteristics of, articles of that heading.
The Explanatory Notes (EN) to the Harmonized Commodity
Description and Coding System constitute the official
interpretation of the nomenclature at the international level.
While not legally binding, they do represent the considered views
of classification experts of the Harmonized System Committee. It
has therefore been the practice of the Customs Service to follow,
whenever possible, the terms of the EN when interpreting the
HTSUSA. In this instance, the EN to heading 4202 and heading
4820 shed light on the physical characteristics of articles of
those headings.
The EN to heading 4820 states in pertinent part, at page
687:
This heading covers various articles of stationery,
other than correspondence goods of heading 4817 and the
goods referred to in Note 9 to this Chapter. It
includes:
* * *
(1) Registers, account books, note books of all
kinds, order books, receipt books, copy
books, diaries, letter pads, memorandum pads,
engagement books, address books and books,
pads, etc. for entering telephone numbers.
* * *
(3) Binders designed for holding loose sheets,
magazines, or the like (e.g. clip binders,
spring binders, screw binders, ring binders),
and folders, file covers, (other than box
files) and portfolios.
* * *
(8) Book covers (binding covers and dust covers),
whether or not printed with characters
(title, etc.) or illustrations.
* * *
The goods of this heading may be bound with materials
other than paper (e.g. leather, plastics or textile
material) and have reinforcements or fittings of metal,
plastics, etc. (Emphasis added).
The EN to heading 4202 provides in part, at page 613, that:
The heading does not cover:
* * *
(c) Articles which, although they may have the
character of containers, are not similar to
those enumerated in the heading, for example,
book covers and reading jackets, file-covers,
document-jackets, blotting pads, photo-
frames, sweetmeat boxes, tobacco jars,
ashtrays, flasks made of ceramics, glass,
etc., and which are wholly or mainly covered
with leather, sheeting of plastics, etc.
Such articles fall in heading 42.05 if made
of (or covered with) leather or composition
leather, and in other Chapters if made of (or
covered with) other materials. (Emphasis
added).
Taken together, the EN indicate that articles of 4820
include portfolios, ring binders and folders designed for holding
papers. They include items that are bound with leather or
textile material. Heading 4820 encompasses articles of
stationery with jackets or covers. On the other hand, heading
4202 excludes containers which have the character of jackets or
covers. In addition, we note that heading 4202 includes articles
such as attache cases, briefcases and similar containers. We
infer that attache cases and briefcases are included within 4202
as they are containers which have the character of carrying cases
for documents, papers and other objects.
Each of the instant articles are similar in use and design
to articles of heading 4820. They are at least in part designed
as organizational or planning tools, which we have determined are
uses not normally associated with articles of heading 4202.
Moreover, they possess features such as leather cases, metal
binders, and paper inserts which are characteristic of articles
classified within heading 4820. Finally, the leather or textile
cases act as protective covers or jackets for their contents.
Consequently, the subject merchandise is prima facie classifiable
in heading 4820, HTSUSA.
The articles of heading 4820, HTSUSA, are segregated at the
six and eight-digit classification levels. In HRL 955636, dated
April 6, 1994, we addressed the scope of subheading 4820.10.2010,
HTSUSA, which provides in part for diaries:
We think it is imperative to recognize that there are
many forms of "diaries." Many are similar to the
instant articles. Others, may be bound with expensive
materials such as leather and may contain additional
components such as pens, pencils, calculators, business
card holders and assorted inserts that are used either
for providing information or as a means of recording
specific types of information (i.e., sections for fax
numbers, car maintenance information, personal finance
data, etc. ...). As the court in Brooks Bros. noted,
citing Hancock Gross, Inc. v. United States, 64 Cust.
Ct. 97, C.D. 3965 (1970), "[T]he primary design and
function of an article controls its classification."
Hence, the determinative criteria as to whether these
types of articles are deemed "diaries" for
classification purposes is whether they are primarily
designed for use as, or primarily function as, articles
for the receipt of daily notations, events and
appointments. (Emphasis in original).
Styles 3352 and 2303 are substantially similar in design to
articles we have concluded function primarily for the receipt of
daily notations, events and appointments. See HRL 955522, dated
March 23, 1994 (leather agenda with three-ring binder and paper
inserts including daily engagement calendar and spaces for
notation of appointments); HRL 953172, dated March 19, 1993
(metal six-ring binder mounted in folder, with paper inserts for
daily and yearly engagement calendars, personal records).
Consequently, styles 3352 and 2303 are classifiable as bound
diaries of subheading 4820.10.2010, HTSUSA.
Style 3334 does not function as a place for the receipt of
daily notations, events and appointments. The paper insert
consists of nothing more than a note pad of blank lined paper,
with a one page pre-printed calendar without space for notations.
While the note pad provides space for notations generally, it has
not been designed to facilitate daily entries in an organized
manner. The article is more specifically provided for as a
notebook within heading 4820 and is therefore classifiable as a
notebook in subheading 4820.10.2050, HTSUSA.
Although each of the submitted samples are prima facie
classifiable in heading 4820, HTSUSA, styles 3342 and 3877
possess features which do not relate to their use as organizers
and planners. Items 3342 and 3877 possess retractable handles
and an exterior handle, respectively. They are large enough to
accommodate standard size papers and documents. Style 3877
includes two exterior full wall pockets, expandable interior
pockets, small pockets for various objects and is large enough to
hold a newspaper or a book. Style 3877 is less roomy, but has
also been designed to hold papers, pens and other objects. Taken
together these physical attributes suggest that the goods have a
dual use as carrying cases in a manner similar to attache cases
and briefcases. Thus, these items possess features associated
with both articles known as organizers or planners and articles
referred to as attache cases or briefcases. Hence, we conclude
that styles 3342 and 3877 are also prima facie classifiable in
heading 4202, HTSUSA.
General Rule of Interpretation (GRI) 3 provides that when
goods are prima facie classifiable under two or more headings,
classification shall be effected as follows:
(a) The heading which provides the most specific
description shall be preferred to headings providing a
more general description. However, when two or more
headings each refer to part only of the materials or
substances contained in mixed or composite goods or to
part only of the items in a set put up for retail sale,
those headings are to be regarded as equally specific
in relation to those goods, even if one of them gives a
more complete or precise description of the goods.
(b) Mixtures, composite goods consisting of different
materials or made up of different components, and goods
put up in sets for retail sale, which cannot be
classified by reference to 3(a), shall be classified as
if they consisted of the material or component which
gives them their essential character, insofar as this
criterion is applicable.
(c) When goods cannot be classified by reference to
3(a) or 3(b), they shall be classified under the
heading which occurs last in numerical order among
those which equally merit consideration.
In this instance, headings 4202 and 4820, HTSUSA, are equally
specific in relation to one another. Each heading describes a
limited class of goods. Moreover, these headings describe only a
portion of the physical characteristics which styles 3877 and
3342 possess. Hence, we cannot resolve the classification of
these items on the basis of GRI 3(a).
However, we conclude that the physical characteristics
described by heading 4202, HTSUSA, impart the essential character
to style 3342. This item has been designed to accommodate
virtually all of the articles normally carried in a briefcase or
attache case (e.g. papers, documents, newspaper, book, pens).
Although style 3342 possesses the features of an organizer or
planner (e.g. ring binder, planner, organizational pockets), the
leather case is, in our judgment, more than a mere cover. The
planner components merely add additional features to what is
otherwise an article similar to a briefcase. Consequently, style
3342 is classifiable in heading 4202.
Articles of heading 4202, HTSUSA, are classified at the
subheading level with reference to their exterior surface. Style
3342 is composed of leather with a polyurethane coating that has
a thickness of approximately 0.015 mm. Our administrative
precedent indicates that leather handbags or attache cases to
which an insignificant coating of plastics (less than 0.15 mm)
has been applied are classified as articles of leather. See HRL
086339, dated May 16, 1990; HRL 084844, dated October 10, 1989;
HRL 085188, dated August 25, 1989. Accordingly, style 3342 shall
be classified within heading 4202 as an article of leather.
Style 3877 is also prima facie classifiable in both heading
4202 and heading 4820, HTSUSA. However, in this instance we are
unable to conclude that either the organizer/planner or the
carrying case components lend the essential character to the
article. This item may be used in a manner consistent with a
carrying case of heading 4202, HTSUSA. However, it is flat and
will not accommodate items such as a newspaper or book which are
normally carried in an attache case. The organizer components
contribute at least as much, in terms of function and design, to
the finished article as the carrying case components.
Consequently, we must resort to GRI 3(c) to classify this
product. As heading 4820 is the heading which occurs last in
numerical order among the headings which merit consideration,
style 3877 shall be classified within heading 4820. Style 3877
does not provide space for daily notations. Hence, it shall be
classified as a notebook of subheading 4820.10.2050, HTSUSA.
HOLDING:
Styles 3352 and 2303 are classifiable under subheading
4820.10.2010, HTSUSA, which provides for diaries and address
books. The applicable rate of duty is 4 percent ad valorem. If
these goods are products of India they may be entitled to duty-
free treatment under The Generalized System of Preferences under
certain circumstances.
Styles 3334 and 3877 are classifiable under subheading
4820.10.2050, HTSUSA, which provides for diaries, notebooks and
address books, bound: memorandum pads, letter pads and similar
articles, other. The applicable rate of duty is 4 percent ad
valorem. If these goods are products of India they may be
entitled to duty-free treatment under The Generalized System of
Preferences under certain circumstances.
Style 3342 is classifiable under subheading 4202.11.0030,
HTSUSA, which provides for trunks, suitcases, vanity cases,
attache cases, briefcases, school satchels and similar
containers: with outer surface of leather, of composition
leather, or of patent leather: attache cases, brief cases,
school satchels, occupational luggage cases and similar
containers. The applicable rate of duty is 8 percent ad valorem.
Sincerely,
John Durant, Director