CLA-2 CO:R:C:T 956384 ch

Mark Sandstrom, Esq.
Thompson, Hine and Flory
1920 N Street, N.W.
Washington, D.C. 20036-1601

Re: Revocation of NYRL 894586;classification of a day planner; portfolio planner; attache case; diary; GRI 3(c).

Dear Mr. Sandstrom:

This is in response to your letter of May 6, 1994, on behalf of the Mead Corporation, requesting reconsideration of New York Ruling Letter (NYRL) 894586, dated February 25, 1994. In that decision, an article described as the "Cambridge Professional Zippered Day Planner" was classified in subheading 4202.12.2035, Harmonized Tariff Schedule of the United States (HTSUS), which provides in part for attache cases, briefcases and similar containers.

Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), 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, 2186 (1993) (hereinafter section 625), notice of the proposed revocation of NYRL 894586 was published February 1, 1995, in the Customs Bulletin, Volume 29, Number 5.

FACTS:

The submitted sample, style 47190, is described as a day planner and measures approximately 14 inches by 11 inches by 2 inches. The article features two exterior flat pockets measuring approximately 8 inches by 14 inches, as well as retractable handles and a zipper closure. The interior possesses a three ring binder permanently affixed at the spine, with an integrated network of tabbed paper inserts which form a daily planning system. The planner is comprised mainly of sections for notating appointments, tasks, personal information, expenses, telephone numbers and addresses. The binder also includes miscellaneous pre-printed information, a plastic ruler, zippered plastic pouch and a clear plastic credit/business card holder. A note pad has been slipped into a pocket located inside one interior wall. The opposite interior wall features a full wall pocket with tapered gussets. The front of this pocket possesses two pen holders, six credit card slots, a business card window, a flat zippered pocket and a small gussetted pocket suitable for holding computer discs.

ISSUE:

What is the proper tariff classification for the subject merchandise?

LAW AND ANALYSIS:

Heading 4820, HTSUS, provides in part for diaries, notebooks, memorandum pads and other articles of stationery, of paper or paperboard. The Explanatory Note (EN) to heading 4820 states in pertinent part, at page 687, that:

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).

This language indicates that articles of 4820, HTSUS, include diaries, address books and telephone books. In addition, goods classifiable within the heading may be bound with leather or textile material which have reinforcements or fittings of metal or plastics.

In HRL 955636, dated April 6, 1994, we addressed the scope of subheading 4820.10.2010, HTSUS, which provides for bound diaries and address books:

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).

Furthermore, in HRL 955516, dated April 8, 1994, we observed:

The next issue is whether ring binders make a diary "bound" so as to warrant classification within subheading 4820.10.2010, HTSUS. This office has consistently held that they do. See HRL 089960 (2/10/92; 952691 (1/11/93); and 953172 (3/19/93). This position is supported by the EN to heading 4820, HTSUS, which state that "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." It is clear that metal binders were contemplated to fit within this heading's definition of bound articles. We do not agree with protestant's argument that merely because a metal loose leaf ring binder was not expressly cited as an exemplar of a "bound" article in the EN to heading 4820, that it is precluded from classification as such.

Style 47190 features a three ring binder which secures what is described as a day planner. The planner is composed primarily of paper inserts which are designed for the receipt of daily notations, events and appointments. Based upon the foregoing, we conclude that this item is prima facie classifiable as a bound diary of subheading 4820.10.2010, HTSUS.

Heading 4202, HTSUS, provides in part for attache cases, briefcases and similar containers. In prior ruling letters, we have concluded that portfolio diaries, organizers, agendas or planners are not classifiable in heading 4202, HTSUS. 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, HTSUS, 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, HTSUS, 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, HTSUS. (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, HTSUS, 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, HTSUS. (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.

However, in this instance the carrying handle, exterior pockets and interior gussetted pocket are features which are characteristic of attache cases or briefcases and are unrelated to the use of style 47190 as an organizer. In addition, the article is large enough to accommodate standard size papers and documents, as well as many of the articles normally carried in a briefcase or attache case (e.g. pens, notebook, etc.). The case serves a dual purpose of providing a cover for its contents and as a means by which the article may be used as carrying case. Consequently, we are of the opinion that style 47190 is also prima facie classifiable within heading 4202, HTSUS, as an article similar to an attache case.

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, HTSUS, are equally specific in relation to one another. Each heading encompasses a limited class of goods. Moreover, these headings describe only a portion of the physical characteristics incorporated into style 47190. Hence, we cannot resolve the classification of this item on the basis of GRI 3(a).

Furthermore, pursuant to GRI 3(b), we are not able to say that either the organizer/planner or the carrying case components lend the essential character to style 47190. In some respects, this article may be used in a manner consistent with a carrying case of heading 4202, HTSUS. However, it is flat and will not accommodate items such as a newspaper or book. Hence, we conclude that this item is something less than an attache case. Moreover, 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 would occur last in numerical order among the headings which would merit consideration, style 47190 is classifiable as a diary of subheading 4820.10.2010, HTSUS.

HOLDING:

NYRL 894586 is hereby revoked. Style 47190 is classifiable under subheading 4820.10.2010, HTSUS, which provides for bound diaries and address books. The applicable rate of duty is 3.6 percent ad valorem.

In accordance with section 625, this ruling will become effective 60 days after its publication in the Customs Bulletin. Publication of rulings or decision pursuant to section 625 does not constitute a change of practice of position in accordance with section 177.10(c)(1), Customs Regulations (19 CFR 177.10(c)(1)).

Sincerely,

John Durant, Director
Commercial Rulings Division