CLA-2 CO:R:C:T 956430 ch
Michael Lo
China Stationery Manufacturing Group, Inc.
17890 Castleton Street
Suite 289
City of Industry, California 91748
RE: Tariff Classification of Organizers/Planners; Diaries;
Address Books; Attache Cases; Briefcases
Dear Mr. Lo:
This is in response to your letter of March 29, 1994,
requesting tariff classification under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) for articles
described as organizers, portfolios and binders. Samples were
provided to this office for examination.
FACTS:
Style 951A, described as the "Pocket Size Zipper Organizer,"
features a cover with an outer surface composed mainly of textile
materials (55 percent ramie, 45 percent polyester) with leather
trim. This article measures approximately 4 3/4 inches by 8
inches by 1 inch and consists of a case with a zipper closure. A
six ring binder with various paper inserts slides into a pocket
along one of the interior walls. The paper inserts include a
monthly appointment calendar, a daily planner with spaces and
lines for personal notations and a telephone/address directory.
A small note pad has been placed into a slot to one side of the
binder. The opposite interior wall features a pen holder, a flat
zippered pocket measuring approximately 7 1/2 inches by 3 inches
and three smaller pockets for holding business or credit cards.
Style 972A, the "Zipper Binder," features a cover with an
exterior composed mainly of textile materials (55 percent ramie,
45 percent polyester) with leather trim. This item measures
approximately 10 3/4 inches by 13 1/2 inches by 2 1/4 inches. It
possesses a zipper closure with a three ring binder permanently
affixed at the spine. The binder encloses a telephone/address
book, as well as dividers labeled "calendar," "daily," "notes,"
"projects" and "telephone/address." A slot for a note pad
occupies one interior wall. The opposite interior wall possesses
a flap for securing loose papers, two pen holders and two small
flat pockets.
Style 972A, the "Zipper Binder," features a cover with an
exterior composed mainly of textile materials (55 percent ramie,
45 percent polyester) with leather trim. This item measures
approximately 10 3/4 inches by 13 1/2 inches by 2 1/4 inches. It
possesses a zipper closure with a three ring binder permanently
affixed at the spine. A slot for a note pad occupies one
interior wall. The opposite interior wall possesses a full
length open flat pocket, a zippered flat pocket, six slots for
identification/business cards, four pen holders and a pocket with
flap secured by means of hook and loop fasteners. Style 972A
features an exterior handle sewn to the spine so that the article
may be carried in an inverted position, as well as two gold tone
clasps so that it may be carried by means of a strap.
ISSUE:
What is the proper tariff classification for the subject
merchandise?
LAW AND ANALYSIS:
Heading 4820, HTSUSA, provides in part for diaries, address
books 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, HTSUSA, 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.
In HRL 955636, dated April 6, 1994, we addressed the scope
of subheading 4820.10.2010, HTSUSA, 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:
As the "Filofax" diaries contain ring binders that hold
loose sheets in place, they are undoubtedly
classifiable within heading 4820, HTSUSA. The next
issue is whether ring binders make a diary "bound" so
as to warrant classification within subheading
4820.10.2010, HTSUSA. 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, HTSUSA, 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 form classification as such.
Moreover, in HRL 953413, dated March 29, 1993, we concluded that
a ring binder slipped into the slot of an organizer/planner was
classifiable as a bound diary in subheading 4820.10.2010, HTSUSA.
Style 951A and style 972A fall within the ambit of heading
4820, HTSUSA. These articles serve as organizational tools for
pieces of stationery, and feature covers of textile materials
with leather trim. Style 951A functions primarily as an article
for the receipt of daily notations, events and appointments and
features a removable ring binder. Style 972A possesses pieces of
stationery which serve as a place for the receipt of addresses
and telephone numbers, as well as a permanently affixed three
ring binder. Based upon our administrative precedent, these
articles are classifiable as bound diaries and address books in
subheading 4820.10.2010, HTSUSA.
Style 982A shares certain physical characteristics with
style 972A. They each possess a case composed of textile
materials with leather trim, share the same dimensions, include a
permanently affixed ring binder and incorporate organizational
features such as pen holders, slots and pockets. However, style
982A differs from style 972A in two important respects. First,
style 982A does not include articles of stationery. Second, it
possesses a carrying handle and clasps for a carrying strap.
As noted above, heading 4820, HTSUSA, encompasses articles
such as diaries, address books and other articles of stationery,
of paper or paperboard. The stationery may be bound in covers
composed of leather, plastic or textile materials, which often
exceed the value of the printed stationery. However, by its
terms, articles of heading 4820 must be of paper or paperboard.
As style 982A does not include pieces of stationery, it is not
within the scope of heading 4820.
In HRL 955516, we noted that leather organizers or planners
imported without paper inserts were classifiable in the residual
provision for articles of leather. Style 982A possesses a cover
of textile materials with leather trim. As the article is
composed mainly of textile materials, it is prima facie
classifiable as an article of textile materials. Consequently,
heading 6307, HTSUSA, which provides for other made up textile
materials, describes this item.
Heading 4202, HTSUSA, 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, 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.
However, in this instance the carrying handle and clasps for
a strap are features which are characteristic of attache cases or
briefcases and are unrelated to the use of style 982A 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 (e.g. calculator,
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 a carrying case. Consequently, we are of
the opinion that style 982A is also prima facie classifiable
within heading 4202, HTSUSA, as an article similar to a
briefcase.
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.
GRI 3(a) provides that a heading providing a specific
description of the merchandise is preferred to a heading
providing a more general description. Style 982A is described by
heading 6307, HTSUSA, which is a basket provision for textile
articles not more specifically described elsewhere in the
Nomenclature; and heading 4202, HTSUSA, which provides for
certain containers, including attache cases, briefcases and
similar containers. In this instance, heading 4202 more
specifically describes style 982A as it encompasses a more
limited class of goods than heading 6307. As a result, style
982A is classifiable in heading 4202, HTSUSA, as an article
similar to a briefcase. As ramie predominates by weight over the
polyester material, the exterior surface shall be regarded as a
vegetable fiber. See Section XI, Note 2(A); Subheading Note 2.
It should be noted, however, that the addition of paper
inserts may affect the classification of style 982A. For
example, the addition of pages for an address/telephone book or a
daily planner would render the article prima facie classifiable
in heading 4820, as opposed to heading 6307. In this event,
headings 4202 and 4820, HTSUSA, would be equally specific in
relation to one another, as the competing provisions encompass a
limited class of goods and describe only a portion of the
physical characteristics of the article. Consequently, the
classification of style 982A could not be resolved on the basis
of GRI 3(a).
Moreover, pursuant to GRI 3(b), we would not be able to say
that either the organizer/planner or the carrying case components
lend the essential character to style 982A. 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 would contribute at least as
much, in terms of function and design, to the finished article as
the carrying case components. Consequently, we would 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 982A would be
classified within heading 4820.
HOLDING:
Styles 951A and 972A are classifiable under subheading
4820.10.2010, HTSUSA, which provides for bound diaries and
address books. The applicable rate of duty is 4 percent ad
valorem.
Style 982A is classifiable under subheading 4202.12.6000,
HTSUSA, which provides in part for attache cases, briefcases and
similar containers: with outer surface of textile materials: of
vegetable fibers and not of pile or tufted construction: other.
The applicable rate of duty is 6.5 percent ad valorem. The
textile category is 870.
Sincerely,
John Durant, Director