CLA-2 RR:TC:TE 958536 NLP
Mr. Arturo E. Dominquez
ADCO I.T.S., INC.
902 Market Street
Laredo, TX 78040
RE: Tariff classification of leather tool receptacles; Headings
4202, 4203 and 4205; Explanatory Notes to Headings 4202
and 4205; HRLs 083204 and 084609;
Totes Incorporated v. United States
Dear Mr. Dominguez:
This letter is in response to your requests, dated August
18, 1995, and October 2, 1995, for a ruling, under section
177.11(2), (3) and (4), Customs Regulations, concerning the
classification of leather tool receptacles to be imported from
Mexico. On September 14, 1995, District Ruling Letter 814192 was
issued to you classifying the subject leather tool receptacles.
Diagrams of the leather tool receptacles were submitted for our
review.
FACTS:
The articles at issue are two styles of leather tool
receptacles. Sample A is a leather belt with permanently
attached leather receptacles which are to be used for carrying
tools. The second item, sample B, is a leather receptacle which
consists of several leather pouches attached to each other. It
has a leather loop at the top to enable the user to carry it on a
belt, if the belt is inserted through the loop. We note that
this model is not imported with a belt affixed to it. This model
is also to be used for carrying tools. Both models are designed
to allow an individual easy access to tools while working.
On September 14, 1995, District Ruling Letter (DD) 814192
was issued to you classifying these leather tool receptacles.
Sample A was classified in subheading 4205.00.8000, HTSUS, which
provides for "Other articles of leather or of composition
leather: Other: Other." Sample B was classified in subheading
4202.91.0090, HTSUS, which provides for "Trunks, suitcases,
vanity cases, attache cases, briefcases. . .: Other: With outer
surface of leather, of composition leather or of patent leather:
Other."
In your letter of August 18, 1995, you requested an internal
advice ruling pursuant to 19 CFR 177.11(b)(2) & (3), (section
177.11, Customs Regulations). Subsequently, in a letter dated
October 2, 1995, you requested an internal advice ruling pursuant
to 19 CFR 177.11(b)(4), (section 177.11, Customs Regulations).
These regulations provide the following in pertinent part:
177.11 Requests for advice by field offices.
* * * * * *
(2) When no ruling has been issued. Internal advice
will be sought by a Customs Service field office with
respect to a current transaction for which no ruling was requested or issued under the provisions of this part
whenever a difference of opinion exists as to the
interpretation or proper application of the Customs and related laws to the transaction, and the field office is
requested to seek such advice by an importer or other
person who would have been entitled, under section 177.1(c), to request a ruling with respect to the transaction,
while prospective. The request must be submitted to
the field office in writing and in accordance with the
provisions of paragraph (b)(3) of this section
(3) Form of request by importers and others. An
importer or other person requesting that a Customs
Service field office seek advice from the Headquarters Office must make such a request, in writing, to the field
office having jurisdiction over the transaction in
question....
(4) Review of request by importers and others. All
requests submitted by importers and other persons
under paragraph (b)(3) of this section, will be reviewed by the field office to which they are submitted. In the
event a difference of opinion exists as to the description
of the transaction or as to the point or points at
issue, the person submitting the request will be so advised in
writing. If agreement cannot be reached, both the
statements of the person submitting the request and the
field office will be forwarded to the Headquarters Office for consideration.
[Emphasis added]
We note that, according to these provisions, in order for a
request for internal advice to be perfected it has to be made to
Headquarters by a Customs Service field office after a proper
request made by the importer. It is the job of the Customs
Service field office at issue to forward their statements and
yours to Headquarters for review if there is a difference of
opinion after an appropriate request has been made under section
177.11 (b)(3), Customs Regulations (19 CFR 177.11). We have not
received a request for internal advice from the Customs Service
field office at issue. Moreover, based on a review of your
letters of August 18, 1995, and October 2, 1995, it
appears that your request was made directly to Headquarters, not
to the field office at issue. Therefore, your request for an
internal advice has not been perfected and we cannot issue you a
ruling pursuant to section 177.11(b)(2) and (3), Customs
Regulations (19 CFR 177.11).
However, we note that DD 814192 was issued to you
classifying the subject leather tool receptacles. In fact, in
your letter of October 2, 1995, you take issue with the
classifications set forth in DD 814192. Section 177.2(c),
Customs Regulations (19 CFR 177.2), provides that if an importer
or other person to whom a ruling letter is issued disagrees with
the tariff classification set forth in the ruling issued by the
New York Region or other Area or District offices, he may
petition the Director, Commercial Rulings Division for review of
the ruling. Therefore, pursuant to section 177.2(c), Customs
Regulations (19 CFR 177.2), we are treating your October 2, 1995,
letter as a request for reconsideration of DD 814192.
ISSUE:
What is the classification of the subject leather tool
receptacles under the HTSUS?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the
General Rules of Interpretation (GRI). GRI 1 provides that
classification is determined first in accordance with the terms
of the headings of the tariff and any relative section or chapter
notes. Where goods cannot be classified on the basis of GRI 1,
the remaining GRI will be applied in order.
Heading 4202, HTSUS, covers:
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
sheeting of plastics, of textile materials, of vulcanized fiber, or of paperboard, or wholly or mainly covered with
such materials or with paper
The Explanatory Notes (ENs) 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
HTSUS. See T.D. 89-80.
The EN to heading 4202 defines "similar containers" for the
first part of this heading as ".... includ[ing] hat boxes, camera
accessory cases, cartridge pouches, sheaths for hunting or
camping knives, etc." It is our opinion that sample B is similar
to those containers previously mentioned; specifically, cartridge
pouches used to house cartridges to afford the user easy access.
Therefore, sample B is classifiable in heading 4202.
In Totes Incorporated v. United States, 95-1125 (decided
October 24, 1995), affirming the Court of International Trade's
decision in Totes Incorporated v. United States, 865 F. Supp. 867
(1994), the U.S. Court of Appeals for the Federal Circuit
examined the scope of heading 4202, HTSUS, with regard to
specialized containers. In the appellate decision, the court
examined the classification of the "Totes Trunk Organizer," a
rectangular case used to organize and store items such as motor
oil, tools and jumper cables in an automobile trunk. The Court of
Appeals held that:
"the merchandise is not removed from classification
under subheading 4202.92.9020 simply because it is
intended to organize, store, and protect
items associated with a motor vehicle. Many of the
containers named in subheading 4202.92.9020 are
used to organize, store, and protect specific items."
The Court of Appeals' determination supports Customs'
position that sample B is classifiable within heading 4202,
HTSUS, as it has the essential characteristics and purposes of
heading 4202, HTSUS, exemplars: it is used to organize, store,
protect and carry various items.
The next issue to be decided is the subheading within which
sample B is to be classified. The competing provisions in Heading
4202 are subheading 4202.11.00, HTSUS, which provides for trunks,
suitcases, vanity cases, attache cases, briefcases, school
satchels and similar containers of leather, or subheading
4202.91.0090, which provides for other similar containers: with
outer surface of leather, other.
When goods are classifiable in two or more headings, GRI 3
provides a guide to the correct classification:
When by application of Rule 2(b) [goods of more than
one material or substance] or for any other reason, 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.
The EN to heading 4202 states that "[t]his heading covers
only the articles specifically named therein and similar
containers." It is our opinion that this leather tool receptacle
is not a similar container to those enumerated in subheading
4202.11.00, HTSUS. Containers that are designed to contain the
items from which they get there names, i.e. leather tool
containers, and are designed to be carried with the person are
not similar to the items enumerated in 4202.11.00 HTSUS. As a
result, the instant leather tool receptacle is not classifiable
under subheading 4202.11.00, HTSUS.
Subheading 4202.91.00, HTSUS, provides for other similar
containers of leather. The EN to heading 4202, as discussed on
page 4, defined "similar containers" for the first part of
heading 4202, HTSUS. Sample B is similar to holsters and
cartridge pouches enumerated in the EN. These exemplars are
designed to be worn on a belt and to contain a specific item(s).
Sample B is similarly designed to be worn on a belt and contain
specific items, i.e., tools.
Moreover, in two Headquarters Ruling Letters (HRLs), Customs
classified various types of leather tool receptacles similar to
sample B in subheading 4202.91.0090, HTSUS. In HRL 083204, dated
February 14, 1990, two of the receptacles were described as
leather containers for workmen's tools and equipment that had
built-in accomodations for belts. The third item was a leather
unit which had affixed to it a metal piece that accommodated
workmen's tools and a belt could be inserted through the slots of
this item. Customs determined that these were similar containers
to the items listed in the first part of heading 4202, HTSUS.
Therefore, they were classifiable in subheading 4202.91.0090,
HTSUS. In HRL 084609, dated July 31, 1989, we dealt with the
classification of a leather welder's rod holder whose main
purpose was to provide a welder with a convenient way to store
metal welding rods. The top of the holder had a heavy duty clip-style swivel hook; the holder could be secured via the hook to a
belt or a snap hook. The top of the holder also contained a belt
loop for easy attachment. This article was classified in
subheading 4202.91.0090, HTSUS, based on its similarity to the
articles enumerated as similar containers in the ENs to heading
4202, HTSUS. This provision was found to be the most specific
for classifying the rod holder.
We note that the other possible classification for sample B
is in heading 4205, HTSUS, which provides for other articles of
leather. The ENs to heading 4205 state that this heading "covers
those articles of leather...which do not fall in the preceding
headings of this Chapter...." First, heading 4202, HTSUS,
precedes heading 4205, HTSUS. Second, and more importantly, the
language of heading 4202, HTSUS, more specifically describes this
leather tool receptacle than the general language of heading
4205, HTSUS. Therefore, sample B remains classified in heading
4202, HTSUS.
Sample A differs from sample B in that it already has a belt
attached to it. As a result, it is not classifiable in heading
4202, HTSUS. Heading 4203, HTSUS, provides for articles of
apparel and clothing accessories of leather or of composition
leather: belts and bandoliers with or without buckles.
Subheading 4205.00.40, HTSUS, provides for straps for general
use. The instant item is not an apparel belt nor is it a strap.
Accordingly, it is our opinion that sample A is classified in
subheading 4205.00.8000, HTSUS, which provides for other articles
of leather: other: other. See, HRL 083204, wherein one of the
leather tool containers subject to classification was imported
with a woven textile belt affixed to it. We classified this
article in subheading 4205.00.8000, HTSUS.
ELIGIBILITY FOR NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) DUTY PREFERENCES
Subdivision (b) of General Note 12, HTSUS, sets forth the
rules of origin for determining whether an imported good is an
originating good. It provides, in pertinent part, the following:
For the purposes of this note, goods imported into the
customs territory of the United States are eligible for
the tariff treatment and quantitative limitations set forth
in the tariff schedule as "goods originating in the territory of
a NAFTA party" only if--
(I) they are goods wholly obtained or produced
entirely in the territory of Canada, Mexico and/or the
United States; or
(ii) they have been transformed in the territory of
Canada, Mexico and/or the United States so that-
(A) except as provided in subdivision (f) of this
note, each of the non- originating materials
used in the production of such goods undergoes a
change in tariff classification described in subdivisions (r),
(s) and (t) of this note or the rules set
forth therein....
* * * * *
(iii) they are goods produced entirely in the
territory of Canada, Mexico and/or the United States
exclusively from originating materials;
According to your letter, the leather tool receptacles are of
Mexican origin. Pursuant to the "wholly obtained or produced in
the territory of . . . Mexico . . ." rule, these tool
receptacles are eligible for a reduced rate of duty under
NAFTA, if all the applicable regulations are met.
HOLDING:
Sample A is classified in subheading 4205.00.8000, HTSUS,
which provides for "Other articles of leather or of composition
leather: Other: Other." It is entitled to entry free of duty.
Sample B is classified in subheading 4202.91.0090, HTSUS,
which provides for "Trunks, suitcases, vanity cases, attache
cases, briefcases. . .: Other: With outer surface of leather, of
composition leather or of patent leather: Other." The applicable
rate of duty is 5.9% ad valorem. Articles originating in Mexico
and classified in this subheading are eligible for a duty rate of
4.7% ad valorem under NAFTA, if all applicable regulations are
met.
DD 814192 is hereby affirmed.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division