CLA-2 RR:TC:TE 958773 GGD
Port Director
U.S. Customs Service
610 South Canal Street
Chicago, Illinois 60607
RE: Decision on Application for Further Review of Protest No.
3901-95-102249, filed September 12, 1995, Concerning the
Classification of Compact Disc (CD) Cases
Dear Sir:
This is a decision on a protest timely filed in September
1995, against your decision in the classification and liquidation
of two entries made in April 1995, of CD cases.
FACTS:
You classified the merchandise under subheading
4202.92.9025, HTSUSA, textile category 670, the provision for
"Trunks...binocular cases, camera cases, musical instrument
cases...and similar containers...: Other: With outer surface of
sheeting of plastic or of textile materials: Other: Other, With
outer surface of textile materials: Other: Of man-made fibers,"
with an applicable duty rate (in 1995) of 19.8 (now 19.5) percent
ad valorem.
The protestant claims that the goods should be classified in
subheading 6307.90.99, HTSUSA, the provision for "Other made up
articles, including dress patterns: Other: Other: Other," with an
applicable duty rate of 7 percent ad valorem.
The submitted samples are two styles of rectangular fabric
CD cases, the smaller of which, when closed, measures
approximately 6-1/4 inches in width by 7-1/2 inches in height by -2-
2-1/2 inches in depth (i.e., the spine is approximately 2-1/2
inches wide). The larger case differs only in its height, which
measures approximately 15 inches. The cases fold roughly in half
and close by means of a nylon coil zipper extending around three
sides. The inner and outer surfaces are composed of nylon.
Between the surface layers of fabric, the sides of the cases are
generously foam-padded and a plastic card is inserted into each
to provide stiffness. Sewn onto the outside cover of each case
is the logo "CLIK!CASE." A flexible plastic band is sewn onto
one interior side of each case near the spine. Each end of the
band terminates in an open ring which folds upward. The rings
serve as anchors designed to hold either 6 or 12 molded plastic
CD holders (capable of organizing 12 or 24 CDs).
Although molded plastic CD holder inserts were submitted
with the samples to show the condition in which the cases reach
the ultimate consumer, the holders are assembled/inserted into
the cases only after importation into the United States. An
average person would probably complete the simple assembly
process for one case in less than 30 seconds. United States
Patent information concerning the "Compact CD Case" states that
"[a] carrying case is provided for storing and transporting a
plurality of relatively flat, thin items such as compact discs or
the like. The carrying case comprises an outer shell defining an
enclosed compartment for housing a plurality of items...."
ISSUE:
Whether the cases, as imported, are classified in heading
6307, HTSUS, as other made up textile articles; or in heading
4202, HTSUS, as containers similar to those enumerated in the
heading.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRI). GRI 1 provides that
the classification of goods shall be determined according to the
terms of the headings of the tariff schedule 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 may then
be applied. The Explanatory Notes (EN) to the Harmonized
Commodity Description and Coding System, which represent the -3-
official interpretation of the tariff at the international level,
facilitate classification under the HTSUS by offering guidance in
understanding the scope of the headings and GRI.
Heading 6307, HTSUS, covers other made up textile articles,
including dress patterns. Note 1(l) to Section XI (the section
in which chapter 63 falls) states that "[t]his section does not
cover: Articles of textile materials of heading 4201 or 4202."
The EN to heading 6307 indicate that the heading covers made up
articles of any textile material which are not included more
specifically in other headings of Section XI or elsewhere in the
Nomenclature. EN (b) to heading 6307 states that the heading
excludes "[t]ravel goods (suit-cases, rucksacks, etc.), shopping-bags, toilet-cases, etc., and all similar containers of heading
42.02." Therefore, if the CD cases are of a kind similar to
those of heading 4202, HTSUS, they are not covered in heading
6307 nor in any other heading under Section XI.
Heading 4202, HTSUS, provides, in part, for camera cases,
musical instrument cases, and similar containers. Although CD
cases are not expressly listed as an exemplar of heading 4202,
Customs has held that CD cases - including "unfinished" cases
imported without CD-holding inserts - are classifiable as being
"similar" to the containers of the heading. See Headquarters
Ruling Letters (HRLs) 953459 (issued May 6, 1993), 953171
(February 26, 1993), and 951080 (May 14, 1992). In making such
determinations, Customs has noted that there is no requirement
that cases of heading 4202, HTSUS, be specially fitted to
accommodate particular objects, possess handles or straps, nor be
constructed with rigid exteriors. The containers of heading 4202
have in common the purpose of providing storage, protection, and
convenient transportation for their contents. EN(c) to heading
4202 states, in part, that "[t]he heading does not cover:
Articles which, although they may have the character of
containers, are not similar to those enumerated in the
heading...."
The protestant essentially contends that Customs reasoning
is inapplicable to the imported goods because, at the time of
importation, they are not CD holders, but merely generic folders
without the essential character of finished CD holders. The
protestant cites to GRI 2(a), which states, in part, that:
Any reference in a heading to an article shall be taken to
include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete or
unfinished article has the essential character of the
complete or finished article. -4-
The protestant asserts that, since the essential character of a
CD holder is its ability to store and protect compact discs, the
essential character of the finished CD case is imparted by the
plastic, CD-holding inserts, not by the outer case that is
imported. The protestant cites to Court cases and Customs
rulings to support assertions that the outer case is
insufficiently finished to allow Customs to identify the
completed article and fix classification in heading 4202, HTSUS.
Protestant notes that, after importation, inserts could be
installed in the case and the finished product be used to store,
protect, transport, and organize coin, stamp, or other
collections; or the case could be used as the outer portion of a
photo album, ship's log, or field diary; all of which could fall
within heading 4820, HTSUS. The protestant maintains that, since
the imported cases are incomplete and do not possess the
attributes that would distinguish them as CD holders, they cannot
properly be classified in heading 4202, and must be classified in
subheading 6307.90.99, HTSUS.
Although the imported merchandise may be deemed incomplete
or unfinished CD holders, the cases are essentially complete
carrying cases possessing the essential characteristics common to
containers of heading 4202, HTSUS. Although the addition of
plastic CD-holders eventually provides an organizational aspect
to the cases, the goods, as entered, are fully functional
containers that provide storage, protection, and portability for
the items they hold. Consequently, we find them to be articles
of a kind similar to those of heading 4202 and, pursuant to GRI
1, are classifiable thereunder, regardless of the interior
fittings present or absent at the time of importation. The cases
are thus excluded from coverage under heading 6307, HTSUS.
We disagree with protestant's contention that, if assembled
with certain other inserts after importation, the imported cases
would be as suitable for use as articles of heading 4820, as for
use as cases of heading 4202. As noted in the FACTS section,
patent information shows that the imported cases are designed and
dedicated to function as carrying cases. The contents of these
carrying cases are, by necessity, stored in a secure (foam-padded) enclosure (three-dimensional, not flat) that is capable
of complete envelopment (being zippered on all three sides). The
contents of these and similar containers are usually removed for
use and replaced in the case or other secure environment after
use. -5-
Heading 4820, HTSUS, covers diaries, binders, folders,
albums for samples or collections, and myriad other stationery-like articles that generally contain other flat items. The goods
contained in articles similar to those of heading 4820 are not
generally removed for use, but remain within the enclosing
article, often for display (of a collection, photographs,
records, etc.). Attributes pertinent to the imported cases
(e.g., zipper closure, foam padding, three-dimensional enclosure)
would appear to be somewhat misplaced if the cases were converted
to articles of heading 4820 after importation.
We thus find that the goods were properly classified in
subheading 4202.92.9025, HTSUSA, the provision for "Trunks...
camera cases, musical instrument cases...and similar
containers...: Other: With outer surface of sheeting of plastic
or of textile materials: Other: Other."
HOLDING:
The compact disc cases are properly classified in subheading
4202.92.9025, HTSUSA, textile category 670, the provision for
"Trunks...binocular cases, camera cases, musical instrument
cases...and similar containers...: Other: With outer surface of
sheeting of plastic or of textile materials: Other: Other, With
outer surface of textile materials: Other: Of man-made fibers."
The applicable duty rate (in 1995) is 19.8 percent ad valorem.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report On Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service, which is available for
inspection at your local Customs office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements. -6-
The protest should be denied in full. A copy of this
decision should be attached to the Form 19 to be returned to the
protestant.
In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, this decision should be mailed by your office to the
protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision. Sixty
days from the date of the decision, the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS, and to the
public via the Diskette Subscription Service, the Freedom of
Information Act, and other public access channels.
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division