CLA-2 RR:TC:TE 959702 NLP
Mr. John M. Peterson
Neville, Peterson & Williams
80 Broad Street 34th Floor
New York, New York 10004
RE: Classification of finished binders/organizers with their
paper inserts and without their paper inserts; Classification
of textile covers used to manufacture zipper binders and organizers; headings 4820 and 6307; Explanatory Notes to heading
4820; Headquarters Ruling Letters 951076, 951218, 955655 and
959328; New York Ruling Letters 880789 and 818027; Country of
origin determination for textile covers under 19 CFR Section 102.21(c)(2) and (e)
Dear Mr. Peterson:
This is in response to your letter dated August 28, 1996, on
behalf of Stuart Hall, Inc, in which you requested a country of
origin determination for certain zipper binders and organizers
manufactured in the United States from imported textile covers.
This ruling will only address the Harmonized Tariff Schedule of
the United States (HTSUS) classification of the imported textile
covers, the finished zipper binders and organizers and the
country of origin of the imported textile covers for duty and
visa/quota purposes. You will be receiving a subsequent letter
from our Special Classification and Marking Branch concerning the
country of origin marking requirements applicable to the finished
zipper binders and organizers manufactured from these imported
textile covers. Samples of the unfinished textile covers used to
manufacture the binders and a finished binder were submitted for
our examination.
FACTS:
The textile covers at issue are used in the manufacture of
"zipper binders" and "zipper organizers" in the U.S. The
imported covers are manufactured in China from man-made fabrics
which are woven in Taiwan. The covers feature horizontal and
vertical pockets to be used for the insertion of documents, pens,
pencils, and other stationery items. Both the front and back
panels of the covers feature openings into which plastic
stiffeners are inserted. Each cover features a zippered closure
which extends from the top center of the article (in the unfolded
condition) to the bottom center.
After importation into the U.S., the textile covers are
assembled with other components to produce finished zipper
binders and organizers for school children. For the zipper
binders, a three ring binder is assembled into the cover, either
permanently (by riveting a metal binder assembly to the spine of
the organizer) or in a removable fashion (by inserting into a
vertical pocket on the inside of the cover a three ring binder
assembly which is permanently riveted to a plastic board). In
some cases, blank sheets of paper (e.g., diary, calendar or note
paper sheets) will be inserted into the binder. The zippered
organizer does not have a binder, and the sample that we have has
a daily planner inserted into a pocket on the inside of the
organizer. The zipper binders/organizers are then inspected,
tested and packaged for retail sale.
ISSUES:
What is the tariff classification of the finished
binders/organizers?
What is the tariff classification of the textile covers when
imported into the U.S.?
What is the country of origin of the unfinished textile
covers when they are imported into the U.S. for Section
102.21 purposes?
LAW AND ANALYSIS:
ISSUE #1: Tariff classification of the finished
binders/organizers with their paper inserts
Classification of goods under the HTSUS is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
"classification shall be determined according to the terms of the
headings and any relative section or chapter notes, and, provided
such headings or notes do not otherwise require, according to
[the remaining GRI's]." In other words, classification is
governed first by the terms of the headings of the tariff and any
relative section
or chapter notes.
Chapter 48, HTSUS, provides for paper and paperboard;
articles of paper pulp, of paper or of paperboard. Heading 4820,
HTSUS, provides in part for notebooks, letter pads, diaries and
similar articles, binders (looseleaf or other), folders, etc.
The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) to heading 4820 state in pertinent part
that:
This heading covers various articles of stationery,
other than correspondence goods of heading 48.17 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, files covers,
files (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.
This language indicates that articles of heading 4820, HTSUS,
include portfolios, ring binders and folders designed for holding
papers. Therefore, when the binders/organizers have their paper
inserts, they are classifiable in heading 4820, HTSUS.
According to the file, the binders' inserts can include a
diary, calender and blank note sheets. Customs has consistently
cited to lexicographic sources in determining what constitutes a
diary, as opposed to an article that is similar to a diary. The
term "diary" is defined in the Compact Edition of the Oxford
English Dictionary, 1987, as:
2. A book prepared for keeping a daily record, or having
spaces with printed dates for daily memoranda and jottings;
also applied to calendars containing daily memoranda on matters of importance to people generally or to members of a
particular profession, occupation or pursuit.
With its daily planner and calendar, the zipper binder provides a
means to record and store daily notations and to organize a
schedule. Moreover, guided by judicial precedent and the EN
referenced above, Customs has also consistently held that inserts
which are secured by ring binders are bound for classification
purposes. Therefore, a zipper binder with a daily planner,
calender and blank note sheets with a ring binder is classified
as a bound diary in subheading 4820.10.2010, HTSUS, which
provides for "Registers, account books, notebooks, order books,
receipt books, letter pads, memorandum pads, diaries and similar
articles: Diaries, notebooks and address books, bound; ...
Diaries and address books."
The zipper organizer does not have a ring binder like the
zipper binder. The daily planner in the zipper organizer is held
in place by slipping its backing into the inside pocket on the
inside of the organizer. In HQ 951076, dated March 18, 1992, we
dealt with the classification of a Pocket Secretary which
contained three independent paper articles: a telephone/address
book, a 20-month engagement calender book, and a note pad. These
were held in place by means of cardboard appendages slipped into
pockets on the inside of the leather case. We did not consider
that article to be bound and classified it in subheading
4820.10.4000, HTSUS, which provides for "Registers, account
books, notebooks, order books, receipt books, letter pads,
memorandum pads, diaries and similar articles: Other." Based on
HQ 951076, we would not consider the subject zipper organizer to
be bound. As such proper classification of the zipper organizer
with a daily planner book is in subheading 4820.10.4000, HTSUS.
See also, HQ 951218, dated July 28, 1992, wherein we determined
that a portfolio designed to hold a two year monthly calendar, a
built-in calculator, 100 assorted color calendar cards, a
removable credit card wallet, an 8 inch by 10 inch writing pad
and a full size folio section and pockets for business card and
papers was also determined not to be bound and was classified in
subheading 4820.10.4000, HTSUS.
However, we note that if the binders or organizers only have
blank note sheets, (not daily planner or calendar inserts) then
they do not function as places for the receipt of daily
notations, events and appointments. The paper inserts consist of
nothing more than blank paper and, while the note sheets provide
space for notations generally, they are not designed to
facilitate daily entries in an organized manner. These articles
are more specifically provided for as notebooks within heading
4820 and are therefore classifiable as such in subheading
4820.10.2050, HTSUS, which provides for " "Registers, account
books, notebooks, order books, receipt books, letter pads,
memorandum pads, diaries and similar articles: Diaries, notebooks
and address books bound; memorandum pads, letter pads and similar
articles...Other." See HQ 955655, dated July 14, 1994, which,
inter alia, classified three ring binders with a combination note
pad of blank lined paper and a one page pre-printed calender
without space for notations in subheading 4820.10.2050, HTSUS.
ISSUE #2: Classification of the binders/organizers without
paper inserts and classification of the unfinished
textile covers used to manufacture the
binders/organizers
By its terms, heading 4820, HTSUS, only provides for
articles of paper or paperboard. Accordingly, if the subject
binders/organizers have no paper inserts classification is
precluded from this heading. For example, Customs has
consistently held that textile binders similar in design or
function to the subject merchandise are classifiable in heading
6307, HTSUS. In HQ 959328, dated April 3, 1997, Customs dealt
with the classification of two styles of planners or notepad
holders imported both with inserts and without inserts. Each
style was composed of polyester fabric which was coated on the
interior, nonvisible side with polyvinyl chloride. This ruling
held that when the binder and the folder were imported separately
from their inserts, they were classifiable in subheading
6307.90.9989, HTSUS, which provides for "Other made up articles,
including dress patters: Other: Other: Other: Other: Other."
Therefore, in the instant case, as the binders/organizers are
also made of textile materials, we look to heading 6307, HTSUS,
which provides for other made up textile articles. The ENs to
heading 6307 indicate that the heading covers made up articles of
a textile material which are not included more specifically in
other headings of Section XI or elsewhere in the Nomenclature.
Since without their inserts, these textile articles are not
included more specifically elsewhere in the Nomenclature, they
are covered by heading 6307, HTSUS, and are classified in
subheading 6307.90.9989, HTSUS. This rationale and
classification would also apply to the unfinished textile covers
when they are imported in the U.S., without binders and inserts.
See, NYRL 880789, dated December 11, 1992, in which Customs
classified the "Unfinished nylon 5-star Student Day Planner" and
"Unfinished nylon woven 5-star Trapper notebook", in subheading
6307.90.9986, HTSUS; NYRL 818027, dated January 19, 1996, in
which 3-ring binder/organizers comprised of cardboard bases
covered with nylon woven fabric were classified in subheading
6307.90.9989, HTSUS.
ISSUE #3:Country of origin of the imported unfinished
textile cover
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act, codified in 19 U.S.C. 3925.
Section 334 of that Act provides new rules of origin for textiles
and apparel entered, or withdrawn from warehouse, for
consumption, on and after July 1, 1996. On September 5, 1995,
Customs published Section 102.21, Customs Regulations, in the
Federal
Register, implementing Section 334 (60 FR 46188). Thus,
effective July 1, 1996, the country of origin of a textile or
apparel product shall be determined by sequential application of
the general rules set forth in paragraphs (c)(1) through (5) of
Section 102.21.
Paragraph (c)(1) states that "The country of origin of a
textile or apparel product is the single country, territory, or
insular possession in which the good was wholly obtained or
produced." As the subject merchandise is not wholly obtained or
produced in a single country, territory or insular possession,
paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states that "Where the country of origin of
a textile or apparel product cannot be determined under paragraph
(c)(1) of this section, the country of origin of the good is the
single country, territory, or insular possession in which each
foreign material incorporated in that good underwent an
applicable change in tariff classification, and/or met any other
requirement, specified for the good in paragraph (e) of this
section".
Paragraph (e) states that "The following rules shall apply
for purposes of determining the country of origin of a textile or
apparel product under paragraph (c)(2) of this section:"
6307.90 The country of origin of a good classifiable
under subheading 6307.90 is the country,
territory, or insular possession in which the fabric comprising the good was formed by a fabric-making
process.
The articles in their imported condition are classifiable in
subheading 6307.90, HTSUS. Based on the information provided to
us, the country of origin for duty and quota purposes would be
Taiwan, where the constituent fabric of the cover was formed.
HOLDING:
The finished zipper binder with a daily planner, calender
and blank note sheets with a ring binder is classified as a bound
diary in subheading 4820.10.2010, HTSUS, and the rate of duty is
2.8% ad valorem. The zipper organizer with a daily planner book
is classifiable in subheading 4820.10.4000, HTSUS, and the rate
of duty is free. If the zipper binders or organizers only have
blank note sheets, not daily planner or calendar inserts, they
are classifiable in subheading 4820.10.2050, HTSUS, and the rate
of duty is 2.8% ad valorem.
The zipper binders and organizers without their paper
inserts are classifiable in subheading 6307.90.9989, HTSUS, and
the rate of duty is 7% ad valorem. The unfinished textile covers
when they are imported into the U.S. without binders and inserts
are also classifiable in this subheading.
The country of origin of the textile covers on importation
into the United States is Taiwan.
The holding set forth above applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in section 19 C.F.R.
177.9(b)(1). This section states that a ruling letter is issued
on the assumption that all of the information furnished in the
ruling letter, either directly, by reference, or by implication,
is accurate and complete in every material respect.
Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 C.F.R.
177.9(b)(1), the ruling will be subject to modification or
revocation. In the event there is a change in the facts
previously furnished, this may affect the determination of
country of origin. Accordingly, if there is any change in the
facts submitted to Customs, it is recommended that a new ruling
request be submitted in accordance with 19 C.F.R. 177.2.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division