CLA-2 RR:CR:TE 961240 GGD
Mr. Jerome Berger
Circle International, Inc.
540 Rockaway Avenue
Valley Stream, New York 11581
RE: Insulated Cooler Bag with AM/FM Radio; SGI, Incorporated v.
United States, 122 F.3d 1468 (Fed. Cir. 1997); Cooler Bags
with Outer Surface of Fabric-backed, Compact Plastics
Dear Mr. Berger:
This letter is in response to your request of November 21,
1997, on behalf of your client, Sun Hill Industries, Inc.,
concerning the classification under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) of a soft-sided,
insulated cooler bag with a built-in AM/FM radio, manufactured in
China. A sample was submitted with your request.
FACTS:
The sample article, identified by stock number A655 and
described as "Cool Sounds," is a portable, soft-sided, insulated
cooler bag with a battery-operated, AM/FM radio built into a
zippered compartment within the top flap. The exterior portion
of the speaker, as well as 3 knobs and a headphone jack, are
located on the outer surface of the top flap. The article
measures approximately 12-1/2 inches in width by 7-1/4 inches in
depth by 8 inches in height. In addition to the radio
compartment, the bag has 1 main insulated compartment with a
zippered closure, 2 webbed textile carrying handles, and a small
exterior front pocket. The outer layer of the bag is composed of
a nylon woven fabric that has been coated, covered or laminated
-2-
with a non-cellular (compact) plastic. The plastic surface of
this outer layer faces outward. The bag's inner layer is a
lining composed of plastic sheeting. The middle layer of the bag
is composed of 2 sheets of plastic foam, each of which measures
approximately 1/8 inch in thickness and functions to insulate and
cushion contents. The complete article is primarily designed to
store and preserve food and/or beverages.
ISSUE:
Whether the portable, soft-sided, insulated cooler bag with
built-in AM/FM radio is classified under heading 4202, HTSUS, as
a container used to organize, store, protect and carry various
items; or is classified under heading 6307, HTSUS, as an other
made up (textile) article with outer surface of fabric-backed
compact plastics, to which the principles of the decision in SGI,
Incorporated v. United States apply.
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
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.
In Headquarters Ruling Letter (HQ) 082105, issued April 18,
1988, this office classified an item that was substantially
similar to the "Cool Sounds" article under the HTSUS, since the
HTSUS was scheduled to replace the former Tariff Schedules of the
United States (TSUS) on January 1, 1989. Applying the GRI, it
was found that that cooler bag and radio comprised a composite
article. We cited to GRI 3(b), which states in pertinent part:
Composite goods...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.
-3-
It was determined that the bag component, particularly the woven
nylon outer layer of the bag, imparted the article's essential
character. The cooler bag with built-in radio was thus
classified in subheading 4202.92.3030, HTSUSA.
The classification of certain portable, soft-sided,
insulated cooler bags with outer surface of plastics, was
recently examined by the Court of Appeals for the Federal Circuit
(CAFC) in SGI, Incorporated v. United States, 122 F.3d 1468 (Fed.
Cir. 1997). The CAFC focused on whether food or beverages were
involved with the eo nomine exemplars set forth in the tariff
provisions at issue and, without discussion of heading 4202
exemplars that organize, store, protect, and/or carry food or
beverages, the CAFC held that the appropriate classification for
the cooler bags was subheading 3924.10.50, HTSUS, the provision
for "Tableware, kitchenware, other household articles...of
plastics: Tableware and kitchenware: Other." The Court stated
that this classification "does encompass exemplars that are
ejusdem generis with the coolers because their purpose is to
contain food and beverages." The exemplars (specifically
enumerated in subheading 3924.10.10) which the Court noted in
particular were the "various household containers for foodstuffs
such as salt, pepper, mustard, and ketchup dispensers and serving
pieces for food."
This office concluded that the CAFC's decision in SGI should
be implemented. Instructions were issued to Customs field
personnel on March 18, 1998 (and approved for dissemination to
members of the importing community), by which the principles of
the CAFC's decision were expressly extended to portable, hard or
soft-sided, insulated coolers and similar insulated containers
with outer surface of plastics or with outer surface of textile
materials (the latter of which are classified in subheading
6307.90.9905, 6307.90.9907, or 6307.90.9909, HTSUSA, depending
upon whether the article's outer surface is composed of cotton,
man-made fibers, or other textile materials, respectively); and
to such articles that feature exterior or interior pockets,
webbing, straps, etc., provided that the additional features do
not alter the container's primary purpose to store and preserve
food and/or beverages.
On September 10, 1998, an additional instruction was issued
to Customs field personnel (and approved for dissemination to
members of the importing community), by which the principles of
the CAFC's decision were expressly extended to foodstuff-related,
insulated containers whose exterior layer is composed of a
-4-
textile fabric that is coated, covered or laminated with compact
plastics, with the plastic surface of the layer facing outward.
Such containers are classified in subheading 6307.90.9989,
HTSUSA, a provision which is currently not subject to quota/visa
requirements.
In light of the principles of the SGI decision, the
instructions noted above, and the fact that the "Cool Sounds"
cooler bag has an outer layer that is essentially composed of
fabric-backed compact plastics, the article is classified in
subheading 6307.90.9989, HTSUSA.
HOLDING:
The portable, soft-sided, insulated cooler bag with built-in
AM/FM radio, described as "Cool Sounds" and further identified by
stock no. A655, is classified in subheading 6307.90.9989, HTSUSA,
the provision for "Other made up articles, including dress
patterns: Other: Other: Other, Other: Other." The general column
one duty rate is 7 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division