CLA-2 RR:CR:TE 962040 SS
Ms. Sophia Ko
ClearFreight Inc.
880 Apollo Street, Suite 101
El Segundo, CA 90245
Re: Insulated bottle bags designed to contain more than one
bottle; SGI, Incorporated v. United States, 122 F.3d 1468
(Fed. Cir. 1997); 4202.92.9060, HTSUSA; 3924.10.5000 HTSUSA
Dear Ms. Ko:
This letter is in response to your request on behalf of your
client, the Maya Group, Inc., dated July 2, 1998, concerning the
classification under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA) of insulated bottle bags designed to
contain more than one bottle manufactured in Malaysia. A sample
was submitted with your request.
FACTS:
The sample submitted is described as a "Double Bottle
Holder" and is an insulated bottle bag designed to contain two
bottles. It is constructed of a molded plastic double wall
interior and an exterior composed of two layers of plastic
sheeting with a thin inner layer of foam. It has a plastic
carrying handle affixed to the top and a zipper closure. The
molded plastic interior is specially shaped to contain two
bottles and is intended to provide for the maintenance of
temperature while providing storage, protection, organization and
portability to the beverages contained within the case. The
marketing material submitted with the sample indicates that the
bottle holder "keeps liquids hot or cold for several hours".
Both the marketing material and printed cartoon design indicate
that the bottle holder is intended for use with babies' bottles.
ISSUE:
Whether the insulated bottle bags designed to carry more
than one bottle are classified under Heading 4202, HTSUS, as
bottle cases and similar containers; or are classified under
Heading 3924, HTSUS, as tableware, kitchenware, other household
articles of plastic in accordance with the decision in SGI,
Incorporated v. United States?
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.
The classification of a similar article, a portable, soft-sided, insulated cooler bag, 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. Without
discussion of the exemplars of Heading 4202, HTSUS, which
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
subheading 3924.10.50, HTSUS, "does encompass exemplars that are
ejusdem generis with the coolers because their purpose is to
contain food and beverages." Following the position of the
Court, containers which are designed primarily for the storage of
food or beverages at a desired temperature over a period of time
are excluded from classificiation within Heading 4202, HTSUS, as
an article not of a kind similar to the exemplars. Accordingly,
the insulated bottle bags which are designed primarily for the
storage of beverages at a desired temperature over a period of
time are precluded from classification in Heading 4202, HTSUS.
This office concluded that the CAFC's decision in SGI should
be implemented. Instructions were issued to Customs field
offices on March 18, 1998 (and approved for dissemination to
members of the importing community), which expressly extended the
principles of the CAFC's decision to insulated bottle bags
designed to contain more than one bottle. In reviewing previous
Customs rulings, it appears that the bottle case exemplar under
Heading 4202, HTSUS relates only to articles which hold single
bottles. See Headquarters Ruling 960367, dated August 6, 1997
and New York Ruling PD C81898, dated December 9, 1997. It is
Customs' position that the Double Bottle Holder is not an
exemplar container under Heading 4202, HTSUS because it is
designed to contain more than one bottle. Accordingly, the
insulated bottle bag is subject to the decision in SGI since the
bottle bag is designed primarily for the storage of multiple
beverages at a desired temperature over a period of time. In
light of the principles of the SGI decision and the instructions
noted above, the subject insulated bottle bags designed to
contain more than one bottle are classified in subheading
3924.10.50, HTSUS.
HOLDING:
The insulated bottle bags described as a "Double Bottle
Holder" are classified in subheading 3924.10.5000, HTSUSA, the
provision for "Tableware, kitchenware, other household articles
and toilet articles, of plastics: Tableware and Kitchenware:
Other." The general column one duty rate is 3.4 percent ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division