CLA-2 RR:CR:TE 962229 GGD

Ms. Saralee Antrim-Saizan
Carmichael International Service
533 Glendale Boulevard
Los Angeles, California 90026-5097

RE: Classification of "Pad Holders" with and without Pads; Articles of Stationery; Other Made Up Textile Articles; Letter Pads; Memorandum Pads; Portfolio; Not Attache Case, Briefcase, School Satchel; Headings 4820, 6307, 4202; Avenues in Leather v. United States, 11 F. Supp. 2d 719, Slip Op. 98-54, Decided April 24, 1998

Dear Ms. Antrim-Saizan:

This letter is in response to your request of August 20, 1998, on behalf of your client, Zekel, Inc., concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of two styles of portfolios imported with and without writing pad. The merchandise will be manufactured in Indonesia, Thailand, Sri Lanka, or Hong Kong. Samples were submitted with your request.

FACTS:

The goods at issue are described as "Pad Holders." They are identified by two different style numbers - 6303 and 6303B - which essentially differ only in color and in the composition of their outer surface material. Style 6303 is black in color and has an outer surface composed of woven polyester fabric that is backed with polyvinyl chloride (PVC) plastic. Style 6303B is brown in color with an imitation suede outer layer composed of fabric-backed PVC plastic that has been coated on its exterior surface with a textile flocking of man-made fibers. The interior -2-

surfaces of each style are constructed of woven polyester fabric and PVC trim. There is plastic foam and cardboard between the outer and inner surfaces of each article.

Each of the articles consists of a jacket or case which is zippered on 3 sides and which measures approximately 13-3/4 inches in height by 10-1/2 inches in width by 1 inch in depth (in the closed position). The right interior side of each case features a sleeve to accommodate the insertion of a lined memorandum or writing pad. The interior left side of each case features 3 full-width pockets for papers. One pocket has gussets (allowing for some expansion) and measures approximately 8-1/2 inches in height. Another full-width pocket is flat, is in front of the gusseted pocket, and measures approximately 4-1/4 inches in height. The third full-width pocket has a zippered closure. There are two small, flat pockets (one of which has a transparent plastic window for an identification card), six slots for business or credit cards, and one pen holder. There also is a flat, full-width pocket on each article's exterior front. Either of the styles may be imported with a lined memorandum pad or writing pad (which measures approximately 8-1/4 inches in width by 11 inches in height by 1/4 inch in thickness) with a cardboard backing that slips into the slot or sleeve in the right interior side of each jacket or case.

ISSUE:

Whether the articles are classified under heading 4202, HTSUSA, which covers, in part, attache cases, briefcases, school satchels, and similar containers; under heading 4820, HTSUSA, which among other items, covers letter pads, memorandum pads, and other articles of stationery, including jackets; or under heading 6307, HTSUSA, which covers other made up (textile) articles.

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. -3-

We first consider classification of the "Pad Holders" when imported with the paper pad each is designed to contain. Among other merchandise, chapter 48, HTSUSA, covers articles of paper or of paperboard. Note 1(h) to chapter 48, HTSUSA, states that "[t]his chapter does not cover: Articles of heading 4202 (for example, travel goods)." Among the items covered by heading 4820, are notebooks, letter pads, memorandum pads, diaries and similar articles, binders (looseleaf or other), folders...and other articles of stationery...including cover boards and book jackets.... The EN to heading 4820 indicate that the heading covers various articles of stationery including (in addition to the examples noted above) notebooks of all kinds, file covers, files (other than box files), and portfolios. The EN also suggest that the goods of the 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.

Among other goods, heading 4202, HTSUSA, provides for attache cases, briefcases, and similar containers. The exemplars named in heading 4202 have in common the purpose of organizing, storing, protecting, and carrying various items. EN (c) to heading 4202 indicates that the heading does not cover articles which, although they may have the character of containers, are not similar to those enumerated in the heading, for example, book covers and reading jackets, file-covers, document-jackets...and which are wholly or mainly covered with leather, sheeting of plastics, etc. Such articles fall in heading 4205 if made of (or covered with) leather or composition leather, and in other chapters if made of (or covered with) other materials.

In several Headquarters Ruling Letters (HQ), Customs has considered the classification of goods featuring certain characteristics common to the enumerated exemplars of headings 4202 and 4820, HTSUSA. In HQ 957618, issued March 1, 1995, this office classified a stationery kit consisting not only of a zippered case and memorandum pad, but also numerous other articles - e.g., a scissors, pen, pencil, ruler, tape dispenser, pencil sharpener, stapler, staples, staple remover, highlight marker, paper clips, and an eraser. We noted that in prior decisions involving similar cases imported only with paper pads, the goods had been classified in heading 4820, with the cases characterized as jackets or covers which merely emphasized the purpose of the complete article to provide a means to take notes. In light of the twelve additional components with which it was imported, we found that the case was a specially shaped or fitted container which imparted the kit's essential character. The complete article was classified in subheading 4202.91.0090, -4-

HTSUSA. We also noted that containers for stationery kits that were outside the scope of heading 4202 had been classified according to their constituent materials.

In HQ 959791 and HQ 959792, dated February 11, 1997, and issued to modify HQ 955655 and HQ 955656 (dated July 14, 1995), respectively, this office found that competition between headings 4202 and 4820 was resolved by note 1(g) to chapter 48 (now note 1(h) to chapter 48), which excludes articles of heading 4202 from Chapter 48. We noted the requirement of GRI 1, that "classification shall be determined according to the terms of the headings and any relative section or chapter notes," and that other GRI may be used "provided such headings or notes do not otherwise require."

Since the exclusionary note to chapter 48, HTSUSA, did require that other GRI not be used to determine classification, the fact that certain of the articles subject to HQ 955655 and HQ 955656 were prima facie classifiable in heading 4202, precluded classification of those goods under heading 4820, HTSUSA. Analysis pursuant to any GRI other than GRI 1 was therefore inappropriate. On that basis, HQ 955655 and HQ 955656 were modified by HQ 959791 and HQ 959792, respectively. The above analysis was reiterated and fully supported in a decision by the Court of International Trade in Avenues in Leather v. United States, 11 F. Supp. 2d 719, Slip Op. 98-54, decided April 24, 1998.

With regard to whether the "Pad Holders" are prima facie classifiable under heading 4202, HTSUSA, it must be determined whether the articles merely have the character of 4202 containers, or whether their primary purpose is to organize, store, protect, and carry various items. The article is designed to organize and perhaps protect, small and/or flat items in addition to a writing pad. The pad holder's depth of only one inch, however, and its lack of handles or straps, indicate that the article is not designed to easily store, protect, and carry additional items such as a newspaper, a book, and/or other objects normally carried in an attache case or briefcase. Although the case has the character of a container, with perhaps more features than a simple jacket or cover, it does not have the requisite physical attributes Customs has found common to the containers of heading 4202. We find that the case's added features serve to enhance its primary purpose, which is to provide a convenient and organized method by which to take notes in a variety of locations and circumstances. The case with pad is not prima facie classifiable under heading 4202, and is therefore not precluded from classification under heading 4820. -5-

In HQ 956940, issued November 25, 1994, this office classified in subheading 4820.10.2020, HTSUSA, two styles of portfolios whose dimensions (13-1/2 inches by 10 inches by 1 inch), features (zippered closure, pockets, slots, and pen holder), and contents (an 8-1/2 inch by 11 inch writing pad) were substantially similar to those of the "Pad Holders." Although those cases also possessed some features that might be found in an attache case, it was noted that the pockets of the exterior and interior were essentially flat and suitable only for loose papers, business cards, and other small, flat items. We concluded that those cases functioned primarily as organizational aids for note taking and that they retained the character of jackets and covers that are not covered by heading 4202. Since heading 4820 covers letter pads, memorandum pads, and other articles of stationery with jackets or covers, the writing pad and its case, as a whole, constitute an article of stationery. When imported with a writing pad, each "Pad Holder" is classified in subheading 4820.10.2020, HTSUSA. See also, HQ 960889, issued July 20, 1998, and HQ 961418, issued August 4, 1998.

In order to classify the "Pad Holder" when imported without a writing pad, we note that, although the case's primary purpose remains tied to the organization and use of stationary, standing alone, the case is not an article of stationery covered under heading 4820. Further, although the case has the character of a container and may have more features than a simple jacket or cover, it does not have the physical attributes common to the containers of heading 4202. As previously noted, EN (c) to heading 4202 indicates that such articles fall in heading 4205 if made of (or covered with) leather or composition leather, and in other chapters if made of (or covered with) other materials. Since the articles are essentially made of textile materials, they fall in heading 6307. Imported without memorandum or writing pads, the "Pad Holders" are classified in subheading 6307.90.9989, HTSUSA. See also HQ 959328, issued April 3, 1997.

HOLDING:

When imported with a lined memorandum or writing pad, the zippered portfolios described as a "Pad Holders" and identified by style numbers 6303 and 6303B, are classified in subheading 4820.10.2020, HTSUSA, the provision for "Registers...diaries and similar articles: Diaries...and similar articles, Memorandum pads, letter pads and similar articles." The general column one duty rate is 2.4 percent ad valorem. -6-

When imported without a lined memorandum or writing pad, the zippered portfolios described as a "Pad Holders" and identified by style numbers 6303 and 6303B, are 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