CLA-2 RR:CR:TE 964403 GGD
Paula M. Connelly, Esquire
Middleton & Shrull
44 Mall Road, Suite 208
Burlington, Massachusetts 01803-4530
RE: Reconsideration of NY F88024; Business Cases with Paper Pads; Attache
Cases, Briefcases; Not Articles of Stationery; Avenues in Leather v. United States, 11 F. Supp.2d 719 (Ct. Int'l Trade 1998), aff'd 178 F.3d 1241 (Fed. Cir.
1999)
Dear Ms. Connelly:
This is in response to your request dated July 31, 2000, on behalf of your client, The Gem Group, Incorporated, for reconsideration of New York Ruling Letter (NY) F88024, dated June 22, 2000, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of merchandise consisting of two zippered carrying cases, each of which includes a pad of lined paper. The cases are made in Hong Kong and a sample of each has been submitted with your request. We regret the delay in responding.
FACTS:
In NY F88024, articles identified as styles 2467 and 2476R were classified in subheading 4202.12.8030, HTSUSA, textile category 670, which provides, in pertinent part, for "...attache cases, briefcases, school satchels...and similar containers...: With outer surface of plastics or of textile materials: With outer surface of textile materials: Other, Attache cases, brief cases...: Other: Of man-made fibers.” The articles at issue are carrying cases which measure approximately 14 inches in height by 11 inches in width by 2 inches in depth (in the closed position). The cases are zippered on three
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sides and are constructed essentially with a base of paperboard, a layer of foam plastic material, and outer surfaces of man-made textile materials. Each case has a metal three ring binder mechanism (riveted to the interior spine), a lined memorandum pad (inserted into a flap on the interior right side), a writing instrument holder, and between eight and twelve open-top, flat pockets or slots of various dimensions, some of which lie atop others, and at least one of which features a "window" of clear plastic sheeting for display of a photo, a license, or an identification card. From points on the exterior perimeter, each ring of the binder mechanism measures approximately 1-1/4 inch in diameter. Each case also has a full-height and full-width flat zippered pocket on its exterior.
The interior left side of style 2467 features a full-height and full-width open-top, gusseted pocket, with a slightly smaller open-top, gusseted pocket overlying it. A flat zippered pocket lies atop that pocket. When fully expanded, each of the four gussets extends outward approximately 1-5/8 inch at the top sides of each of the gusseted pockets. (Several of the previously mentioned flat pockets and slots lie over the zippered pocket.)
The interior left side of style 2476R features a full-height and full-width open-top, gusseted pocket, with a flat zippered pocket overlying it. When fully expanded, each of the two gussets extends outward approximately 1-5/8 inch at the top sides of the pocket. (Again, several of the previously mentioned flat pockets and slots lie over the zippered pocket.) On the far left side of the multi-pocket assembly is a hook and loop fabric fastener which, when released, reveals that the assembly of gusseted and other pockets, is attached (sewn) to the spine like the page of a book. When the "page" is turned, i.e., swung outward and over to cover the interior right side of the case, the back of the "page" is shown to feature a full-height, nearly full-width flat pocket of clear plastic sheeting. The newly exposed interior left side features a large, open-top, flap pocket, on top of which are attached three smaller flat, open-top pockets, one of which incorporates a "window" of clear plastic sheeting. Riveted to the exterior spine of style 2476R is a small assembly of metal and textile materials (which comprise a sturdy carrying handle) as well as two D-rings, which appear to allow for the attachment of a shoulder strap.
ISSUE:
Whether the cases are classified under heading 4202, HTSUSA, which covers, in part, attache cases, briefcases, school satchels, and similar containers; or under heading 4820, HTSUSA, which among other goods, covers letter pads, memorandum pads, binders, folders, file covers, and other articles of stationery, of paper or paperboard.
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LAW AND ANALYSIS:
Classification under the HTSUSA 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 HTSUSA by offering guidance in understanding the scope of the headings and GRI.
Chapter 48, HTSUSA, covers "paper and paperboard; articles of paper pulp, of paper or of paperboard." Note 1(h) to chapter 48, HTSUSA, states:
This 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, file covers...and other articles of stationery, of paper or paperboard....” 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.
If the cases at issue are not articles of heading 4202, HTSUSA, and are found to be binders or similar articles, they may be classifiable under heading 4820 (since they are imported containing the articles of stationery they bind and protect).
Among other goods, heading 4202, HTSUSA, provides for attache cases, briefcases, school satchels, and similar containers. According to the judicial guidance provided in Totes, Incorporated v. United States, 18 C.I.T. 919, 865 F. Supp. 867 (1994), aff’d, 69 F.3d 495 (Fed. Cir. 1995), the essential characteristics and purposes of all of the exemplars of heading 4202 are to organize, store, protect and carry various items. EN (c) to heading 4202 states 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...etc., and which are wholly or
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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 considering whether the subject articles have the character of containers but
lack similarity to those containers enumerated in heading 4202, we first look to heading 4205, HTSUSA, which covers “Other articles of leather or of composition leather.” Although the language of the heading does not enumerate the book covers, reading jackets, file covers, or document jackets referenced in the EN to heading 4202 above, the EN to heading 4205 state, in pertinent part, that the heading includes:
...reading-covers for books...and other containers (including those wholly or mainly covered with leather or composition leather) not being similar to those specified in heading 4202...
Customs has classified certain articles that have the character of containers but lack similarity to the containers enumerated in heading 4202, and that are made of or covered with materials other than leather (e.g., sheeting of plastics and textile materials) in headings 3926 and 6307, HTSUSA. Like heading 4205, the language of heading 3926, HTSUSA, which covers “Other articles of plastics and articles of other materials of headings 3901 to 3914,” does not enumerate book covers, reading jackets, file covers, or document jackets as exemplars. In pertinent part, however, the EN to heading 3926 state that the heading covers articles of plastics which include:
...file-covers, document-jackets, book covers and reading jackets, and similar protective goods made by sewing or glueing together sheets of plastics.
Among other goods, chapter 63, HTSUSA, provides for “other made up textile articles.” Note 1(l) to section XI, HTSUSA, under which chapter 63 falls, states:
This section does not cover: Articles of textile materials of heading 4201 or 4202.
Whether styles 2467 and 2476R (and their pads) are prima facie classifiable under heading 4202 or heading 4820, HTSUSA, depends upon whether their primary purpose is to organize, store, protect, and carry various items; or to enclose and protect articles of stationery, books, files, and/or documents. If either item is classifiable under heading 4202, it would appear to be excluded (by legal note 1(h) to chapter 48) from classification under heading 4820, HTSUSA, although not at the expense of also excluding sufficient legal analysis to establish proper classification of the items.
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You contend that the two cases at issue should be classified in subheading 4820.10.2020, HTSUSA, asserting that they are designed and intended only to provide a convenient and organized method by which to take notes in a variety of locations and circumstances. You maintain that the cases' interior volumes and gusseted pockets are dedicated only to the use and storage of stationery and related small, flat articles, and that any spare capacity is intended to hold whatever papers might be placed in the three ring binder and pockets, not personal effects, such as a book, newspaper, and/or umbrella. You state that the cases are substantially similar to the "padfolios" and other articles of stationery classified under heading 4820 in Headquarters Ruling Letters (HQ) 962133, dated July 27, 1999 (concerning a zippered case imported without a pad), and HQ 960989, dated July 20, 1998, HQ 962030, dated May 13, 1999, HQ 959958, dated June 8, 1999, and HQ 961418, dated August 4, 1998 (each concerning merchandise consisting of a paper pad inserted in a zippered case with some additional flat pockets and sleeves). We do not agree. Although not necessarily determinative standing alone, we note that the dimensions (in the closed position) of the articles classified in the five rulings cited above, ranged from 13 inches by 10 inches by 1 inch (in height, width, and depth, respectively) to 13-3/4 inches by 10-1/2 inches by 1-1/2 inch.
You also cite to HQ 961366, dated April 28, 1999, the ruling which classified merchandise somewhat more similar to the cases at issue here, and which appears to be somewhat supportive of your position. In HQ 961366, this office classified two items, each consisting of a jacket or case zippered on 3 sides and measuring approximately 12 inches in height by 11 inches in width by 2 inches in depth in the closed position (two inches shorter in height than the subject cases). Either of the items could be imported with a plain paper pad and/or an affixed handle. Neither item had a style number, but the outer surface color of the item classified in subheading 4820.10.2020, HTSUSA (if imported with a pad of paper) was blue, while the color of the item classified in subheading 4202.12.8030, HTSUSA, was purple. Both the blue and the purple cases were constructed with a base of paperboard and plastic foam covered with a woven textile fabric. The right interior side of each case featured a large sleeve into which was slipped a plastic sheet, onto which was riveted a three ring binder mechanism. Each of the rings measured approximately 1-1/2 inch in diameter.
Overlying the sleeve on the right side of the blue binder were three small, flat mesh sleeves, and the left side had a zippered, mesh, flat pocket and three elastic pen holders. The blue binder’s front exterior had one mesh, zippered, flat pocket and a crisscrossing elastic cord. The purple binder's left interior side had a large, open-top, flat pocket, a smaller, open-top, flat pocket overlying it, and the front exterior had one long and narrow zippered pocket, one full-height and width zippered, gusseted pocket, and two zippered, flat pockets overlying the gusseted pocket.
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In HQ 961366, we found that, with or without a handle, the blue binder functioned primarily as a jacket or cover to enclose and protect papers and articles of stationery. It was therefore not precluded from classification under heading 4820 (if imported with plain looseleaf paper inserts). Noting that the purple binder had numerous zippered and sturdy pockets, including one that was gusseted and expandable to an additional one inch in depth, we found that, with or without a handle, the purple case's primary purpose was to organize, store, protect, and carry various personal effects in addition to stationery, and that it was classifiable under heading 4202. We find styles 2467 and 2476R to be more similar to the purple binder above than to the blue binder. They possess characteristics similar to the named exemplars of heading 4202, specifically to attache cases, briefcases, and school satchels.
In Avenues in Leather v. United States, 11 F. Supp.2d 719 (Ct. Int'l Trade 1998), aff'd 178 F.3d 1241 (Fed. Cir. 1999), the Court of International Trade (CIT) and the Court of Appeals for the Federal Circuit (CAFC) examined the classification of items again similar to those at issue here, and held that Customs classification of the items as articles similar to briefcases and attache cases was correct. Taking judicial notice of the fact that briefcases are commonly used to carry such articles as newspapers, books, note pads, small umbrellas, memo pads, etc., the CIT noted that the imported articles all functioned to carry, protect, organize and hold papers, documents and other personal items (e.g., pens, computer disks, etc.).
Three of the four articles at issue in Avenues appear to have had less carrying capacity than styles 2467 and 2476R, measuring 10-1/2 inches in width by 13-1/2 inches in height by 1-3/4 inches in depth (as compared to the subject cases - 11 inches by 14 inches by 2 inches). All four articles had three ring binder mechanisms, all closed with a zipper, and all had several pockets (inside and outside). The largest inside pockets were expandable to permit the storage of sizable documents in interior parts of the case separate from the binder assembly. The CIT noted that the binder assembly in no way prevented or impeded other papers or articles from being carried in space remaining in the main part of the case without being fastened in the binder, and that the cases were extremely well-suited for organizing, storing, protecting and carrying papers, documents and many other items that would fit in a briefcase. (For similar rationale concerning substantially similar merchandise, see Avenues in Leather, Inc. v. United States, Slip Op. 01-147, decided December 13, 2001.)
We find that styles 2467 and 2476R do not function primarily as the binders, jackets, and covers used to enclose and protect articles of stationery that are classifiable under heading 4820. Their numerous compartments, carrying capacity, and interior gusseted pockets indicate that the cases are designed and intended to
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organize, store, protect, and carry papers, documents, and various other personal effects that fit into attache cases or briefcases. The articles are classifiable under heading 4202, HTSUSA, specifically in subheading 4202.12.8030, HTSUSA.
HOLDING:
NY F88024, dated June 22, 2000, is hereby affirmed.
The cases identified as styles 2467 and 2476R are classified in subheading 4202.12.8030, HTSUSA, textile category 670, which provides, in pertinent part, for "...attache cases, briefcases, school satchels...and similar containers...: With outer surface of...textile materials: Other, Attache cases, brief cases...: Other: Of man-made fibers.” The general column one duty rate is 18.1 percent ad valorem. There are no applicable quota/visa requirements for the products of World Trade Organization ("WTO") members. The textile category number above applies to merchandise produced in non-WTO countries.
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 updated weekly and is available for inspection at your local Customs office. The Status Report on Current Import Quotas (Restraint Levels) is also available on the Customs Electronic Bulletin Board (CEBB) which can be found on the U.S. Customs Service Website at www.customs.gov.
Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division