CLA-2 RR:CR:GC 967263 KBR
Area Port Director
Bureau of Customs and Border Protection
198 West Service Road Champlain, NY 12919
RE: Internal Advice (IA) 04/016; Loose-leaf Rings
Dear Area Port Director:
The following is our decision regarding your memorandum (RULINGS:IA: REQUESTS CLN), dated July 1, 2004, forwarding Internal Advice (IA) 04/016 which was initiated by counsel on behalf of ACCO Brands, Inc. (“ACCO”), and which concerns the classification of loose-leaf rings, also called metal book rings under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).
FACTS:
The subject articles are nickel-plated steel loose-leaf rings, also called metal book rings. ACCO imports the book rings in sizes ranging from ¾ inches in diameter to 2 inches in diameter. The book ring is made of two semi-circles of wire joined on one end by a pin to form a hinge. The other end of the ring may be opened and closed with clasping teeth. The book rings are used to join papers together. ACCO states that the book rings are marketed and used to hold more than paper products. ACCO states that the book rings are commonly used for multiple purposes, including holding swatches, samples and keys.
On December 17, 2003, ACCO imported a shipment of book rings under subheading 8305.10.0050, HTSUSA. On February 17 and 20, 2004, CBP issued a CF 29 changing the classification of the book rings to subheading 8305.90.6000, HTSUSA.
ACCO believes that the book rings should be classified in subheading 7326.90.8587, HTSUSA, as “Other articles of iron or steel: Other: Other: Other: Other: Other.” In lieu of that, ACCO believes that the book rings should be classified in subheading 8305.10.0050, HTSUSA, as “Fittings for looseleaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, and parts thereof, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal: Fittings for looseleaf binders or files: Other.” Your office believes that the book rings should be classified in subheading 8305.90.6000, HTSUSA, as “Fittings for looseleaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, and parts thereof, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal: Other, including parts: Other.” Classification under heading 7326, as “Other articles of iron or steel”, and heading 8308, as “Clasps, frames with clasps, buckles, buckle clasps, hooks, eyes, eyelets and the like and parts thereof, of base metal, of a kind used for clothing, footwear, awnings, handbags, travel goods or other madeup articles; tubular or bifurcated rivets of base metal; beads and spangles of base metal”, is also under consideration.
Samples of the ¾ inch size rings were submitted for our review.
ISSUE:
Should the subject book rings be classified as fittings for loose leaf binders and similar office articles or as articles of iron or steel under the HTSUSA?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI.
The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. The ENs, although neither dispositive nor legally binding, facilitate classification by providing a commentary on the scope of each heading of the HTSUSA, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.
The HTSUSA provisions under consideration are as follows:
7326 Other articles of iron or steel:
7326.20.00 Articles of iron or steel wire:
7326.20.0070 Other
7326.90 Other:
Other:
Other:
7326.90.85 Other:
7326.90.8587 Other
8305 Fittings for looseleaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, and parts thereof, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal:
8305.10.00 Fittings for looseleaf binders or files:
8305.10.0050 Other
8305.90 Other, including parts:
8305.90.6000 Other
8308 Clasps, frames with clasps, buckles, buckle clasps, hooks, eyes, eyelets and the like and parts thereof, of base metal, of a kind used for clothing, footwear, awnings, handbags, travel goods or other madeup articles; tubular or bifurcated rivets of base metal; beads and spangles of base metal:
8308.90 Other, including parts:
8308.90.9000 Other
Additional U.S. Rule of Interpretation 1(a), HTSUS, reads:
In the absence of special language or context which otherwise requires –
a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the controlling use is the principal use;
Although the introduction of the HTSUS changed the concept of use from chief use to principal use, it is still informative to see how courts interpreted the former statute since the wording regarding class or kind is nearly identical. In United States v. Colibri Lighters (USA), Inc., 47 CCPA 106, CAD 739 (1960), discussing the concept of chief use, the Appeals Court stated that in addition to the characteristics of the merchandise itself, classification should be based on the chief use of the articles of that class generally and not on the basis to which the individual articles should be put. In Group Italglass U.S.A., Inc. v. United States 17 CIT 1177, 839 F. Supp. 866 (1993), the Court found that it is the principal use of the class or kind or goods to which the imports belong at or immediately prior to the date of importation and not the principal use of the specific imports that is controlling. Moreover, in Primal Lite, Inc. v. United States, 182 F.3d 1362 (Fed Ct. Apps. 1999), the Court stated that principal use under Additional U.S. Rule of Interpretation 1(a) limits the “class or kind” language to those goods that are “commercially fungible” with the imported goods.
We will first consider if the book rings are classifiable under heading 8305, HTSUSA, which includes fittings for loose leaf binders, paper clips and similar office articles. We must consider whether the instant article which is sometimes called “loose leaf rings” is a “fittings for loose leaf binders”, or if the instant article, which can be used to hold papers together, is a “paper clip and similar office articles”. First, although called “loose leaf rings,” the instant article is not a component of a loose leaf binder nor is it intended to be used with loose leaf binders.
The EN for heading 8305 states:
This heading covers base metal fittings of the clip, cord, spring lever, ring, screw, etc., types, for loose-leaf binders or box files. It further includes protecting rings, bands and corners for ledgers or other stationery books; also office stationery in metal of the type used in fastening together or index-marking papers (e.g., letter clips, paper clips, paper fasteners, letter corners, card indexing tags, file tags, spike files); staples in strips of the kind used in stapling machines, in offices, for upholstery, for packaging, etc.
The heading excludes :
(a) Drawing pins (e.g., heading 73.17 or 74.15).
(b) Clasps and fasteners for books, ledgers, etc. (heading 83.01 or 83.08).
Second, the wording of the EN leads to the conclusion that the articles intended for inclusion in heading 8305 are for use in an “office.” In HQ 962366 (July 12, 1999), CBP explained that heading 8305 concerned articles limited to holding paper, stating, “[t]he essential characteristics of the above examples is that they are of metal and by some method hold, clip or fasten papers.”
However, the instant articles are commonly sold by office supply stores and marketed under two descriptions. They are called “loose leaf rings” by some retailers, and the instant article is called “book rings” by other retailers. See, e.g., www.staples.com, www.quill.com. The instant article is also marketed as having several other uses than being used with loose leaf binders, files or other paper products. These articles are marketed and commonly used as part of necktie hangers, holders of swatches of material, holders of samples, key holders and other uses. See, e.g., www.iteminfo.com, www.officemax,com, www.viking.com. These common uses of the binder rings fall outside of the “office” scope. Because the instant article is marketed and commonly used outside the office scope, we do not find that there is one “principal use” for the instant book rings and the book rings may not be classified in heading 8305.
The exclusion in the EN to 8305 concerning clasps and fasteners for books would seem to eliminate a “book ring” which may be used to bind the pages of certain books from classification in heading 8305. The exclusion directs fasteners for books to heading 8308.
However, heading 8308 includes clasps, frames with clasps, buckles, hooks, eyes, eyelets and the like, of base metal, of a kind used for clothing, footwear, awnings, handbags, travel goods or other madeup articles. The EN for heading 8308 describes what is included in the heading, including describing “made up articles” and states, in pertinent part:
(C) Clasps, fasteners, and frames with clasps, for handbags, purses, brief-cases, executive-cases or other travel goods, or for books or wrist-watches; but the heading excludes locks (including locking clasps), and frames with clasps, incorporating locks (heading 83.01).
We considered if, under this heading, the book ring could be a type of clasp that would be used for books. This EN describes articles which are more of a closing mechanism. It is describing a fastener for a book which is a type of clasp such that you would find to keep closed and private a diary, not something like the instant article which would simply bind the pages together. Therefore, we find that the instant book rings do not meet the terms of heading 8308.
The importer believes that the book rings should be classified in heading 7326, as other articles of iron or steel. We agree. The instant book rings are comprised solely of nickel-plated steel wire and, therefore, clearly qualify as other articles of iron or steel pursuant to GRI 1. However, the importer believes that the book rings should be classified in subheading 7326.90.8587, HTSUSA, as “Other articles of iron or steel: Other: Other: Other: Other: Other.” This proposed classification is a “basket provision” at the six-digit level. However, the book ring is made of steel wire. Pursuant to GRI 6 comparing the classification at the six-digit level places the book ring in the more specific provision of subheading 7326.20.00, HTSUSA, as “Other articles of iron or steel: Articles of iron or steel wire.” See Apex Universal, Inc. v. United States, 22 CIT 465 (1998) (when a “basket” provision is being considered, classification therein is appropriate “only when there is no tariff category that covers the merchandise more specifically.”) See HQ 966989 (February 10, 2005), HQ 962366 (July 12, 1999). CBP found a somewhat similar article to the book ring to be classified in subheading 7326.20.0070, HTSUSA. NY K83944 (March 9, 2004), in part concerned the classification of a steel wire split ring used for holding keys. The instant book rings are also steel wire rings which may be used for holding keys. Because the instant book rings are made from steel wire we find them to be classified as articles of iron or steel wire in subheading 7326.20.0070, HTSUSA.
HOLDING:
By application of GRIs 1 and 6, the ACCO loose leaf/book rings are classifiable in subheading 7326.20.0070, HTSUSA, as Other articles of iron or steel: Articles of iron or steel wire: Other. The 2003 column one, general rate of duty is 3.9% ad valorum. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUSA and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov/tata/hts/.
You are to mail this decision to the internal advice applicant no later than 60 days from the date of this letter. On that date, the Office of Regulations and Rulings will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division