CLA-2 OT:RR:CTF:TCM H075358 CkG
Mr. Lou Piropato
Daniel F. Young, Inc. 17 Battery Place
New York, NY 10004-1101
RE: Modification of NY 813199; classification of a certain auto visor wallet
Dear Mr. Piropato:
This is in regard to New York Ruling Letter (NY) 813199, dated August 25, 1995, regarding the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of a certain auto visor wallet. In NY 813199, CBP classified the visor wallet in heading 8708, HTSUS, as motor vehicle accessory. We have reconsidered this ruling and have determined that the visor wallet is correctly provided for in heading 4202, HTSUS, as a travel bag or case.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to modify NY 813199 was published on February 10, 2010, in Volume 44, Number 7, of the Customs Bulletin. CBP received one comment in response to this notice.
FACTS:
The subject article was described in NY 813199 as follows:
Item 16403, described as a "Visor Wallet", is an auto visor wallet composed of vinyl designed to be attached to a sun visor in an automobile by means of two elastic straps that are sewn across the back of the article. The item is solely or principally used in an automobile. The visor has a large zippered pocket and two small open pockets on the front exterior designed to hold maps, receipts, registration certificates, toll booklets and other miscellaneous items.
ISSUE:
Is the subject visor wallet solely or principally suitable for use with a motor vehicle and thus classifiable as an accessory of Heading 8708, HTSUS, or as a travel bag of Heading 4202, HTSUS?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 Harmonized Commodity Description and Coding System Explanatory
Notes (EN), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The HTSUS provisions at issue are as follows:
4202: Trunks, suitcases, vanity cases, attache cases, briefcases, school
satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper:
Other:
4202.92: With outer surface of sheeting of plastic or of textile
materials:
Other:
4202.92.90: Other….
* * * * * * * *
8708: Parts and accessories of the motor vehicles of headings 8701 to
8705
Other parts and accessories:
8708.99: Other:
Other:
Other:
8708.99.81: Other….
* * * * * * * *
Section XVII, Note 3 provides as follows:
References in chapters 86 to 88 to "parts" or "accessories" do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those chapters. A part or accessory which answers to a description in two or more of the headings of those chapters is to be classified under that heading which corresponds to the principal use of that part or accessory.
EN 87.08 further clarifies that heading 8708 will only cover accessories to
motor vehicles of headings 8701 to 8705 if they are suitable for use solely or principally with such motor vehicles.
In NY 813199, CBP found that the subject visor wallet was suitable for use principally with a motor vehicle, because it was primarily designed to be affixed to an automobile visor. We received one comment opposing the modification of NY 813199. The commenter argued that the visor wallet is not carried on the person but kept on the automobile visor at all times. We disagree. There is nothing in the design of the article that would limit its use to automobiles. The elastic bands do not necessarily suggest that its principal use would be with a car visor, as opposed to carried in a pocket, handbag, briefcase, etc. Furthermore, the product has no particular design feature which makes it more suitable for use inside a vehicle than outside. Any other means of storing or carrying the wallet, such as a pocket, saddlebag, briefcase or purse, are equally appropriate and suitable. Of course certain documents, such as a vehicle’s registration and insurance, are likely to be kept inside the vehicle, but there is still nothing that would limit the article to carrying these documents in particular, or that would make it more suitable for such documents than any others. Furthermore, such documents can be stored with greater safety and privacy in the glove compartment of a vehicle.
Finally, Explanatory Note 87.08 lists a number of examples of items included in heading 8708. Such examples include tires, radiators, brake cables, bumpers, engine, battery and similar articles designed specifically for motor vehicles and of little to no use in any other context. Nothing like the article at issue in this case is mentioned in the ENs.
Heading 4202, HTSUS, provides for, among other items, wallets, purses, map cases, traveling bags, and similar containers of textile materials such as the instant article. In classifying goods under the residual provision of "similar containers" of heading 4202, HTSUS, the Court of International Trade has stated as follows: “As applicable to classification cases, ejusdem generis requires that the imported merchandise possess the essential characteristics or purposes that unite the articles enumerated eo nomine [by name] in order to be classified under the general terms.” Totes, Inc. v. United States, 18 CIT 919, 865 F. Supp. 867, 871 (1994), aff’d. 69 F. 3d 495 (Fed. Cir. 1995). The court found that the rule of ejusdem generis requires only that the imported merchandise share the essential character or purpose running through all the containers listed eo nomine in heading 4202, HTSUSA., i.e., "…to organize, store, protect and carry various items." Totes, 865 F. Supp. at 872. The auto visor wallet is designed to store, protect, and carry personal documents. It thus shares the essential character and purpose of the containers of heading 4202, HTSUS. Moreover, the visor wallet’s essential character—i.e., that of a wallet of heading 4202, HTSUS—is evident in both the name of the product and its physical resemblance to general purpose wallets classified in heading 4202, HTSUS.
In addition, many prior rulings have classified similar articles in heading 4202, despite their claimed use as motor vehicle accessories. These include Headquarters Ruling Letter (HQ) 084931, dated August 14, 1989; HQ 087795, dated August 30, 1990; NY 808002, dated March 28, 1995; NY G87545, dated February 26, 2001; NY G88609, dated April 3, 2001; NY M80989; dated March 16, 2006; and NY N032058, dated July 29, 2008.
HOLDING:
By application of GRI 1, the visor wallet is classified in subheading 4202.92.9026, HTSUS Annotated, which provides for “other” containers and cases, with outer surface of textile materials, of man-made fibers. The rate of duty will be 17.6% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
Subheading 4202.92.9026, HTSUSA, falls within textile category 670. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.
EFFECT ON OTHER RULINGS:
New York Ruling Letter 813199, dated August 23, 1995, is hereby modified.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division