CLA-2 OT:RR:CTF:TCM H078796 GC
Cynthia Ulrich
Customs Compliance – Asst. Manager
Fossil Retrodome
10615 Sanden Drive
Dallas, Texas 75238
RE: Modification of NY N058483, dated May 22, 2009; Tariff classification of watch boxes of molded plastic
Dear Ms. Ulrich:
This letter is in reply to your August 14, 2009 correspondence in which you request reconsideration of New York Ruling Letter (NY) N058483, dated May 22, 2009. We apologize for the delay in responding.
Notice of the proposed action was published in the Customs Bulletin, Vol. 47, No. 28, on July 3, 2013. Two comments were received in response to the notice.
FACTS:
NY N058483 addresses the classification of three different styles of watch boxes imported by Fossil. Your reconsideration request covers those identified as “PKAXWATCH” and “PKMARC2006”, which are described in the rulings as follows:
…PKAXWATCH is a watch box constructed of clear molded plastic. It has a hinged lid and is specially shaped and fitted to contain one watch. It is designed to provide storage, protection, and organization to a watch. It is suitable for long-term use. It is of the kind normally given to the purchaser of a watch at the time of purchase. The box has a center compartment with a removable metal cuff insert. It measures approximately 3’’ (W) x 4’’ (L) x 3’’ (D).
…PKMARC2006 is a circular watch box constructed of molded plastic. It is fitted to contain one watch. It is designed to provide storage, protection, and organization to a watch. It is of the kind normally given to the purchaser of a watch at the time of purchase and suitable for long-term use. The watch box is packed within a paperboard retail box. It measures approximately 4.75’’ in diameter and 2.5’’ (H).
In NY N058483, CBP classified the two aforementioned watch boxes under subheading 4202.99.90, HTSUS, which provides for, in pertinent part: “…jewelry boxes… and similar containers, of 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: Other: Other….”
ISSUE:
Whether the subject watch boxes are classified as articles for the conveyance or packing of goods, of plastics, under heading 3923, HTSUS, or as jewelry boxes or similar containers of leather, sheeting of plastics, textile materials, vulcanized fiber or paperboard, under heading 4202, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration in this case are as follows:
3923 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics:
* * *
4202 Trunks, suitcases, vanity cases, attaché cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, camera cases, gun cases, holsters and similar containers; traveling 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, of sheeting of plastics, of textile materials, of vulcanized fiber, or of paperboard, or wholly or mainly covered with such materials or with paper:
Note 2(m) to Chapter 39 excludes, in pertinent part, “…trunks, suitcases, handbags or other containers of heading 4202”, thus necessitating an analysis of whether the instant watch boxes fall under the scope of heading 4202, HTSUS, before considering classification under heading 3923, HTSUS, as a possibility.
We note that the second provision of heading 4202, HTSUS, provides for jewelry boxes and similar containers that must be “‘of’ or ‘wholly or mainly covered with’ a specified material”. In this instance, that material must be either leather, sheeting of plastics, textile materials, vulcanized fiber, paperboard, or paper. See Headquarters Ruling Letter (HQ) 963618, dated August 2, 2002 (citing HQ 087760, dated October 31, 1991). The watch boxes at issue herein are made of molded plastic. The molded plastic of which the subject boxes are constructed is not to be confused with a covering of plastic sheeting, which would not possess the structural properties necessary to construct an entire watch box. Accordingly, the subject watch boxes are not provided for under heading 4202, HTSUS.
One commenter argues that the instant boxes should be classified under the first provision of heading 4202, HTSUS, which imposes no limitation on the constituent material of the products falling under its scope. The commenter does not consider “watches” to be sufficiently similar to “jewelry” for the restrictions on the constituent material of jewelry boxes and similar containers classified under the second provision of heading 4202, HTSUS, to apply. However, the question of whether watches constitute “jewelry” is not germane to the instant matter. We are persuaded by the fact that the instant watch boxes themselves are indistinguishable from molded plastic boxes used in the conveyance of articles of jewelry, which, if composed of molded plastic, fall outside the scope of the second provision of heading 4202, HTSUS. Notwithstanding any possible similarity between the subject watch boxes and the items listed in the first provision of heading 4202, HTSUS, to hold otherwise would be to ignore the fact that the second provision of heading 4202, HTSUS, limits the possible constituent materials of the merchandise under its scope.
Another commenter argues that NY J85286, dated July 1, 2002, should be revoked by the instant modification. In NY J85286, CBP classified a molded plastic tool box under heading 4202, HTSUS. The tool box was described in the ruling as “a specially shaped and fitted toolbox constructed of blow molded plastic. Measuring approximately 6"W x 4"H x 1 ½"D, the box opens to reveal special fittings to hold drill bits”. Such products fall under the scope of the first provision of heading 4202, HTSUS, which bears no restriction of constituent material like the second provision of the heading discussed above. The inclusion the toolbox featuring special fittings to hold drill bits under the scope of heading 4202, HTSUS, is supported by the fact that the Explanatory Note to the heading specifically mentions that only toolboxes “not specially shaped or internally fitted to contain particular tools with or without their accessories” are excluded from the heading. See, e.g., NY N120036, dated September 17, 2010, NY J85286, dated July 1, 2003, and NY H86574, dated January 7, 2002; see also Headquarters Ruling Letter 960430, dated December 24, 1997 (where CBP discussed the scope of the first provision of heading 4202, HTSUS, as it related to molded plastic fly fishing boxes).
In light of the fact that watches are shipped and sold in the instant boxes, the subject merchandise is provided for under heading 3923, HTSUS, as plastic articles for the conveyance or packing of goods. This conclusion is consistent with numerous rulings issued by CBP on similar merchandise. See, e.g., NY N068441, dated August 10, 2009, NY N030622, dated June 18, 2008, NY I81195, dated May 22, 2002, and NY 802585, dated October 26, 1994.
HOLDING:
By application of GRI 1 the “PKAXWATCH” and “PKMARC2006” watch box styles addressed in NY N058483, dated May 22, 2009, are classified under heading 3923, HTSUS. By application of GIRs 1 and 6, they are specifically provided for under subheading 3923.10.00, HTSUS, which provides for, in pertinent part: “Articles for the conveyance or packing of goods, of plastics…: Boxes, cases, crates and similar articles….” The general column one rate of duty, for merchandise classified under this subheading is 3 percent ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N058483 is hereby MODIFIED.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division