CLA-2 OT: RR: CTF: TCM H145554 BGJ
Mr. Gordon C. Anderson
C.H. Robinson Worldwide, Inc.
Minneapolis International
14800 Charlson Road, Suite 400
Eden Prairie, MN 55347-5048
RE: Reconsideration of New York Ruling N136191, dated December 22, 2010; classification of a glass liquid storage bottle.
Dear Mr. Anderson:
This is in response to your letter dated January 18, 2011, for reconsideration of New York Ruling Letter (“NY”) N136191 issued on December 22, 2010. In NY N136191, U.S. Customs and Border Protection (“CBP”) classified a glass liquid storage bottle (“Bamboo Bottle”) under heading 7013, of the Harmonized Tariff Schedule of the United States (“HTSUS”), as “glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes.” For the reasons set forth below, we find that the classification decision in NY N136191 is correct.
FACTS:
The following facts were set forth in NY N136191:
The product under consideration, “Bamboo Bottle Original®” – style #82111, is a storage-type, cylindrically-shaped, 17-ounce glass water bottle that is inserted into a bamboo sleeve. The water bottle is threaded at the top and bottom to accommodate a round top ring, a plastic lid with handle and a round plastic base. You state in your letter that the article can be easily disassembled for cleaning purposes. The glass cylinder can be removed from the bamboo sleeve by unscrewing and removing the plastic base and top. The measurements of the glass bottle are approximately eight and on half inches in height and two inches in diameter at the top and base.
In that ruling, CBP classified the Bamboo Bottle under subheading 7013.49.5000, HTSUS, which provides for “[g]lassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 7010 or 7018): [g]lassware used for table (other than drinking glasses) or kitchen purposes other than that of glass-ceramics: [o]ther: [o]ther: [v]alued over $3 each: [o]ther: [v]alued over $3 but not over $5 each.”
You filed a request for reconsideration of NY N136191 on January 18, 2011, arguing that the proper classification of the Bamboo Bottle at issue is as other articles of glass under heading 7020, HTSUS. You also stated that the bamboo outer sleeve functions to protect the glass vessel from breakage and to act as an insulator for hot and cold liquids and that the molded plastic loop on the cap is designed as a tote feature for travel and outdoor use.
ISSUE:
Whether the subject merchandise is classified under heading 7013, HTSUS, as a household article of glass, or under heading 7020, HTSUS, as other articles of glass?
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 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 be applied in order.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the Harmonized System. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The HTSUS headings under consideration in this case are as follows:
7013 Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 7010 or 7018):
7020 Other articles of glass:
The relevant ENs for heading 70.13, provide in pertinent part:
This heading covers the following types of articles, most of which are obtained by pressing or blowing in moulds:
(1) Table or kitchen glassware, e.g. drinking glasses, goblets, tankards, decanters, infants’ feeding bottles, pitchers, jugs, plates, salad bowls, sugar-bowls, sauce-boats, fruit-stands, cake-stands, hors d’oeurvre dishes, bowls, basins, egg-cups, butter dishes, oil or vinegar cruets, dishes (for serving, cooking, etc.), stew-pans, casseroles, trays, salt cellars, sugar sifters, knife-rests, mixers, table hand bells, coffee-pots and coffee-filters, sweetmeat boxes, graduated kitchenware, plate warmers, table mats, certain parts of domestic churns, cups for coffee-mills, cheese dishes, lemon squeezers, ice-buckets.
(2) Toilet articles, such as soap-dishes, sponge-baskets, liquid soap distributors, hooks and rails (for towels, etc.), powder bowls, perfume bottles, parts of toilet sprays (other than heads) and tooth-brush holders.
(3) Office glassware, such as paperweights, inkstands and inkwells, book ends, containers for pins, pen-trays and ashtrays.
(4) Glassware for indoor decoration and other glassware (including that for churches and the like), such as vases, ornamental fruit bowls, statuettes, fancy articles (animals, flowers, foliage, fruit, etc.), table-centres (other than those of heading 70.09), aquaria, incense burners, etc., and souvenirs bearing views.
* * * * *
Articles of glass combined with other materials (base metal, wood, etc.), are classified in this heading only if the glass gives the whole character of glass articles.
* * * * *
(Emphases in original). The relevant ENs for heading 70.20, provide, in pertinent part:
This heading covers glass articles (including glass parts of articles) not covered by other headings of this Chapter or of other Chapters of the Nomenclature.
These articles remain here even if combined with materials other than glass, provided they retain the essential character of glass articles.
* * * * *
The Bamboo Bottle article is a composite article consisting of three types of materials: a glass bottle, a bamboo sleeve, and plastic endcaps. Analyzing the Bamboo Bottle first under GRI 1, there is no specific provision in the HTSUS that completely describes this product. Likewise, the bottle is not classifiable under GRI 2(a) or 2(b) because the article is not in an unassembled or incomplete state, but is imported as a complete article and is a composite of parts which are classifiable under two or more headings. GRI 2(b) instructs that “[t]he classification of goods consisting of more than one material or substance shall be [determined] according to the principles of rule 3.”
GRI 3(a) does not apply because there is no heading that provides a specific description that clearly identifies a bottle that is a composite of a glass body, bamboo sleeve, and plastic endcaps. Thus, the article at issue is analyzed under GRI 3(b), because it is a composite good consisting of different components each of which, if imported separately, would be classifiable under different headings. According to GRI 3(b), “mixtures, composite goods consisting of different materials or made up of different components . . . shall be classified as if they consisted of the material or component which gives them their essential character . . . .” Thus, to determine under which heading to properly classify the entire Bamboo bottle, we must determine which component gives the article its essential character.
Although the GRI’s do not provide a definition of “essential character,” the EN (VIII) of GRI 3(b) provides guidance. According to this EN, the essential character may “. . . be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” This is known as the “essential character test” and the application of this test requires a fact-intensive analysis. Home Depot U.S.A., Inc. v. United States, 491 F.3d 1334, 1337 (Fed. Cir. 2007). Many factors should be considered when determining the essential character of an article, including but not limited to those factors enumerated in Explanatory Note (VIII) to GRI 3(b). Id.
Because the glass bottle part provides the bulk and weight of the article and performs the primary function of the article which is to store and hold liquids, the essential character of the Bamboo Bottle is imparted by its glass bottle. Thus, the classification of the article is based on the classification of the glass bottle.
The two competing headings here are heading 7013 and 7020, HTSUS. Heading 7013, HTSUS, is organized in relevant part as a list of items or exemplars - tableware and kitchenware - followed by a general phrase, "other household articles." Similar to heading 3924, HTSUS, which covers plastic household articles, the common characteristic or unifying purpose of the exemplars is to store or contain food and beverages. See Dolly, Inc. v. United States, 27 C.I.T. 1597, 293 F. Supp. 2d 1340 (2003) (quoting SGI, Inc. v. United States, 122 F.3d 1468, 1473 (Fed. Cir. 1997) ("The exemplars listed in Heading 3924 encompass various household containers for foodstuffs."). Additionally, although the subject bottles are capable of being transported from point to point with liquids therein, the specific primary purpose of the bottles is to store or contain beverages. The bottles are thus ejusdem generis with the exemplars listed in heading 7013, HTSUS, and classifiable under that heading.
As pertains to the specific subheading under which the bottles are classifiable, EN 70.13 lists exemplars of "other household articles" that fall within subheading 7013.49.50, HTSUS. Those exemplars are drinking glasses, goblets, tankards, decanters, pitchers, jugs, etc. Many of the exemplars of "tableware" in EN 70.13 and classifiable under this heading are items from which the consumer can directly consume beverages or food, a primary characteristic shared with the bottles that are the subject of this ruling. It should also be noted that the expression "tableware" does not solely refer to items used in the home. Subheading 7013.49, HTSUS, provides for all table and kitchen glassware, regardless of whether it will be used inside or outside of the household, and CBP has consistently interpreted similar subheadings such as, 3924.10, HTSUS, to cover these types of goods. See N019128, dated November 28, 2007 (plastic bottle with pop-up drinking spout); N031727, dated July 23, 2008 (plastic water bottle with spout and carrying handle); N035015, dated September 5, 2008 (plastic bottle with spout and loop handle); N047581, dated July 20, 2009 (plastic bottle with twist spout); N048029 (plastic bottle with straw, carrying handle, mouthpiece and straw); H100800, dated December 23, 2011 (plastic travel bottles); and H100801, dated December 23, 2011 (plastic sports beverage bottle).
Here, the primary purpose of the subject bottle is to dispense beverages that its user can directly consume, whether in a home or elsewhere. It is not used for storage. Accordingly, we find that the subject Bamboo Bottle constitutes "tableware" and is properly classifiable under subheading 7013.49.50, HTSUS, as [g]lassware of a kind used for table, kitchen, toilet, office.
Therefore, upon reconsideration CBP has determined that the classification in NY N136191 of the Bamboo Bottle in heading 7013, HTSUS, is correct.
HOLDING:
By application of GRI 1, the subject Bamboo Bottle is classifiable under heading 7013, HTSUS. Specifically, it is classifiable under subheading 7013.49.50, HTSUS, which provides for “[g]lassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 7010 or 7018): [g]lassware used for table (other than drinking glasses) or kitchen purposes other than that of glass-ceramics: [o]ther: [o]ther: [v]alued over $3 each: [o]ther: [v]alued over $3 but not over $5 each.” The 2015 column one, general rate of duty is 15 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/tata/hts/.
EFFECTS ON OTHER RULINGS:
NY N136191, dated December 22, 2010, is hereby affirmed.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division