OT:RR:CTF:CPMM H275864 RRB
Ms. Kathy M. Belas
James G. Wiley Co.
P.O. Box 90008
Los Angeles, CA 90009-0008
RE: Revocation of HQ 965555, HQ 967931, HQ 966836, HQ 965554, HQ 963339, HQ 965063, HQ 963647, NY H88277, NY N150496, NY N104149, NY I82546; Modification of HQ 963670 and HQ 963539; Tariff classification of a metal lunch box
Dear Ms. Belas:
This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered Headquarters Ruling Letter (“HQ”) 965555, dated August 12, 2002, regarding the classification of metal lunch boxes. We have also reconsidered HQ 967931, dated April 21, 2006; HQ 966836, dated April 1, 2004; HQ 965554, dated August 12, 2002; HQ 963339, dated April 19, 2002; HQ 965063, dated April 12, 2002; HQ 963647, April 12, 2002; New York Ruling Letter (“NY”) H88277, dated April 26, 2002; NY N150496, dated March 18, 2011, NY N104149, dated May 20, 2010; NY I82546, dated June 7, 2002; HQ 963670, dated April 12, 2002; and HQ 963539, April 12, 2002, regarding substantially similar merchandise. The metal lunch boxes were classified under subheading 7326.90, Harmonized Tariff Schedule of the United States (“HTSUS”), as “[o]ther articles of iron or steel: Other.” For the reasons set forth below, we hereby revoke HQ 965555, HQ 967931, HQ 966836, HQ 965554, HQ 963339, HQ 965063, HQ 963647, NY H88277, NY N150496, NY N104149, NY I82546, and modify HQ 963670 and HQ 963539 with respect to the classification of t
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 of the proposed action was published on April 29, 2020, in Volume 54, Number 16 of the Customs Bulletin. No comments were received in response to this notice.
FACTS:
In HQ 965555, we described the product as follows:
The article subject to this reconsideration is a container that has the shape of a traditional school lunch box, only smaller. It measures seven and one-half (7 1/2) inches in length, three and one-eighth (3 1/8) inches in width and five and one-eighth (5 1/8) inches in height. It is composed of metal believed by the Customs Service to be sheet steel. The initial ruling request indicates that the item is made of tin. . .
The item, described by the broker as a “lunch tote,” has a plastic handle on top that swivels side to side. One side of the item opens and may be secured closed by a latch on the top. Attachments for a shoulder strap are located on the narrow or width sides, one and one-half (1 1/2) inches from the top. . .
The subject metal lunch box in HQ 965555, as well as those described in HQ 967931, HQ 966836, HQ 965554, HQ 963339, HQ 965063, HQ 963647, NY H88277, NY N150496, NY N104149, NY I82546, HQ 963670, and HQ 963539 each have a handle, hinged lid, and metal latch closure.
ISSUE:
Whether the subject metal lunch boxes are classified in heading 4202, HTSUS, as “trunks, suitcases, vanity cases, attache cases, briefcases school satchels and similar containers,” or in heading 7326, HTSUS, as “other articles of iron or steel.”
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (“GRIs”). GRI 1 provides, in part, that “for legal purposes, classification shall be determined according to 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 may then be applied in order.
The HTSUS headings under consideration 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:
Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers:
4202.19.00 Other. . .
* * *
7326 Other articles of iron or steel:
7326.90 Other:
7326.90.10 Of tinplate. . .
* * *
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 ENs 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 consult, 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 EN to 42.02 states, in relevant part, that:
This heading covers only the articles specifically named therein and similar containers.
These containers may be rigid or with a rigid foundation, or soft and without foundation.
Subject to Notes 2 and 3 to this Chapter, the articles covered by the first part of the heading may be of any material. The expression “similar containers” in the first part includes hat boxes, camera accessory cases, cartridge pouches, sheaths for hunting or camping knives, portable tool boxes or cases, specially shaped or internally fitted to contain particular tools with or without their accessories, etc.
The articles covered by the second part of the heading must, however, be only of the materials specified therein or must be wholly or mainly covered with such materials or with paper (the foundation may be of wood, metal, etc.). The term “leather” includes chamois (including combination chamois) leather, patent leather, patent laminated leather and metallised leather (see Note 1 to this Chapter). The expression “similar containers” in this second part includes note cases, writing cases, pen cases, ticket cases, needle cases, key cases, cigar cases, pipe cases, tool and jewellery rolls, shoe cases, brush cases, etc….
The heading does not cover: … (f) Tool boxes or cases, not specially shaped or internally fitted to contain particular tools with or without their accessories (generally, heading 39.26 or 73.26) ….
* * *
The EN to 73.26 states, in relevant part, that heading 7326, HTSUS, includes:
(3) Certain boxes and cases, e.g., tool boxes or cases, not specially shaped or internally fitted to contain particular tools with or without their accessories (see the Explanatory Note to heading 42.02); botanists’, etc., collection or specimen cases, trinket boxes; cosmetic or powder boxes and cases; cigarette cases, tobacco boxes, cachou boxes, etc., but not including containers of heading 73.10, household containers (heading 73.23), nor ornaments (heading 83.06).
* * *
In recent rulings, as well as in rulings from two to three decades ago, CBP has classified multiple-use, metal or molded plastic lunch boxes and hinged containers with handles, in heading 4202, as containers similar to articles of the heading, i.e., trunks, suitcases, vanity cases, attache cases briefcases, and school satchels. See, e.g., HQ H266606, dated November 10, 2015; NY N239382, dated April 2, 2013; NY N231558, dated September 4, 2012; NY N047586, dated January 21, 2009; NY K84289, dated March 24, 2004; NY K81365, dated December 17, 2003; and NY H83774, dated July 23, 2001; HQ 953663, dated May 21, 1993; HQ 953044, dated April 19, 1993; HQ 952702, dated April 9, 1993; HQ 088472, dated August 17, 1992; HQ 950049, dated April 21, 1992; HQ 951029, dated April 7, 1992; HQ 087281, dated October 29, 1990; and HQ 082488, dated February 21, 1989.
We erroneously departed from that analysis in the rulings at issue here, dated from 2002 through 2006, due to the addition of language to EN 42.02 regarding the exclusion of tool boxes, not specially shaped or internally fitted for their tools. We do not believe this EN language should have been applied to lunch boxes.
Heading 4202, HTSUS, is an eo nomine provision, which describes goods by their specific name. Otter Prods., LLC v. United States, 834 F. 3d 1369, 1376 (Fed. Cir. 2016) (citing La Crosse Tech. v. United States, 723 F. 3d 1353, 1358 (Fed. Cir. 2013). Metal lunch boxes are not named in heading 4202, HTSUS.
Rather, the subject metal lunch boxes are “similar containers” to the named articles listed before the semicolon, as they possess the essential characteristics that unite these articles, namely, organizing, storing, protecting and carrying various items. See Avenues III, 423 F.3d at 1332; see also HQ H284146, dated June 20, 2017.
Although not required, lunch boxes do indeed contain all four characteristics. Like trunks that are designed to store, protect and carry personal property such as clothing, toys, blankets, etc., the subject metal lunch boxes each have a handle, hinged lid, and metal latch closure. They are designed to transport one’s lunch, snacks and beverages from home to school, a workplace, or other destination. They can also be used to transport personal objects such as small figurines, marbles, coins, etc. from one location to another. In addition, the lunch boxes are made of metal to withstand the rigors of travel to and from home and school or another destination. These same features allow for the storage of these items.
In Otter Prods., the CAFC held that in the context of heading 4202, HTSUS, “organization implies multiple items placed in a single container.” Otter Prods., 834 F.3d at 1370. Similarly, when the lunch box is in use, one of its purposes is to organize one’s lunch, snacks, and beverages while placed in the lunch box.
The metal lunch box is also designed to protect food and beverages from being crushed while a child goes about his or her daily activities at school, either in the classroom, cafeteria, or on the playground. Accordingly, the subject metal lunch boxes are ejusdem generis with containers of the first part of heading 4202, HTSUS.
In light of the foregoing, we find that the metal lunch boxes with handles, hinged lids, and latch closures in HQ 965555, HQ 967931, HQ 966836, HQ 965554, HQ 963339, HQ 965063, HQ 963647, NY H88277, NY N150496, NY N104149, NY I82546, HQ 963670, and HQ 963539 are classified in heading 4202, HTSUS, and specifically provided for under subheading 4202.19.00, HTSUS, as “[t]runks, suitcases, vanity cases, attache cases, briefcases school satchels and similar containers: Other.” As such, they are not described as an other article of steel in heading 7326.
HOLDING:
Pursuant to GRI 1, metal lunch boxes are classified in heading 4202, HTSUS, specifically under subheading 4202.19.0000, HTSUSA (Annotated), as “[t]runks, suitcases, vanity cases, attache cases, briefcases school satchels and similar containers: Other.” The 2019 column one general rate of duty is 20% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompany duty rate are provided on the World Wide Web, at http://www.usitc.gov/tata.hts/.
EFFECT ON OTHER RULINGS:
HQ 965555, dated August 12, 2002; HQ 967931, dated April 21, 2006; HQ 966836, dated April 1, 2004; HQ 965554, dated August 12, 2002; HQ 963339, dated April 19, 2002; HQ 965063, dated April 12, 2002; HQ 963647, dated April 12, 2002; NY H88277, dated April 26, 2002; NY N150496, dated March 18, 2011; NY N104149, May 20, 2010; NY I82546, dated June 7, 2002, are hereby REVOKED.
HQ 963670, dated April 12, 2002, and HQ 963539, dated April 12, 2002, are hereby MODIFIED with respect to the classification of the metal container in the shape of a traditional school lunch box.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division
Cc: Ms. Diane Flowers
MGA Entertainment
16340 Roscoe Blvd., #240
Van Nuys, CA 91406
Port Director
U.S. Customs and Border Protection
Port of Laredo
P.O. Box 3130
Laredo, TX 78044-3130
Mr. David M. Rickert
E. Besler & Company
P.O. Box 66361
Chicago, IL 60666-0361
Port Director
U.S. Customs and Border Protection
477 Michigan Avenue, Room 210
Detroit, MI 48226
Ms. Jennifer Scott
Expeditor International of Washington, Inc.
Compliance Manager
21318 64th Avenue S.
Kent, Washington 98032
Mr. Michael R. Dorman
Creskoff & Dorman
1028 North Lake Avenue, Suite 202
Pasadena, CA 91104
Mr. Raymond Hasson
Corbett International, Inc.
One Cross Island Plaza, Suite 203F
Rosedale, NY 11422
Ms. Jennifer A. Metayer
SUI International, Ltd.
380 Hurricane Lane, Suite 201
Williston, VT 05495
Mr. Ken August
Easter Unlimited, Inc.
80 Voice Road
Carle Place, NY 11514
Ms. Cindy Hazlett
CHB Assistant Manager
Customs International Trade and Logistics Applause, Inc.
6101 Variel Avenue
Woodland Hills, CA 91367
Port Director
U.S. Customs and Border Protection
Second and Chestnut Streets
Philadelphia, PA 19106