OT:RR:CTF:CPMM H287056 RRB
Port Director Port of San Juan
City View Plaza-Suite 3000
#48 Rd. 165 Km. 1.2
Guaynabo, PR 00968-8000
Attn: Karla Zayas, Import Specialist
RE: Application for Further Review of Protest No. 4909-17-100037; Tariff classification of assorted watch display boxes, sunglass display boxes, combined watch/sunglass display boxes, pen display boxes and valet/organizer trays
Dear Port Director:
The following is our decision regarding the Application for Further Review (“AFR”) of Protest Number 4909-17-100037, timely filed on March 28, 2017, on behalf of TimelyBuys (“Protestant”). The AFR concerns U.S. Customs and Border Protection’s (“CBP”) classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of assorted watch display boxes, sunglass display boxes, combined watch/sunglass display boxes, pen display boxes, and valet/organizer trays.
FACTS:
The protested merchandise consists of 18 models of assorted watch display boxes, sunglass display boxes, combined watch/sunglass display boxes, pen display boxes, and valet/organizer trays. They are manufactured using Medium Density Fiberboard (“MDF”), base metal, plastics and textile materials. Some of the models are covered with an outer exterior sheeting of polyurethane plastic, which is made to simulate leather. Other models are covered with an outer exterior of what the protestant describes as printing paper in an imitation wood pattern. Upon request, the protestant provided samples of some of the merchandise to our office for examination.
Our office sent samples of watch display boxes and an organizer tray with different exteriors to the CBP Laboratories and Scientific Services Directorate (“LSSD”) for examination. In its laboratory report, dated June 6, 2019, LSSD stated the following about a sample of a watch display box (Model SW-1087-12C) that the Protestant asserts is covered in printing paper in an imitation wood pattern:
The sample is stated to be a wooden watchbox . . . composed of cellulosic fibers. The box is covered with an alkyd lacquer.
In LSSD reports dated June 21, 2019, LSSD confirmed that the outer surface of a travel watch display box with handle (Model SW-3250) and a watch display box (Model SW-1680 BL) is composed of polyurethane.
The various models of watch display boxes, sunglass display boxes, combined watch/sunglass display boxes, and pen display box at issue have an MDF base and lid with metal hinges and an interior textile lining of cellulosic fibers. They are specially fitted with compartments to hold varying amounts of items. Some of the models have a glass window on the lid. Also at issue are five different models of organizer/valet trays composed of MDF.
The protested entry of assorted watch display boxes, sunglass display boxes, pen display boxes, and organizer/valet trays was entered on September 24, 2015, at the Port of San Juan (“Port”),and was liquidated on September 30, 2016, under subheading 4202.92.9060, HTSUSA (“Annotated”) (2015), as “jewelry boxes. . .and similar containers, . . . of sheeting of plastics,. . .or wholly or mainly covered. . .with paper. . . ,” at a duty rate of 17.6% ad valorem. Protestant filed this Protest and AFR on March 28, 2017, asserting that the subject merchandise is properly classified under subheading 4420.90.8000, HTSUSA (2015), as “cases for jewelry or cutlery and similar articles, of wood. . .”
ISSUE:
Whether assorted watch display boxes, sunglass display boxes, combined watch/sunglass display boxes, pen display boxes and organizer/valet trays are classified under heading 4202, HTSUS, as “jewelry boxes. . .and similar containers, . . . of sheeting of plastics . . . or wholly or mainly covered. . .with paper” or under heading 4420, HTSUS, as “caskets and cases for jewelry or cutlery and similar articles, of wood.”
LAW AND ANALYSIS:
The protest was properly filed as a decision on classification under 19 U.S.C. § 1514(a)(2). The protest was timely filed within 180 days of liquidation of the entries. See 19 U.S.C. § 1514(c)(3).
Further Review of Protest Number 4909-17-100037 was properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(b) because the decision against which the protest was filed involves questions of law or fact which have not been ruled upon the Commissioner of Customs or his designee, or by the courts.
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 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.
Goods that are prima facie classifiable under two or more headings are classifiable in accordance with GRI 3.
GRI 3(a) states that the headings that provide the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3(b) or 3(c).
GRI 3(b) states that composite goods or sets which cannot be classified by reference to GRI 3(a) are to be classified as if they consisted of the component that gives them their essential character.
The 2015 HTSUS provisions 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:
4420 Wood marquetry and inlaid wood; caskets and cases for jewelry or cutlery
and similar articles, of wood; statuettes and other ornaments, of wood;
wooden articles of furniture not falling within chapter 94:
* * *
Note 1(e) to chapter 44 provides as follows:
This chapter does not cover:
***
(e) Articles of heading 4202;
* * *
The Explanatory Notes (“ENs”) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff 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 these headings at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The EN to 42.02 states, in pertinent part:
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 leathers (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 case, pen cases, ticket cases, needle cases, key cases, cigar cases, pipe cases, tool and jewellery rolls, shoe cases, brush cases, etc.
***
The term “jewellery boxes” covers not only boxes specially designed for keeping jewellery, but also similar lidded containers of various dimensions (with or without hinges or fasteners) specially shaped or fitted to contain one or more pieces of jewellery and normally lined with textile material, of the type in which articles of jewellery are presented and sold and which are suitable for long term use.
The EN to 44.20 states, in pertinent part:
The articles of this heading may be made of ordinary wood or of particle board or similar board, fibreboard, laminated wood or densified wood (see Note 3 to this Chapter).
It also covers a wide variety of articles of wood (including those of wood marquetry or inlaid wood), generally of careful manufacture and good finish, such as: small articles of cabinetwork (for example, caskets and jewel cases); small furnishing goods; decorative articles. Such articles are classified in this heading, even if fitted with mirrors, provided they remain essentially articles of the kind described in the heading. Similarly, the heading includes articles wholly or partly lined with natural or composition leather, paperboard, plastics, textile fabrics, etc., provided they are articles essentially of wood.
The heading includes:
Boxes of lacquered wood (of the Chinese or Japanese type); cases and boxes of wood, for knives, cutlery, scientific apparatus, etc; snuff boxes and other small boxes to be carried in the pocket, in the handbag or on the person; stationery cases, etc.; needlework boxes; tobacco jars and sweetmeat boxes. However, the heading excludes ordinary kitchen spice boxes, etc. (heading 44.19).
Articles of wooden furniture, other than those of Chapter 94 (see the General Explanatory Note to that Chapter. This heading therefore covers such goods as coat or hat racks, clothes brush hangers, letter trays for office use, ashtrays, pen-trays and ink stands.
* * * *
The Protestant argues that all of the protested merchandise should be classified as a composite good under GRI 3(b), whereby the MDF imparts the essential character of the good as it provides structure, support, bulk and durability. Accordingly, the protestant asserts that the merchandise should be classified under heading 4420, HTSUS, as “cases for jewelry or cutlery and similar articles, of wood.”
Classification of the subject merchandise within heading 4420, HTSUS, is subject to note 1(e) to chapter 44, which excludes from chapter 44 goods that are classifiable in heading 4202, HTSUS. Therefore, prior to considering classification of the subject merchandise in heading 4420, HTSUS, we must first determine whether they are classifiable in heading 4202, HTSUS.
Heading 4202, HTSUS, sets forth two lists of containers which are classifiable under that heading. The lists are separated by a semicolon. Articles listed before the semicolon are not restricted as to material type, and articles listed after the semicolon must be composed of leather or composition leather, sheeting of plastics, textile materials, vulcanized fiber, or paperboard, or wholly or mainly covered with such materials or with paper. Both parts provide for the classification of certain named articles and “similar containers.” Heading 4202, HTSUS, does not specifically name items such as watch display boxes, sunglass display boxes, and pen display boxes. However, they are classifiable in this heading if they are ejusdem generis with the enumerated containers. See Sports Graphics, Inc. v. United States, 24 F.3d 1390, 1392 (Fed. Cir. 1994).
In Totes, Inc. v. United States (“Totes I”), 18 C.I.T. 919, 924 (1994), the Court of International Trade (“CIT”) held that the essential characteristics which unite the containers of heading 4202, HTSUS, are that the containers “organize, store, protect and carry various items.” Id. aff’d by Totes, Inc. v. United States (“Totes II”), 69 F.3d 495 (Fed. Cir. 1995). We also note that the courts have applied these four unifying characteristics to containers listed both before and after the semicolon. See, e.g., Avenues in Leather, Inc. v. United States, 11 F.Supp. 2d 719, 723 – 724 (CIT 1998) (applied the four characteristics to a leather folio case classified before the semicolon in subheading 4202.11.00, HTSUS); Totes II, 69 F.3d at 500 (applied the four characteristics to a trunk organizer classified after the semicolon in subheading 4202.92.90, HTSUS).
Turning to the protested merchandise, we must apply the principle of ejusdem generis to determine if the items at issue have the same essential characteristics as the named containers of heading 4202, HTSUS.
Watch, Sunglass, Combined Watch/Sunglass and Pen Display Boxes
Pursuant to the EN to 42.02, jewelry boxes set forth after the semicolon in heading 4202, HTSUS, include not only boxes specially designed for keeping jewelry, but also similar lidded containers specially shaped or fitted to contain one or more pieces of jewelry and normally lined with textile material, of the type in which articles of jewelry are presented and sold and which are suitable for long term use. The watch display boxes, sunglass display boxes, combined watch/sunglass display boxes and pen display boxes consist of a lidded container, with hinges and a secure closure mechanism for organizing, storing, protecting and carrying the watches and sunglasses. They are similar to the types of cases in which jewelry is presented. They are also compartmentalized for organizing the watches, sunglass, and pens stored within the cases. Model SW-3250 includes a handle for easy carrying, as it is a traveling watch case. Further, the watch, sunglass, combined watch/sunglass, and pen display boxes are suitable for long term use given the durable MDF base and lid and metal hinges. Accordingly, these items share the same essential characteristics of organizing, storing, protecting and carrying various watches, sunglasses, and pens and are ejusdem generis with jewelry boxes enumerated after the semicolon in heading 4202, HTSUS.
Because jewelry boxes are enumerated after the semicolon, jewelry boxes and similar containers must be made of leather, plastic sheeting, textile materials, vulcanized fiber, paperboard, or wholly or mainly covered with such materials or with paper. Accordingly, the watch display boxes, sunglass display boxes, combined watch/display boxes, and pen display boxes covered in a sheeting of polyurethane plastic, which have the essential characteristics of jewelry boxes of heading 4202 and which meet the compositional requirements for items identified after the semicolon, are ejusdem generis with jewelry boxes and are properly classified in heading 4202, HTSUS. Thus, pursuant to note 1(e) to chapter 44, they are excluded from classification in heading 4420, HTSUS, because they are articles of heading 4202, HTSUS. Models SJ-6001-BL (sunglass box), SW-1098-CF-PEW (watch storage box), SJ-6028-CF-BL (sunglass box), SW-3250 (travel watch box with handle), SW-1680-BR (watch display box), SJ-6040-EB (sunglass box), SJ-6023 (sunglass box), SJ-6000-BL/EB (watch and sunglass box), SJ-6000-CF-PEW (watch and sunglass box), and SJ-3011-BL (pen display box) are specifically classified in subheading 4202.92.9060, HTSUSA (2015), which provides for “jewelry boxes. . . and similar containers. . . of sheeting of plastics. . . : Other: With outer surface of sheeting of plastic or of textile materials: Other: Other: Other: Other.” CBP has classified similar watch boxes under heading 4202, HTSUS. See, e.g., NY N070375, dated August 21, 2009; NY N048846, dated February 6, 2009; and NY L87660, dated September 29, 2005. Additionally, in NY L87710, dated September 29, 2005, CBP classified a similar eyeglass display box that was covered in a sheeting of polyurethane plastic and was specially fitted and designed to hold four pairs of spectacles or sunglasses in subheading 4202.92.9060, HTSUSA. There, we noted that the merchandise was intended to be placed on a dresser or similar location, just like the sunglass display cases at issue.
In addition, the protested merchandise also consists of four models of watch display and sunglass display boxes that have an MDF base and lid with metal hinges, a textile interior lining, and a glass window, and are covered with an outer exterior of alkyd lacquer. Although protestant asserts that these boxes are covered in printing paper in an imitation wood pattern, CBP’s LSSD confirmed that the outer exterior is, in fact, alkyd lacquer. LSSD found no paper covering these boxes. As these four models of watch display and sunglass display boxes have an outer surface of MDF covered with an alkyd lacquer, they do not meet the compositional requirements for items after the semicolon in heading 4202, HTSUS. Each of these watch and sunglass display boxes covered in alkyd lacquer is a composite good made up of materials classifiable under different headings, such as the MDF base and lid, the metal hinges and closures, the textile interior, and glass window. GRI 3(b) states that composite goods are to be classified according to the material or component that gives them their essential character. The essential character of the watch and sunglass display boxes is imparted by the MDF frame, which is the main structural material and allows the item to function as a box that contains the watches and sunglasses. Moreover, the EN to 44.20 states that the heading includes boxes of lacquered wood. Therefore, pursuant to GRI 3(b), the subject watch and sunglass display box models that are covered in alkyd lacquer (Models SW-1087-12C, SW-1135-30-BU/EB, SJ-6012-EB, and SJ-6002- EB) are classified in heading 4420, HTSUS, and more specifically in subheading 4420.90.6500, HTSUSA (2015), as “cases for jewelry or cutlery and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling within chapter 94: Other: Jewelry boxes, silverware chests, cigar and cigarette boxes, microscope cases, tool or utensil cases and similar boxes, cases and chests, all the foregoing of wood: Other: Lined with textile fabrics.”
Valet/Organizer Trays
Also at issue are four models of organizer/valet trays, which were liquidated under hearing 4202, HTSUS. All of the models are manufactured from MDF and have a textile fiber interior lining. Three models of the valet/organizer trays are covered in a sheeting of polyurethane plastic while one model is covered in an alkyd lacquer.
The EN to 42.02 states that items similar to jewelry boxes of heading 4202 include “similar lidded containers.” Unlike the watch, sunglass, combined watch/sunglass, and pen display boxes, the valet/organizer trays are not lidded and do not have any secure closure mechanism that would provide the sort of protection that jewelry boxes provide to the contents stored within. Therefore, they are not ejusdem generis with jewelry boxes of heading 4202, HTSUS. As organizer/valet trays are not ejusdem generis with any other items set forth in heading 4202, HTSUS, they are not classified in that heading.
The valet/organizer trays are composite goods made up of MDF, textile fibers, and in four of the models, a sheeting of polyurethane plastic. Pursuant to GRI 3(b), it is the MDF that gives the tray its construction and allows it to function as a receptacle of small items for storage on top of a dresser. Thus, the MDF imparts the essential character of the valet/organizer trays. In addition, the EN to 44.20 states that the heading includes letter trays for office use and pen trays, which are similar to the subject valet/organizer trays for storing and organizing items within the tray on top of a dresser or desk. Accordingly, the valet/organizer trays (Models SJ-6064-BL-CAR, SJ-1092-BR, SJ-6062-BL, and SJ-2110-L-EB/WH) are classified in heading 4420, HTSUS, and specifically in subheading 4420.90.8000, HTSUSA (2015), which provides for “cases for jewelry or cutlery and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling within chapter 94: Other: Other.” Moreover, we have classified similar valet/organizer trays in heading 4420, HTSUS, under a GRI 3(b) analysis. See, e.g., NY N276688, dated July 15, 2016; NY N090384, dated February 2, 2010; and NY N018801, dated November 20, 2007.
HOLDING:
By application of GRIs 1 and 6, the subject watch display boxes, sunglass display boxes, combined watch/sunglass display boxes, and pen display boxes covered in a sheeting of polyurethane plastic (Models SJ-6001-BL, SW-1098-CF-PEW, SJ-6028-CF-BL, SW-3250, SW-1680-BR, SJ-6040-EB, SJ-6023, SJ-6000-BL/EB, SJ-6000-CF-PEW, and SJ-3011-BL) are classified in heading 4202, HTSUS, and specifically in subheading 4202.92.9060, HTSUSA (2015), which provides for “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: With outer surface of sheeting of plastics or of textile materials: Other: Other: Other: Other.” The column one, general rate of duty at the time of entry was 17.6% ad valorem.
By application of GRIs 3(b) and 6, the watch display boxes and sunglass display boxes covered in an alkyd lacquer (Models SW-1087-12C, SW-1135-30-BU/EB, SJ-6012-EB, and SJ-6002-EB) are classified in heading 4420, HTSUS, and specifically in subheading 4420.90.6500, HTSUSA (2015), as “Wood marquetry and inlaid wood; caskets and cases for jewelry or cutlery and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling within chapter 94: Other: Jewelry boxes, silverware chests, cigar and cigarette boxes, microscope cases, tool or utensil cases and similar boxes, cases and chests, all the foregoing of wood: Other: Lined with textile fabrics.” The column one, general rate of duty at the time of entry was Free.
By application of GRIs 3(b) and 6, the subject valet/organizer trays are classified in heading 4420, HTSUS, and specifically in subheading 4420.90.8000, HTSUSA (2015), which provides for, “Wood marquetry and inlaid wood; caskets and cases for jewelry or cutler and similar articles, of wood; statuettes and other ornaments, of wood; wood articles of furniture not falling within chapter 94: Other: Other.” The column one, general rate of duty at the time of entry was 3.2% 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 at https://hts.usitc.gov/current.
You are instructed to AFFIRM the protest in part and DENY the protest in part.
In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings, will make the decision available to CBP personnel and to the public on the Customs Rulings Online Search System (“CROSS”), at https://rulings.cbp.gov/, and other methods of public distribution.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division
cc: William Huntley
Supervisory Import Specialist
U.S. Customs and Border Protection
1 East Bay Street Savannah, Georgia 31401