Request for Binding Ruling; Classification of spiral-bound notebook imported with textile cover

HQ 965963 January 9, 2003 CLA-2: RR:CR:TE 965963 ASM CATEGORY: Classification TARIFF NO.: 4820.10.2050 Mr. Joseph A. Startare Jade International, Inc. P.O. Box 469 Folcroft, PA 19032-0469 RE: Request for Binding Ruling; Classification of spiral-bound notebook imported with textile cover Dear Mr. Startare: This is in response to your request dated September 17, 2002, on behalf of your client, Computer Expressions, Inc., concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of a spiral-bound notebook imported with a textile cover. A sample has been provided with the request. FACTS: The subject article has been identified as the “Headcase Hippo Notes” , SKU style number 61112. The product consists of an oval-shaped spiral bound paper notebook with bright pink lined paper and cardboard covers designed for insertion into pockets which form the upper and lower jaw of a textile hippo head cover. The hippo head cover has been constructed of gray plush material, interior stuffing to provide shape, two fabric ears, nostrils, and plastic eyes. Both the upper and lower jaws have been fitted with two stuffed white fabric teeth to convey the impression of a hippo mouth. A zipper closure has been inserted to open or close the hippo’s mouth from ear to ear. At the top of the head, just behind the ears, a carrying handle constructed of matching plush fabric has been sewn into the seams. - 2 - ISSUE: What is the proper classification for the merchandise? LAW AND ANALYSIS: Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) 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 GRI may then be applied. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) 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 these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). In classifying the subject product, we begin by noting that Chapter 48, HTSUSA, covers “Paper and paperboard; articles of paper pulp, of paper or of paperboard.” However, Note 1(h) to chapter 48, HTSUSA, states: This chapter does not cover: Articles of heading 4202 (for example, travel goods). Among other goods, heading 4202, HTSUSA, provides for attaché cases, wallets and similar containers. It is important to note, however, that the exemplars named in heading 4202 have in common the purpose of organizing, storing, protecting and carrying various items. See Totes, Inc. v. United States, 18 CIT 919, 865 F. Supp. 867(1994), aff’d. 69 F. 3d 495 (1995). Specifically, EN(c) to heading 4202 states that the heading does not cover: Articles which, although they may have the character of containers, are not similar to those enumerated in the heading, for example, book covers and reading jackets, file-covers, document-jackets…etc., and which are wholly or mainly covered with leather, sheeting of plastics, etc. Such articles fall in heading 4205 if made of (or covered with) leather or composition leather, and in other Chapters if made of (or covered with) other materials. - 3 - In the instant case, whether the textile cover is prima facie classifiable under heading 4202, HTSUSA, or under a textile provision, depends upon whether its primary purpose is to organize, store, protect, and carry various items or to cover and protect the paper notebook. If it is classifiable under heading 4202, it is excluded from classification under heading 4820, by the legal note to chapter 48, HTSUSA, previously cited. Accordingly, we note that the subject cover has only two pockets which have been specifically shaped and designed to secure the front and back cardboard covers of the paper notebook. We further note that the textile folder has no additional interior or exterior panels, pockets, or inserts for pens, pencils, business cards, etc. Thus, the textile cover is only intended to cover and carry the spiral-bound notebook. In light of the analysis above, we find that the textile cover is not classifiable under heading 4202, HTSUSA. If imported separately, the textile cover would be classified under heading 6307, HTSUSA. For rulings consistent with this determination, see Headquarters Ruling Letter (HQ) 962757, dated June 21, 2000, and HQ 962227, dated June 7, 1999, in which Customs examined goods which had the character of containers but which lacked similarity to the containers enumerated in heading 4202, HTSUSA. The goods consisted of various tri-fold and bi-fold articles constructed of textile, dedicated to covering and protecting bibles or other books (and their related “extras”) under heading 6307, HTSUSA. The covers featured flat pockets, sleeves, flaps, built-in bookmarks, holders for highlighters and pens, zippered closures, and carrying straps. Each of the Headquarters rulings notes that Customs has long classified “bible book covers” incorporating outer pockets, interior pockets, handles, pen-holder loops and extensive decorative features under heading 6307, HTSUSA (citing New York Ruling Letters (NY) A82707, dated April 25, 1996, NY A83330, dated May 15, 1996, NY A86713, dated August 22, 1996, NY A87823, dated October 1, 1996, NY A88270, dated October 11, 1996, NY B80069, dated October 20, 1997, NY B85128, dated May 15, 1997, and NY C86501, dated April 20, 1998). The two Headquarters rulings also point to additional rulings excluding jacket-like articles from heading 4202, HTSUSA (i.e., HQ 956940, dated November 25, 1994, HQ 960989, dated July 20, 1998, and HQ 961418, dated August 4, 1998). See also, HQ 961021, dated January 5, 1999. With respect to the classification of jacket-like articles such as the subject textile cover, when imported with the articles of stationery they cover and protect, we note that Customs has consistently classified such components together under subheading 4820, HTSUSA. For example, in HQ 955522, dated March 23, 1994, Customs classified a burgundy leather agenda with stationery inserts for daily notations, financial calculations, and addresses (held in place with a ring binder) in subheading 4820.10.2010, HTSUSA. See also HQ 957308, dated April 20, 1995. In the recent decision in The Mead Corporation v. United States, Slip Op. 98-1569 (decided March 8, 2002), however, the Court of Appeals for the Federal Circuit (CAFC) concluded that a “diary” is retrospective, not prospective, and is an item in which to recall and relate past events, not to jot down dates and times of distant appointments, regardless of their importance. The CAFC nevertheless found such multi-component articles to be classifiable under heading 4820, HTSUSA. The Court reclassified, as a matter of law, articles such as those subject to HQ 955522 and HQ 957308, in subheading 4820.10.4000, the provision for articles similar to diaries. - 4 - In the following rulings, Customs has held that articles consisting of a paper pad/journal and cover/jacket/folder, were classified as the paper component in heading 4820, HTSUSA: HQ 965569, dated August 19, 2002; HQ 965088, dated August 5, 2002; HQ 965423, dated July 16, 2002; and HQ 965459, dated July 15, 2002. As such, we find that the subject product is properly classified in heading 4820, HTSUSA, which provides, in part, for “… other articles of stationery of paper or paperboard.” HOLDING: The subject article identified as “Headcase Hippo Notes”, SKU style number 6112, is classified in subheading 4820.10.2050, HTSUSA, the provision for “Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, exercise books, blotting pads, binders (looseleaf or other), folders, file covers, manifold business forms, interleaved carbon sets and other articles of stationary, of paper or paperboard; Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles: Diaries, notebooks and address books, bound; memorandum pads, letter pads and similar articles, Other.” The general column one rate of duty is 0.4 percent ad valorem. Sincerely, Myles B. Harmon, Acting Director Commercial Rulings Division