HQ 0083177 - Camcorder container/carrying case - United States International Trade Commision Rulings

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HQ 083177

January 3, 1990

CLA-2 CO:R:C:G 083177 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.: 706.62

Madeline B. Kuflik, Esq.
Matsushita Electric Corporation of America
Office of the General Counsel
One Panasonic Way
Secaucus, New Jersey 07094

RE: Camcorder container/carrying case

Dear Ms. Kuflik:

This is in response to your request of October 28, 1988, for a reconsideration of New York Region Ruling 829337 (NY 829337) as it classified merchandise under the Tariff Schedules of the United States (TSUS).

FACTS:

The merchandise in question is the container/carrying case (model PV-846M) for Panasonic Company's model PV-460 camcorder. The case acts as a container for the camcorder and its accessories during shipment and as a carrying case for the camcorder after sale. This carrying case is sold only with the PV-460 camcorder. NY 829337 classified the carrying case within Item 706.62, TSUS, as "Luggage and handbags...Other..." This results in the carrying case being dutiable at a higher rate than the camcorder.

You contend that the carrying case should be dutiable at the same rate as its contents, the camcorder, according to General Headnote 6(b)(i), TSUS. This headnote states:

(b) Not Imported Empty: Containers or holders if imported containing or holding articles are subject to tariff treatment as follows:
(i)...containers of usual types ordinarily sold at retail with its contents, are not subject to treatment
as imported articles. Their cost, however, is under section 402 of the tariff act, a part of the value of their contents and if their contents are subject to an ad valorem rate of duty such containers or holders are, in effect, dutiable at the same rate as their contents...

ISSUE:

Whether the PV-846M container/carrying case is subject to the same tariff treatment as the PV-460 camcorder or at a higher rate.

LAW AND ANALYSIS:

The classification of merchandise under the TSUS is governed by the General Headnotes. General Headnote 6 directs the classification of "Containers or Holders for Imported Merchandise". As quoted above, General Headnote 6(b)(i) applies to cases not imported empty, such as the case in question. This headnote provides for "containers of usual types ordinarily sold at retail with their contents..."

It is the opinion of this office that the subject container is not "ordinarily sold at retail with their contents". Camcorders are not ordinarily sold with a carrying case. The fact that the PV-460 camcorder incorporates new technology and is sold with a case does not remove it from camcorders, as a class of merchandise, which are ordinarily sold at retail without cases. Therefore, the PV-846M containers for the PV-460 are not "containers of usual types ordinarily sold..."

You argue that Headquarters Ruling Letter 081779 (HQ 081779), dated April 5, 1988, is controlling in this situation. However, that ruling dealt with containers for a model of portable computers, a different type of merchandise. We do not find HQ 081779 applicable.

The PV-846M container/carrying case is not a container of "usual types ordinarily sold at retail with their contents..." It is to be classified separately from the camcorder. The proper classification for the PV-846M is within Item 706.62, TSUS.

HOLDING:

The PV-846M container/carrying case is not a container of "usual types ordinarily sold at retail with their contents..."

It is to be classified separately from the camcorder. The proper classification for the PV-846M is within Item 706.62, TSUS, as "Luggage and handbags...Other..."

Sincerely,

John Durant, Director
Commercial Rulings Division

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