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HQ 955119


October 20, 1993

CLA-2 CO:R:C:T 955119 BC

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.92.9015

Peter J. Fitch, Esq.
FITCH, KING & CAFFENTZIS
116 John Street
New York, New York 10038

RE: Revocation of HRL 086377, pertaining to the classification of a textile covered ring folder; jewelry box; similar container; suitable for long term use; HRL 953398

Dear Mr. Fitch:

Recently, we have had the opportunity to review Headquarters Ruling Letter (HRL) 086377, dated February 14, 1990, concerning the classification of a ring folder made of textile, cardboard, and plastic materials. That ruling was issued to you on behalf of your client. It classified the ring folder as an other made up article of textile under heading 6307, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). In a recent ruling, we held that a watch folder is classifiable under heading 4202, HTSUSA. The watch folder there classified is substantially similar to the ring folder classified in HRL 086377. Therefore, as explained below, HRL 086377 must be, and is hereby, revoked.

FACTS:

Headquarters Ruling Letter 086377, dated February 14, 1990, held that a ring folder made of textile materials, cardboard, and plastic should be classified as an other made up textile article, under subheading 6307.90.9050, HTSUSA. Recently, in HRL 953398, dated September 15, 1993, Customs held that a watch folder made of textile material, cardboard, and plastic sheeting is classifiable under subheading 4202.92.9015, HTSUSA, as a textile covered jewelry box, or similar container, of a kind normally sold at retail with its contents. Both the ring folder and the watch folder are substantially similar in construction, and both are used in the retail sale of jewelry and similar items.

ISSUE:

What is the proper classification of ring folders of the kind at issue in HRL 086377: ring folders made of textiles, cardboard, and plastic and used in the retail sale of rings?

LAW AND ANALYSIS:

The description of the ring folder classified in HRL 086377 is as follows:

The merchandise at issue consists of flocked man-made textile ring folders. They are used as point of purchase wrappings for band-type rings, to prevent the ring from being scratched during transport home from the store. The folder measures approximately 1 3/4 inches by 1 3/4 inches when folded. The four sides of the folder each fold around a cardboard square that measures 1 1/2 inches by 1 1/2 inches. The flaps are held together by a snap closure. The inside square is covered with flocked textile and has a piece of plastic stretched across the top which holds down the ring.

The description of the watch folder classified in HRL 953398 is as follows:

You described the watch folder as a "[b]lack flocked acrylic velour pouch with plated corners" used as packaging for watches. In fact, it is a container that is more in the nature of a folder designed to hold a watch. It is made of plastic sheeting which has been covered by a (man-made) textile flock material. A cardboard frame has been sewn between two layers of the flocked sheeting material. The top half of the folder folds over the bottom half, covering a pocket into which a watch is placed. The corners of the top flap are covered with brass colored metal protectors. In its open condition, it is 9 1/2 by 4 1/2 inches; folded over, it is 9 1/2 by 2 7/16 inches.

The descriptions of the ring and watch folders show that they are substantially similar, and they are both used in the retail sale of jewelry and similar items.

Classification of the ring folder under heading 6307, HTSUSA, in HRL 086377 was based on the following analysis:

Headquarters Ruling Letter 085156, dated November 20, 1989, stated Customs position that containers that are essentially retail packaging, rather than boxes designed for the keeping of jewelry, are classifiable under the appropriate heading pertaining to the materials of which the container is primarily composed. Jewelry boxes that are not merely retail packaging are classifiable under heading 4202, HTSUSA. (Emphasis supplied.)

The ring folder at issue is the type of container that is given to the purchaser at the point of purchase to carry the ring home from the store. It is not the type of merchandise that is normally carried around in the purse or pocket. The ring folder at issue is essentially retail packaging, therefore, it is classifiable as a made up textile article. (Emphasis supplied.)

Thus, because it was concluded that the ring folder at issue in HRL 086377 was retail packaging, and not an article to be carried in the purse or pocket, Customs held that it was not classifiable as a jewelry box under heading 4202, HTSUSA, but was instead classifiable under heading 6307, HTSUSA.

The principle announced in HRL 086377 to the effect that containers of the kind in question are "retail packaging" and, as such, are not classifiable under heading 4202, HTSUSA, is not in accordance with the current views of Customs. Prior to the issuance of HRL 086377 in February 1990, the Explanatory Notes (EN's) for Chapter 42 of the Harmonized Commodity Description and Coding System were amended to read as follows. (The amendment became effective on January 1, 1990.):

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.

This amendment makes clear - contrary to the position expressed in HRL 086377 - that jewelry boxes and similar containers of the kind used in the retail sale of jewelry and similar items are classifiable under heading 4202, HTSUSA.

Thus, it is Customs position, as expressed in HRL 953398, that jewelry boxes and similar containers used in the presentation and/or sale of jewelry and similar items are classifiable under heading 4202, HTSUSA, in accordance with the above EN. (See also HRL 951028 (March 3, 1993) pertaining to jewelry boxes and HRL 950486 (April 7, 1993) pertaining to a necklace folder.) The ring folder classified in HRL 086377 is the kind of container that the EN refers to: it is used in the retail sale of jewelry (and similar items); it is specially designed (shaped or fitted) to hold the ring that is placed (and sold) inside it; and it is adequately constructed to be used repeatedly over a prolonged period of time. We disagree with HRL 086377's intimation that the ring folder is used only to transport the merchandise home after purchase, then to be discarded. Containers of this type are frequently kept and used after purchase as protective storage for the items purchased with them. Further, we find that HRL 086377's conclusion that the ring folder is not the kind of article to be carried in the purse or pocket is, in the first place, of no moment and, in the second place, inaccurate, since the article is susceptible of precisely that use in certain circumstances. Again, the ruling's assertion that the ring folder is retail packaging and for that reason cannot be classified under heading 4202, HTSUSA, is rejected.

In HRL 953398, we stated the following regarding the watch folder there classified:

The watch folder at issue is used in the retail sale of a watch and is specially shaped or fitted to contain that watch. The pocket into which the watch is placed and the flap that covers the pocket offer protection for the watch. The watch folder, when handled with ordinary care, is adequately constructed to be suitable for repeated use over a prolonged period of time as a travel or storage folder. Thus, it is suitable for long term use.

The foregoing, with appropriate accomodation to the details of the article in question, can be said of the ring folder at issue here. Like the watch folder classified in HRL 953398, the ring folder should be classified under subheading 4202.92.9015, HTSUSA.

Based on the foregoing, we conclude that HRL 086377 is erroneous.

HOLDING:

The ring folder classified in HRL 086377 under heading 6307, HTSUSA - used in the retail sale of jewelry and made of textile materials, cardboard, and plastic - is classifiable under subheading 4202.92.9015, HTSUSA, as a textile covered jewelry box or similar container of a kind normally sold at retail with its contents. The applicable duty rate is 20% ad valorem. This notice to you should be considered a revocation of HRL 086377 under 19 CFR 177.9(d)(1).

Sincerely,

John Durant, Director

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