HQ 0955656 - Classification of portfolio planners; attache cases; briefcases from China; notebooks; diaries. - United States International Trade Commision Rulings

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HQ 955656

July 14, 1994

CLA-2 CO:R:C:T 955656 ch

CATEGORY: CLASSIFICATION

TARIFF NO.: 4820.10.2010; 4820.10.2050; 4202.11.0030

James Caffentzis, Esq.
Fitch, King and Caffentzis
116 John Street
New York, New York 10038

RE: Classification of portfolio planners; attache cases; briefcases from China; notebooks; diaries.

Dear Mr. Caffentzis:

This is in response to your letter of December 28, 1993, requesting tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) for certain articles described as portfolio planners. Samples were provided to this office for examination.

FACTS:

Five samples were submitted for examination. Each article includes a leather case which you state is coated with polyurethane measuring approximately 0.015 mm in thickness.

Style 3320 measures approximately 5 1/4 inches by 8 inches by 1 1/2 inches. The leather case possesses a zipper closure and a six ring binder permanently affixed at the spine. The binder is designed to accommodate two rigid clear plastic inserts which protect numerous paper inserts and a clear plastic day finder imprinted with a 6 inch ruler. The paper inserts include a daily appointment calendar, as well as weekly and monthly calendars, with spaces and lines for personal notations. In addition, the binder will hold a personal address/telephone directory, sections for personal, priority action, expense and objective notes, and a vinyl business card holder. Style 3320 includes a note pad, which may be placed in the binder or slipped into a pocket on the inside of the case. The opposite interior wall features a pen holder, a flat pocket measuring approximately 4 1/4 inches by 2 3/4 inches and a flap to hold loose papers.

Style 3333 measures approximately 8 inches by 10 inches by 1 1/2 inches. The case possesses a zipper closure and a three ring binder permanently affixed at the spine. This article contains plastic and paper inserts substantially similar in design and function to those of style 3320. A combination note pad and one page pre-printed calendar may be placed in the binder or slipped into a pocket of the case. The opposite interior wall features a full wall pocket with tapered accordion style gussets. Affixed to this pocket are two pen holders and two small flat pockets each measuring approximately 2 1/4 inches by 4 1/2 inches. The exterior possesses a pocket measuring approximately 10 inches by 6 inches which is designed to accommodate papers.

Style 3340 is a folio style case which measures approximately 9 1/2 inches by 14 1/2 inches by 1 inch. It is secured by means of a patented snap closure. The exterior features a full-sized zippered pocket with a tapered gusset. A combination note pad and one page pre-printed calendar is inserted into a slot on the inside of the case. An identifi- cation card holder has been placed over the slot and four pen holders surround the space for the pad. The opposite interior wall includes an open full wall pocket with a tapered accordion style gusset. The front of the gussetted pocket features a zippered pocket measuring approximately 8 inches by 4 1/2 inches; two small flat pockets; and a pocket measuring approximately 5 inches by 4 1/4 inches with a hook and loop fastener closure.

Style 3310 is a folio style case which measures approximately 9 1/2 inches by 14 1/2 inches by 1 1/4 inches. It is secured by means of a patented snap closure. The exterior features a full-sized zippered pocket with a tapered gusset. A note pad is inserted into a slot on the inside of the case. An identification card holder has been placed over the slot. The opposite interior wall includes an open full wall pocket with a tapered accordion style gusset. The front of the gussetted pocket features a zippered pocket measuring approximately 8 inches by 4 1/2 inches; two small flat pockets; a pocket measuring approximately 5 inches by 4 1/4 inches with a hook and loop fastener closure; and three pen holders.

Style 3343 measures approximately 10 1/2 inches by 13 1/2 inches by 1 3/4 inches. It possesses a zipper closure with a three ring binder permanently affixed at the spine. A combination note pad and one page pre-printed calendar is inserted into a slot on the inside of the case. The opposite interior wall possesses two tapered gussetted pockets measuring approximately 13 inches by 6 inches. It also includes two smaller pockets with hook and loop fastener closures, two pen holders, one small open flat pocket and a zippered pocket measuring approximately 11 1/2 inches by 6 1/2 inches. The exterior features a handle sewn to the spine so that the article may be carried in an inverted position. The article also has two open exterior pockets on either side of the case measuring approximately 13 1/2 inches by 8 1/2 inches.

ISSUE:

Whether the subject merchandise is classifiable in heading 4820, HTSUSA, which provides in pertinent part for diaries, notebooks and similar articles; or heading 4202, HTSUSA, which provides in pertinent part for attache cases, briefcases and similar articles?

LAW AND ANALYSIS:

In prior ruling letters, we have concluded that portfolio diaries, organizers, agendas or planners are not classifiable in heading 4202, HTSUSA. For example, in Headquarters Ruling Letter (HRL) 950325, dated December 27, 1991, we addressed the classification of an organizer consisting of a leather case enclosing a six-ring binder, with paper inserts for personal record-keeping. In that decision, we stated:

We do not believe that heading 4202, HTSUSA, describes a type of merchandise which would bring these goods within the "similar containers" of that heading. Although the "planner" may appear to be related to the containers of heading 4202, HTSUSA, they are not similar in that they are not designed or intended for use in a similar manner, nor do they exhibit the requisite physical attributes that Customs has found common to goods of heading 4202, HTSUSA. (Emphasis added).

Similarly, in HRL 950397, dated January 23, 1992, in connection with the classification of a portfolio planner, we observed that:

Although the planner may appear to be related to the containers of heading 4202, HTSUSA, they are not designed or intended for use in a similar manner, nor do they exhibit the requisite physical attributes that Customs has found common to goods of heading 4202, HTSUSA. (Emphasis added).

Thus, we have determined that portfolio diaries, organizers, agendas or planners are generally excluded from heading 4202 as they are not used in a manner similar to, nor do they possess the physical characteristics of, articles of that heading.

The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System constitute the official interpretation of the nomenclature at the international level. While not legally binding, they do represent the considered views of classification experts of the Harmonized System Committee. It has therefore been the practice of the Customs Service to follow, whenever possible, the terms of the EN when interpreting the HTSUSA. In this instance, the EN to heading 4202 and heading 4820 shed light on the physical characteristics of articles of those headings.

The EN to heading 4820 states in pertinent part, at page 687:

This heading covers various articles of stationery, other than correspondence goods of heading 4817 and the goods referred to in Note 9 to this Chapter. It includes:

(1) Registers, account books, note books of all kinds, order books, receipt books, copy books, diaries, letter pads, memorandum pads, engagement books, address books and books, pads, etc. for entering telephone numbers.

(3) Binders designed for holding loose sheets, magazines, or the like (e.g. clip binders, spring binders, screw binders, ring binders), and folders, file covers, (other than box files) and portfolios.

(8) Book covers (binding covers and dust covers), whether or not printed with characters
(title, etc.) or illustrations.

The goods of this heading may be bound with materials other than paper (e.g. leather, plastics or textile material) and have reinforcements or fittings of metal, plastics, etc. (Emphasis added).

The EN to heading 4202 provides in part, at page 613, that:

The heading does not cover:

(c) 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, blotting pads, photo- frames, sweetmeat boxes, tobacco jars, ashtrays, flasks made of ceramics, glass, etc., and which are wholly or mainly covered with leather, sheeting of plastics, etc.
Such articles fall in heading 42.05 if made of (or covered with) leather or composition leather, and in other Chapters if made of (or covered with) other materials. (Emphasis added).

Taken together, the EN indicate that articles of 4820 include portfolios, ring binders and folders designed for holding papers. They include items that are bound with leather or textile material. Heading 4820 encompasses articles of stationery with jackets or covers. On the other hand, heading 4202 excludes containers which have the character of jackets or covers. In addition, we note that heading 4202 includes articles such as attache cases, briefcases and similar containers. We infer that attache cases and briefcases are included within 4202 as they are containers which have the character of carrying cases for documents, papers and other objects.

Each of the instant articles are similar in use and design to articles of heading 4820. They are at least in part designed as organizational or planning tools, which we have determined are uses not normally associated with articles of heading 4202. Moreover, they possess features such as leather cases, metal binders, and paper inserts which are characteristic of articles classified within heading 4820. Finally, the leather cases act as protective covers or jackets for their contents. Hence, the subject merchandise is prima facie classifiable in heading 4820, HTSUSA.

The articles of heading 4820, HTSUSA, are segregated at the six and eight-digit classification level. In HRL 955636, dated April 6, 1994, we addressed the scope of subheading 4820.10.2010, HTSUSA, which provides in part for diaries:

We think it is imperative to recognize that there are many forms of "diaries." Many are similar to the instant articles. Others, may be bound with expensive materials such as leather and may contain additional components such as pens, pencils, calculators, business card holders and assorted inserts that are used either for providing information or as a means of recording specific types of information (i.e., sections for fax numbers, car maintenance information, personal finance data, etc. ...). As the court in Brooks Bros. noted, citing Hancock Gross, Inc. v. United States, 64 Cust. Ct. 97, C.D. 3965 (1970), "[T]he primary design and function of an article controls its classification." Hence, the determinative criteria as to whether these types of articles are deemed "diaries" for classification purposes is whether they are primarily designed for use as, or primarily function as, articles for the receipt of daily notations, events and appointments. (Emphasis in original).

Styles 3320 and 3333 are substantially similar in design to articles we have concluded function primarily for the receipt of daily notations, events and appointments. See HRL 955522, dated March 23, 1994 (leather agenda with three-ring binder and paper inserts including daily engagement calendar and spaces for notation of appointments); HRL 953172, dated March 19, 1993 (metal six-ring binder mounted in folder, with paper inserts for daily and yearly engagement calendars, personal records). Consequently, these styles are classifiable as bound diaries of subheading 4820.10.2010, HTSUSA.

Styles 3340 and 3310 do not function as a place for the receipt of daily notations, events and appointments. The paper inserts consist of nothing more than a note pad of blank lined paper, with a one page pre-printed calendar without space for notations included as part of style 3340. The articles are more specifically provided for as a notebook within heading 4820. While the note pads provide space for notations generally, they have not been designed to facilitate daily entries in an organized manner. Therefore, styles 3340 and 3310 are classifiable as notebooks in subheading 4820.10.2050, HTSUSA.

Although each of the submitted samples are prima facie classifiable in heading 4820, HTSUSA, style 3343 possesses features which do not relate to its use as an organizer and planner. This item possesses a handle and is large enough to accommodate standard size papers and documents. It includes two large exterior pockets, expandable interior pockets, small pockets for various objects and is large enough to hold a newspaper or a book. These physical attributes suggest that the article has a dual use as a carrying case in a manner similar to attache cases and briefcases. Thus, this item possesses features associated with both articles known as organizers or planners and articles referred to as attache cases or briefcases. On this basis, we conclude that style 3343 is also prima facie classifiable in heading 4202, HTSUSA.

General Rule of Interpretation (GRI) 3 provides that when goods are prima facie classifiable under two or more headings, classification shall be effected as follows:

(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

In this instance, headings 4202 and 4820, HTSUSA, are equally specific in relation to one another. Each heading describes a limited class of goods. Moreover, these headings describe only a portion of the physical characteristics which style 3343 possesses. Hence, we cannot resolve the classification of this item on the basis of GRI 3(a).

However, we conclude that the physical characteristics described by heading 4202, HTSUSA, impart the essential character to style 3343. This item has been designed to accommodate virtually all of the articles normally carried in a briefcase or attache case (e.g. papers, documents, newspaper, book, pens). Although style 3343 possesses the features of an organizer or planner (e.g. ring binder, planner, organizational pockets), the leather case is, in our judgment, more than a mere cover. The planner components merely add additional features to what is otherwise an article similar to a briefcase. Consequently, style 3343 is classifiable in heading 4202.

Articles of heading 4202, HTSUSA, are classified at the subheading level with reference to their exterior surface. Style 3343 is composed of leather with a polyurethane coating that has a thickness of approximately 0.015 mm. Our administrative precedent indicates that leather handbags or attache cases to which an insignificant coating of plastics (less than 0.15 mm) has been applied are classified as articles of leather. See HRL 086339, dated May 16, 1990; HRL 084844, dated October 10, 1989; HRL 085188, dated August 25, 1989. Accordingly, style 3343 shall be classified within heading 4202 as an article of leather.

HOLDING:

Styles 3320 and 3333 are classifiable under subheading 4820.10.2010, HTSUSA, which provides for diaries and address books. The applicable rate of duty is 4 percent ad valorem.

Styles 3340 and 3310 are classifiable under subheading 4820.10.2050, HTSUSA, which provides for diaries, notebooks and address books, bound: memorandum pads, letter pads and similar articles, other. The applicable rate of duty is 4 percent ad valorem.

Style 3343 is classifiable under subheading 4202.11.0030, HTSUSA, which provides for trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers: with outer surface of leather, of composition leather, or of patent leather: attache cases, brief cases, school satchels, occupational luggage cases and similar containers. The applicable rate of duty is 8 percent ad valorem.

Sincerely,

John Durant, Director

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