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HQ 957060




January 19, 1995

CLA-2 CO:R:C:T 957060 ch

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.11.0030

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

RE: Classification of carrying cases with day planners; essential character.

Dear Mr. Caffentzis:

This is in response to your letter, dated September 20, 1994, requesting tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) for two articles described as leather planners. Samples were sent to this office for examination.

FACTS:

The first sample, style 3328, measures approximately 10 1/2 inches by 13 1/2 inches by 2 inches and is comprised of a zippered leather case with a three ring binder permanently affixed at the spine. The binder encloses paper inserts which form a daily planning system. The planner is comprised mainly of sections for notes, appointments and tasks. The binder also includes two clear plastic business card holders and a plastic pouch with various office supplies such as a plastic ruler, rubber bands and paper clips. A note pad with a pre-printed calendar has been slipped into a slot located inside one interior wall. The opposite interior wall features two pen holders, a zippered pocket, two pockets secured by means of hook and loop fasteners and an expandable full wall pocket with tapered gussets. The exterior possesses two open full wall pockets and a top carrying handle.

The second sample, style 3329, measures approximately 11 1/2 inches by 14 1/2 inches by 2 1/2 inches and is comprised of a zippered leather case with a three ring binder permanently affixed at the spine. The binder encloses paper inserts which form a daily planning system. The planner is comprised mainly of a calendar with spaces for daily appointments, a section for journal entries and a telephone/address directory. The binder also includes two clear plastic business card holders and a plastic pouch with various office supplies. A note pad with a pre-printed calendar has been slipped into a slot located inside one interior wall. The opposite interior wall features three pen holders, a zippered pocket, two pockets secured by means of hook and loop fasteners and an expandable full wall pocket with tapered gussets. The exterior possesses two open full wall pockets and retractable handles.

ISSUE:

What is the proper tariff classification for the subject merchandise?

LAW AND ANALYSIS:

Heading 4820, HTSUS, provides in part for diaries, notebooks, memorandum pads and other articles of stationery, of paper or paperboard. The Explanatory Note (EN) to heading 4820 states in pertinent part, at page 687, that:

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).

This language indicates that articles of 4820, HTSUS, include diaries, address books and telephone books. In addition, goods classifiable within the heading may be bound with leather or textile material which have reinforcements or fittings of metal or plastics.

In HRL 955636, dated April 6, 1994, we addressed the scope of subheading 4820.10.2010, HTSUS, which provides for bound diaries and address books:

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).

Furthermore, in HRL 955516, dated April 8, 1994, we observed:

The next issue is whether ring binders make a diary "bound" so as to warrant classification within subheading 4820.10.2010, HTSUS. This office has consistently held that they do. See HRL 089960 (2/10/92; 952691 (1/11/93); and 953172 (3/19/93). This position is supported by the EN to heading 4820, HTSUS, which state that "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." It is clear that metal binders were contemplated to fit within this heading's definition of bound articles. We do not agree with protestant's argument that merely because a metal loose leaf ring binder was not expressly cited as an exemplar of a "bound" article in the EN to heading 4820, that it is precluded from classification as such.

Styles 3328 and 3329 feature three ring binders which secure paper inserts comprising a daily planning system. The planner is composed primarily of paper inserts which are designed for the receipt of daily notations, events and appointments. Based upon the foregoing, we conclude that these articles are prima facie classifiable as bound diaries of subheading 4820.10.2010, HTSUS.

Heading 4202, HTSUS, provides in part for attache cases, briefcases and similar containers. In prior ruling letters, we have concluded that portfolio diaries, organizers, agendas or planners are not classifiable in heading 4202, HTSUS. For example, in Headquarters Ruling Letter (HRL) 950325, dated December 27, 1991 (modified on other grounds in HRL 953143, dated January 11, 1993) 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, HTSUS, 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, HTSUS, 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, HTSUS. (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, HTSUS, 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, HTSUS. (Emphasis added).

Thus, we have determined that 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.

However, in this instance the carrying handles, exterior pockets and interior gussetted pockets are features which are characteristic of attache cases or briefcases and are unrelated to the use of styles 3328 and 3329 as organizers. In addition, the article is large enough to accommodate standard size papers and documents, as well as many of the articles normally carried in a briefcase or attache case (e.g. a book, a newspaper, pens, notebook, etc.). The cases serve a dual purpose of providing a cover for their contents and as a means by which to carry various items. Consequently, we are of the opinion that the submitted samples are also prima facie classifiable within heading 4202, HTSUS, as articles similar to an attache case.

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.

Headings 4202 and 4820, HTSUS, are equally specific in relation to one another. Each heading encompasses a limited class of goods. Moreover, these headings describe only a portion of the physical characteristics incorporated into styles 3328 and 3329. Hence, we cannot resolve the classification of these items on the basis of GRI 3(a).

In this instance, we conclude that the physical characteristics described by heading 4202, HTSUS, impart the essential character to styles 3328 and 3329. These articles have been designed to accommodate most of the articles normally carried in a briefcase or attache case (e.g. papers, documents, newspaper, book, pens). Although the goods possess the features of an organizer or planner (e.g. ring binder, paper inserts with spaces for daily notations), the leather cases are, in our judgment, more than mere covers. The planner components add additional features to what are otherwise articles similar to a briefcase. Accordingly, styles 3328 and 3329 are classifiable in heading 4202, HTSUS.

The subject merchandise should be contrasted with similar articles which have been classified by virtue of GRI 3(c) as goods of heading 4820. See HRL 956497, dated August 3, 1994; HRL 955655, dated July 14, 1994; HRL 955656, dated July 14, 1994. In these decisions, the merchandise exhibited features consistent with both a carrying case and an organizer. However, we noted that the carrying capacity of the merchandise was limited inasmuch as the cases or covers were flat. Hence, we concluded that the organizer and carrying case components contributed equally to the finished articles.

HOLDING:

The subject merchandise is classifiable under subheading 4202.11.0030, HTSUS, which provides for attache cases, brief cases, school satchels, occupational luggage cases and similar containers, with outer surface of leather, of composition leather, or of patent leather. The applicable rate of duty is 8 percent ad valorem.

Sincerely,

John Durant, Director

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