HQ 959702 - Classification of finished binders/organizers with their paper inserts and without their paper inserts; Classification of textile covers used to manufacture zipper binders and organizers; headings 4820 and 6307; Explanatory Notes to heading 4820; Headquarters Ruling Letters 951076, 951218, 955655 and 959328; New York Ruling Letters 880789 and 818027; Country of origin determination for textile covers under 19 CFR Section 102.21(c)(2) and (e) - United States International Trade Commision Rulings

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HQ 959702

June 11, 1997

CLA-2 RR:TC:TE 959702 NLP

Mr. John M. Peterson
Neville, Peterson & Williams
80 Broad Street 34th Floor
New York, New York 10004

RE: Classification of finished binders/organizers with their paper inserts and without their paper inserts; Classification of textile covers used to manufacture zipper binders and organizers; headings 4820 and 6307; Explanatory Notes to heading 4820; Headquarters Ruling Letters 951076, 951218, 955655 and 959328; New York Ruling Letters 880789 and 818027; Country of origin determination for textile covers under 19 CFR Section 102.21(c)(2) and (e)

Dear Mr. Peterson:

This is in response to your letter dated August 28, 1996, on behalf of Stuart Hall, Inc, in which you requested a country of origin determination for certain zipper binders and organizers manufactured in the United States from imported textile covers. This ruling will only address the Harmonized Tariff Schedule of the United States (HTSUS) classification of the imported textile covers, the finished zipper binders and organizers and the country of origin of the imported textile covers for duty and visa/quota purposes. You will be receiving a subsequent letter from our Special Classification and Marking Branch concerning the country of origin marking requirements applicable to the finished zipper binders and organizers manufactured from these imported textile covers. Samples of the unfinished textile covers used to manufacture the binders and a finished binder were submitted for our examination.

FACTS:

The textile covers at issue are used in the manufacture of "zipper binders" and "zipper organizers" in the U.S. The imported covers are manufactured in China from man-made fabrics which are woven in Taiwan. The covers feature horizontal and vertical pockets to be used for the insertion of documents, pens, pencils, and other stationery items. Both the front and back panels of the covers feature openings into which plastic stiffeners are inserted. Each cover features a zippered closure which extends from the top center of the article (in the unfolded condition) to the bottom center.

After importation into the U.S., the textile covers are assembled with other components to produce finished zipper binders and organizers for school children. For the zipper binders, a three ring binder is assembled into the cover, either permanently (by riveting a metal binder assembly to the spine of the organizer) or in a removable fashion (by inserting into a vertical pocket on the inside of the cover a three ring binder assembly which is permanently riveted to a plastic board). In some cases, blank sheets of paper (e.g., diary, calendar or note paper sheets) will be inserted into the binder. The zippered organizer does not have a binder, and the sample that we have has a daily planner inserted into a pocket on the inside of the organizer. The zipper binders/organizers are then inspected, tested and packaged for retail sale.

ISSUES:

What is the tariff classification of the finished binders/organizers?

What is the tariff classification of the textile covers when imported into the U.S.?

What is the country of origin of the unfinished textile covers when they are imported into the U.S. for Section 102.21 purposes?

LAW AND ANALYSIS:

ISSUE #1: Tariff classification of the finished binders/organizers with their paper inserts

Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes, and, provided such headings or notes do not otherwise require, according to [the remaining GRI's]." In other words, classification is governed first by the terms of the headings of the tariff and any relative section or chapter notes.

Chapter 48, HTSUS, provides for paper and paperboard; articles of paper pulp, of paper or of paperboard. Heading 4820, HTSUS, provides in part for notebooks, letter pads, diaries and similar articles, binders (looseleaf or other), folders, etc. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) to heading 4820 state in pertinent part that:

This heading covers various articles of stationery, other than correspondence goods of heading 48.17 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, files covers, files (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.

This language indicates that articles of heading 4820, HTSUS, include portfolios, ring binders and folders designed for holding papers. Therefore, when the binders/organizers have their paper inserts, they are classifiable in heading 4820, HTSUS.

According to the file, the binders' inserts can include a diary, calender and blank note sheets. Customs has consistently cited to lexicographic sources in determining what constitutes a diary, as opposed to an article that is similar to a diary. The term "diary" is defined in the Compact Edition of the Oxford English Dictionary, 1987, as:

2. A book prepared for keeping a daily record, or having spaces with printed dates for daily memoranda and jottings; also applied to calendars containing daily memoranda on matters of importance to people generally or to members of a particular profession, occupation or pursuit.

With its daily planner and calendar, the zipper binder provides a means to record and store daily notations and to organize a schedule. Moreover, guided by judicial precedent and the EN referenced above, Customs has also consistently held that inserts which are secured by ring binders are bound for classification purposes. Therefore, a zipper binder with a daily planner, calender and blank note sheets with a ring binder is classified as a bound diary in subheading 4820.10.2010, HTSUS, which provides for "Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles: Diaries, notebooks and address books, bound; ... Diaries and address books."

The zipper organizer does not have a ring binder like the zipper binder. The daily planner in the zipper organizer is held in place by slipping its backing into the inside pocket on the inside of the organizer. In HQ 951076, dated March 18, 1992, we dealt with the classification of a Pocket Secretary which contained three independent paper articles: a telephone/address book, a 20-month engagement calender book, and a note pad. These were held in place by means of cardboard appendages slipped into pockets on the inside of the leather case. We did not consider that article to be bound and classified it in subheading 4820.10.4000, HTSUS, which provides for "Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles: Other." Based on HQ 951076, we would not consider the subject zipper organizer to be bound. As such proper classification of the zipper organizer with a daily planner book is in subheading 4820.10.4000, HTSUS. See also, HQ 951218, dated July 28, 1992, wherein we determined that a portfolio designed to hold a two year monthly calendar, a built-in calculator, 100 assorted color calendar cards, a removable credit card wallet, an 8 inch by 10 inch writing pad and a full size folio section and pockets for business card and papers was also determined not to be bound and was classified in subheading 4820.10.4000, HTSUS.

However, we note that if the binders or organizers only have blank note sheets, (not daily planner or calendar inserts) then they do not function as places for the receipt of daily notations, events and appointments. The paper inserts consist of nothing more than blank paper and, while the note sheets provide space for notations generally, they are not designed to facilitate daily entries in an organized manner. These articles are more specifically provided for as notebooks within heading 4820 and are therefore classifiable as such in subheading 4820.10.2050, HTSUS, which provides for " "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." See HQ 955655, dated July 14, 1994, which, inter alia, classified three ring binders with a combination note pad of blank lined paper and a one page pre-printed calender without space for notations in subheading 4820.10.2050, HTSUS.

ISSUE #2: Classification of the binders/organizers without paper inserts and classification of the unfinished textile covers used to manufacture the binders/organizers

By its terms, heading 4820, HTSUS, only provides for articles of paper or paperboard. Accordingly, if the subject binders/organizers have no paper inserts classification is precluded from this heading. For example, Customs has consistently held that textile binders similar in design or function to the subject merchandise are classifiable in heading 6307, HTSUS. In HQ 959328, dated April 3, 1997, Customs dealt with the classification of two styles of planners or notepad holders imported both with inserts and without inserts. Each style was composed of polyester fabric which was coated on the interior, nonvisible side with polyvinyl chloride. This ruling held that when the binder and the folder were imported separately from their inserts, they were classifiable in subheading 6307.90.9989, HTSUS, which provides for "Other made up articles, including dress patters: Other: Other: Other: Other: Other." Therefore, in the instant case, as the binders/organizers are also made of textile materials, we look to heading 6307, HTSUS, which provides for other made up textile articles. The ENs to heading 6307 indicate that the heading covers made up articles of a textile material which are not included more specifically in other headings of Section XI or elsewhere in the Nomenclature. Since without their inserts, these textile articles are not included more specifically elsewhere in the Nomenclature, they are covered by heading 6307, HTSUS, and are classified in subheading 6307.90.9989, HTSUS. This rationale and classification would also apply to the unfinished textile covers when they are imported in the U.S., without binders and inserts. See, NYRL 880789, dated December 11, 1992, in which Customs classified the "Unfinished nylon 5-star Student Day Planner" and "Unfinished nylon woven 5-star Trapper notebook", in subheading 6307.90.9986, HTSUS; NYRL 818027, dated January 19, 1996, in which 3-ring binder/organizers comprised of cardboard bases covered with nylon woven fabric were classified in subheading 6307.90.9989, HTSUS.

ISSUE #3:Country of origin of the imported unfinished textile cover

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act, codified in 19 U.S.C. ?3925. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal
Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section".

Paragraph (e) states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:"

6307.90 The country of origin of a good classifiable under subheading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

The articles in their imported condition are classifiable in subheading 6307.90, HTSUS. Based on the information provided to us, the country of origin for duty and quota purposes would be Taiwan, where the constituent fabric of the cover was formed.

HOLDING:

The finished zipper binder with a daily planner, calender and blank note sheets with a ring binder is classified as a bound diary in subheading 4820.10.2010, HTSUS, and the rate of duty is 2.8% ad valorem. The zipper organizer with a daily planner book is classifiable in subheading 4820.10.4000, HTSUS, and the rate of duty is free. If the zipper binders or organizers only have blank note sheets, not daily planner or calendar inserts, they are classifiable in subheading 4820.10.2050, HTSUS, and the rate of duty is 2.8% ad valorem.

The zipper binders and organizers without their paper inserts are classifiable in subheading 6307.90.9989, HTSUS, and the rate of duty is 7% ad valorem. The unfinished textile covers when they are imported into the U.S. without binders and inserts are also classifiable in this subheading.

The country of origin of the textile covers on importation into the United States is Taiwan.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 C.F.R. on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R. revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 C.F.R. ?177.2.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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