United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1998 HQ Rulings > HQ 961992 - HQ 962381 > HQ 962040

Previous Ruling Next Ruling
HQ 962040




October 21, 1998

CLA-2 RR:CR:TE 962040 SS

CATEGORY: CLASSIFICATION

TARIFF NO.: 3924.10.5000

Ms. Sophia Ko
ClearFreight Inc.
880 Apollo Street, Suite 101
El Segundo, CA 90245

RE: Insulated bottle bags designed to contain more than one bottle; SGI, Incorporated v. United States, 122 F.3d 1468 (Fed. Cir. 1997); 4202.92.9060, HTSUSA; 3924.10.5000 HTSUSA

Dear Ms. Ko:

This letter is in response to your request on behalf of your client, the Maya Group, Inc., dated July 2, 1998, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of insulated bottle bags designed to contain more than one bottle manufactured in Malaysia. A sample was submitted with your request.

FACTS:

The sample submitted is described as a "Double Bottle Holder" and is an insulated bottle bag designed to contain two bottles. It is constructed of a molded plastic double wall interior and an exterior composed of two layers of plastic sheeting with a thin inner layer of foam. It has a plastic carrying handle affixed to the top and a zipper closure. The molded plastic interior is specially shaped to contain two bottles and is intended to provide for the maintenance of temperature while providing storage, protection, organization and portability to the beverages contained within the case. The marketing material submitted with the sample indicates that the bottle holder "keeps liquids hot or cold for several hours". Both the marketing material and printed cartoon design indicate that the bottle holder is intended for use with babies' bottles.

ISSUE:

Whether the insulated bottle bags designed to carry more than one bottle are classified under Heading 4202, HTSUS, as bottle cases and similar containers; or are classified under Heading 3924, HTSUS, as tableware, kitchenware, other household articles of plastic in accordance with the decision in SGI, Incorporated v. United States?
LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRI.

The classification of a similar article, a portable, soft-sided, insulated cooler bag, was recently examined by the Court of Appeals for the Federal Circuit (CAFC) in SGI, Incorporated v. United States, 122 F.3d 1468 (Fed. Cir. 1997). The CAFC focused on whether food or beverages were involved with the eo nomine exemplars set forth in the tariff provisions at issue. Without discussion of the exemplars of Heading 4202, HTSUS, which organize, store, protect and/or carry food or beverages, the CAFC held that the appropriate classification for the cooler bags was subheading 3924.10.50, HTSUS, the provision for "Tableware, kitchenware, other household articles . . . of plastics: Tableware and kitchenware: Other." The Court stated that subheading 3924.10.50, HTSUS, "does encompass exemplars that are ejusdem generis with the coolers because their purpose is to contain food and beverages." Following the position of the Court, containers which are designed primarily for the storage of food or beverages at a desired temperature over a period of time are excluded from classificiation within Heading 4202, HTSUS, as an article not of a kind similar to the exemplars. Accordingly, the insulated bottle bags which are designed primarily for the storage of beverages at a desired temperature over a period of time are precluded from classification in Heading 4202, HTSUS.

This office concluded that the CAFC's decision in SGI should be implemented. Instructions were issued to Customs field offices on March 18, 1998 (and approved for dissemination to members of the importing community), which expressly extended the principles of the CAFC's decision to insulated bottle bags designed to contain more than one bottle. In reviewing previous Customs rulings, it appears that the bottle case exemplar under Heading 4202, HTSUS relates only to articles which hold single bottles. See Headquarters Ruling 960367, dated August 6, 1997 and New York Ruling PD C81898, dated December 9, 1997. It is Customs' position that the Double Bottle Holder is not an exemplar container under Heading 4202, HTSUS because it is designed to contain more than one bottle. Accordingly, the insulated bottle bag is subject to the decision in SGI since the bottle bag is designed primarily for the storage of multiple beverages at a desired temperature over a period of time. In light of the principles of the SGI decision and the instructions noted above, the subject insulated bottle bags designed to contain more than one bottle are classified in subheading 3924.10.50, HTSUS.

HOLDING:

The insulated bottle bags described as a "Double Bottle Holder" are classified in subheading 3924.10.5000, HTSUSA, the provision for "Tableware, kitchenware, other household articles and toilet articles, of plastics: Tableware and Kitchenware: Other." The general column one duty rate is 3.4 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling

See also: