HQ 965151 - Bottle Case; Single Bottle; Set; General Rules of Interpretation 1 and 3; Subheading 4202.92.9060, HTSUSA. - United States International Trade Commision Rulings

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HQ 965151

July 30, 2001

CLA-2 RR:CR:TE 965151 jsj

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.92.9060

Ms. Deborah L. Aldinger

Fox Run Craftsmen
P.O. Box 2727
1907 Stout Drive
Ivyland, Pennsylvania 18974

RE: Bottle Case; Single Bottle; Set; General Rules of Interpretation 1 and 3; Subheading 4202.92.9060, HTSUSA.

Dear Ms. Aldinger:

The purpose of this correspondence is to respond to your request of August 17, 2000, addressed to the National Commodity Specialist Division of the Customs Service. The correspondence in issue requested, on the behalf of Fox Run Craftsmen, a binding classification ruling of six articles, two “picnic backpacks,” two “2 or 3 bottle wine totes” and two “wine bottle carriers.”

This ruling letter will classify the “wine bottle carriers” designed to carry only a single bottle. The picnic backpacks and the wine totes designed to carry multiple bottles will be addressed in Headquarters Ruling Letters 964539 and 965150, respectively.

This ruling is being issued subsequent to the following: (1) A review of your submission of August 17, 2000; and (2) An examination of the samples submitted with your request.

FACTS

The articles in issue, identified by Fox Run Craftsmen as “wine bottle carriers,” are identified as item number: 7263 and 7264. “Wine bottle carrier” item 7263 is a carrying case designed to carry only a single bottle. The exterior is composed of a man-made textile fiber coated or covered with polyvinyl chloride that does not obscure the textile fabric and the interior is composed of plastic sheeting. It is lined with a one-fourth (1/4) of an inch foam insulation.

It is specifically note that the Customs Service was not provided and did not undertake any laboratory analysis to determine the insulative quality, if any, of the material. Selected seams are covered by plastic. The top of the bottle case has two metal grommets, one on each side of the case, through which a man-made textile drawstring enables the case to be closed.

The case has a five (5) inch long and one and one-half (1 ½) wide pocket sewn onto the lower outside aspect. A metal corkscrew, knife and bottle-opener combination is stored in the pocket. The pocket secures closed through the use of a flap that attaches to the pocket by means of a hook and loop fastener system.

A tag, one and one fourth (1 ¼) inches by one and three-fourths (1 ¾) inches, with the word “Sundowner” is attached to the item by a small metal chain. The case additionally has a plastic and metal label sewn and glued to the case that reads “Sundowner.”

“Wine bottle carrier” item 7264 is identical to item 7263, with the following exceptions noted. Item 7264 does not have a drawstring closure, but secures closed through the use of a flap top with a zipper. The top is made firm through the use of cardboard. Item 7264 additionally has a nonadjustable carrying strap. The strap is made of a man-made textile material that is one and one-fourth (1 ¼) inches wide. The strap has a four (4) inch long plastic covering located in the center of the strap where the carrier would hold the case or where it would rest on the carrier’s shoulder.

ISSUES

What is the classification, pursuant to the Harmonized Tariff Schedule of the United States Annotated, of the “wine bottle carriers” which include the single bottle case and the metal corkscrew, knife and bottle-opener combination ?

Do the single bottle case and the corkscrew, knife and bottle-opener combination constitute “items in a set put up for retail sale” pursuant to General Rule of Interpretation 3 (b) resulting in their classification by the component which gives the set its essential character ?; and

If the single bottle case and the corkscrew, knife and bottle-opener combination constitute a set pursuant to General Rule of Interpretation 3 (b), what is the component of the set that gives the set its essential character for classification purposes ?

LAW AND ANALYSIS

The responsibility for interpreting and applying the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) rests with the U.S. Customs Service. See Joint Explanatory Statement of the Committee of Conference, H.R. Conf. Rep. No. 100-576, at 549 (1988) reprinted in 1988 U.S. Code Cong. and Adm. News 1547, 1582 [hereinafter Joint Explanatory Statement]. The Customs Service, in accordance with its legislative mandate, classifies imported merchandise pursuant to the General Rules of Interpretation (GRI) and the Additional U.S. Rules of Interpretation. See 19 U.S. C. 1202 (West 1999); See generally, What Every Member of The Trade Community Should Know About: Tariff Classification, an Informed Compliance Publication of the Customs Service available on the World Wide Web site of the Customs Service at www.customs.gov, search “Importing & Exporting” and then “U.S. Customs Informed Compliance Publications.”

General Rule of Interpretation 1 provides, in part, that classification decisions are to be “determined according to the terms of the headings and any relative section or chapter notes.” General Rule of Interpretation 1. Although GRI 1 further provides that merchandise which can not be classified in accordance with the dictates of GRI 1 should be classified pursuant to the other General Rules of Interpretation in their sequential order, the Explanatory Notes (EN) “make it quite clear that the terms of the headings and any relative Section or Chapter Notes are paramount.” General Rules for the Interpretation of the Harmonized System, Rule 1, Explanatory Note (V).

The Explanatory Notes constitute the official interpretation of the Harmonized System at the international level. See Joint Explanatory Statement supra note 2, at 549. The Explanatory Notes, although neither legally binding nor dispositive of classification issues, do provide commentary on the scope of each heading of the HTSUSA. The EN’s are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989); Lonza, Inc. v. United States, 46 F. 3rd 1098, 1109 (Fed. Cir. 1995).

Commencing classification of the single bottle case and the corkscrew, knife and bottle-opener combination in accordance with the dictates of GRI 1, the Customs Service examined the headings of the HTSUSA. Heading 4202 provides:

Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber, or of paperboard, or wholly of mainly covered with such materials or with paper. (Emphasis added).

Bottle cases are designated eo nomine in heading 4202, HTSUSA, and eo nomine designations include all forms of the article in issue.

The initial responsibility of the Customs Service is to examine the plain meaning of the statutory text. See Marcor Dev. Corp. v. United States, 926 F. Supp. 1124, 1129 (C.I.T. 1996) citing Trans-Border Customs Services v. United States, 843 F. Supp. 1482, 1485 (C.I.T. 1994). If the plain language of the heading establishes the clear and unambiguous intent of Congress, the classification inquiry at the heading level is complete. See Id. The meaning of a tariff term, absent contrary congressional intent, is one that is in accord with its common and popular understanding. See Carl Zeiss, Inc. v. United States, 195 F. 3rd 1375, 1379 (Fed. Cir. 1999).

It is the conclusion of the Customs Service that heading 4202, HTSUSA, pursuant to General Rule of Interpretation 1, specifically identifies the article in issue. No other HTSUSA heading describes the merchandise. The bottle case is, therefore, classifiable under heading 4202, HTSUSA. See also HQ 962450 (Aug. 23, 1999), HQ 961681 (Sept. 28, 1998).

The Customs Service in rendering this ruling took into full consideration of the Court of Appeals for the Federal Circuit decision in SGI, Inc. v. United States, 122 F. 3d 1468 (Fed. Cir. 1997). The specific holding of SGI is that portable soft-sided vinyl coolers used for the storage and serving of food or beverages, that possess insulative properties similar to both hard and other soft-sided coolers having a one-half inch thick closed cell polyethylene foam insulation are properly classified as “other household articlesof plastics” in subheading 3924.10.50, HTSUSA. The decision of the Court in SGI is distinguishable from the instant ruling.

The Court in SGI, because it was called on to address the classification of merchandise that was not identified eo nomine in the tariff schedule, applied the ejusdem generis rule of statutory construction. See SGI at 1471. Application of the rule of ejusdem generis, which means “of the same kind,” involves a comparison of the items enumerated in a heading or subheading with the article under consideration.

The Customs Service in this ruling is not confronted with a situation in which it must compare the essential characteristics or purposes of the “wine bottle carriers” with the items in heading 4202, HTSUSA, provided for eo nomine. The HTSUSA specifically identifies “bottle cases” in heading 4202, HTSUSA, and mandates that bottle cases be classified in heading 4202, HTSUSA, without recourse to the ejusdem generis rule or any other rule of statutory construction.

The Customs Service is conscious of the Court’s dicta focusing ejusdem generis analysis on whether food or beverage was to be transported in the article, but respectfully concludes that it would be improper to apply similar analysis in this ruling. The item under consideration in the instant ruling is a bottle case and bottle cases are identified by name in heading 4202, HTSUSA. General Rule of Interpretation 1 fully resolves the classification of the “wine bottle carriers,” minus the corkscrew, knife and bottle-opener.

The metal corkscrew, knife and bottle-opener combination is classifiable in Chapter 82, “Tools, Implements, Cutlery, Spoons and Forks, of Base Metal; Parts Thereof of Base Metal.” Heading 8211, HTSUSA, providing for “Knives with cutting blades, serrated or not (including pruning knives), other than knives of heading 8208 Heading 8208 provides for the classification of knives and cutting blades for machines or mechanical appliances.” encompasses the corkscrew, knife and bottle-opener combination. Heading 8211, HTSUSA. See generally Explanatory Note 82.15.

A review of GRI 2 leads the Customs Service to the conclusion that its provisions will not prove beneficial in classifying bottle case and the corkscrew, knife and bottle-opener combination. The merchandise under consideration in this ruling letter does not constitute incomplete, unfinished, unassembled or disassembled articles that are addressed in GRI 2 (a). The bottle cases and corkscrew, knife and bottle-opener combinations are composed of man-made textile fibers coated or covered with polyvinyl chloride, plastic and a base metal and are, in accordance with GRI 2(b), “goods consisting of more than one material.” Goods consisting of more than one material which cannot be classified pursuant to GRI 1 or 2 are to be classified according to GRI 3.

An examination of the dictates of GRI 3 is appropriate because the goods are prima facie classifiable under two or more headings: the bottle case in heading 4202, HTSUSA, and the corkscrew, knife and bottle-opener combination in heading 8211, HTSUSA. General Rule of Interpretation 3(a) provides that the articles should be classified according to the heading which affords the most specific description, unless the multiple headings under consideration refer to only part of the materials or substances contained in goods that are mixed or composite, or to only part of “items in a set put up for retail sale.” The items which constitute the “wine bottle carriers” are not mixed or composite goods, warranting inquiry into the issue of whether they cumulatively constitute “items in a set put up for retail sale.” See generally, What Every Member of The Trade Community Should Know About: Classification of Sets Under the HTS, an Informed Compliance Publication of the Customs Service available on the World Wide Web site of the Customs Service at www.customs.gov, search “Importing & Exporting” and then “U.S. Customs Informed Compliance Publications.”

Explanatory Note (X) of GRI 3(b) provides three factors to be considered when determining whether goods have been put up in sets for retail sale. The factors are:

The goods consist of at least two different articles that are, prima facie, classifiable in different headings;

The goods consist of articles put up together to “meet a particular need or carry out a specific purpose;” and

The goods are “put up in a manner suitable for sale directly to users without repacking.” General Rules for the Interpretation of the Harmonized System, Rule 3(b), Explanatory Note (X) (a) – (c).

The bottle cases and the corkscrew, knife and bottle-opener combinations are prima facie classifiable in different headings and are packaged in a manner suitable for sale directly to users. The issue that remains, the second of the three factors, is whether the bottle cases and the corkscrew, knife and bottle-opener combinations, as put up together, “meet a particular need or carry out a specific activity.” Id.

A review of each of the examples of sets in EN (X) indicates that components of sets share at lease one common trait. See HQ 953472 (Mar. 21, 1994). The fact that the drafters of EN (X) did not explain when goods put up together “meet a particular need or carry out a specific purpose” suggests that resolution of the issue must be determined by analogy on a case-by-case basis.

The items that comprise each example of a set in EN (X) are related to one another in such a fashion that they interact together to serve a distinct purpose or function to enable a singular result to be achieved. The items in examples one and two are used in conjunction with one another to complete a sandwich meal and prepare a spaghetti meal. The articles in example three are used together for the purpose of hair grooming and the items in example four function with one another to enable the user to draw.

The Customs Service, in determining whether the articles that comprise the “wine bottle carriers” “meet a particular need or carry out a specific activity” must determine whether the bottle cases have a nexus with the corkscrew, knife and bottle-opener combinations such that both are intended to be used together or in conjunction with one another to meet a particular need or carry out a specific activity. The bottle cases are designed to transport an average size bottle of wine, champagne or any other beverage available in a similar size container. The corkscrew, knife and bottle-opener combinations enable the user to remove a metal or wax wrap from the top of a bottle of wine or champagne and to remove the cork. The implement that accompanies the bottle cases enable the user to open a traditional bottle of refreshment that may also be carried in the bottle cases since the case they not designed to exclusively carry wine or champagne.

GRI 3(b) additionally provides that goods put up in sets for retail sale shall be classified as if they consisted of that component of the set which gives the set its “essential character.” The General Rules of Interpretation do not define the phrase “essential character,” but the Explanatory Notes offer a non-exhaustive list of factors which may be considered. The factors include: (1) The nature of the component; (2) Its bulk; (3) Its quantity; (4) Its weight; (5) Its value; and (6) The role of the component in relation to the use of the goods. See General Rules for the Interpretation of the Harmonized System, Rule 3(b), Explanatory Note (VIII). Explanatory Note (VIII) of GRI 3(b) specifically states that the essential character of a set will “vary between different kinds of goods.” Id.

A review of judicial precedent and prior Customs Service Headquarters Ruling Letters also serves to highlight the meaning of “essential character.” The Court of International Trade in Better Home Plastics Corp. v. United States, 916 F. Supp. 1265 (C.I.T. 1996) referencing United States v. United China & Glass, 293 F. Supp. 734, 737, 61 Cust. Ct. 386 (1968) stated that essential character is that attribute “which is indispensable to the structure, core or condition of the article, i.e. what it is.” Headquarters Ruling Letter 955714, elaborating on the decision in United China, stated that “[i]n general, essential character has been construed to mean that attribute which strongly marks or serves to distinguish what an article is.” See HQ 955714, supra; See also, Pillowtex Corp. v. United States, 171 F.3d 1370 (Fed. Cir. 1999); HQ 951902, supra.

It is the conclusion of the Customs Service that the component of the “wine bottle carriers” which gives the sets their “essential character” are the bottle cases. The particular need or specific purpose that the sets serve is the ability transport and enjoy a bottled refreshment. The bottle cases have the indispensable role in this activity. It is the bottle cases that provide the sets with their predominate intrinsic and financial value. See HQ 088323 Id. (declaring the pencil box to constitute the essential character of the set).

Having concluded that the bottle cases are classified in heading 4202, HTSUSA, it is necessary to classify the item at the appropriate subheading level. The “wine bottle carriers” of instant consideration are classified in subheading 4202.92.9026, HTSUSA, as a “bottle case: Other: With an outer surface of sheeting of plastic or of textile materials: Other: Other: With outer surface of textile materials: Other: Of man-made fibers.”

HOLDING

The bottle case and the corkscrew, knife and bottle-opener combination that comprise the “wine bottle carriers” are a set for the purposes of classification pursuant to the Harmonized Tariff Schedule of the United States Annotated.

The item that affords the set its essential character is the bottle case.

The “wine bottle carriers” are classified in subheading 4202.92.9026, HTSUSA, as a “bottle case: Other: With an outer surface of sheeting of plastic or of textile materials: Other: Other: With outer surface of textile materials: Other: Of man-made fibers.”

The General Column 1 Rate of Duty is eighteen and three-tenths (18.3) percent, ad valorem.

The textile quota category is 670.

It is recommended that Fox Run Craftsmen contact its local Customs Service office prior to the importation of this merchandise to determine the current status of any restraints or requirements due to the changeable nature of the statistical annotation, the ninth and tenth digits of the HTSUSA, and the restraint (quota/visa) categories applicable to textile merchandise.

The designated textile and apparel category may be subdivided into parts. If subdivided, the quota and visa requirements applicable to the merchandise may be affected. It is recommended that Fox Run Craftsmen review, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), since part categories are the result of international bilateral agreements and subject to
frequent change. The Status Report is an internal issuance of the U.S. Customs Service and is available for inspection at local Customs Service offices.

Sincerely,

John Durant, Director
Commercial Rulings Division

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