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HQ 966107




March 4, 2003

CLA-2 RR:CR:GC 966107 GOB

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.12.80

Dennis Heck
Castelazo & Associates
5420 West 104th Street
Los Angeles, CA 90045

RE: Modification of NY 872117; Carrying Case for Notebook Computer

Dear Mr. Heck:

This letter is with respect to NY 872117 dated March 13, 1991, issued to you on behalf of Epson America Inc. We have reviewed that ruling and have determined that one of the classifications therein is incorrect. This ruling sets forth the correct classification.

Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed modification of NY H872117, as described below, was published in the Customs Bulletin on January 22, 2003.

Two comments were received in response to the notice. They are discussed in the LAW AND ANALYSIS section of this ruling.

FACTS:

In NY 872117 the subject goods were described as follows:

The merchandise under consideration involves three models of notebook computers that incorporate a 80386 microprocessor, 2MB of RAM, an internal 3.5 inch 1.44MB floppy disk drive, an integrated keyboard, and a LCD flat panel display. The computer is imported and marketed with a nylon carrying case, and also includes a detachable power cord, two Ni-Cad batteries, one AC/DC adapter, and one software diskette. Epson notebook computer model EO400 is the NB-SL/20 monochrome LCD 20 MHZ version. Model EO401 is the NB-SL/25 monochrome LCD 25 MHZ version. Model EO402 is the NB-SL/25C active matrix color LCD 25 MHZ version. The unit, with one hard disk drive and one battery weighs 6.5 pounds. The keyboard, flat panel display and processor portion are in one common housing.

The nylon carrying case is padded on the inside with two MM polyethylene foam [sic], and includes inside pockets of PVC for holding several software diskettes and thin manuals. The case has a sturdy carrying handle and a zippered closure on three sides.

With respect to the carrying case, Customs stated:

The case is specially fitted to contain the notebook computer, and is suitable for long-term use. It thus appears to meet the GRI-5(a) provision and would thus be classified at the same rate as the computer.

Based upon GRI 5(a), Customs classified the carrying cases with the notebook computers in subheading 8471.20.00, HTSUS (1991 HTSUS), as: "Automatic data processing machines and units thereof . . . : Digital automatic data processing machines . . . "

We now believe that the classification of the carrying cases in subheading 8471.20.00, HTSUS, was incorrect. This ruling sets forth the correct classification.

ISSUE:

What is the classification under the HTSUS of the nylon carrying case?

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation ("GRI's"). 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's may then be applied.

The Harmonized Commodity Description and Coding System Explanatory Notes ("EN's") constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN's provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.

GRI 5(a) provides as follows:

(a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character;

The Explanatory Note for Rule 5(a) provides as follows:

(I) This Rule shall be taken to cover only those containers which :

(1) are specially shaped or fitted to contain a specific article or set of articles, i.e., they are designed specifically to accommodate the article for which they are intended. Some containers are shaped in the form of the article they contain;

(2) are suitable for long-term use, i.e., they are designed to have a durability comparable to that of the articles for which they are intended. These containers also serve to protect the article when not in use (during transport or storage, for example). These criteria enable them to be distinguished from simple packings;

(3) are presented with the articles for which they are intended, whether or not the articles are packed separately for convenience of transport. Presented separately the containers are classified in their appropriate headings;

(4) are of a kind normally sold with such articles; and

(5) do not give the whole its essential character.

The HTSUS provisions (2003 HTSUS) under consideration are as follows:

4202 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, insulated food or beverage 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 or mainly covered with such materials or with paper:

Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers

4202.11.00 With outer surface of leather, of composition leather, or of patent leather

4202.12 With outer surface of plastics or of textile materials:

With outer surface of textile materials:

4202.12.80 Other

8471 Automatic data processing machines and units thereof . . . :

8471.30.00 Portable digital automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display

Two comments were received in response to the notice. The first commenter states that it would agree with the proposed modification if Customs would continue to classify the notebook computer carrying cases in heading 8471, HTSUS, had sufficient evidence on the requirement of GRI 5(a) been provided to Customs. The same commenter states that it disagrees with the proposal if it is Customs' intention never to classify notebook computer carrying cases under heading 8471, HTSUS, pursuant to GRI 5(a). The second commenter claims that the notebook computer carrying cases meet all of the requirements of GRI 5(a). It cites HQ 964149 dated February 11, 2002, which involved the classification of a textile container for a portable video player.

The comments have not persuaded us to amend our proposal. With respect to the first comment, we note that this ruling applies to the specific goods at issue. The second commenter cited HQ 964149, which we believe to be clearly distinguishable from the case here. We subjected the article in HQ 964149, a textile container for a portable video player, to the requirements of GRI 5(a) and concluded that it clearly met those requirements. We do not find likewise here.

After careful consideration, we believe GRI 5(a) requires a clear finding that the container at issue meets the EN criteria set forth above. We have no evidence that the carrying case at issue is of a class or kind of goods normally sold with laptop or notebook computers (adp units). EN I (4) to GRI 5(a). Accordingly, we no longer believe that this case is a GRI 5(a) container classified with the good with which it is entered.

We find that the subject nylon carrying cases are described in heading 4202, HTSUS, as briefcases and/or attache cases or similar containers. They are classified in subheading 4202.12.80, HTSUS, as: "Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers . . . : Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers: With outer surface of plastics or textile materials: With outer surface of textile materials: Other."

HOLDING:

The nylon carrying cases are classified in subheading 4202.12.80, HTSUS, as: "Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers . . . : Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers: With outer surface of plastics or textile materials: With outer surface of textile materials: Other."

EFFECT ON OTHER RULINGS:

NY 872117 is modified. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.

Sincerely,

Myles B. Harmon, Director
Commercial Rulings Division

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