CLA-2; CO:R:C:T 089825 ch
Robert H. Schor, Esquire
Barnes, Richardson & Colburn
475 Park Avenue South
New York, New York 10016
RE: Classification of a coin presentation case from Canada;
similar container; jewelry box; GRI 2(a).
Dear Mr. Schor:
This is in response to your letter of April 15, 1991,
requesting tariff classification under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) for a coin
presentation case. Please reference your client, Universal
Package Corporation.
Our decision takes into account your original binding ruling
request, your views as expressed at a November 22, 1991 meeting
with Customs representatives, as well as your supplemental
written submissions of December 27, 1991 and April 28, 1992.
In your supplemental submission of December 27, 1991, you
requested that we classify two additional coin boxes. Please be
advised that the scope of this ruling is limited to the submitted
sample, which was the subject of your original binding ruling
request. We are unable to rule on the additional containers
without additional samples.
In addition, based on your correspondence of February 25,
1993, it is our understanding that you wish to withdraw your
request for a ruling on the marking requirements for the coin
box. Therefore, we will not address the marking issues raised in
your submissions. However, pursuant to 19 CFR 177.6, the Customs
Service will retain all materials submitted to us which relate to
this request.
FACTS:
The submitted sample is a fitted coin container. It is
composed of a metal plate and paperboard base material over which
a velvet man-made textile material has been placed. The interior
is fitted with two satin pads, with a 5/8 inch wide ribbon
located diagonally across the lower left hand corner of the front
cover satin pad. Sandwiched between the pads is a plastic
insert, 1/4 inch thick, which has a cut hole in the center to
receive a coin of certain dimensions. The exterior of the case
is ornamented with a metal die cast Heraldic Eagle, brass
corners, as well as date and identification plates. The
container is closed by means of a friction type metal clasp and
post.
In New York Ruling Letter (NYRL) 862417, dated May 7, 1991,
the finished coin box, as well as the coin box imported without
its plastic insert, were classified under subheading
4202.92.9020, HTSUSA, as a container similar to a jewelry case.
You have asked us to reconsider this finding.
ISSUES:
What is the proper tariff classification of the completed
coin presentation case?
What is the proper tariff classification of the coin
presentation case imported without the plastic insert?
What is the proper tariff classification of the plastic
insert imported separately?
LAW AND ANALYSIS:
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRI). GRI 1 provides that
classification is determined first in accordance with the terms
of the headings of the tariff and any relative section or chapter
notes. Where goods cannot be classified on the basis of GRI 1,
the remaining GRI will be applied in order.
Heading 4202, HTSUSA, provides for:
Trunks, Suit-Cases, Vanity-Cases, Executive-Cases,
Briefcases, School Satchels, Spectacle Cases, Binocular
Cases, Camera Cases, Musical Instrument Cases, Gun
Cases, Holsters and Similar Containers; Travelling-
Bags, Toilet Bags, Rucksacks, Handbags, Shopping-Bags,
Wallets, Purses, Map-Cases, Cigarette-Cases, Tobacco-
Pouches, Tool Bags, Sports Bags, Bottle-Cases,
Jewellery Boxes, Powder-Boxes, Cutlery Cases and
Similar Containers, of Leather or of Composition
Leather, of Sheeting of Plastics, of Textile Materials,
of Vulcanised Fibre or of Paperboard, or Wholly or
Mainly Covered with Such Materials or with Paper.
(Emphasis added).
By its terms heading 4202 encompasses the containers specifically
enumerated. In addition, containers similar to these exemplars
are also classified under this heading.
The Explanatory Notes
The Explanatory Notes (EN) to the Harmonized Commodity
Description and Coding System constitute the official
interpretation of the nomenclature at the international level.
While not legally binding, they do represent the considered views
of classification experts of the Harmonized System Committee. It
has therefore been the practice of the Customs Service to follow,
whenever possible, the terms of the EN when interpreting the
HTSUSA.
You assert that the EN to heading 4202 place a specific
limit on the containers that may be regarded as similar to a
jewelry box. In support of this theory, you direct our attention
to the following language, found at page 613:
The term "jewellery boxes" covers not only boxes
specially designed for keeping jewellery, but also
similar lidded containers of various dimensions (with
or without hinges or fasteners) specially shaped or
fitted to contain one or more pieces of jewellery and
normally lined with textile material, of the type in
which articles of jewellery are presented and sold
which are suitable for long-term use. (Emphasis
added).
You infer from this language that in order for a container to be
similar to a jewelry box, it must be "specially shaped or fitted
to contain one or more pieces of jewellery." As a coin case is
not specially fitted to hold jewelry, you conclude that it cannot
be classified as a container similar to a jewelry box. This
conclusion is based on the premise that the phrase "similar
lidded containers" found in the cited passage explicates the term
"similar containers" found in heading 4202. However, this is not
the case.
The EN you cite clarify the term "jewellery boxes," and not
the term "similar containers," found in heading 4202. This
passage makes it clear that the term "jewellery boxes"
encompasses not only the traditional compartmentalized jewelry
cases used to store numerous articles of jewelry, but also the
cheaper lidded containers in which jewelry is often presented in
and sold with at a department store. So long as a container is
"specially shaped or fitted to contain one or more pieces of
jewellery," it meets the definition of a "jewellery box." Thus,
the phrase "similar lidded containers" refers to a class of
"jewellery boxes." On the other hand, the term "similar
containers" as used in heading 4202 refers to containers which
are not "jewellery boxes" at all. Therefore, the text you cite
places no limit on containers that may be regarded as similar to
jewelry boxes.
Ejusdem Generis
Coin cases are not specifically provided for in heading
4202. However, they are classifiable in this heading if they are
ejusdem generis with the enumerated containers. Based on your
review of the heading, you believe that the common trait shared
by these containers is that they are either designed to be used
during travel to carry personal effects, or are designed to be
carried on the person during travel.
By way of contrast, you assert that coin cases are used
primarily to display and market coins for sale, and to store and
protect these coins after purchase. These uses are to be
distinguished from the travel goods of heading 4202. To the
extent that it is possible to use coin cases for travel purposes,
you imply that this is a fugitive use.
In addition, you reason that consumers expect articles of
heading 4202 to be re-usable and are purchased separate from
their contents. On the other hand, consumers purchase coins with
the expectation of receiving the case as a premium item,
ancillary to the coin purchase. The coin cases are either thrown
away after the purchase of the coin, or are re-sold with the coin
upon subsequent transactions. Based on the foregoing, you
conclude that coin cases are not ejusdem generis with those
articles itemized in heading 4202 and cannot be classified
therein. We disagree.
The containers of heading 4202 are not limited to travel
goods. For example, the traditional jewelry box is primarily
designed to store, display and protect jewelry in the home, and
not to transport these effects from place-to-place. Similarly,
the primary use of a cutlery case is to protect, display and
store its contents, as there is little need to transport the
silverware. Although these articles may be used to transport
their contents, this is a fugitive use.
As noted above, the EN to heading 4202 state that lidded
containers "of the type in which articles of jewellery are
presented and sold" are also to be classified as jewelry boxes.
These containers are the premium articles often sold with jewelry
at retail outlets. They are used to display their contents in an
attractive setting both before and after purchase. The consumer
may dispose of this container after purchase, or may retain it.
In sum, the uses you ascribe to coin boxes bear a remarkable
resemblance to those of a jewelry box. Furthermore, jewelry
boxes are no more or less likely to be used to transport their
contents than are coin cases. For these reasons, a coin case is
ejusdem generis with the articles of heading 4202, and is a
container similar to a jewelry box.
Competing Provisions
In your written submissions, you have cited numerous
alternative classifications for the instant article. These
include:
1. Heading 3923, articles for the conveyance or
packing of goods, of plastics;
2. Heading 3926, other articles of plastics;
3. Heading 4819, cartons, boxes, cases, bags and
other packing containers;
4. Heading 4823, other articles of paper pulp,
paper, paperboard;
5. Heading 6305, sacks and bags, of a kind used
for the packing of goods;
6. Heading 7310, boxes and similar containers,
of iron or steel;
7. Heading 7326, other articles of iron or
steel;
8. Heading 7612, aluminum cans, boxes and
similar containers;
9. Heading 7616, other articles of aluminum;
10. Subheading 8306.30, photograph, picture or
similar frames.
The applicable section, chapter, heading notes and explanatory
notes exclude most of these provisions from consideration when
heading 4202 describes the merchandise. See Chapter 39, note
2(h); Chapter 48, note 1(g); Section XI, note 1(l); EN to heading
7310; EN to heading 7326; EN to heading 7612. As we find that
heading 4202 is applicable to the instant coin case, these
provisions are precluded from consideration.
We will assume, only for the sake of argument, that heading
7616 describes the coin case. In this event, heading 4202 and
heading 7616 would be competing provisions. Heading 7616 is a
basket provision for other articles of aluminum and applies to
any article of aluminum not more specifically described elsewhere
in the Nomenclature. GRI 3(a) states that when goods are
classifiable under two or more headings, the heading which
provides the most specific description shall be preferred to
headings providing a more general description. In this case,
heading 4202 is more specific as it more clearly identifies the
coin case.
Finally, subheading 8306.30, which encompasses photograph,
picture or similar frames of base metal, does not describe the
coin case. Only the plastic insert could even conceivably be
viewed as a "frame," and it is not composed of base metal. The
aluminum component of the coin case is a container rather than a
frame. Hence, heading 8306 is inapplicable.
Classification of the Container and the Insert Individually
Container:
In Headquarters Ruling Letter (HRL) 951028, dated March 3,
1993, we discussed the classification of presentation cases
imported without inserts. In that ruling, we referred to GRI
2(a), which states:
Any reference in a heading to an article shall be taken
to include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete
or unfinished article has the essential character of
the complete or finished article. It shall also
include a reference to that article complete or
finished (or failing to be classified as complete or
finished by virtue of this rule), entered unassembled
or disassembled.
We then applied GRI 2(a) to a jewelry box imported without its
insert:
We believe that a presentation case without an insert
and/or internal lining has the essential character of
such a case in a finished condition. The essential
character of these cases is established by the
protective frame of plastic, metal, or
paperboard...This conclusion is unchanged where the
item to be placed in the case is a piece of crystal,
gold coin, or perfume bottle.
Hence, the unfinished jewelry box was classified as if it was the
completed article.
The same principle is applicable with respect to the subject
merchandise. The essential character of the coin container is
imparted by the nature of its protective frame, and not, as you
suggest, by the fact that the coin would slip out of the
container without the plastic insert. Accordingly, the coin case
imported without its plastic insert shall be classified in
heading 4202.
Plastic Insert
You propose heading 3923, which provides for articles for
the conveyance or packing of goods, of plastics, as the proper
classification for the insert imported separately. The EN to
this heading state that:
This heading covers all articles of plastics commonly
used for the packing or conveyance of all kinds of
products. The articles covered include:
(a) Containers such as boxes, cases, crates,
sacks and bags (including cones and refuse
sacks), casks, cans, carboys, bottles and
flasks.
The heading also covers cups without
handles having the character of containers
used for the packing or conveyance of certain
foodstuffs, whether or not they have a
secondary use as tableware or toilet
articles.
(b) Spools, cops, bobbins and similar supports.
(c) Stoppers, lids, caps and other closures.
These exemplars indicate that heading 3923 is generally reserved
for articles used for shipping purposes. Although it is possible
ship a coin in the insert, its primary purpose is to display or
store coins. Therefore, we conclude that heading 3923 does not
encompass this item.
Heading 3926 is a basket provision for plastic articles not
elsewhere specified in the Nomenclature. As the insert is not
described elsewhere in the tariff schedule, it is classifiable
under this heading.
HOLDING:
The finished coin presentation box and the coin presentation
box imported without the plastic insert are classifiable under
subheading 4202.92.9020, HTSUSA, which provides for jewelry boxes
and similar containers: other: with outer surface of plastic
sheeting or of textile materials: other: other, other: of man-
made fibers. The applicable rate of duty is 20 percent ad
valorem. The textile quota category is 670.
The plastic insert imported separately is classifiable under
subheading 3926.90.9095, HTSUSA, which provides for other
articles of plastics: other: other, other. The applicable rate
of duty is 5.3 percent ad valorem.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are the subject of frequent negotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report on Current Import Quotas (Restraint Levels), an issuance
of the U.S. Customs Service, which is updated weekly and is
available at the local Customs office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact the local
Customs office prior to importing the merchandise to determine
the current status of any import restraints or requirements.
Sincerely,
John Durant, Director