CLA-2 CO:R:C:T 956430 ch

Michael Lo
China Stationery Manufacturing Group, Inc.
17890 Castleton Street
Suite 289
City of Industry, California 91748

RE: Tariff Classification of Organizers/Planners; Diaries; Address Books; Attache Cases; Briefcases

Dear Mr. Lo:

This is in response to your letter of March 29, 1994, requesting tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) for articles described as organizers, portfolios and binders. Samples were provided to this office for examination.

FACTS:

Style 951A, described as the "Pocket Size Zipper Organizer," features a cover with an outer surface composed mainly of textile materials (55 percent ramie, 45 percent polyester) with leather trim. This article measures approximately 4 3/4 inches by 8 inches by 1 inch and consists of a case with a zipper closure. A six ring binder with various paper inserts slides into a pocket along one of the interior walls. The paper inserts include a monthly appointment calendar, a daily planner with spaces and lines for personal notations and a telephone/address directory. A small note pad has been placed into a slot to one side of the binder. The opposite interior wall features a pen holder, a flat zippered pocket measuring approximately 7 1/2 inches by 3 inches and three smaller pockets for holding business or credit cards.

Style 972A, the "Zipper Binder," features a cover with an exterior composed mainly of textile materials (55 percent ramie, 45 percent polyester) with leather trim. This item measures approximately 10 3/4 inches by 13 1/2 inches by 2 1/4 inches. It possesses a zipper closure with a three ring binder permanently affixed at the spine. The binder encloses a telephone/address book, as well as dividers labeled "calendar," "daily," "notes," "projects" and "telephone/address." A slot for a note pad occupies one interior wall. The opposite interior wall possesses a flap for securing loose papers, two pen holders and two small flat pockets.

Style 972A, the "Zipper Binder," features a cover with an exterior composed mainly of textile materials (55 percent ramie, 45 percent polyester) with leather trim. This item measures approximately 10 3/4 inches by 13 1/2 inches by 2 1/4 inches. It possesses a zipper closure with a three ring binder permanently affixed at the spine. A slot for a note pad occupies one interior wall. The opposite interior wall possesses a full length open flat pocket, a zippered flat pocket, six slots for identification/business cards, four pen holders and a pocket with flap secured by means of hook and loop fasteners. Style 972A features an exterior handle sewn to the spine so that the article may be carried in an inverted position, as well as two gold tone clasps so that it may be carried by means of a strap.

ISSUE:

What is the proper tariff classification for the subject merchandise?

LAW AND ANALYSIS:

Heading 4820, HTSUSA, provides in part for diaries, address books and other articles of stationery, of paper or paperboard. The Explanatory Note (EN) to heading 4820 states in pertinent part, at page 687, that:

This heading covers various articles of stationery, other than correspondence goods of heading 4817 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, file covers, (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. (Emphasis added).

This language indicates that articles of 4820, HTSUSA, include portfolios, ring binders and folders designed for holding papers. They include items that are bound with leather or textile material. Heading 4820 encompasses articles of stationery with jackets or covers.

In HRL 955636, dated April 6, 1994, we addressed the scope of subheading 4820.10.2010, HTSUSA, which provides for bound diaries and address books:

We think it is imperative to recognize that there are many forms of "diaries." Many are similar to the instant articles. Others, may be bound with expensive materials such as leather and may contain additional components such as pens, pencils, calculators, business card holders and assorted inserts that are used either for providing information or as a means of recording specific types of information (i.e., sections for fax numbers, car maintenance information, personal finance data, etc. ...). As the court in Brooks Bros. noted, citing Hancock Gross, Inc. v. United States, 64 Cust. Ct. 97, C.D. 3965 (1970), "[T]he primary design and function of an article controls its classification." Hence, the determinative criteria as to whether these types of articles are deemed "diaries" for classification purposes is whether they are primarily designed for use as, or primarily function as, articles for the receipt of daily notations, events and appointments. (Emphasis in original).

Furthermore, in HRL 955516, dated April 8, 1994, we observed:

As the "Filofax" diaries contain ring binders that hold loose sheets in place, they are undoubtedly classifiable within heading 4820, HTSUSA. The next issue is whether ring binders make a diary "bound" so as to warrant classification within subheading 4820.10.2010, HTSUSA. This office has consistently held that they do. See HRL 089960 (2/10/92; 952691 (1/11/93); and 953172 (3/19/93). This position is supported by the EN to heading 4820, HTSUSA, which state that "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." It is clear that metal binders were contemplated to fit within this heading's definition of bound articles. We do not agree with protestant's argument that merely because a metal loose leaf ring binder was not expressly cited as an exemplar of a "bound" article in the EN to heading 4820, that it is precluded form classification as such.

Moreover, in HRL 953413, dated March 29, 1993, we concluded that a ring binder slipped into the slot of an organizer/planner was classifiable as a bound diary in subheading 4820.10.2010, HTSUSA.

Style 951A and style 972A fall within the ambit of heading 4820, HTSUSA. These articles serve as organizational tools for pieces of stationery, and feature covers of textile materials with leather trim. Style 951A functions primarily as an article for the receipt of daily notations, events and appointments and features a removable ring binder. Style 972A possesses pieces of stationery which serve as a place for the receipt of addresses and telephone numbers, as well as a permanently affixed three ring binder. Based upon our administrative precedent, these articles are classifiable as bound diaries and address books in subheading 4820.10.2010, HTSUSA.

Style 982A shares certain physical characteristics with style 972A. They each possess a case composed of textile materials with leather trim, share the same dimensions, include a permanently affixed ring binder and incorporate organizational features such as pen holders, slots and pockets. However, style 982A differs from style 972A in two important respects. First, style 982A does not include articles of stationery. Second, it possesses a carrying handle and clasps for a carrying strap.

As noted above, heading 4820, HTSUSA, encompasses articles such as diaries, address books and other articles of stationery, of paper or paperboard. The stationery may be bound in covers composed of leather, plastic or textile materials, which often exceed the value of the printed stationery. However, by its terms, articles of heading 4820 must be of paper or paperboard. As style 982A does not include pieces of stationery, it is not within the scope of heading 4820.

In HRL 955516, we noted that leather organizers or planners imported without paper inserts were classifiable in the residual provision for articles of leather. Style 982A possesses a cover of textile materials with leather trim. As the article is composed mainly of textile materials, it is prima facie classifiable as an article of textile materials. Consequently, heading 6307, HTSUSA, which provides for other made up textile materials, describes this item.

Heading 4202, HTSUSA, provides in part for attache cases, briefcases and similar containers. In prior ruling letters, we have concluded that portfolio diaries, organizers, agendas or planners are not classifiable in heading 4202, HTSUSA. For example, in Headquarters Ruling Letter (HRL) 950325, dated December 27, 1991, we addressed the classification of an organizer consisting of a leather case enclosing a six-ring binder, with paper inserts for personal record-keeping. In that decision, we stated:

We do not believe that heading 4202, HTSUSA, describes a type of merchandise which would bring these goods within the "similar containers" of that heading. Although the "planner" may appear to be related to the containers of heading 4202, HTSUSA, they are not similar in that they are not designed or intended for use in a similar manner, nor do they exhibit the requisite physical attributes that Customs has found common to goods of heading 4202, HTSUSA. (Emphasis added).

Similarly, in HRL 950397, dated January 23, 1992, in connection with the classification of a portfolio planner, we observed that:

Although the planner may appear to be related to the containers of heading 4202, HTSUSA, they are not designed or intended for use in a similar manner, nor do they exhibit the requisite physical attributes that Customs has found common to goods of heading 4202, HTSUSA. (Emphasis added).

Thus, we have determined that portfolio diaries, organizers, agendas or planners are generally excluded from heading 4202 as they are not used in a manner similar to, nor do they possess the physical characteristics of, articles of that heading.

However, in this instance the carrying handle and clasps for a strap are features which are characteristic of attache cases or briefcases and are unrelated to the use of style 982A as an organizer. In addition, the article is large enough to accommodate standard size papers and documents, as well as many of the articles normally carried in a briefcase (e.g. calculator, pens, notebook, etc.). The case serves a dual purpose of providing a cover for its contents and as a means by which the article may be used as a carrying case. Consequently, we are of the opinion that style 982A is also prima facie classifiable within heading 4202, HTSUSA, as an article similar to a briefcase.

General Rule of Interpretation (GRI) 3 provides that when goods are prima facie classifiable under two or more headings, classification shall be effected as follows:

(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

GRI 3(a) provides that a heading providing a specific description of the merchandise is preferred to a heading providing a more general description. Style 982A is described by heading 6307, HTSUSA, which is a basket provision for textile articles not more specifically described elsewhere in the Nomenclature; and heading 4202, HTSUSA, which provides for certain containers, including attache cases, briefcases and similar containers. In this instance, heading 4202 more specifically describes style 982A as it encompasses a more limited class of goods than heading 6307. As a result, style 982A is classifiable in heading 4202, HTSUSA, as an article similar to a briefcase. As ramie predominates by weight over the polyester material, the exterior surface shall be regarded as a vegetable fiber. See Section XI, Note 2(A); Subheading Note 2.

It should be noted, however, that the addition of paper inserts may affect the classification of style 982A. For example, the addition of pages for an address/telephone book or a daily planner would render the article prima facie classifiable in heading 4820, as opposed to heading 6307. In this event, headings 4202 and 4820, HTSUSA, would be equally specific in relation to one another, as the competing provisions encompass a limited class of goods and describe only a portion of the physical characteristics of the article. Consequently, the classification of style 982A could not be resolved on the basis of GRI 3(a).

Moreover, pursuant to GRI 3(b), we would not be able to say that either the organizer/planner or the carrying case components lend the essential character to style 982A. This item may be used in a manner consistent with a carrying case of heading 4202, HTSUSA. However, it is flat and will not accommodate items such as a newspaper or book, which are normally carried in an attache case. The organizer components would contribute at least as much, in terms of function and design, to the finished article as the carrying case components. Consequently, we would resort to GRI 3(c) to classify this product. As heading 4820 is the heading which would occur last in numerical order among the headings which would merit consideration, style 982A would be classified within heading 4820.

HOLDING:

Styles 951A and 972A are classifiable under subheading 4820.10.2010, HTSUSA, which provides for bound diaries and address books. The applicable rate of duty is 4 percent ad valorem.

Style 982A is classifiable under subheading 4202.12.6000, HTSUSA, which provides in part for attache cases, briefcases and similar containers: with outer surface of textile materials: of vegetable fibers and not of pile or tufted construction: other. The applicable rate of duty is 6.5 percent ad valorem. The textile category is 870.

Sincerely,

John Durant, Director