CLA-2 RR:CR:TE 959958 GGD
Ms. Patricia Rucker
Department 733IMP
Sears Merchandise Group
3333 Beverly Road, BC 204-A
Hoffman Estates, Illinois 60179
RE: Classification of Planners, Organizers, Binders/Cases with Paper Inserts; Articles of Stationery; Memorandum Pads; Diaries; Mead Corporation v. United States; Avenues in Leather v. United States; Headings 4820 and 4202
Dear Ms. Rucker:
This letter is in response to your request of October 1, 1996, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of four styles of binders or cases imported with various paper inserts. The merchandise will be manufactured in China. Samples were submitted with your request.
FACTS:
There are four articles at issue, identified by style numbers 53961, 53962, 53963, and 53964, three of which are described as planners and one of which (style no. 53964) is described as a writing pad.
Style no. 53961, specifically described as a “Zip-Around Dat-A-Genda Book,” consists of a binder or case that is zippered on three sides. The case measures approximately 8-1/2 inches in height by 5-3/4 inches in width by 1-1/2 inch in depth (in the closed position). The article’s front exterior has one open flat pocket. The case is constructed with one exterior layer and two
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interior layers of vinyl plastic sheeting that is embossed to resemble leather. Between these exterior and interior layers is a layer of plastic foam material and a paperboard stiffener. The article’s interior features a six ring binder that is permanently attached at the spine. The rings measure approximately 7/8 of an inch in diameter and they hold in place several types of inserts that collectively measure approximately 3/4 of an inch in thickness. The inserts will be imported with the binder/case, and consist of sections labeled as “calendar” (four year planner), “weekly view” (weekly planner), “daily” (undated daily planner), “notes” (for meetings), “expenses” (various accounting ledgers), “tel/add” (telephone/address index). Unlabeled inserts include a paper section for important dates, a clear plastic ruler, and two pages of clear polyvinyl chloride (PVC) plastic name card holders. The interior left side of the article has an open flap pocket (for loose sheets) on top of which are four slots for credit or business cards and a clear PVC window for an identification card. The case’s interior right side has one pen loop and a horizontal sleeve. Slipped into the sleeve is a pad of graph paper which measures approximately 3-1/2 inches in width by 6-3/4 inches in height by 1/8 of an inch in thickness.
Style no. 53962 is specifically described as a “Leather Planner” and consists of a binder or folder with a tab and snap closure. The article, which is open on three sides, measures approximately 10-1/2 inches in height by 7-1/2 inches in width by 1-3/4 inch in depth (in the closed position). The binder is constructed with an exterior layer composed of fabric-backed composition leather that has been coated on its outermost surface with a thin sheeting of plastics. The binder’s interior layer is composed of a textile fabric that is coated with plastic. The plastic comprises the visible surface and resembles leather. Between the exterior and interior layers is a layer of plastic foam material and a paperboard stiffener. The article’s interior features a three ring binder that is permanently attached to the spine. The rings measure approximately 1-1/8 inch in diameter and hold in place several inserts, which collectively measure approximately 3/4 of an inch in thickness. The inserts will be imported with the binder/folder and consist of sections labeled as “calendar” (four year planner), “weekly view” (weekly planner), “daily” (undated daily planner), “notes” (for meetings), “expenses” (various ledgers for expenditures), “tel/add” (telephone/address index). Unlabeled inserts include a section for important dates, a clear plastic ruler, and two pages of clear PVC plastic name card holders. The interior left side of the article has one tapered, gusseted pocket which opens on the right, measures approximately 10 inches in height by 5 inches
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in width, and is capable of some outward expansion. An open, flat, slot pocket lies over the full height of the gusseted pocket. On top of the slot pocket are 7 small slots (one with a clear PVC window) for an i.d. and business and/or credit cards. The case’s interior right side has one pen loop and a horizontal sleeve into which is slipped a pad of graph paper which measures approximately 5-1/2 inches in width by 8 inches in height by 1/8 of an inch in thickness.
Style no. 53963, specifically described as a “Leather Planner,” consists of a binder or case that is zippered on three sides. The article’s front exterior has one open flat pocket. Other than this exterior pocket and the zippered closure, style 53963 is similar in all material respects to style no. 53962 directly above (i.e., the same measurements, material composition, construction, binder mechanism, paper and plastic inserts, pockets, slots, pen loop, and paper pad).
Style no. 53964, specifically described as a “Leather Writing Pad,” consists of a lined memorandum pad or writing pad (which measures approximately 8-1/2 inches in width by 11-1/2 inches in height by 1/4 inch in thickness) with a cardboard backing which slips into a slot in the right interior side of a jacket or case that is zippered on three sides. (The slot is open-ended, allowing the pad to be inserted from either end to accommodate a right- or left-handed user. The description of the article’s interior features herein assume a right-handed user.) The case, with pad inserted, measures approximately 13-3/8 inches in height by 10-1/4 inches in width by 1-1/2 inch in depth (in the closed position). The article’s front exterior has one open flat pocket. The jacket is constructed with an exterior layer composed of fabric-backed composition leather that has been coated on its outermost surface with a thin sheeting of plastics. Beneath the exterior layer is a layer of plastic foam material, under which is placed a paperboard stiffener. Beneath the stiffener are two layers of woven textile material that are glued together, one of which is laminated to the paperboard stiffener and the other (innermost) of which comprises the back wall of a tapered gusseted pocket that is open on the left. This pocket covers most of the article’s interior left side and its gussets allow the compartment to expand outward approximately two inches at the top. Overlying this pocket is a zippered, flat “security” pocket which measures approximately 7 inches in height by 10 inches in width. Overlying the zippered pocket is a full width, open top, flat pocket which measures approximately 3-3/4 inches in height. Overlying this flat pocket are 6 slots for business or credit cards and one small tapered gusseted pocket (for a disk
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and/or calculator). A tube-shaped pen holder is affixed to the spine of the article. On the retail packaging for the “Leather Writing Pad,” pertinent listed features include: “...Open pockets for cards, I.Ds, disk & calculator; Gusseted interior pocket for loose documents; Zipper security pocket...Right/Left hand reversible pad feature [which, as previously noted, allows either a right- or left-handed user to write comfortably]....”
ISSUE:
Whether the articles are classified under heading 4202, HTSUSA, which covers, in part, attache cases, briefcases, school satchels, and similar containers; or under heading 4820, HTSUSA, which among other items, covers letter pads, memorandum pads, binders, folders, file covers, and other articles of stationery, of paper or paperboard.
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.
Among other merchandise, chapter 48, HTSUSA, covers articles of paper or of paperboard. Note 1(h) to chapter 48, HTSUSA, states that “[t]his chapter does not cover: Articles of heading 4202 (for example, travel goods).” Among the items covered by heading 4820, are notebooks, letter pads, memorandum pads, diaries and similar articles, binders (looseleaf or other)...and other articles of stationery, of paper or paperboard....” The EN to heading 4820 indicate that the heading covers various articles of stationery including (in addition to the examples noted above) notebooks of all kinds, file covers, files (other than box files), and portfolios. The EN also suggest that the goods of the 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.
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If the goods are not articles of 4202, they may be classifiable under heading 4820, since they are imported containing the articles of stationery they are designed to bind and protect. We therefore next examine heading 4202, HTSUSA.
Among other goods, heading 4202, HTSUSA, provides for attache cases, briefcases, school satchels, and similar containers. The exemplars named in heading 4202 have in common the purpose of organizing, storing, protecting, and carrying various items. EN (c) to heading 4202 states that the heading does not cover:
Articles which, although they may have the character of containers, are not similar to those enumerated in the heading, for example, book covers and reading jackets, file-covers, document-jackets...etc., and which are wholly or mainly covered with leather, sheeting of plastics, etc. Such articles fall in heading 4205 if made of (or covered with) leather or composition leather, and in other Chapters if made of (or covered with) other materials.
Whether the subject articles have the character of containers but lack similarity to those containers enumerated in heading 4202, depends upon whether their primary purpose is to organize, store, protect, and carry various items; or to enclose and protect articles of stationery, books, files, and/or documents. If the items are classifiable under heading 4202, they are precluded from classification under heading 4820 by the legal note to chapter 48, HTSUSA, previously cited.
Although three of the four articles have a considerable amount of volume within a zippered enclosure (i.e., styles 53961, 53963, and 53964), this space is substantially dedicated to the paper inserts that are bound by ring mechanisms and/or slipped into slots or sleeves. Style 53962 is essentially a binder and jacket with a snap tab closure. Like styles 53961 and 53963, it is not primarily designed or intended to carry a variety of personal effects in addition to stationery and paper-related goods (pen, ruler, plastic protective sheets, etc.). We find that styles 53961, 53962, and 53963, are not prima facie classifiable under heading 4202, HTSUSA, because the primary purpose of each is to enclose and protect an article of stationery - that being a diary. We note that, among other items, each article’s bound inserts include a calendar section, a weekly view section, and a daily planner section.
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In numerous Headquarters Ruling Letters (HQ), Customs has consistently cited to lexicographic sources in determining what actually constitutes a diary. The term “diary” is defined in the Compact Edition of the Oxford English Dictionary, 1987, as:
2. A book prepared for keeping a daily record, or having spaces with printed dates for daily memoranda and jottings; also applied to calendars containing daily memoranda on matters of importance to people generally or to members of a particular profession, occupation, or pursuit.
Customs is also guided by judicial precedent such as the decision in Brooks Bros. v. United States, 68 Cust. Ct. 91, C.D. 4342 (1972), in which the article at issue contained texts, maps, blank pages, and other inserts (not related to the receipt of daily memoranda) in addition to pages suitable for use as a diary. In considering whether the diary should have been classified under any of the several provisions recommended by the plaintiff, the court stated that the article “is indeed a diary, both in fact and for customs purposes....” With respect to the additional inserts, the court stated that “[i]t is not merely an article ‘composed of pages suitable for use as a diary’ as contended by the plaintiff. It is a diary that additionally contains certain informational data of interest to the particular class of customers who purchase the diary.” (Emphasis in original)
The Court of International Trade (CIT) supported Customs position in Mead Corporation v. United States, 17 F. Supp. 2d 1004, Slip Op. 98-101 (Ct. Int’l Trade, 1998), and held that loose-leaf ring binder books containing calendars, note pads, room for daily notes, telephone numbers, and addresses, were properly classified as bound diaries in subheading 4820.10.20, HTSUSA. From judicial precedent, the Court gathered the understanding: “that “diaries” are articles whose principle purpose is to allow a person to make daily notations concerning events of importance. Articles may be diaries even if they contain supplementary material of a different type, such as useful printed information or addresses and telephone numbers.”
Looking to styles 53961, 53962, and 53963, we find that the daily planners, weekly views, and calendar sections provide the means to record and store daily notations and to organize a schedule, even though each style contains additional inserts that may be of interest to the purchasing customer. Because the inserts are affixed by ring binder mechanisms, we consider each of the styles to be “bound” for classification purposes. Styles
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53961, 53962, and 53963 are therefore classified as bound diaries in subheading 4820.10.2010, HTSUSA. See also HQ 957667, issued May 15, 1995, HQ 957308, issued April 20, 1995, and HQ 956539, issued September 7, 1994.
Style 53964, the “Leather Writing Pad,” does not function as a book for the recording of daily notations or addresses. The article has no ring binder, although it contains a lined pad of paper. In HQ 960989, issued July 20, 1998, this office considered the classification an article identified as a “Contractors Folio,” which was substantially similar in size, features, and stationery contents, to the “Leather Writing Pad.”
We found that the “Contractor’s Folio” was designed to organize and protect small and/or flat items in addition to the writing pad. The case’s depth of only 1-1/4 inch, and its lack of handles or straps, gave an indication that the article was not designed to easily store, protect, and carry additional items such as a newspaper, a book, and/or other objects normally carried in an attache case or briefcase. Although the case had the character of a container, with perhaps more features than a simple jacket or cover, we found that the jacket’s added features served to enhance the primary purpose to provide a convenient and organized method by which to take notes in a variety of locations and circumstances. The “Contractor’s Folio” was classified in subheading 4820.10.2020, HTSUSA. Other than its material composition and an additional small gusseted pocket, the “Leather Writing Pad” at issue differs from the “Contractor’s Folio” essentially only in size, measuring approximately 1-1/2 inch in depth (1/4 of an inch deeper than the “Contractor’s Folio”). We must look further to determine whether this increased depth warrants a difference in classification.
In HQ 959792, dated February 11, 1997, we reviewed and modified HQ 955656 (dated July 14, 1994), in which an article identified as style 3343 was erroneously found to be prima facie classifiable in both headings 4202 and 4820 and, pursuant to GRI 3(b), was classified under heading 4202. Style 3343 measured approximately 10-1/2 inches by 13-1/2 inches by 1-3/4 inches, and had a zipper closure with a three ring binder permanently affixed at the spine. A combination note pad and pre-printed calendar was inserted into a slot on the case’s interior. The opposite interior wall had two tapered, gusseted pockets measuring approximately 13 inches by 6 inches. The item also had two smaller pockets with hook and loop fabric fastener closures, two pen holders, a small flat pocket, and a zippered pocket measuring approximately 11-1/2 inches by 6-1/2 inches. The exterior of the
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case featured two open pockets (which measured approximately 13-1/2 inches by 8-1/2 inches) on either side of the case, and a handle sewn to the spine for carrying the article in an inverted position. While we agreed with some of the findings in HQ 955656 - that due to its handle, its two large exterior pockets, its expandable interior pockets, and its size (large enough to hold a newspaper or a book), style 3343 was classifiable under heading 4202, HTSUSA - we disagreed that the article could also be classifiable under heading 4820, HTSUSA.
In HQ 959792, we determined that the competition between headings 4202 and 4820 was resolved by the exclusionary note to chapter 48 (now, as stated above, note 1(h)). The fact that style 3343 was classifiable in heading 4202, precluded its classification under heading 4820, HTSUSA. The analysis used and applied to style 3343 in HQ 959792 was reviewed and fully supported in a decision by the CIT in Avenues in Leather v. United States, 11 F. Supp. 2d 719, Slip Op. 98-54, decided April 24, 1998. We find that, unlike style 3343, the “Leather Writing Pad” is not prima facie classifiable under heading 4202, HTSUSA. Like the “Contractor’s Folio,” the article’s primary purpose is to provide its user - whether right- or left-handed - with a convenient and organized method by which to write in various locations under diverse circumstances. The article is classified in subheading 4820.10.2020, HTSUSA, the provision for “Registers...diaries and similar articles: Diaries...and similar articles, Memorandum pads, letter pads and similar articles.”
HOLDING:
The articles identified as style nos. 53961, 53962, and 53963, and specifically described as a “Zip-Around Dat-A-Genda Book,” a “Leather Planner,” and a “Leather Planner,” respectively, are classified in subheading 4820.10.2010, HTSUSA, which provides for “Registers...diaries and similar articles: Diaries, notebooks and address books, bound..., Diaries and address books.” The general column one duty rate is 2 percent ad valorem.
The article identified as style no. 53964, and specifically described as a “Leather Writing Pad,” is classified in subheading 4820.10.2020, HTSUSA, the provision for “Registers...and other articles of stationery...of paper or paperboard: Registers...and
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similar articles: Diaries..., Memorandum pads, letter pads and similar articles.” The general column one duty rate is 2 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division