CLA-2 OT:RR:CTF:TCM H081676 CkG
TARIFF NO: 6307.90.98
William L. Crain
Import Manager
American Cargo Express
200 Scott Street
Elk Grove, IL 60007
RE: Reconsideration of NY N052053; classification of textile covered baskets
Dear Mr. Crain:
This is in response to your request for reconsideration of New York Ruling Letter (NY) N052053, dated February 20, 2009, filed on behalf of HMS Mfg., contesting Customs and Border Protection’s (CBP) classification of a textile-covered shelf basket in heading 6307, Harmonized Tariff Schedule of the United States (HTSUS), as an other made up article. In NY N052053, CBP also classified a textile-covered floor basket in heading 9403, HTSUS. However, only the shelf basket is at issue in this reconsideration request. For the reasons set forth below, we find that NY N052053 was correctly decided.
FACTS:
The subject merchandise consists of an open shelf basket constructed of paperboard covered with 600 denier polyester woven textile fabric (exterior portion) and polypropylene nonwoven fabric (interior portion) over paperboard stiffener. The basket measures approximately 12¼"W x 12¼"L x 6"H, and features sloping sides and cut out handles/grips on its opposite sides.
ISSUE:
Whether the subject article is classified as an article of paperboard of heading 4819, HTSUS, or an other made up article of heading 6307, HTSUS.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of
Interpretation (GRI). GRI 1 provides that classification 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 GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
4819: Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles,
of paper or paperboard of a kind used in offices, shops or the like:
4819.60.00: Box files, letter trays, storage boxes and similar articles, of a kind used in offices,
shops or the like. . .
* * * * *
6307: Other made up articles, including dress patterns:
6307.90: Other:
Other:
6307.90.98: Other:
* * * * *
Section XI, Note 1(m) provides as follows:
This Section does not cover:
(m) Products or articles of chapter 48 (for example, cellulose wadding)
* * * * *
You claim classification of the subject shelf baskets in heading 4819, HTSUS. Section XI, Note 1(m), HTSUS, provides that Section XI, which includes heading 6307, HTSUS, does not cover "Products or articles of Chapter 48". Accordingly, if the textile basket is an article of Chapter 48, it is classifiable as such and not under heading 6307, HTSUS. However, the instant basket consists of two different materials, paperboard and textile, and thus heading 4819 does not describe the basket as a whole.
The subject baskets are made of paperboard and are fully covered with textile fabric, and are thus composite goods. GRI 3(b) provides that composite goods consisting of different materials or made up of different components, shall be classified as if they consisted of the material or component which gives them their essential character. EN VIII to GRI 3(b) explains that "[t]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods." Recent court decisions on the essential character for 3(b) purposes have looked primarily to the role of the constituent material in relation to the use of the goods. See Better Home Plastics Corp. v. U.S., 915 F. Supp. 1265 (CIT 1996), aff’d 119 F. 3d 969 (Fed. Cir. 1997); Mita Copystar America, Inc. v. U.S., 966 F.Supp. 1245 (CIT 1997), rehear’g denied, 994 F. Supp. 393 (1998); Vista Int’l Packing Co. v. U.S., 890 F. Supp. 1095 (CIT 1995).
Here, the paperboard provides the structure and shape of the box, but the textile fabric provides aesthetic appeal and marketability. It is likely that the purchase will be based primarily, if not entirely, on the aesthetic appeal of the fabric. We therefore find that the textile fabric and paperboard are both equally important with respect to the use of the good. As neither material clearly imparts the essential character to the good as a whole, we must turn to GRI 3(c). GRI 3(c) states that, among eligible headings, classification shall occur under that which is last in numerical order among those under consideration. In this case, that would be heading 6307, HTSUS.
This decision is consistent with past CBP rulings. See e.g., HQ 955896, dated May 3, 1994; HQ 953393, dated April 16, 1993; NY N244400, dated August 14, 2013; NY N226604, dated August 2, 2012; and NY I85347, dated August 20, 2002.
By application of GRI 3(c), the subject articles are thus classifiable in heading 6307, HTSUS.
HOLDING:
By application of GRIs 3(c) and 6, the subject storage bins are classified in heading 6307, HTSUS, specifically in subheading 6307.90.98, HTSUS, which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other.” The 2015 column one, general rate of duty is 7%.
EFFECT ON OTHER RULINGS:
NY N052053, dated February 20, 2009, is hereby affirmed.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division