CLA-2 OT:RR:CTF:TCM H087877 CkG
TARIFF NO: 3926.10.00
Melanie Geier
International Compliance Specialist
Office Max Headquarters
263 Shuman Boulevard
Naperville, IL 60003
Re: Classification of plastic binders with index cards
Dear Ms. Geier:
This is in response to your request of October 12, 2009, on behalf of Office Max, concerning the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of plastic binders with index cards.
FACTS:
Two samples were submitted with the instant ruling request. The samples are two polypropylene ring binders filled with two polypropylene dividers and 50 index cards. The binders are designed to hold and bind index cards that measure approximately 3” x 5” and 4” x 6”, respectively. Each polypropylene cover is fitted with a 1” D-ring spine riveted to the back cover and the front of the cover has a clear vinyl pocket to hold cards or other flat objects.
ISSUE:
Whether the binder with index cards is classified in heading 3926, HTSUS, as an “other” article of plastic, or as an article of paper or paperboard of heading 4811, 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 at issue are as follows:
3926: Other articles of plastics and articles of other materials of headings 3901 to 3914:
3926.10.00: Office or school supplies…
* * * * *
4811: Paper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810:
4811.90: Other paper, paperboard, cellulose wadding and webs of cellulose fibers:
4811.90.90: Other…
* * * * *
The binder is classified in heading 3926, HTSUS, as an article of plastic. See e.g., NY J88127, dated September 17, 2003, and NY G87761, dated March 15, 2001. The index cards are classified in heading 4811, HTSUS, as articles of paper or paperboard. See e.g., NY R03626, dated April 14, 2006. The articles are thus prima facie classifiable under more than one heading. Classification of these articles cannot be determined according to the terms of GRI 1. GRI 2(b) states that "[a]ny reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances [and] any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3."
GRI 3 states, in pertinent part:
When by application of [GRI] 2(b) or for any other reason, 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 . . . , 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 . . . 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. The headings covering the article refer only to part of the materials or
components contained therein. Therefore, under GRI 3(a), the headings must be regarded as equally specific in relation to the article, and the article must be classified as if it consisted of the material or component which gives it its essential character, pursuant to GRI 3(b). 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 GRI 3(b) purposes have looked primarily to the role of the each material or component in relation to the use of the goods. See Structural Industries, 360 F. Supp. 2d 1330 (Ct. Int’l Trade 2005); Conair Corp. v. United States, 29 C.I.T. 888 (2005); Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278 (Ct. Int’l Trade 2006), aff’d 491 F.3d 1334 (Fed. Cir. 2007). The “essential character” of an article is “that which is indispensable to the structure, core or condition of the article, i.e., what it is.” Structural Industries v. United States, 360 F. Supp. 2d 1336.
We find that the essential character of the plastic binder with index cards is the plastic binder because of its role in relation to the use of the set. The index cards provide a writing surface while binder holds and organizes the index cards. However, because the binder can be used with other materials and can also be reused once the index cards are full, the ultimate purchaser is likely to purchase the set primarily for the binder. The index cards, being of no further use and thus disposable when full, would be a secondary consideration.
HOLDING:
By application of GRI 3(b), the plastic binder with index cards is classified in heading 3926, HTSUS, and is specifically provided for in subheading 3926.10.00, which provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914: Office or school supplies.” The 2009 column one, general rate of duty is 5.3%.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
A copy of this ruling letter should be attached to the entry documents filed
at the time the goods are entered. If the documents have been filed without a
copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Myles B. Harmon, Director,
Commercial and Trade Facilitation Division