RR:TC:FC 959402 MMC

Mr. Scott Morrow, Pre-Classification Specialist
Kmart Corporation
International Headquarters
3100 West Big Beaver Road
Troy, MI 48084

RE: Loose leaf binder pencil pouches; EN 39.26

Dear Mr. Morrow:

This is in reference to your June 4, 1996, letter requesting the classification of a plastic loose leaf binder pencil pouch under the Harmonized Tariff Schedule of the United States (HTS). A sample was submitted for our review.

FACTS:

The article is a 11"x7«" loose leaf binder pencil pouch. It is made of plastic sheeting material. Three holes have been pre-punched along one of the 11" sides, for ease in carrying the pouch in a loose leaf binder. A ziplock-type closure runs along the other 11" side.

ISSUE:

Whether the loose leaf pencil pouch is classifiable as a container or as a personal article.

LAW AND ANALYSIS:

Classification under the HTS is made in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, 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 may then be applied. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires. The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTS by offering guidance in understanding the scope of the headings and GRIs.

The headings under consideration are:

3923 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics.

3926 Other articles of plastics and articles of other materials of headings 3901 to 3914.

In HRLs 953177 dated April 7, 1993, 954072 dated September 2, 1993, 954816 dated December 7, 1993, 957894 and 957895 both dated December 14, 1995, 955660 dated September 27, 1994, 955047 dated October 6, 1994, and 958174 dated January 31, 1996, Customs indicated that subheading 3923.10, HTS, provides for cases and containers for bulk goods and commercial goods, not personal articles. As the pencil pouches transport pens, pencils, erasers, etc. for personal use, they are not described by heading 3923, HTS.

The ENs to 3926 indicate that:

This heading covers articles, not elsewhere specified or included, of plastics (as defined in Note 1 to the Chapter) or of other materials of headings 39.01 to 39.14.

They include:

* * *

(4) Dust-sheets, protective bags, awnings, file-covers, document-jackets, book covers and reading jackets, and similar protective goods made by sewing or glueing together sheets of plastics.

(5) Paperweights, paper-knives, blotting-pads, pen-rests, book-marks, etc.

* * *

(10) Tool boxes or cases, not specially shaped or internally fitted to contain particular tools with or without their accessories (see the Explanatory Note to heading 42.02).

(11) Various other articles such as fasteners for handbags, corners for suit-cases, suspension hooks, protective cups and glides for placing under furniture, handles (of tools, knives, forks, etc.), beads, watch "glasses", figures and letters, luggage label-holders.

The pencil pouches, which are most likely school supplies, are described by heading 3926, HTS, because they have substantial similarities to the articles listed in EN 39.26 and therefore belong to the same class or kind of articles. The pencil pouches are classifiable under heading 3926, HTS, specifically, subheading 3926.10, HTS, which provides for "Other articles of plastics and articles of other materials of headings 3901 to 3914: Office or school supplies."

HOLDING:

The pencil pouches are classifiable under subheading 3926.10. , HTS, which provides for "Other articles of plastics and articles of other materials of headings 3901 to 3914: Office or school supplies" and has a column one duty rate of 5.3 percent ad valorem.


Sincerely,

John Durant, Director
Tariff Classification Division