CLA-2 CO:R:C:T 088430
Mr. Ernest Ferrante
Kuehne & Nagel, Inc.
10 Exchange Place, 19th Floor
Jersey City, New Jersey 07302
RE: Agenda; Planner; Diary; Address Book; Flatgoods;
Portfolio; Office supplies; School supplies; Set; GRI
3(b).
Dear Mr. Ferrante:
This will acknowledge receipt of your letter dated
December 12, 1990, requesting a binding classification ruling
for merchandise known as an agenda or planner. Your
correspondence and a sample of the goods have been forwarded
to this office for a response.
FACTS:
The merchandise at issue is a tri-fold cover which may be
fitted with different inserts for different purposes. They
are commonly known as "agendas", "planners", "portfolios",
"folders" and "organizers", among other characterizations.
They consist of three pieces of paperboard covered with
plastic sheeting and assembled by gluing and/or sewing. The
finished product folds twice, once in from each end, along a
gusset approximately 1 to 1 1/2 inches wide. The exterior
surface of the sample has a simulated eel skin appearance, but
may be finished in a variety of simulated textures. Inside
the sample are a business card holder, an address/telephone
book and a notepad. The holder, book and pad are secured by
inserting the cardboard backing of each into a slit in the
interior vinyl surface. Thus, each can be removed and/or
replaced when their usefulness is exhausted, or to create a
different combination of fillers. The finished, folded item
measures 9 inches in length, 6 1/2 inches in width and
approximately 1 1/4 inches in thickness. The article is
clearly too large to be suitable for carrying in a handbag.
ISSUE:
How are the goods classified under the Harmonized Tariff
Schedule of the United States Annotated?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA) is made in accordance
with the General Rules of Interpretation (GRI's). 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 relevant 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's may be applied, taken in order.
We note that two headings may be eligible for
classification of this product by applying GRI 1. First, we
considered heading 4820, HTSUSA, which provides for, inter
alia, notebooks, letter pads, memorandum pads, diaries and
similar items. Customs has consistently ruled that
merchandise such this is not included in heading 4820, HTSUSA,
as an article "similar" to these enumerated. We see no reason
to change that analysis in this case. Secondly, we have
considered heading 4202, HTSUSA, which provides for, inter
alia, suitcases, attache cases, school satchels, and similar
containers. 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.
Having determined that no heading terms provide for these
goods, we consider the plastic cover and the paper contents to
comprise a "set put up for retail sale" as described by GRI
3(b). Such sets are taken to mean merchandise which: (a)
consists of at least two different articles which are, prima
facie, classifiable in different headings . . .; (b) consist
of products or articles put up together to meet a particular
need or carry out the specific activity of organizing one's
activities; and (c) are put up in a manner suitable for sale
directly to users without repacking . . . (See, Explanatory
Note X to GRI 3(b)).
The instant item consists of a plastic cover classifiable
in heading 3926, HTSUSA, as an article of plastic, and paper
inserts classifiable as articles of paper in heading 4820,
HTSUSA, thus satisfying (a), above. In addition, they are put
up together to provide a complete and handy tool for tracking
and recording appointments, business contacts, daily events,
or personal memoranda, all activities legitimately with the
intent of (b). Lastly, they are put up in manner suitable for
sale directly to users. In fact, it is not uncommon for items
such as this to be sold in commercial settings in precisely
the same condition as the sample was presented to this office.
GRI 3(b) states that goods put up in sets for retail sale
be classified according to that component which establishes
the essential character of the set. In the case of
substantially similar merchandise, Customs has determined that
the essential character of such an item is the plastic cover
because of the indispensable and central role it plays in
relation to the overall use of the goods. The holder is much
more than a simple container; it functions to bring together
all the components in a single set so that they interrelate,
allowing the user to organize, record and track his or her
activities, the very activities which make the item a set (see
above). Lastly, it is the plastic cover which may be used
over the long term, while the paper items are used and
replaced, as when the notepad is empty or the new year
requires a replacement calendar. The cover, as a component of
the set, gives the set its essential character, and the set
must be classified under the provision for that component,
i.e., heading 3926, HTSUSA.
HOLDING:
The above described merchandise, known variously as a
"planner", agenda" or "organizer" is classified under
subheading 3926.10.0000, HTSUSA, as an article of plastic,
office or school supplies. The applicable rate of duty is 5.3
percent ad valorem.
Sincerely,
John A. Durant
Director
Commercial Rulings Division