CLA-2 RR:CR:TE 961681 GGD
James L. Sawyer, Esquire
Katten Muchin & Zavis
525 West Monroe Street, Suite 1600
Chicago, Illinois 60661-3693
RE: Insulated Bottle Holder for Single Bottled Beverage; Heading
4202, HTSUS; SGI, Incorporated v. United States, 122 F.3d
1468 (Fed. Cir. 1997)
Dear Mr. Sawyer:
This letter is in response to your request of March 16,
1998, on behalf of your client, Gerber Products Company,
concerning the classification under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) of an article
designed to carry a single bottle of baby formula. The article
is manufactured in China. A sample was submitted with your
request.
FACTS:
The sample article, identified by item number 78200 and
described as an insulated bottle holder, measures approximately 6
inches in height and 8-1/2 inches in circumference. It is
designed to contain and transport a single reusable bottle of
baby formula and maintain its temperature for a short period of
time. The outer layer of the bag is composed of a man-made
textile fabric that has been coated, covered or laminated with a
non-cellular (compact) plastic identified as polyvinyl chloride
(PVC). The plastic surface of this outer layer faces outward.
The article's interior lining is composed of polyester fiber
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batting. A zippered opening, into which a bottle may be
inserted, extends the full height of the bag. There also are two
polypropylene straps, each with a hook and loop fabric fastener,
allowing the bottle holder to be attached to a stroller, car
seat, etc.
ISSUE:
Whether the bottle bag designed to carry a single baby
bottle is classified under heading 3924, HTSUS, as a container
with outer surface of plastics to which the principles of the
decision in SGI, Incorporated v. United States (SGI) apply; under
heading 6307, HTSUS, as an other made up (textile) article to
which the principles of the decision in SGI apply, or under
heading 4202, HTSUS, as a container used to organize, store,
protect and carry various items.
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.
The classification of certain portable, soft-sided,
insulated cooler bags with outer surface of plastics, was
examined by the Court of Appeals for the Federal Circuit
(CAFC) in SGI, Incorporated v. United States, 122 F.3d 1468 (Fed.
Cir. 1997). The CAFC focused on whether food or beverages were
involved with the eo nomine exemplars set forth in the tariff
provisions at issue and, without discussion of heading 4202
exemplars that organize, store, protect, and/or carry food or
beverages, the CAFC held that the appropriate classification for
the cooler bags was subheading 3924.10.50, HTSUS, the provision
for "Tableware, kitchenware, other household articles...of
plastics: Tableware and kitchenware: Other." The Court stated
that this classification "does encompass exemplars that are
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ejusdem generis with the coolers because their purpose is to
contain food and beverages." The exemplars (specifically
enumerated in subheading 3924.10.10) which the Court noted in
particular were the "various household containers for foodstuffs
such as salt, pepper, mustard, and ketchup dispensers and serving
pieces for food."
This office concluded that the CAFC's decision in SGI should
be implemented. Instructions were issued to Customs field
personnel on March 18, 1998, and September 10, 1998 (and approved
for dissemination to members of the importing community), by
which the principles of the CAFC's decision were expressly
extended to portable, hard or soft-sided, insulated coolers and
similar insulated containers (whose primary purpose is to store
and preserve food and/or beverages), with outer surface of
plastics, with outer surface of textile materials (classified in
subheading 6307.90.9905, 6307.90.9907, or 6307.90.9909, HTSUSA,
depending upon whether the outer surface is composed of cotton,
man-made fibers, or other textile materials, respectively), and
with an exterior layer composed of a textile fabric that is
coated, covered or laminated with compact plastics, with the
plastic surface facing outward (classified in subheading
6307.90.9989, HTSUSA).
The instructions issued in March 1998 also stated, however,
that the classification of bottle cases, insulated bottle bags,
and similar containers (if designed to contain only one bottle or
similar single unit of a beverage, regardless of the unit's
capacity) was unaffected by SGI. It was noted that a bottle case
is an exemplar container of heading 4202 and (unlike the articles
before the Court in SGI) is not designed to contain food or
multiple beverages.
The subject insulated bottle holder is not similar to the
soft-sided, insulated cooler bags at issue in SGI. The bottle
holder is designed to transport a single bottled beverage and is
thus similar to the exemplar bottle cases properly classified
under heading 4202, HTSUS. In light of the principles of the SGI
decision and the instructions noted above, the insulated bottle
holder is classified in subheading 4202.92.9060, HTSUSA.
HOLDING:
The insulated bottle holder identified by item no. 78200 is
classified in subheading 4202.92.9060, HTSUSA, the provision for
"Trunks...holsters... bottle cases...and similar containers...:
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Other: With outer surface of sheeting of plastic or of textile
materials: Other: Other, Other: Other." The general column one
duty rate is 19 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division