HQ H259325
CLA-2 OT:RR:CTF:TCM H259325 TSM
Mr. David R. Stepp, Esq.
Bryan Cave, LLP
120 Broadway, Suite 300
Santa Monica, CA 90401-2386
RE: The tariff classification of certain storage boxes
Dear Mr. Stepp,
This is in response to your request, on behalf of Emerson Storage Solutions – Closetmaid, dated October 20, 2014, for a tariff classification ruling regarding certain imported storage boxes. You argue that the subject storage boxes should be classified in heading 4819, of the Harmonized Tariff Schedule of the United States (HTSUS), which provides, in pertinent part, for “Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers.”
FACTS:
The subject merchandise consists of five-sided lidless folding storage boxes, comprised of 1.7 mm thick paperboard panels covered with polypropylene fabric and stitching. Specifically, the boxes are constructed of several paperboard rectangles that are inserted into sleeves of non-woven polypropulene textile, with each rectangle fitting into its own stitched compartment which gives the units “joints” and allows them to fold flat. There are separate, additional paperboard rectangles sewn into unattached textile sleeves, which fit into and form the bottoms of the subject storage boxes. The edges of the storage boxes are bound with non-woven textile and each contain a handle, made from the same stitched textile, on the side. The storage boxes are identified as the “CLOSETMAID CUBEICALS® Fabric Drawers.”
You indicate that the storage boxes are stand-alone units, but are also designed to fit into the “Cubeicals Storage Organizer,” a shelving unit of cube-shaped shelves. A sample of the subject merchandise, received and examined by this office, is packaged flat and measures approximately 10.5” (L) x 10.5” (W) x 11” (H) when assembled. The sample, images of which are displayed below, is being returned to you.
ISSUE:
What is the proper tariff classification of the storage boxes under consideration?
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. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The HTSUS provisions under consideration are as follows:
6307 Other made up articles, including dress patterns:
6307.90 Other:
Other:
6307.90.98 Other.
* * *
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:
4819.20.00 Folding cartons, boxes and cases, of non-corrugated paper or paperboard.
* * *
4823 Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers:
4823.20 Filter paper and paperboard:
4823.20.90 Other.
* * *
Note 1(m) to Section XI, which includes Chapters 50-63, provides that:
This section does not cover:
(m) Products or articles of chapter 48 (for example, cellulose wadding) …
* * *
Note 7 to Section XI, which includes Chapters 50-63, provides that:
For the purposes of this section, the expression "made up" means:
(a) Cut otherwise than into squares or rectangles;
(b) Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, tablecloths, scarf squares, blankets);
(c) Hemmed or with rolled edges, or with a knotted fringe at any of the edges, but excluding fabrics the cut edges of which have been prevented from unraveling by whipping or by other simple means;
(d) Cut to size and having undergone a process of drawn thread work;
(e) Assembled by sewing, gumming or otherwise (other than piece goods consisting of two or more lengths of identical material joined end to end and piece goods composed of two or more textiles assembled in layers, whether or not padded); or
(f) Knitted or crocheted to shape, whether presented as separate items or in the form of a number of items in the length.
* * *
The term "essential character" is not defined within the HTSUS, GRIs or ENs. EN VIII to GRI 3(b), gives guidance, stating 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 a constituent material in relation to the use of the goods.
* * *
In your ruling request, you argue that the storage boxes at issue are classified in heading 4819, HTSUS, which covers cartons and boxes of paper or paperboard. In support of this argument you assert that the boxes at issue are best described as “boxes of paperboard” and are therefore precluded from classification in any heading other than 4819, HTSUS. You further explain that Note 1(m) to section XI precludes paperboard boxes from classification in heading 6307, HTSUS, which provides for “Other made up articles, including dress patterns.” Moreover, you argue that NY 053058, dated March 6, 2009, which classified substantially similar merchandise in heading 6307, HTSUS, is incorrect.
Upon review we find that the subject boxes are not classified in heading 4819, HTSUS, since, contrary to your argument, they are not “most properly described as ‘boxes of paperboard.’ ” The boxes are constructed of multiple rectangles of paperboard that are held together by textile. If the textile were removed, the rectangles would not form a box on their own since the paperboard merely provides a rigid form to the textile. While Note 1(m) to Section XI, referenced above, excludes products or articles of Chapter 48, we find that the storage boxes at issue in this case are not articles of Chapter 48. Therefore, contrary to your argument, classification of the subject storage boxes in heading 6307, HTSUS, is not precluded.
As discussed above, the subject storage boxes are composed of rectangles of paperboard held together by textile. In this regard, GRI 2(b) states, in pertinent part, that the classification of goods consisting of more than one material or substance shall be according to the principles of GRI 3.
GRI 3 states that, when goods are prima facie classifiable under two or more headings, classification shall be effected as follows:
(a) ...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.
Inasmuch as the instant merchandise qualifies as a composite good with separable components, it must be classified accordingly. If imported alone, the rectangles of paperboard would be classified in heading 4823, HTSUS, which provides for paperboard, cut to size or shape. The textile portion of the article, sewn in a shape resembling a bag (when not reinforced by the paperboard rectangles), if imported separately would be classified in heading 6307, HTSUS, which provides for other made up articles of textile.
As the instant boxes are composite goods, we must apply GRI 3(b). Under GRI 3(b), the merchandise must be classified as if it consisted of the component which gives the merchandise its essential character. As referenced above, the ENs to the HTSUS, at GRI 3(b) (VIII), provide, in pertinent part, the following: “The 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 a constituent material in relation to the use of the good.”
In the instant case, the role of the textile component in relation to the use of the storage boxes is the most significant factor. Without the textile component, the paperboard rectangles would not form a box on their own since the paperboard merely provides a rigid form to the textile. Accordingly, we find that the paperboard rectangles would serve no purpose if used alone. However, the textile portion of the subject boxes is their essential part, since it is sewn in a shape resembling a bag capable of functioning independently.
In accordance with GRI 3(b), we find that the textile component of the subject storage boxes imparts their essential character. Accordingly, the storage boxes are classified in subheading 6307.90.98, HTSUS. We also find NY 053058 to be correct.
HOLDING:
By application of GRI 3(b), we find that the subject merchandise is classified in subheading 6307.90.98, HTSUS, as “Other made up articles, including dress patterns: Other: Other: Other.” The 2015 column one, general rate of duty is seven percent ad valorem.
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 the internet at 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,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch