OT:RR:CTF:CPM H285905 APP
Ms. Laurie Lewis, Classification Specialist
Kate Spade & Company
5901 West Side Avenue, 8th Floor
North Bergen, NJ 07047
RE: Request for a ruling; Classification of a wrap cell phone case with exterior cover of leather coated with polyurethane sheeting
Dear Ms. Lewis:
This is in response to your request for a binding ruling dated March 22, 2017, filed on behalf of Kate Spade & Company (“requestor”), concerning the classification of a wrap cell phone case under the Harmonized Tariff Schedule of the United States (“HTSUS”). Per your request, the provided sample will be returned to your attention.
FACTS:
Requestor describes the instant cell phone case as follows:
Cell Phone Case – 100% Polycarbonate phone case with exterior cover of leather coated with polyurethane sheeting … The country of production will be China.
The interior features mirror and card slot, and fits a cell phone. The case has a magnetic flap closure.
Below are images of the sample that requestor provided:
ISSUE:
Whether the instant wrap cell phone case is classifiable as a container of heading 4202, HTSUS or as an article of plastics under heading 3926, HTSUS.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (“GRIs”). 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 may then be applied.
GRI 6 states, in pertinent part, that:
[T]he classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purpose of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.
The HTSUS provisions at issue are as follows:
3926 Other articles of plastics and articles of other materials of headings 3901 to 3914:
3926.90 Other:
3926.90.99 Other:
4202 Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper:
Articles of a kind normally carried in the pocket or in the handbag:
4202.32 With outer surface of sheeting of plastics or of textile materials:
With outer surface of sheeting of plastics:
4202.32.10 Of reinforced or laminated plastics.
Note 1 to Chapter 39, HTSUS states:
Throughout the tariff schedule the expression “plastics” means those materials of headings 3901 to 3914 which are or have been capable, either at the moment of polymerization or at some subsequent stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticizer) by molding, casting, extruding, rolling or other process into shapes which are retained on the removal of the external influence.
Throughout the tariff schedule, any reference to “plastics” also includes vulcanized fiber. The expression, however, does not apply to materials regarded as textile materials of section XI.
Note 2(m) to Chapter 39, HTSUS states that this chapter does not cover “Saddlery or harness (heading 4201) or trunks, suitcases, handbags or other containers of heading 4202.”
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is U.S. Customs and Border Protection’s (“CBP”) practice to consult, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89–80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
EN 39.26 states, in relevant part, 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: … (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).
EN 42.02 states, in relevant part, that:
This heading covers only the articles specifically named therein and similar containers.
These containers may be rigid or with a rigid foundation, or soft and without foundation.
Subject to Notes 2 and 3 to this Chapter, the articles covered by the first part of the heading may be of any material. The expression “similar containers” in the first part includes hat boxes, camera accessory cases, cartridge pouches, sheaths for hunting or camping knives, portable tool boxes or cases, specially shaped or internally fitted to contain particular tools with or without their accessories, etc.
The articles covered by the second part of the heading must, however, be only of the materials specified therein or must be wholly or mainly covered with such materials or with paper (the foundation may be of wood, metal, etc.). The term “leather” includes chamois (including combination chamois) leather, patent leather, patent laminated leather and metallised leather (see Note 1 to this Chapter). The expression “similar containers” in this second part includes note cases, writing cases, pen cases, ticket cases, needle cases, key cases, cigar cases, pipe cases, tool and jewellery rolls, shoe cases, brush cases, etc….
The heading does not cover: … (c) Articles which, although they may have the character of containers, are not similar to those enumerated in the heading, for example, book covers and reading jackets, file covers, document jackets, blotting pads, photo frames, sweetmeat boxes, tobacco jars, ashtrays, flasks made of ceramics, glass, etc., and which are wholly or mainly covered with leather, sheeting of plastics, etc. Such articles fall in heading 42.05 if made of (or covered with) leather or composition leather, and in other Chapters if made of (or covered with) other materials … (f) Tool boxes or cases, not specially shaped or internally fitted to contain particular tools with or without their accessories (generally, heading 39.26 or 73.26) ….
Subheading Explanatory Notes … Subheadings 4202.31, 4202.32 and 4202.39
These subheadings cover articles of a kind normally carried in the pocket or in the handbag and include spectacle cases, note cases (bill folds), wallets, purses, key cases, cigarette cases, cigar cases, pipe cases and tobacco pouches.
In Otter Prods., LLC v. United States, 70 F. Supp. 3d 1281 (CIT 2015), aff’d, 834 F.3d 1369 (Fed. Cir. 2016), the Court of International Trade (“CIT”) and the Court of Appeals for the Federal Circuit (“CAFC”) classified two styles of durable and protective cases designed for certain types of cell phones in subheading 3926.90.99, HTSUS. The Commuter series were plastic cases with a smooth exterior that did not cover or enclose the screen of the device. The Defender series were plastic cases with a clear protective plastic membrane, a high-impact polycarbonate shell, a plastic belt clip holster, and a durable outer silicon cover that did not cover or enclose the screen of the device. The Commuter and Defender series cases did not have a protective door or slots for credit cards/IDs.
The CIT and CAFC held that the Commuter and Defender series cases were not “similar containers” within the meaning of heading 4202, HTSUS, because they did not organize, store, or carry the device. The CAFC clarified that there was no requirement that the merchandise meet all four characteristics to qualify as a “similar container” under heading 4202, HTSUS. However, if an item met only one of the four characteristics, it would not qualify. The Commuter and Defender Series cases did not serve any organizational purpose because they could only hold one electronic device and not multiple items. The cases did not store because the devices remained fully functional and to store “implies setting something aside” for future use. Otter Prods., 834 F.3d at 1379-80. The cases did not carry anything for purposes of being classified in heading 4202, HTSUS. The belt clips of the Defender Series cases were removable or only used for brief periods when the user was in motion. Unlike the listed exemplars in heading 4202, HTSUS that do not permit use of the enclosed item, the protective phone cases in Otter Prods. were “specifically designed to hold and protect an electronic device while it remains 100% functional.” Id. at 1380.
The instant wrap cell phone case with exterior cover of leather coated with polyurethane sheeting possesses the four unifying characteristics of containers in heading 4202, HTSUS, because it organizes, stores, protects, and carries credit cards/IDs/dollar bills and a mirror. It serves an organizational purpose because it holds a mirror and has a separate slot for credit cards, IDs or dollar bills. See id. at 1379 (holding that in the context of heading 4202, HTSUS, “organization implies multiple items placed together in a single container.”). The case stores a mirror and credit cards, IDs, or dollar bills. It satisfies the “carry” factor because the interior slot for credit cards/IDs/dollar bills and the mirror add a carrying capability to the electronic device, which it alone would not have. Accordingly, the instant wrap case is classifiable under heading 4202, HTSUS and is excluded from Chapter 39, HTSUS by virtue of Note 2(m) to Chapter 39.
Lastly, we will determine the appropriate subheading for the instant cell phone case. The wrap cell phone case is not an eo nomine exemplar of heading 4202, HTSUS. Subheading 4202.32 covers articles of a kind normally carried in the pocket or handbag such as “spectacle cases, note-cases (bill-folds), wallets, purses, and key-cases, cigarette-cases, cigar-cases, pipe-cases and tobacco-pouches.” ENs to 42.02. This list is not exclusive. In HQ 963429, dated April 11, 2001, CBP classified a lipstick case with an exterior surface of textile reinforced polyvinyl chloride designed specifically to hold three tubes of lipstick in subheading 4202.32.10, HTSUS, as similar to a wallet or spectacle case carried in a pocket or handbag whose function is to organize, store, or protect personal items. Similarly, the subject wrap cell phone case of leather reinforced with a sheeting of plastics is fitted for the cell phone device and holds a mirror as well as credit cards/IDs/dollar bills. It is carried in the pocket or handbag. Therefore, it is classified in subheading 4202.32.10, HTSUS, as an article of a kind normally carried in the pocket or in the handbag with an outer surface of sheeting of reinforced plastics.
HOLDING:
By application of GRIs 1 and 6, the instant wrap cell phone case with exterior cover of leather coated with polyurethane sheeting is classified under heading 4202, HTSUS, specifically under subheading 4202.32.10, HTSUS, which provides for “Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper: Articles of a kind normally carried in the pocket or in the handbag: With outer surface of sheeting of plastics or of textile materials: With outer surface of sheeting of plastics: Of reinforced or laminated plastics.” The 2017 column one, general rate of duty is 12.1¢/kg + 4.6%.
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 at https://hts.usitc.gov/current.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division