Revocation of NYRL 837714; classification of pendant and bracelet boxes from Thailand.

HQ 953929 April 30, 1993 CLA-2 CO:R:C:T 953929 ch CATEGORY: CLASSIFICATION TARIFF NO.: 4202.92.9020; 4202.92.1000 Marty Langtry Castelazo & Associates 5420 West 104th Street Los Angeles, California 90045 RE: Revocation of NYRL 837714; classification of pendant and bracelet boxes from Thailand. Dear Mr. Langtry: New York Ruling Letter (NYRL) 837714, dated March 1, 1989, concerned the classification of a pendant box and a bracelet box under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). We have had occasion to review this ruling and find that the classification of said merchandise under heading 3923, HTSUSA, is in error. FACTS: The pendant box has a shell of plastic and an outer surface of a woven man-made velveteen. The inner inserts are composed of cardboard covered with a textile material. The bracelet box has a shell of plastic and an outer surface of non-coated paper. Inside, there is a cardboard insert covered with a textile material, with a foamed plastic between the cardboard and the textile material. In NYRL 837714, both the pendant and bracelet boxes were classified under subheading 3923.10.0000, which provides for articles for the conveyance or packing of goods, of plastics, boxes and similar articles. ISSUE: Whether the pendant and bracelet boxes are classified under heading 3923, HTSUSA, which provides for articles for the conveyance or packing of goods, of plastics, or heading 4202, HTSUSA, which provides for, inter alia, jewelry boxes and similar containers? LAW AND ANALYSIS: Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined first in accordance with the terms of the headings of the tariff and any relative section or chapter notes. Where goods cannot be classified on the basis of GRI 1, the remaining GRI will be applied in order. Heading 4202, HTSUSA, provides for: Trunks, Suit-Cases, Vanity-Cases, Executive-Cases, Briefcases, School Satchels, Spectacle Cases, Binocular Cases, Camera Cases, Musical Instrument Cases, Gun Cases, Holsters and Similar Containers; Travelling- Bags, Toilet Bags, Rucksacks, Handbags, Shopping-Bags, Wallets, Purses, Map-Cases, Cigarette-Cases, Tobacco- Pouches, Tool Bags, Sports Bags, Bottle-Cases, Jewellery Boxes, Powder-Boxes, Cutlery Cases and Similar Containers, of Leather or of Composition Leather, of Sheeting of Plastics, of Textile Materials, of Vulcanised Fibre or of Paperboard, or Wholly or Mainly Covered with Such Materials or With Paper. (Emphasis added). Thus, if the pendant and bracelet boxes are "jewellery boxes" as contemplated by the tariff schedule, they are classifiable under heading 4202. Moreover, pursuant to Chapter 39, note 2(h), articles classifiable under heading 4202 cannot be classified in Chapter 39. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System constitute the official interpretation of the nomenclature at the international level. While not legally binding, they do represent the considered views of classification experts of the Harmonized System Committee. It has therefore been the practice of the Customs Service to follow, whenever possible, the terms of the EN when interpreting the HTSUSA. In April, 1988, the United States formally raised the issue of the scope of the term "jewellery boxes" with the Harmonized System Committee (HSC). Ultimately, the HSC amended the EN to heading 4202 so as to clarify the meaning of this term. This amendment became effective on January 1, 1990, and reads as follows: The term "jewellery boxes" covers not only boxes specially designed for keeping jewellery, but also similar lidded containers of various dimensions (with or without hinges or fasteners) specially shaped or fitted to contain one or more pieces of jewellery and normally lined with textile material, of the type in which articles of jewellery are presented and sold and which are suitable for long-term use. This language makes it clear that boxes used in the presentation and sale of jewelry and suitable for long-term use are included in the term "jewellery boxes." We are of the opinion that the instant pendant and bracelet boxes are used for the presentation and sale of jewelry. In addition, they are suitable for long term use, as they may be used after sale to store and protect their contents. Accordingly, the pendant and bracelet boxes are "jewellery boxes" and are classifiable under heading 4202. Pursuant to Chapter 39, note 2(h), they cannot be classified as articles of plastic under heading 3923. HOLDING: The pendant box is classifiable under subheading 4202.92.9020, HTSUSA, which provides for jewelry boxes: other: with outer surface of plastic sheeting or of textile materials: other: other, with outer surface of textile materials: other: of man-made fibers. The applicable rate of duty is 20 percent ad valorem. The textile quota category is 670. The bracelet box is classifiable under subheading 4202.99.1000, HTSUSA, which provides for jewelry boxes: other: of materials (other than leather, composition leather, sheeting of plastics, textile materials, vulcanized fiber or paperboard) wholly or mainly covered with paper: of plastics. The applicable rate of duty is 3.4 percent ad valorem. This notice to you should be considered a revocation of NYRL 837714 under 19 CFR 177.9(d)(1). We recognize that pending transactions may be adversely affected by this modification, in that current contracts for importations arriving at a port subsequent to this decision will be classified pursuant to it. If such a situation arises, your client may, at its discretion, notify this office and apply for relief from the binding effects of this decision as may be warranted by the circumstances. However, please be advised that in some instances involving import restraints, such relief may require separate approvals from other government agencies. Sincerely, John Durant, Director