CBP Ruling H100800

HQ H100800 December 23, 2011 CLA-2 OT:RR:CTF:TCM HQ H100800 DSR CATEGORY: Classification TARIFF NO.: 3924.10.40 Mrs. Julie C. Vair Air and Ocean Services James J. Boyle and Co. 720 3rd Avenue, #2020 Seattle, WA98104 RE: Modification of HQ 952264, dated November 25, 1992; Subheading 3924.10.40, HTSUS; Classification of a plastic sports beverage bottle. Dear Mrs. Vair: This is in regard to Headquarters Ruling Letter (HQ) 952264, issued to you on November 25, 1992, regarding the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of a completely assembled plastic sports beverage bottle and various components for such bottle. We have reviewed HQ 952264 and find it to be in error with respect to the completely assembled plastic sports bottle.Therefore, HQ 952264 is modified for the reasons set forth in this ruling. Notice of the proposed action was published in the CustomsBulletin, Vol. 45, No. 45, on November 2, 2011. No comments were received in response to the notice. FACTS: The article under consideration is a plastic sports beverage bottle for holding liquids, and various components for such bottle. The bottle consists of six separate pieces: the plastic bottle base, a 3-inch diameter plastic lid which screws onto the bottle, a cartridge which will contain the blue ice pack, a plastic lid which fits onto the cartridge, an 11-inch plastic drinking straw and a plastic stopper for the straw which prevents the liquids in the bottle from leaking out through the straw. The plastic stopper is two inches long. It has an open circular appendage on one end so that it can fit onto the straw to prevent the stopper from becoming lost. Its other end is a closed circular appendage with a tip that fits into the open end of the straw which permits the stopper to perform its function. The bottle or its components will be imported in one of three scenarios. Under scenario one all the components would be manufactured in Thailand and would be imported as a complete sports bottle. Under scenario two the bottle base would be manufactured in the United States, but all of the remaining components would be manufactured in Thailand. Under scenario three all the components would be manufactured in the United States except for the blue ice pack, which would be manufactured in Thailand. Non-U.S. components will be assembled with U.S. components subsequent to importation, as necessary, by screwing the components together to form a complete sports bottle. In HQ 952264, CBP determined that the bottle was classifiable under subheading 3924.90.50, HTSUS (1991), which provides for other household articles of plastics, other. ISSUE: Whether the plastic sports beverage bottle is classifiable under subheading 3924.10, HTSUS, as tableware of plastics, or under subheading 3924.90, HTSUS, other household articles of plastics. LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order. 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 2011 HTSUS provisions under consideration in this case are as follows: 3924 Tableware, kitchenware, other household articles and hygienic and toilet articles, plastics: * * * 3924.10 Tableware and kitchenware: * * * 3924.90 Other: * * * * Heading 3924, HTSUS, is organized in relevant part as a list of items or exemplars - tableware and kitchenware - followed by a general phrase, "other household articles." The common characteristic or unifying purpose of the exemplars is to store or contain food and beverages. See Dolly, Inc. v. United States, 27 C.I.T. 1597, 293 F.Supp. 2d 1340 (2003)(quotingSGI, Inc. v. United States, 122 F.3d 1468, 1473 (Fed.Cir. 1997) ("The exemplars listed in Heading 3924 encompass various household containers for foodstuffs."). Additionally, although the subject bottle is capable of being transported from point to point with liquids therein, the specific primary purpose of the bottle is to store or contain beverages. The bottle is thus ejusdem generis with the exemplars listed in heading 3924, HTSUS, and classifiable under that heading. As pertains to the specific subheading under which the bottle is classifiable, EN 39.24 lists exemplars of "other household articles" that fall within subheading 3924.90, HTSUS. Those exemplars are ash trays, hot water bottles, matchbox holders, dustbins, buckets, watering cans, food storage containers, curtains, drapes, table covers and fitted furniture dust-covers. It is important to note that the only listed exemplar with any connection to foodstuffs - food storage containers - is used for storage, and is not used to dispense food or beverages. By contrast, many of the exemplars of "tableware" in EN 39.24, and classifiable under subheading 3924.10, HTSUS, are items from which the consumer can directly consume beverages or food, a primary characteristic shared with the bottle that is the subject of this ruling. It should also be noted that the expression "tableware" does not solely refer to items used in the home. Subheading 3924.10, HTSUS, provides for all tableware, regardless of whether it will be used inside or outside of the household, and CBP has consistently interpreted subheading 3924.10, HTSUS, to cover such goods. See N019128, dated November 28, 2007 (plastic bottle with pop-up drinking spout); N031727, dated July 23, 2008 (plastic water bottle with spout and carrying handle); N035015, dated September 5, 2008 (plastic bottle with spout and loop handle); N047581, dated July 20, 2009 (plastic bottle with twist spout); N048029 (plastic bottle with straw, carrying handle, mouthpiece and straw). Here, the primary purpose of the subject bottle is to dispense beverages that its user can directly consume, whether in a home or elsewhere. It is not used for storage. Accordingly, we find that the subject plastic sports beverage bottle constitutes "tableware" and is properly classifiable under subheading 3924.10.40, HTSUS, as tableware of plastics, other. HOLDING: By application of GRI 1, the subject complete plastic sports beverage bottle is classifiable under heading 3924, HTSUS. Specifically, it is classifiable under subheading 3924.10.40, HTSUS, which provides for "Tableware, kitchenware, other household articles and hygienic and toilet articles, plastics: Tableware and kitchenware: Other." The column one, general rate of duty is 3.4% ad valorem. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided atwww.usitc.gov/tata/hts. EFFECT ON OTHER RULINGS: HQ 952264, dated September 25, 1992, is hereby modified. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after publication in the CustomsBulletin. Sincerely, Myles B. Harmon,Director Commercial and Trade Facilitation Division 4