Reconsideration of NY N152978 Classification of a Document Carrying Case

HQ H185496 July 8, 2014 CLA-2 OT:RR:CTF:TCM H185496 EGJ CATEGORY: Classification TARIFF NO.: 4202.12.20 Ms. Terra Haas Expeditors Tradewin, LLC 906 Commerce Circle Hanahan, SC 29410 RE: Reconsideration of NY N152978: Classification of a Document Carrying Case Dear Ms. Haas: This is in reference to your letter dated July 19, 2011, which requests reconsideration of New York Ruling Letter (NY) N152978, dated March 28, 2011. U.S. Customs and Border Protection (CBP) issued NY N152978 to your client, Smead Manufacturing Co. (Smead), concerning the tariff classification of an accordion-style document carrying case. In that ruling, CBP classified the document case under heading 4202, of the Harmonized Tariff Schedule of the United States (HTSUS). FACTS: In NY N152978, CBP identified the subject merchandise as a document carrying case similar to an attaché case or a briefcase. Although the ruling states that it is style no. 70804, you wrote that the correct style no. for the merchandise is 70806. The document case is constructed of a paperboard base coated on the outer surface with plastic. In your reconsideration request, you noted that the outer paperboard layer is 2 mm thick and the plastic layer is 0.18 mm thick. The document case has 19 expandable pockets and printed tabs with subject headings and letters of the alphabet. The case has a molded plastic carrying handle at the top and a plastic twist-lock closure on the front exterior. It measures approximately 15” (W) x 10” (H) x 4.5” (D). In NY N152978, CBP classified the subject merchandise in subheading 4202.12.20, HTSUS, which provides, in pertinent part, for, “Trunks, suitcases, vanity cases, attaché cases, briefcases ….: Trunks, suitcases, vanity cases, attaché cases …: With outer surface of plastics …: With outer surface of plastics …” In your request for reconsideration, you note that the document case can hold over 1400 sheets of paper. Also, you note that it is marketed to store documents and not to transport documents. Finally, you state that the plastic exterior coating allows for easy dusting and cleaning of the document case’s exterior with a damp cloth. ISSUE: Is the document case classified under heading 4819, HTSUS, as a box file or similar article of paperboard, or under heading 4202, HTSUS, as a container similar to briefcases and attaché cases? LAW AND ANALYSIS: Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in their appropriate order. The relevant HTSUS provisions are: 4202 Trunks, suitcases, vanity cases, attaché 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 … * * * 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 … * * * Note 2(h) to Chapter 48 states that: 2. This chapter does not cover: (h) Articles of heading 4202 (for example, travel goods) … * * * According to GRI 1, we must first examine section notes, chapter notes and the text of the headings. Note 2(h) to Chapter 48 states that articles of heading 4202, HTSUS, are excluded from classification in Chapter 48. Thus, if the document case is classifiable under heading 4202, HTSUS, it cannot be classified in heading 4819, HTSUS. Heading 4202, HTSUS, sets forth two lists of containers which are classifiable under that heading. One list is before the semicolon and the other list is after the semicolon. Each list includes the phrase “and similar containers.” Heading 4202, HTSUS, does not specifically name document cases. Therefore, we must look to the meaning of the phrase “and similar containers.” The term “container” is not defined in the HTSUS. In Webster’s New World Dictionary of American English, 300 (3d. College Ed. 1988), a container is “a thing that contains or can contain something.” To contain means “to hold; 1. to have in it; hold, enclose, or include.” Id. In Merriam-Webster’s Collegiate Dictionary, 249 (10th ed. 2001), to contain means “to hold together, hold in, contain; 1. to keep within limits.” The document case holds or encloses documents and files. As such, the document case is a type of container. In addition to being a container, the document case must be “similar” to the other containers listed in heading 4202, HTSUS. The term “and similar containers” requires that we apply the rule of ejusdem generis to determine the scope of heading 4202, HTSUS. Under the rule of ejusdem generis, where an enumeration of specific things is followed by a general word or phrase, the general word or phrase is held to refer to things of the same kind as those specified. With respect to classification analysis, ejusdem generis requires that the imported merchandise possess the essential characteristics or purposes that unite the articles enumerated eo nomine in order to be classified under the general terms. See Sports Graphics, Inc. v. United States, 24 F.3d 1390, 1392 (Fed. Cir. 1994). In Totes, Inc. v. United States, (Totes I) 18 C.I.T. 919, 924 (1994), the Court of International Trade (CIT) held that the essential characteristics which unite the containers of heading 4202, HTSUS, are that the containers “organize, store, protect and carry various items.” Id. aff’d by Totes, Inc. v. United States, (Totes II) 69 F.3d 495 (Fed. Cir. 1995). In Firstrax v. United States, 45 Cust. B. & Dec. 46 (Ct. Int’l Trade 2011), the CIT elaborated upon the meaning of the terms “organize” and “store”. The CIT stated that “[i]n the context of heading 4202, organization implies multiple items placed together in a single container.” Id. at 68. The CIT stated that “to ‘store’ is to keep or set aside for future use.” Id. at 69 citing Webster’s Third New International Dictionary, Unabridged, p.2252 (1981). The courts have not yet addressed definitions of “protect” or “carry.” In Webster’s New World Dictionary, 215 (3d. College Ed. 1988), “carry” is defined as “to hold or support while moving.” The same dictionary defines “protect” as “to shield from injury, danger or loss.” Id. at 1081. We must apply the principle of ejusdem generis to determine if the document case has the same essential characteristics as the named containers of heading 4202, HTSUS. Namely, we must determine if the primary purpose of the document case is to organize, store, protect or carry. The document case has nineteen pocket files, which enable it to organize documents under nineteen different categories. As such, the document case is designed for organization. Next, the document case has a fold over lid and twist lock. As such, the documents inside of it can be set aside and out of sight for future use. Therefore, the document case is designed for storage. The document case is comprised of paperboard coated with plastic. As such, it does provide some protection against rain or other inclement weather. Additionally, the document case protects documents from every day wear and tear. Finally, the document case has a plastic carrying handle at the top. While you claim that the document case is not marketed to be carried, the carrying handle enables carrying even if over short distances. As such, the document case does organize, store, protect and carry filed documents. As the document case shares the same essential characteristics as the named containers of heading 4202, HTSUS, we find that the document case is classified under heading 4202, HTSUS. Note 2(h) to Chapter 48 states that articles of heading 4202, HTSUS, are excluded from classification in Chapter 48. As such, the document case cannot be classified under heading 4819, HTSUS. You argue that in NY N073247, CBP classified a substantially similar file organizer with a carrying handle in heading 4819, HTSUS. However, in Headquarters Ruling Letter (HQ) H235455, dated May 12, 2014, CBP revoked NY N073247. HQ H235455 was published in the Customs Bulletin, Volume 48, No. 26, dated July 2, 2014. As such, all substantially similar file organizers and document cases are classified under heading 4202, HTSUS. See also Headquarters Ruling Letter (HQ) 968068, dated July 25, 2006, NY N173315, dated July 2, 2011, NY N107285, dated June 23, 2010 and NY N032393, dated July 29, 2009. Further, you argue that the Explanatory Notes lend support to classification of the document case under heading 4819, HTSUS. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System at the international level and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN 48.19(B) provides as follows: (B)  Box files, letter trays and similar articles of a kind used in offices, shops or the like.   This group covers containers, such as filing cabinets, box files, letter trays, storage boxes and similar articles of a rigid and durable type, and generally of better finish than the packing containers of group (A) above. They are used for the filing or storage of documents or stock of various kinds in offices, shops, warehouses, etc.   These articles may have reinforcements or accessories of nonpaper materials (e.g., hinges, handles, locking devices of metal, wood, plastics or textile material). They may also be provided with frames of metal, plastics, etc., for the insertion of indication cards. You assert that the ENs describe the subject merchandise. As such, the document case should be classified in heading 4819, HTSUS, as a box file. However, Note 2(h) to Chapter 48 is a statutory provision which states that articles of heading 4202, HTSUS, are excluded from classification in Chapter 48. As such, the document carrying case is classifiable under heading 4202, HTSUS, and it cannot be classified under heading 4819, HTSUS. HOLDING: By application of GRI 1 (Note 2(h) to Chapter 48), the document carrying case is classified in heading 4202, HTSUS. It is specifically classified under subheading 4202.12.20, HTSUS, which provides, in pertinent part, for “Trunks, suitcases, vanity cases, attaché cases, briefcases ….: Trunks, suitcases, vanity cases, attaché cases …: With outer surface of plastics …: With outer surface of plastics …” The 2014 column one, general rate of duty is twenty 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.usits.gov/tata/hts/. EFFECT ON OTHER RULINGS: NY N152978, dated March 28, 2011, is hereby affirmed. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division