Reconsideration of NY N296512; tariff classification of a cellphone case with a pocket for identification or credit cards

HQ H298485 September 10, 2018 OT:RR:CTF:CPMM H298485 KSG Sumit Agarwal Aegis Vision Limited Boundary House, Boston Road London UK W72QE RE: Reconsideration of NY N296512; tariff classification of a cellphone case with a pocket for identification or credit cards Dear Mr. Agarwal: This ruling is in reference to your request for reconsideration of New York Ruling Letter (NY) N296512, dated May 9, 2018, regarding the classification of molded plastic cellphone cases for iPhone X’s with a pocket for identification or credit cards on the outside under the Harmonized Tariff Schedule of the United States (HTSUS). In NY N296512, U.S. Customs & Border Protection (CBP) classified a molded plastic cellphone case with an outside pocket for identification or credit cards under subheading 4202.99, 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: Other: Other: Other. You claim the merchandise should be classified at subheading 3926.90, HTSUS, which provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other: Other.” We have reviewed NY N296512 and affirm it. In Headquarters Ruling Letter (HQ) H284146, dated June 20, 2017, CBP classified a cell phone case with a wallet inside that contained two interior card-slots for identification or credit cards in subheading 4202.39, HTSUS. The analysis in that ruling was as follows: In Otter Prods., LLC v. United States, 70 F. Supp. 3d 1281 (Ct. Intl Trade 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 (emphasis added). The CIT and CAFC observed that none of the eo nomine articles listed in heading 4202, HTSUS included cell phone cases. The CIT and CAFC noted that a semicolon divided heading 4202, HTSUS into two lists of exemplars. In order for the Commuter and Defender series to fall under the “similar containers” following the second list of exemplars after the semicolon, they had to be made of the listed materials, which was not the case. The courts determined that in order for the Commuter and Defender series cases to be “similar containers” to the exemplars listed before the semicolon, they had to possess the essential characteristics (organizing, storing, protecting and carrying) that united these exemplars. 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. Although the Commuter and Defender series cases protected the device, they did not organize, store, or carry. The Commuter and Defender Series cases did not serve any organizational purpose because they could only hold one electronic device and not multiple items (emphasis added). 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 (emphasis added). 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 the first half of heading 4202, HTSUS that hold items and do not permit use of the enclosed item, the protective phone cases were “specifically designed to hold and protect an electronic device while it remains 100% functional.” Id. at 1380…. It is our determination that the subject Pelican Vault series case for cell phone is a “similar container” to the last six exemplars (“spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters”) listed before the semicolon in heading 4202, HTSUS, because it is specially shaped or fitted to organize, store, protect and carry a cell phone and credit cards or IDs. Even if the primary purpose of the Pelican Vault series case for cell phone, as requestor suggests, is to protect the device, unlike the cases in Otter Prods., it also organizes, stores, and carries other items when they are not in use. The CAFC held that in the context of heading 4202, HTSUS, “organization implies multiple items placed together in a single container.” Otter Prods., 834 F.3d at 1379. The Pelican Vault series case for cell phone serves an organizational purpose because it can hold a cell phone and up to two credit cards or IDs in separate slots. It stores credit cards or IDs because they are not in use while in the Vault series case. The Pelican Vault series case satisfies the “carry” factor because the two interior slots for credit cards or IDs add a carrying capability to the electronic device, which it alone would not have (emphasis added). Thus, the primary purpose of the subject Pelican Vault series case is not inconsistent with that of the last six exemplars in the first half of heading 4202, HTSUS. Even though the cell phone device is 100% functional while it is in the Pelican Vault series case, the credit cards or IDs in the slot are not in use, and this is what distinguishes the Pelican Vault series case for cell phone from the cases in Otter Prods…. Lastly, we will determine the appropriate subheading for the Pelican Vault series case for cell phone. According to the subheading ENs to 42.02, subheading 4202.39, HSTUS 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.” This list is not exclusive. Articles of a kind normally carried in the pocket or handbag within the meaning of subheading 4202.39, HTSUS, are made to carry one specific article, may accommodate small accessories or parts, and are often form-fitted to the particular item to be carried. In HQ 965152, dated December 20, 2001, CBP classified a contact lens case of molded plastic that was not listed among the exemplars in the subheading ENs to 42.02 as a specially shaped or fitted container in the first part of heading 4202, HTSUS, specifically in subheading 4202.39.90, HTSUS. Similarly, the Vault series case for cell phone is fitted for both the cell phone and credit cards or IDs, and is carried in the pocket or handbag. Therefore, the instant plastic molded Vault series case for cell phone is classified in subheading 4202.39.90, HTSUS (emphasis added), as an article of a kind normally carried in the pocket or handbag of material other than leather, composition leather, sheeting of plastics, textile materials, vulcanized fiber or paperboard wholly or mainly covered with paper. Because we find that HQ H284146 is directly on point, we conclude that NY N296512 is correct and it is affirmed. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division