United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 2001 HQ Rulings > HQ 964505 - HQ 964603 > HQ 964540

Previous Ruling Next Ruling
HQ 964540

---

July 27, 2001

CLA-2 RR:CR:TE 964540 jsj

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.92.3020

Mr. Dwight C. Morrison
Import Manager
Jack R. Huls & Co.
61-12th Street
P.O. Box 1599
Blaine, Washington 98231

RE: Picnic Backpack; Subheading 4202.92.3020; General Rules of Interpretation 1 and 3; Sets; “More Than” Doctrine; JVC Company of America v. United States.

Dear Mr. Morrison:

The purpose of this correspondence is to respond to your request dated August 21, 2000, and received by the National Commodity Specialist Division of the Customs Service on September 14, 2000. The correspondence in issue requested, on the behalf of your client, Quadrant Sales & Imports, Inc., a binding classification ruling of the merchandise described as a “picnic in a pack” or “picnic set.”

This ruling is being issued subsequent to the following: (1) A review of your submission dated August 21, 2000; (2) An examination of the sample, style number not provided, submitted with your ruling request; and (3) A review of the Quadrant catalogue through which the article is marketed.

Customs notes that the correspondence dated August 21, 2000, identifies the article in issue as being exhibited on page 8 of the catalogue. Customs review of the catalogue and the sample establishes that the item is exhibited on page 7.

A label on the inside of the rear compartment of the pack reads “MADE IN CHINA.” This office was not requested to address the proper marking of the merchandise and no ruling regarding marking is being provided.

The Customs Service will retain the sample submitted with your ruling request.

FACTS

The article in issue, identified in your correspondence as a “picnic in a pack” and in Quadrant’s catalogue as a “picnic set,” measures approximately sixteen (16) inches in height and eleven and one-half (11 ½) inches in width. It has two primary compartments, a pocket in the front and two individual, detachable bottle cases or holders, one on each side of the backpack.

The Customs Service is advised that the backpack is composed entirely of nylon. It is the conclusion of Customs, without the benefit of a formal laboratory examination, that the material is a man-made textile fiber coated or covered with polyvinyl chloride that does not obscure the textile fabric. A visual examination indicates that a plastic covering protects certain interior and exterior seams.

Customs examination of the backpack reveals that the front, back, top, sides, bottom and interior middle divider of the pack are insulated with a three-eighths (3/8) of an inch thick spongy foam insulating material. No information has been provided to the Customs Service regarding the insulative value of any material nor has a Customs Service laboratory analysis been undertaken. It is specifically noted that Customs was provided no information suggesting that the insulative properties of the “cooler backpack” were similar to those of both hard and soft-sided insulated coolers.

The two primary compartments are a front compartment and a rear compartment. The front and rear compartments measure the same height and width as the body of the backpack. The front compartment is approximately three and one-half (3 ½) inches deep. The rear compartment is approximately four (4) inches deep. The front compartment has a full zipper closure that extends from the bottom of one side of the pack over the top to the bottom of the opposite side. The closure has two zipper pulls. When fully opened outward, the top or flap aspect of the compartment lays flat on a ninety degree angle to the pack.

The interior aspect of the front compartment of the pack that opens outward has two pockets and twelve fittings for silverware. One pocket is located at the top of the flap. It is five and one-half (5 ½) inches deep and spans the width of the pack. A second pocket, composed of nylon mesh, is located at the bottom of the front flap. It is five (5) inches deep and it too spans the width of the pack. The bottom pocket has a hook and loop fastener system attached to a ten and one-half (10 ½) inch length of elastic. The hook aspect of the system is attached to the top end of the length of elastic. The loop aspect of the system is attached to the top of a five (5) inch piece of elastic that is affixed to the top part of the mesh pocket. The silverware fittings consist of twelve individual, side-by-side, one and one-half (1 ½) inch deep pockets with twelve elastic bands approximately three-fourths (3/4) of an inch above the top of each of the pockets. The twelve pockets and elastic bands are designed to hold individual pieces of silverware.

The inside aspect of the front compartment has four pockets or pouches in two rows of two and a single elastic band. The pouches are designed to hold four eight-ounce mugs that measure approximately three and three-eighths (3 3/8) inches deep and three and three-eighths (3 3/8) inches in diameter. The pouches are sewn into the pack with one row at the bottom of the middle panel divider and the second row immediately above the first. The pouches have elastic bands at the top. The single elastic band is sewn in the center of the middle of the pack one and one-half (1 ½) inches from the top. It is designed to hold a knife, corkscrew and bottle-opener combination.

The rear compartment has no interior pockets. It has a zipper closure that begins approximately nine (9) inches from the bottom of the pack on both sides and crosses over the top. The closure has two pulls.

The pocket on the outside aspect of the front compartment measures eight (8) inches in height by eight and one-half (8 ½) inches in width. It is approximately one (1) inch deep. The pocket has a six (6) inch zipper closure one inch from the top. The interior is partially coated, covered or laminated with plastic.

The two detachable bottle cases are attached to the sides of the pack extending eleven and three-fourths (11 ¾) inches upward from the bottom. They are four and one-half (4 ½) inches in diameter and have an elastic closure at the top. The bottle holders attach to the pack by means of adjustable nylon webbing and a plastic clip at the top of the bottle holder and a hook and loop fastener at the bottom of the holder. The holders are lined with a one-fourth (1/4) of an inch thick spongy foam insulating material. They are constructed of the same material as the backpack.

The pack has a handle sewn on to the top of the pack. The handle is made of one and one-fourth (1 ¼) inch wide nylon webbing. The same man-made material of which the pack is composed covers the webbing. The nylon webbing that attaches the handle to the pack is sewn to and extends nine (9) inches down both sides of the pack.

The pack also has two adjustable shoulder straps. The straps are contoured for the comfort of the wearer and are two and one-half (2 ½) inches wide. They are padded with one-eighth (1/8) of an inch thick dense foam. Plastic clips permanently attached to the bottom aspect of the shoulder pads permit the user to adjust the nylon webbing shoulder strap length. The entire shoulder straps, at maximum extension, measure approximately thirty-five (35) inches in length.

The lower aspect of the adjustable nylon webbing shoulder straps are one (1) inch wide and are attached to the lower part of each side of the pack. Two triangular-shaped pieces of material, one on each side of the backpack, are employed to attach the nylon webbing to the body of the backpack. The triangular-shaped pieces of material extend one and one-half (1 1/2) inches from the side of the pack to the tip of the triangle.

The Customs Service is advised that the “picnic in a pack” will be imported with and the sample included the backpack, two individual, detachable bottle cases, four plastic plates, four sets of stainless steel and plastic flatware, each set consisting of a knife, fork and spoon, four plastic mugs, a plastic cutting board, a metal and plastic knife, corkscrew and bottle-opener combination, a cotton tablecloth and four cotton napkins. The plates are nine (9) inches in diameter and fit into the mesh pocket that is located in the lower part of the front panel of the front compartment. The plastic mugs are, as previously described, approximately three and three-eighths (3 3/8) inches deep and three and three-eighths (3 3/8) inches in diameter. The flatware consists of four stainless steel and plastic knives, forks and spoons. The forks are eight (8) inches long, the spoons are seven and three-fourths (7 ¾) inches long and the knives are eight and three-fourth (8 ¾) inches long. The cutting board is nine and one-half (9 ½) inches long by five and one-half (5 ½) inches wide. The knife, corkscrew and bottle-opener combination is five and one-fourth (5 ¼) inches long when collapsed.

The “picnic in a pack” will also be imported with a tablecloth and four napkins. The tablecloth and napkins are woven, of cotton, and measure thirty-three (33) inches square and twelve (12) inches square, respectively.

The country of origin of the merchandise is stated to be the People’s Republic of China, however, the customs broker indicates that the tablecloth and napkins may require “third country textile declarations.”

ISSUES

What is the classification, pursuant to the Harmonized Tariff Schedule of the United States Annotated, of the “picnic in a pack” or “picnic set” which includes the backpack, the two individual, detachable bottle cases, four plastic plates, four stainless steel and plastic knives, forks and spoons, four plastic mugs, plastic cutting board, base metal and plastic corkscrew, knife and bottle-opener combination, four cotton napkins and the cotton tablecloth ?

Do the backpack, the two individual, detachable bottle cases, four plastic plates, four stainless steel and plastic knives, forks and spoons, four plastic mugs, plastic cutting board, base metal and plastic corkscrew, knife and bottle-opener combination, four cotton napkins and the cotton tablecloth constitute “items in a set put up for retail sale” pursuant to General Rule of Interpretation 3 (b) resulting in their classification by the component which gives the set its essential character ?; and

If the backpack, the two individual, detachable bottle cases, four plastic plates, four stainless steel and plastic knives, forks and spoons, four plastic mugs, plastic cutting board, base metal and plastic corkscrew, knife and bottle-opener combination, four cotton napkins and the cotton tablecloth constitute a set pursuant to General Rule of Interpretation 3 (b), what is the component of the set pursuant to General Rule of Interpretation 3 (b) that gives the set its essential character for classification purposes?

LAW AND ANALYSIS

The responsibility for interpreting and applying the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) rests with the U.S. Customs Service. See Joint Explanatory Statement of the Committee of Conference, H.R. Conf. Rep. No. 100-576, at 549 (1988) reprinted in 1988 U.S. Code Cong. and Adm. News 1547, 1582 [hereinafter Joint Explanatory Statement]. The Customs Service, in accordance with its legislative mandate, classifies imported merchandise pursuant to the General Rules of Interpretation (GRI) and the Additional U.S. Rules of Interpretation. See 19 U.S. C. 1202 (West 1999); See generally, What Every Member of The Trade Community Should Know About: Tariff Classification, an Informed Compliance Publication of the Customs Service available on the World Wide Web site of the Customs Service at www.customs.gov, search “Importing & Exporting” and then “U.S. Customs Informed Compliance Publications.”

General Rule of Interpretation 1 provides, in part, that classification decisions are to be “determined according to the terms of the headings and any relative section or chapter notes.” General Rule of Interpretation 1. Although GRI 1 further provides that merchandise which can not be classified in accordance with the dictates of GRI 1 should be classified pursuant to the other General Rules of Interpretation in their sequential order, the Explanatory Notes (EN) “make it quite clear that the terms of the headings and any relative Section or Chapter Notes are paramount.” General Rules for the Interpretation of the Harmonized System, Rule 1, Explanatory Note (V).

The Explanatory Notes constitute the official interpretation of the Harmonized System at the international level. See Joint Explanatory Statement supra note 2, at 549. The Explanatory Notes, although neither legally binding nor dispositive of classification issues, do provide commentary on the scope of each heading of the HTSUSA. The EN’s are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989); Lonza, Inc. v. United States, 46 F. 3rd 1098, 1109 (Fed. Cir. 1995).

Commencing classification of the backpack, two individual, detachable bottle cases, four plastic plates, four stainless steel and plastic knives, forks and spoons, four plastic mugs, plastic cutting board, base metal and plastic corkscrew, knife and bottle-opener combination, four cotton napkins and the cotton tablecloth, in accordance with the dictates of GRI 1, the Customs Service examined the headings of the HTSUSA.

Heading 4202 provides:

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, 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 of mainly covered with such materials or with paper. (Emphasis added).

Backpacks are designated eo nomine in heading 4202, HTSUSA. Eo nomine designations include all forms of the article in issue.

The initial responsibility of the Customs Service is to examine the plain meaning of the statutory text. See Marcor Dev. Corp. v. United States, 926 F. Supp. 1124, 1129 (C.I.T. 1996) citing Trans-Border Customs Services v. United States, 843 F. Supp. 1482, 1485 (C.I.T. 1994). If the plain language of the heading establishes the clear and unambiguous intent of Congress, the classification inquiry at the heading level is complete. See Id. The meaning of a tariff term, absent contrary congressional intent, is one that is in accord with its common and popular understanding. See Carl Zeiss, Inc. v. United States, 195 F. 3rd 1375, 1379 (Fed. Cir. 1999).

“Backpacks” are commonly understood to be a pack or knapsack used to carry personal effects which include equipment, clothing and food, and are worn on the back of the user. See infra, dictionary definitions and Standard Surplus. Additional U.S. Note 1 to Chapter 42 specifically provides that “travel, sports and similar bags” of heading 4202, HTSUSA, “means goodsof a kind designed for carrying clothing and other personal effects during travel, including backpacks.” Additional U.S. Note 1, Ch. 42, HTSUSA.

A survey of dictionaries provides the following common definitions of the word “backpack”:

(1) “ a pack carried on the back” “to carry a pack on the back: used esp. of hiking, camping, ect.” The Compact Edition of the Oxford English Dictionary, Vol. III, p. 45 (R.W. Burchfield, ed., Oxford at the Clarendon Press 1987); and

(2) “to carry (food or equipment) on the back esp. in campingto carry one’s food or equipment on the back esp. in camping.” Webster’s Third New International Dictionary of the English Language Unabridged (Philip Babcoci Gove, Ph.D. ed., Merriam-Webster, Inc. 1986).

It is the conclusion of the Customs Service, subsequent to reviewing the referenced dictionaries, that the term “ backpack” is commonly understood to be a pack or knapsack used to carry personal effects which include equipment, clothing and food while being worn on the back of the user. The common theme in the definitions appears to be the manner in which the personal effects are transported.

It is noted that heading 4202, HTSUSA, does not simply reference “backpacks.” Heading 4202, HTSUSA, in addition to the numerous other types of containers enumerated, specifically references “knapsacks and backpacks.” (Emphasis added). Congress, by listing “knapsacks and backpacks” together, indicated an intent that knapsacks and backpacks should be understood together.

“Knapsack” is defined in The Oxford English Dictionary as “[a] bag or case of stout canvas or leather, worn by soldiers, strapped to the back and used carrying necessaries; A “necessary” is defined by The Oxford English Dictionary as “indispensable, requisite, essential, needful; that cannot be done without.” The Compact Edition of the Oxford English Dictionary, Vol. I, p. 1905. ( R. W. Burchfield, ed. 1987). any similar receptacle used by travellers for carrying light articles.” The Compact Edition of the Oxford English Dictionary, Vol. I, p. 1544 ( R. W. Burchfield, ed. 1987). Webster’s New Collegiate Dictionary defines “knapsack” as “a bag (of canvas or nylon) strapped on the back and used (as on a hike) for carrying supplies or personal belongings.” Webster’s New Collegiate Dictionary (Henry Bosley Woolf et al. eds., G. & C. Merriam Co., 1977).

The understanding that the terms knapsack and backpack are essentially synonymous is supported by the Court of Customs and Patent Appeals decision of United States v. Standard Surplus Sales, Inc., 667 F.2d 1011 (C.C.P.A. 1981). See Joint Explanatory Statement supra note 3, at 549-50 (stating that decisions of the courts interpreting the TSUS are not dispositive in interpreting the HTSUSA, but should be considered on a case-by-case basis where the nomenclature is unchanged and no dissimilar interpretation is required). The Court in Standard Surplus was called on to classify merchandise according to the Tariff Schedule of the United States, the predecessor of the HTSUSA. The Court, in determining whether certain imported nylon bags were classifiable as sports equipment or as luggage, examined whether there was a distinction between knapsacks and backpacks. The conclusion drawn was that knapsack is a term that proceeded the use of the word backpack, but beyond historical considerations, both terms refer to substantially identical merchandise used for carrying clothing and other personal effects on the back during travel.

Customs believes that that the backpack of instant classification falls within the definition of “knapsacks and backpacks” in heading 4202, HTSUSA. It has the traditional shape of a backpack, and it is designed and manufactured to carry personal effects while being worn on the user’s back. It is specifically noted that although the backpack has a handle on the top, common among many backpacks, the handle appears designed to facilitate moving the pack only very short distances. The shoulder straps and adjustable nylon webbing straps, both of which are of significant construction, enable the backpack and its contents to be easily transported long distances. Depending on how the pack is loaded, it may have a propensity to swing at an awkward angle if carried by the handle.

Heading 4202, HTSUSA, pursuant to General Rule of Interpretation 1, specifically identifies the article in issue. No other HTSUSA heading specifically describes the merchandise. The backpack is, therefore, classifiable under heading 4202, HTSUSA.

The Customs Service took into full consideration of the Court of Appeals for the Federal Circuit decision in SGI, Inc. v. United States, 122 F. 3d 1468 (Fed. Cir. 1997). The specific holding of SGI is that portable soft-sided vinyl coolers used for the storage and serving of food or beverages, that possess insulative properties similar to both hard and other soft-sided coolers having a one-half inch thick closed cell polyethylene foam insulation are properly classified as “other household articlesof plastics” in subheading 3924.10.50, HTSUSA. SGI is distinguishable from the facts of the instant ruling.

The Court in SGI, because it was called on to address the classification of merchandise that was not identified eo nomine in the tariff schedule, applied the ejusdem generis rule of statutory construction. See SGI at 1471. Application of the rule of ejusdem generis, which means “of the same kind,” involves a comparison of the items enumerated in a heading or subheading with the article under consideration.

The Customs Service in this ruling is not confronted with a situation in which it must compare the essential characteristics or purposes of the “picnic in a pack” with the items in heading 4202, HTSUSA, provided for eo nomine. The HTSUSA specifically identifies “backpacks” in heading 4202, HTSUSA, and mandates that backpacks be classified in heading 4202, HTSUSA.

The Customs Service is conscious of the Court’s dicta focusing ejusdem generis analysis on whether food or beverage was to be transported in the article, but respectfully concludes that it would be improper to apply similar analysis in this ruling. The item under consideration in the instant ruling is a backpack. It is noted that Judge Rich, who authored the decision of the Court in SGI, Inc. v. United States, 122 F. 3d 1468 (Fed. Cir. 1997), was a member of the panel that decide the case of United States v. Standard Surplus Sales, Inc., 667 F. 2d 1011 (C. C. P.A. 1981) which recognized in dicta that knapsacks and backpacks were used for transporting food and equipment on the back. Backpacks are identified by name in heading 4202, HTSUSA. General Rule of Interpretation 1 fully resolves the classification of the backpack, minus its contents.

The Customs Service is aware that some importers may advocate that the “picnic in a pack,” particularly the backpack, is more than a travel or sports bag because of its insulated compartments. The basis for this position being the “more than” doctrine, a doctrine espoused by the Court of Appeals for the Federal Circuit in Digital Equipment Corp. v. United States, 889 F.2d 267 (Fed. Cir. 1989). The “more than” doctrine provided that “merchandise which constitutes more than a particular article or which has additional nonsubordinate or coequal functions is not classifiable as that article.” Id. at 268. Application of the “more than” doctrine in this instance suggests that since the backpack has insulative qualities, it is “more than” a backpack and, therefore, is not classified as a backpack in heading 4202, HTSUS.

Although the Customs Service specifically concludes that the “picnic in a pack” backpack is designated eo nomine in heading 4202, HTSUSA, reasoning that insulated compartments do not preclude the item from being understood to be a “backpack,” Customs is apprised that the “more than” doctrine is not an accepted method of interpreting the HTSUSA. The Court of Appeals for the Federal Circuit in the decision of JVC Company of America v. United States, 234 F. 3d 1348 (Fed. Cir. 2000) held that the “more than” doctrine, developed to interpret the Tariff Schedule of the United States, was superceded by the General Rules of Interpretation of the HTSUSA and does not apply to cases arising under the HTSUSA. The Court further held that the General Rules of Interpretation are a “statutorily-prescribed, comprehensive, and systematic method of classification” that supplanted the judicially-created “more than” doctrine. Id. at 1354.

Customs, based on the above reasoning, concludes that the backpack is properly classified in heading 4202, HTSUSA. Customs additionally concludes that the two individual, detachable bottle cases, each designed to hold only a single bottle, are designated eo nomine in heading 4202, HTSUSA, and are also properly classified in heading 4202, HTSUSA. See HQ 962450 (Aug. 23, 1999), HQ 961681 (Sept. 28, 1998) and HQ 962040 (Oct. 21, 1998) (discussing insulated bottle bags designed to contain a single bottle and the SGI decision).

The plastic plates, mugs and cutting board are classifiable in Chapter 39, Plastic and Articles Thereof.” Heading 3924, HTSUSA, provides for “[t]ableware, kitchenware, other household articles and toilet articles, of plastics.” See generally Explanatory Note 39.24 (discussing tableware, kitchenware and other household articles made of plastic).

The stainless steel and plastic knives, forks and spoons and the base metal and plastic corkscrew, knife and bottle-opener combination are classifiable in Chapter 82, “Tools, Implements, Cutlery, Spoons and Forks, of Base Metal; Parts Thereof of Base Metal.” Heading 8211, HTSUSA, providing for “Knives with cutting blades, serrated or not (including pruning knives), other than knives of heading 8208 Heading 8208 provides for the classification of knives and cutting blades for machines or mechanical appliances.” encompasses the knives, as well as the corkscrew, knife and bottle-opener combination. Heading 8211, HTSUSA. The forks and spoons are provided for in heading 8215, HTSUSA, which includes “Spoons, forksand similar kitchen or tableware.” Heading 8215, HTSUSA. See generally Explanatory Note 82.11 and 82.15 (discussing the utensils of the respective headings and the fact that the utensils may be made of a single piece of metal or have a fitted plastic handle).

The tablecloth and napkins made of cotton fibers are classifiable in Chapter 63, “Other Made Up Textile Articles; Needlecraft Sets; Worn Clothing and Worn Textile Articles; Rags.” The heading that describes these articles is heading 6302, HTSUSA, which provides for “Bed linen, table linen, toilet linen and kitchen linen.” The Explanatory Notes to heading 6302, EN 63.02, indicate that it encompasses “Table linen” which includes, among other items, “table cloths, table mats and runners, tray-cloths, table-centres, serviettes, tea napkins, sachets for serviettes, doilies, drip cloths.” Explanatory Note 63.02 (2).

A review of GRI 2 leads the Customs Service to the conclusion that its provisions will not prove beneficial in classifying all of the articles that comprise the “picnic in a pack.” The merchandise under consideration in this ruling letter does not constitute incomplete, unfinished, unassembled or disassembled articles that are addressed in GRI 2 (a). The backpack, the two individual, detachable bottle cases, four plastic plates, four stainless steel and plastic knives, forks and spoons, four plastic mugs, plastic cutting board, base metal and plastic corkscrew, knife and bottle-opener combination, four cotton napkins and the cotton tablecloth are composed of a man-made textile fiber coated or covered with polyvinyl chloride, nylon, plastic, plastic foam, stainless steel, a base metal and cotton, and are, in accordance with GRI 2(b), “goods consisting of more than one material.” Goods consisting of more than one material which cannot be classified pursuant to GRI 1 or 2 are to be classified according to GRI 3.

An examination of the dictates of GRI 3 is appropriate because the goods are prima facie classifiable under two or more headings: the backpack and bottle cases in heading 4202, HTSUSA, the plates, mugs and cutting board in heading 3924, HTSUSA, the knives and corkscrew, knife and bottle-opener combination in heading 8211, HTSUSA, the forks and spoons in heading 8215, HTSUSA, and the tablecloth and napkins in heading 6302, HTSUSA. General Rule of Interpretation 3(a) provides that the articles should be classified according to the heading which affords the most specific description, unless the multiple headings under consideration refer to only part of the materials or substances contained in goods that are mixed or composite, or to only part of “items in a set put up for retail sale.” The backpack and the accompanying items are not mixed or composite goods, warranting inquiry into the issue of whether they cumulatively constitute “items in a set put up for retail sale.” See generally, What Every Member of The Trade Community Should Know About: Classification of Sets Under the HTS, an Informed Compliance Publication of the Customs Service available on the World Wide Web site of the Customs Service at www.customs.gov, search “Importing & Exporting” and then “U.S. Customs Informed Compliance Publications.”

Explanatory Note (X) of GRI 3(b) provides three factors to be considered when determining whether goods have been put up in sets for retail sale. The factors are:

The goods consist of at least two different articles that are, prima facie, classifiable in different headings;

The goods consist of articles put up together to “meet a particular need or carry out a specific purpose;” and

The goods are “put up in a manner suitable for sale directly to users without repacking.” General Rules for the Interpretation of the Harmonized System, Rule 3(b), Explanatory Note (X) (a) – (c).

The backpack, bottle cases, plastic plates, stainless steel and plastic knives, forks and spoons, plastic mugs, plastic cutting board, the metal and plastic corkscrew, knife and bottle-opener combination, cotton tablecloth and cotton napkins are prima facie classifiable in different headings and are packaged in a manner suitable for sale directly to users. The issue that remains, the second of the three factors, is whether the backpack and the accompanying items as put up together “meet a particular need or carry out a specific activity.” Id.

A review of each of the examples of sets in EN (X) indicates that components of sets share at lease one common trait. See HQ 953472 (Mar. 21, 1994). The fact that the drafters of EN (X) did not explain when goods put up together “meet a particular need or carry out a specific purpose” suggests that resolution of the issue must be determined by analogy on a case-by-case basis.

The items that comprise each example of a set in EN (X) are related to one another in such a fashion that they interact together to serve a distinct purpose or function to enable a singular result to be achieved. The items in examples one and two are used in conjunction with one another to complete a sandwich meal and prepare a spaghetti meal. The articles in example three are used together for the purpose of hair grooming and the items in example four function with one another to enable the user to draw.

The Customs Service, in determining whether all of the articles that comprise the “picnic in a pack” “meet a particular need or carry out a specific activity,” may not simply consider the bottle cases, plates, knives, forks and spoons, mugs, cutting board, the corkscrew, knife and bottle-opener combination, tablecloth and napkins. Customs must also take into consideration the backpack, the container with which the other articles are presented for sale and with which they will be imported.

Customs initially notes that accumulations of merchandise which include containers are not, for that reason alone, precluded from being designated as sets for classification purposes. Explanatory Note (X) to GRI 3 (b) includes examples of a hairdressing set that contains a leather case and a drawing kit that has a case of plastic sheeting. See General Rules for the Interpretation of the Harmonized System, Rule 3(b), Explanatory Note (X)(2) and (3). Customs has also previously issued ruling letters in which sets included containers or holders. See HQ 084717 (Sept. 9, 1989) (tool box and tool and electrical connector assortment); HQ 082049 (June 20, 1989) (vinyl zippered carrying bag and cookware); HQ 088323 (June 7, 1991) (pencil box with pencils and pencil sharpener).

The issue in the instant ruling is whether the backpack has a nexus with the bottle cases, plates, knives, forks and spoons, mugs, cutting board, the corkscrew, knife and bottle-opener combination, tablecloth and napkins such that all are intended to be used together or in conjunction with one another to meet a particular need or carry out a specific activity. The backpack makes it possible for the picnicker to carry the bottle cases and all the utensils, food, beverages and sundries long distances with relative ease. The backpack additionally provides storage for the other items when they are not in use. The fitted pockets of the pack keep the primary items organized during travel. The bottle cases, plates, mugs, knives, forks and spoons, cutting board, corkscrew, knife and bottle-opener combination, tablecloth and napkins make it simpler and more enjoyable to serve the picnic meal.

The backpack is a unique storing system, specifically designed to store and be used with all of the other items. The pockets sewn into the inside of the front panel are precisely designed to hold the plates,, knives, forks, spoons and cutting board. The pockets and elastic bands sewn into the middle panel in the front compartment are designed to hold the mugs and corkscrew, knife and bottle-opener combination. It is the conclusion of the Customs Service that the backpack, bottle cases, plastic plates, stainless steel and plastic knives, forks and spoons, plastic mugs, plastic cutting board, metal and plastic corkscrew, knife and bottle-opener combination and the tablecloth and napkins, as packaged for sale to the user, constitute a set as they carry out the specific activity of serving a picnic meal in a remote location.

GRI 3(b) additionally provides that goods put up in sets for retail sale shall be classified as if they consisted of that component of the set which gives the set its “essential character.” The General Rules of Interpretation do not define the phrase “essential character,” but the Explanatory Notes offer a non-exhaustive list of factors which may be considered. The factors include: (1) The nature of the component; (2) Its bulk; (3) Its quantity; (4) Its weight; (5) Its value; and (6) The role of the component in relation to the use of the goods. See General Rules for the Interpretation of the Harmonized System, Rule 3(b), Explanatory Note (VIII). Explanatory Note (VIII) of GRI 3(b) specifically states that the essential character of a set will “vary between different kinds of goods.” Id.

A review of judicial precedent and prior Customs Service Headquarters Ruling Letters also serves to highlight the meaning of “essential character.” The Court of International Trade in Better Home Plastics Corp. v. United States, 916 F. Supp. 1265 (C.I.T. 1996) referencing United States v. United China & Glass, 293 F. Supp. 734, 737, 61 Cust. Ct. 386 (1968) stated that essential character is that attribute “which is indispensable to the structure, core or condition of the article, i.e. what it is.” Headquarters Ruling Letter 955714, elaborating on the decision in United China, stated that “[i]n general, essential character has been construed to mean that attribute which strongly marks or serves to distinguish what an article is.” See HQ 955714, supra; See also, Pillowtex Corp. v. United States, 171 F.3d 1370 (Fed. Cir. 1999); HQ 951902, supra.

It is the conclusion of the Customs Service that the component of the “picnic in a pack” which gives the set its “essential character” is the backpack. The particular need or specific purpose that the set serves is the ability to enjoy a picnic in a remote location. The backpack has the indispensable role in this activity. It is the backpack that provides the set with its predominate intrinsic and financial value. See HQ 088323 Id. (declaring the pencil box to constitute the essential character of the set).

Having concluded that the backpack is classified in heading 4202, HTSUSA, it is necessary to classify the item at the appropriate subheading level. The backpack of instant consideration is classified in subheading 4202.92.3020, HTSUSA, as a “backpack and knapsackWith an outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: With outer surface of textile materials: Other: Other: Of man-made fibers: Backpacks.”

HOLDING

The backpack, bottle cases, four plastic plates, four sets of stainless steel and plastic flatware, each set consisting of a knife, fork and spoon, four plastic mugs, plastic cutting board, metal and plastic corkscrew, knife and bottle-opener combination and the cotton tablecloths and napkins that comprise the “picnic in a pack” are a set for the purposes of classification pursuant to the Harmonized Tariff Schedule of the United States Annotated.

The item that affords the set its essential character is the backpack.

The “picnic in a pack” is classified in subheading 4202.92.3020, HTSUSA, as a “backpack and knapsackWith an outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: With outer surface of textile materials: Other: Other: Of man-made fibers: Backpacks.”

The General Column 1 Rate of Duty is eighteen and three-tenths (18.3) percent, ad valorem.

The textile quota category is 670.

The tablecloth and napkins, although part of the set for duty purposes, are classified for quota purposes in subheading 6302.51.2000, HTSUSA. The textile quota category for the tablecloth and napkins is 369.

It is recommended that Quadrant Sales & Imports, Inc. contact its local Customs Service office prior to the importation of this merchandise to determine the current status of any restraints or requirements due to the changeable nature of the statistical annotation, the ninth and tenth digits of the HTSUSA, and the restraint (quota/visa) categories applicable to textile merchandise.

The designated textile and apparel category may be subdivided into parts. If subdivided, the quota and visa requirements applicable to the merchandise may be affected. It is recommended that Quadrant Sales & Imports, Inc. review, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), since part categories are the result of international bilateral agreements and subject to frequent change. The Status Report is an internal issuance of the U.S. Customs Service and is available for inspection at local Customs Service offices.

Sincerely,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling

See also:

• Tariff No.: 3924.10.50 - Tableware and kitchenware articles, nesoi, of plastics
• Tariff No.: 4202.92.30 - Travel, sports and similar bags with outer surface of textile materials other than of vegetable fibers
• Tariff No.: 6302.51.20 - Plain woven tablecloths and napkins, not knitted or crocheted, of cotton