HQ 082565: Hat boxes; Paperboard boxes

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 082565

                        February 13, 1990

CLA-2 CO:R:C:G 082565 KWM

CATEGORY: Classification

TARIFF NO.: 6307.90.9050

Mr. Jim Shaw
Customs Manager
Associated Merchandising Corporation
50 Terminal Road
Secaucus, New Jersey  07094

RE: Hat boxes; Paperboard boxes

Dear Mr. Shaw,

     This letter is in response to your inquiry dated May 17,
1988, requesting tariff classification of textile covered hat
boxes.  The letter, a sample of the goods, and a photograph of
additional product styles have been forwarded to us from our New
York office for a classification ruling.

FACTS:

     The sample submitted with your request is circular in shape,
approximately 10 inches in diameter and 6 inches in height.  It
has 2 parts, a lower portion and a lid, both of which are
constructed of cardboard lined with rice paper.  The
cardboard/rice paper pieces are covered with textile materials by
the use of an adhesive, formed into the shape of the box, and
then secured at the seams by glue.  Some of the items depicted in
the photograph  have a cord or tassels of an unidentified
material attached.

ISSUE:

     What is the proper classification for these goods under the
Harmonized Tariff Schedule of the United States Annotated?

LAW AND ANALYSIS:

     Classification under the Harmonized Tariff Schedule of the
United States Annotated ("HTSUSA") is made in accordance with the
General Rules of Interpretation ("GRI's") 1 through 5.  The
systematic detail of the harmonized system is such that virtually
all goods are classified by application of GRI 1; that is,
according to the terms of the headings of the tariff schedule and
any relevant Section or Chapter Notes.  Then, if GRI 1 fails to
classify the goods, and if the headings and legal notes do not
otherwise require, the remaining GRI's may be applied, taken in
order.

     In examining the nomenclature, we find no heading which
specifically classifies "hat boxes", either by its terms or by
any relevant Legal Notes, at either the Section or Chapter level.
We note, however, the Explanatory Notes to Chapter 42, HTSUSA,
which indicate that "hat boxes" are included in the term "similar
containers" as that term is used in heading 4202, HTSUSA.
Therefore, Chapter 42, HTSUSA may be eligible for classification
of these goods.

     Included with your letter was a breakdown by value of the
hat box component materials.  It indicates that from 47% to 51%
of the box value is paper or paperboard, and that 13% to 34% is
textile material or trim and cord presumably composed of
textiles.  Two additional headings, then, suggest themselves for
classification purposes: heading 4823, HTSUSA, other articles of
paper or paperboard, and heading 6307, HTSUSA, other made up
articles of textiles.

     Chapter Note 1(g) to Chapter 48 and Section Note 1(l) to
Section XI (including Chapter 63), HTSUSA, include specific
exclusions for goods of heading 4202, HTSUSA.  Therefore, if the
sample goods are determined to be "similar containers", as that
term is used in heading 4202, HTSUSA, they will be excluded from
classification in either heading 4823 or 6307, HTSUSA.  The
relevant portion of heading 4202, HTSUSA, includes:

     Trunks, suitcases, vanity-cases, executive cases,
     briefcases, school satchels, spectacle case, binocular
     cases, camera cases, musical instruments cases, gun
     cases, holsters and similar containers; . . .

That part of the Explanatory Notes relating to "similar
containers" states:

     . . . The expression "similar containers" in the first
     part of the heading may be of any material.  The
     expression "similar containers" in the first part
     includes hat boxes, camera accessory cases, cartridge
     pouches, sheaths for hunting or camping knives, etc.

(Emphasis added).  Our examination of the sample goods, the terms
of the heading, and the Explanatory Note have led us to the
determination that the items classified within heading 4202,
HTSUSA, are of the variety used in travel and the transportation
of other items.  In contrast, the sample merchandise is more
suited to the storage of hats in the home, since it lacks the
strength and features, such as locks or clasps, ordinarily found
on the enumerated items of heading 4202, HTSUSA.  As a result, we
are of the opinion that the hat boxes in this case are not
classifiable within the anticipated scope of heading 4202,
HTSUSA.

     Since the goods have been excluded from consideration under
heading 4202, HTSUSA, they may be classified within heading 4823
or 6307, HTSUSA.  Neither heading includes hat boxes in its
terms, or in any relevant Legal Notes.  The hat boxes cannot,
then, be classified by GRI 1.  The remaining GRI's, taken in
order, are used to classify these goods.

     Under GRI 2, any reference to a material or an article made
of a material includes goods made wholly or in part of that
material.  GRI's 3(a) & (b) hold that goods such as these which
are prima facie classifiable under two or more headings are
classified by determining which of the component materials
provides the goods with their essential character.  The
Explanatory Notes to GRI 3(b) indicate that there are no hard and
fast rules for determining essential character.  Each case
involves an individual evaluation of such factors as weight,
value, bulk, marketability, etc.  In this case, the hat boxes are
composite goods which should be classifiable as a product of
either textile or paper, depending upon which material gives the
product its essential character.

     In the instant case, however, we are of the opinion that the
classification of the hat box cannot be determined by essential
character.  None of the factors, either as a group or
individually, provide sufficient support for essential character
of paperboard or of textiles.  Although paperboard is apparently
predominant by weight, by bulk, and by value, it is the textile
which distinguishes this hat box from ordinary cardboard boxes.
The textile greatly enhances the marketability of the item, but
also relies upon the cardboard frame for support and rigidity.

     Failing classification by GRI 3(b), GRI 3(c) states that,
among eligible headings, classification shall occur under that
which is last in numerical order among those under consideration.
In this case, that subheading would be 6307.90.9050, HTSUSA, as
other made up articles of textile materials.

HOLDING:

     The sample hat box is classified as a made up textile
article of subheading 6307.90.9050, HTSUSA, and as such is
dutiable at a tariff rate of 7% ad valorem.

                                   Sincerely,


                                   John Durant, Director
                                   Commercial Rulings Division