HQ 955118: Revocation of HRL 086561, pertaining to the classificationof a textile covered vinyl watch folder; jewelry box; similarcontainer; suitable for long term use; HRL 953398

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 955118

                        October 20, 1993

CLA-2 CO:R:C:T 955118 BC

CATEGORY:  Classification

TARIFF NO.:  4202.92.9015

Peter J. Fitch, Esq.
FITCH, KING & CAFFENTZIS
116 John Street
New York, New York 10038

RE:  Revocation of HRL 086561, pertaining to the classification
of a textile covered vinyl watch folder; jewelry box; similar
container; suitable for long term use; HRL 953398

Dear Mr. Fitch:

     Recently, we have had the opportunity to review Headquarters
Ruling Letter (HRL) 086561, dated June 21, 1990, concerning the
classification of a watch folder made of textile and vinyl
materials.  That ruling was issued to you on behalf of your
client.  It did not classify the watch folder under a specific
tariff provision because of insufficient information regarding
its composition, but it set forth that it should be classified by
application of General Rule of Interpretation (GRI) 3(b), the
rule pertaining to "essential character."   We have recently held
that a watch folder that is substantially the same as that
classified in HRL 086561 is classifiable under heading 4202,
HTSUSA, by application of GRI 1.  Consequently, as explained
below, HRL 086561 must be, and is hereby, revoked.

FACTS:

     Headquarters Ruling Letter 086561, dated June 21, 1990, held
that a textile covered vinyl watch folder should be classified
according to GRI 3(b); that is, according to the component
material that provides its essential character: "The sample
article will be classified as an other made up article of textile
material or as an other article of plastic depending upon the
component material which provides the essential character." 
Recently, in HRL 953398, dated September 15, 1993, Customs held
that a textile covered watch folder made of cardboard and plastic
sheeting is classifiable under subheading 4202.92.9015, HTSUSA,
as a textile covered jewelry box, or similar container, of a kind
normally sold at retail with its contents.  Both watch folders
are substantially similar in construction, and both are used in
the retail sale of watches.

ISSUE:

     What is the proper classification of watch folders of the
kind at issue in HRL 086561: a textile covered watch folder made
of vinyl and used in the retail sale of watches?

LAW AND ANALYSIS:

     The description of the watch folder classified in HRL 086561
is as follows:

     The sample article is described as a pouch or folder
     for a wrist watch. The folder measures approximately 9
     inches long by 5 inches wide when it is open. When
     folded, it is approximately 2 1/2 inches wide. The
     exterior consists of a flocked man-made fabric which is
     covered with a vinyl material. The vinyl backing is
     visible only upon opening the folder and pulling the
     back flap away from the folder. Two corners of the
     outside flap have metal protectors attached.

The description of the watch folder classified in HRL 953398 is
as follows:

     You described the watch folder as a "[b]lack flocked
     acrylic velour pouch with plated corners" used as
     packaging for watches. In fact, it is a container that
     is more in the nature of a folder designed to hold a
     watch. It is made of plastic sheeting which has been
     covered by a (man-made) textile flock material. A
     cardboard frame has been sewn between two layers of the
     flocked sheeting material. The top half of the folder
     folds over the bottom half, covering a pocket into
     which a watch is placed. The corners of the top flap
     are covered with brass colored metal protectors. In its
     open condition, it is 9 1/2 by 4 1/2 inches; folded
     over, it is 9 1/2 by 2 7/16 inches.

As stated, the watch folder at issue in HRL 086561 was held to be
classifiable according to the "essential character" principle of
GRI 3(b), while the watch folder at issue in HRL 953398 was
classified under heading 4202, HTSUSA, by application of GRI 1. 
Yet, the descriptions of these watch folders show that they are
substantially the same.

     Headquarters Ruling Letter 086561 is based on certain
findings that are no longer in accordance with Customs view. 
Therein, Customs stated the following as the basis for its
decision:

        In the instant case, the watch folder is the type of
     premium packaging which is given to the purchaser at
     the point of sale. The container is primarily designed
     for temporary transportation and storage of an article
     of jewelry after purchase and up until the time of
     first use. It is not specially designed or fitted for a
     particular item of jewelry, nor is it suitable for
     long-term use. Thus, in our opinion, the term "jewelry
     box" as set out in Heading 4202, HTSUSA, does not
     include the sample article.

Thus, the holding of HRL 086561 rests on the above findings
concerning: (1) use of the article (only temporary; only up to
the time the watch is transported home); (2) special design (not
specially designed for a particular item of jewelry); and (3)
suitability for long term use (not so suitable).

     It is our opinion that the findings of HRL 086561 are
erroneous.  We conclude here that containers of this type -
designed for use in the retail sale of jewelry and similar items
- are frequently kept and used after purchase for storage of the
item purchased.  Also, the watch folders at issue here are, in
fact, specially shaped and or fitted to contain the watches that
will be placed inside them.  Further, we believe that the watch
folders are adequately constructed to serve as a protective
storage container for the watches (or other item, such as a
bracelet or necklace, that might be placed inside).  (See HRL
951028, dated March 3, 1993.)

     The ruling (HRL 086561) was also based on HRL 086377, dated
February 14, 1990, a ruling that classified a ring folder as an
other made up article of textile under subheading 6307.90.9050,
HTSUSA.  The ring folder was made of flocked textile material,
cardboard, and plastic.  It measured 1 3/4 by 1 3/4 inches when
folded closed.  It is similar in construction and use to the
article classified in HRL 086561, the article at issue here.  In
concluding that the ring folder is essentially retail packaging
and, as such, is a made up textile article classifiable under
heading 6307, HTSUSA, Customs stated the following:

     Headquarters Ruling Letter 085156, dated November 20,
     1989, stated Customs position that containers that are
     essentially retail packaging, rather than boxes
     designed for the keeping of jewelry, are classifiable
     under the appropriate heading pertaining to the
     materials of which the container is primarily composed.
     Jewelry boxes that are not merely retail packaging are
     classifiable under heading 4202, HTSUSA. 

It is clear that both HRL 086561 (by extension) and HRL 086377
(directly) are based on the principle expressed in the above
quotation from HRL 085156: that jewelry boxes (and similar
containers) used as retail packaging are not classifiable under
heading 4202, HTSUSA.  It is noteworthy that HRL's 086561 and
086377, both 1990 cases, were based on the principle of this 1989
ruling (085156), for it was not until January 1990 that the
following amendment to the Explanatory Notes (EN's) for Chapter
42, Harmonized Commodity Description and Coding System, became
effective:

     The term "jewellery boxes" covers not only boxes
     specially designed for keeping jewellery, but also
     similar lidded containers of various dimensions (with
     or without hinges or fasteners) specially shaped or
     fitted to contain one or more pieces of jewellery and
     normally lined with textile material, of the type in
     which articles of jewellery are presented and sold and
     which are suitable for long-term use.

     This EN makes it clear that jewelry boxes and similar
containers used in the presentation and sale of jewelry and
similar items are classifiable under heading 4202, HTSUSA.  As
stated, the amendment did not become effective until January
1990; therefore, HRL 085156 is distinguishable from HRL's 086561
and 086377, which were decided after January 1990.  Nonetheless,
the principle upon which all three rulings were based - that
jewelry boxes (and similar containers) used in the retail sale of
jewelry and similar items are not "jewelry boxes" of heading
4202, HTSUSA - is no longer consistent with Customs position.

     In HRL 953398, we stated the following regarding the watch
folder there classified:

     The watch folder at issue is used in the retail sale of
     a watch and is specially shaped or fitted to contain
     that watch. The pocket into which the watch is placed
     and the flap that covers the pocket offer protection
     for the watch. The watch folder, when handled with
     ordinary care, is adequately constructed to be suitable
     for repeated use over a prolonged period of time as a
     travel or storage folder. Thus, it is suitable for long
     term use.

The foregoing can be said of the watch folder at issue here. 
Like the watch folder classified in HRL 953398, the watch folder
at issue here should be classified, by application of GRI 1,
under subheading 4202.92.9015, HTSUSA.

     Consequently, for the following reasons, HRL 086561 is
revoked:

     1.) Contrary to the statements contained therein and in
     HRL 086377, jewelry boxes and similar containers used
     in the retail sale of jewelry and similar articles are
     susceptible of classification under heading 4202,
     HTSUSA, as articles (1) frequently used, after
     purchase, to store and protect the articles purchased
     with them, (2) specially designed (shaped or fitted) to
     hold jewelry or similar items, and (3) suitable for
     long term use; and

     2.) contrary to the statements contained in HRL's
     086377 and 085156, jewelry boxes and similar containers
     are not excluded from classification under heading
     4202, HTSUSA, simply for the reason that they are used
     in the retail sale of jewelry and similar items.

HOLDING:

     The textile covered vinyl watch folders at issue are
classifiable under subheading 4202.92.9015, HTSUSA, as textile
covered jewelry boxes or similar containers of a kind normally
sold at retail with their contents.  The applicable duty rate is
20% ad valorem.  This notice to you should be considered a
revocation of HRL 086561 under 19 CFR 177.9(d)(1).

                               Sincerely,




                               John Durant, Director
                               Commercial Rulings Division