CAFC Affirms CIT's Classification of Certain Binders/Portfolios
CAFC affirms CIT classification of certain binders/portfolios, denies Customs' appeal. In Avenues in Leather, Inc. v. U.S., the Court of Appeals for the Federal Circuit (CAFC) affirmed the Court of International Trade's (CIT's) ruling that a "Presentation Calcu-Folio" is correctly classified under HTS 4820.10.2020 (duty-free), which covers memorandum pads, letter pads and similar articles.
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According to the CAFC, the Presentation Calcu-Folio measures approximately 13.5 inches x 11.5 inches wide x 1.5 inches deep when closed and is zippered on three sides with an interior sleeve. This item possesses one exterior open flat pocket and a number of small interior pockets, and also has a padded carrying handle fitted to the exterior spine. The item is constructed of paperboard covered with plastic foam, and a vinyl/plastic exterior and interior, and also contains a solar-powered calculator, and has an interior three-ring metal binder permanently affixed to the spine.
Customs had argued that the item was classifiable under HTS 4202.12.20 (20%), which provides for trucks, suitcases, vanity cases, brief cases, and similar containers, etc. with outer surface of plastics. However, the CAFC concluded that while the Calcu-Folio may be used to organize and protect small and/or flat items in addition to a writing pad, it has an internal capacity of only 1 inch and lacks significant carrying space. As such, it is unsuitable to carry newspapers, books, and other objects that are normally carried in containers that are common to HTS 4202.
The CAFC has determined that the item's specific use is limited to facilitation in taking notes as well as aiding the organization of print and other visual flat materials.
According to the CAFC, this specific use predominates over the more general description of containers and precludes classification of the Calcu-Folio in HTS 4202. Moreover, the CAFC notes that the Explanatory Notes (ENs) to HTS 4820 state in relevant part that HTS 4820 includes memorandum pads and binders designed for holding loose sheets, magazines and the like, etc. As such, the CAFC concurs with the CIT that the item is properly classified under HTS 4820.10.2020.
(See ITT's Online Archives or 05/27/04 news, 04052735, for BP summary of the CIT's ruling in this case.)(Court Decision 04-1443, decided 09/15/05, available at http://www.fedcir.gov/opinions/04-1443.pdf)