CAFC Upholds CIT's Ruling That Certain Children's Plastic Backpacks and Beach Bags are Not Toys
The U.S. Court of Appeals for the Federal Circuit reviewed and affirmed the decision of the Court of International Trade in Processed Plastics Company v. U.S. ruling that two children's plastic Barbie and Winnie the Pooh backpacks and one children's Barbie beach bag could not be classified as toys.
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Processed Plastics Company (Processed), the importer of the backpacks and beach bag, appealed the decision reached by CIT, arguing that the bags were classifiable as other toys, put in sets or outfits, and parts or accessories thereof under Harmonized Tariff Schedule (HTS) subheading 9503.70.00 (duty-free).
U.S. Customs and Border Protection (CBP) argued that its classification of the subject merchandise under HTS subheading 4202.92.45 (with a 20% duty) as other travel, sports, and similar bags, was correct.
Upon appeal, the CAFC determined that Processed failed to allege facts sufficient to support a conclusion that the primary use of the backpacks and beach bag is as a toy (i.e. for play). Citing General Rule of Interpretation (GRI) 1(c), the CAFC stated that absent "special language," the backpacks and beach bag should be classified under HTS 4202, which specifically names backpacks and similar bags, rather than as an accessory under HTS 9503. The CAFC further found that the backpacks and beach bag are general use articles that can be used to carry any number of different items weighing up to at least three pounds, and thus they are not "suitable for use solely or principally" with sand toys as argued by Processed.
The CAFC concluded that the CIT had correctly confirmed CBP's classification of the imported backpacks and beach bag as other travel, sports, and similar bags under HTS subheading 4202.92.45, and thus upheld its ruling.
(See ITT's Online Archives or 09/30/05 news, 05093020, for BP summary of the CIT's decision.)
CAFC 06-1093 (dated 12/21/06) available at http://www.fedcir.gov/opinions/06-1093.pdf