August 20, 2009 CBP Bulletin Notice on Classification of Certain Prong Paper Fasteners
In the August 20, 2009 issue of the U.S. Customs and Border Protection Bulletin (Vol. 43, No. 34), CBP published a notice proposing to modify one ruling and revoke a treatment as follows:
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Proposed modification of ruling; proposed revocation of treatment. CBP is proposing to modify one ruling on the classification of certain base metal prong paper fasteners. Additionally, CBP proposes that this notice covers any rulings on this merchandise that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
CBP states that any party who has received an interpretive ruling or decision on the merchandise that is subject to the proposed modification and revocation, or any party involved with a substantially identical transaction, should advise CBP by September 19, 2009, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
Base metal prong paper fasteners. The merchandise is described as a Self-Adhesive Prong Fastener Base, item number A7070011. Prong fasteners are used to secure a large number of papers that have been two-hole punched. The base has two prongs that are folded through the holes of the paper and hold the paper firmly. It has a self-adhesive backing for affixing permanently onto a file folder.
CBP is proposing to issue HQ H027186 in order to modify NY N026040 and reclassify Self-Adhesive Prong Fastener Base number A7070011 under HTS 8305.10.00 which provides for: "Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, and parts thereof, of base metal:...Fittings for loose-leaf binders or files," rather than under HTS 8305.90.60 which provides for: "Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, and parts thereof, of base metal;...Other, including parts: Other." The other items in ruling NY N026040 remain unchanged.
CBP proposes this change as a correction. Subheading 8305.10.00 is a use provision, in that fittings of the subheading are for use with loose-leaf binders or files. Classification under a use provision is determined by the principal use in the United States at, or immediately prior to, the date of importation, of the class or kind of goods to which the imported goods belong. Generally, the courts have provided additional factors, which are indicative but not conclusive, to apply when determining whether merchandise falls within a particular class or kind. (See bulletin for court case.) These factors include: (1) general physical characteristics, (2) expectation of the ultimate purchaser, (3) channels of trade, environment of sale (accompanying accessories, manner of advertisement and display), (4) use in the same manner as merchandise which defines the class, (5) economic practicality of so using the import, and (6) recognition in the trade of this use.
The Self-Adhesive Prong Fastener Base is designed to adhere to some sort of backing. They are marketed and sold as "easy to use, one-piece fasteners for file folders." Based on their physical characteristics and the way in which they are marketed and sold, CBP finds that purchasers would expect to be able to use the Self-Adhesive Prong Fastener Base with file folders. Accordingly, CBP proposes that this merchandise is principally used as fittings for files and is therefore provided for in subheading 8305.10.00.
CBP now proposes that by application of GRIs 1 and 6, the Self-Adhesive Prong Fastener Base number A7070011 is properly classified in subheading 8305.10.00 which provides for: "Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, and parts thereof, of base metal:...Fittings for loose-leaf binders or files."
Proposed: 8305.10.00, 2.9%; Current: 8305.90.60, 5.7%
August 20, 2009 CBP Bulletin (Vol. 43, No. 34) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/