CIT Rules Bottle and Jug Wraps are Classified under HTS 4202.92.20
In Outer Circle Products v. U.S., the Court of International Trade upheld Customs' classification of bottle and jug wraps under HTS 4202.92.20 as "bottle cases""with outer surface of sheeting of plastic or of textile materials, other" at a duty rate of 19.3%.
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Outer Circle had argued the correct classification of their bottle and jug wraps should be under HTS 3924.10.50, as "tableware, kitchenwareof plastics, other" at a duty rate of 3.4%.
Outer Circle purported that their bottle or jug wraps were designed, manufactured and marketed for the primary purpose of containing beverages and keeping them cool. The bottle or jug wraps were designed to accommodate a one liter, half gallon, or two gallon plastic bottle or jug. However, as imported, the bottle and jug wraps did not contain any bottles or jugs.
Outer Circle based their argument on two prior Court decisions in which the Courts had reviewed the scope of HTS Headings 4202 and 3924 concluding in each of these cases that the correct classification was HTS Heading 3924. However, in both of these cases, the merchandise at issue was designed to transport and store beverages.
The CIT stated that neither of these cases was pertinent to this case as the subject wraps, as imported without the plastic bottles or jugs, are not capable of transporting or storing beverages.
Customs had argued that the subject merchandise is properly classified under HTS 4202 because "bottle cases" are specifically listed as an item classified within the scope of such heading. In addition, Customs stated that the common dictionary meaning for "bottle cases" was a covering or receptacle for holding bottles. The CIT agreed and ruled that the tariff term "bottle cases" an eonomine provision was broad enough to encompass the subject containers.
In addition, based on the CIT's determination that these wraps were classified under HTS 4202, classification under HTS 3924 was precluded by Note (i j) to Chapter 39.
Accordingly, the CIT ruled the proper classification of these bottle or jug wraps was under HTS 4202.92.90.
Slip Op. 09-3 (dated 01/09/09) available at http://www.cit.uscourts.gov/slip_op/Slip_op09/09-3%20OC.pdf