Ziploc Bags Classifiable as Goods for Carrying, Not Household Articles, CIT Says
Ziploc bags are classifiable in the tariff schedule under heading 3923 as articles for the conveyance or packing of goods, rather than as plastic household articles of heading 3924, the Court of International Trade said in a Dec. 16 decision. Though the Ziploc bags could be classifiable in both headings, heading 3923 is more specific and is the correct tariff provision under General Rule of Interpretation 3(a), CIT said.
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The test case had been filed by S.C. Johnson & Son in 2014, after CBP had classified its Ziploc sandwich bags in subheading 3923.21.00, dutiable at 3 percent and only eligible for Generalized System of Preferences benefits from some countries. That subheading covers “Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Sacks and bags (including cones): Of polymers of ethylene.”
S.C. Johnson argued the sandwich bags were instead classifiable in subheading 3924.90.56 as “Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: Other: Other.” That subheading is dutiable at 3.4%, and S.C. Johnson claimed the Ziploc bags were also eligible for GSP benefits, which apply for the subheading when imported from any GSP country. CIT ordered a bench trial after finding it was unable to reach a verdict in 2018 (see 1809140013).
Heading 3923 is a principal use provision covering “goods of plastic used to carry or to transport other goods of any kind.” CIT found that the Ziploc bags may be used to carry any type of good, not just store food in a household, as argued by S.C. Johnson. As bags, the goods have the physical characteristics similar to other goods of heading 3923, and are sold through similar channels and with similar expectations from consumers, CIT said.
On the other hand, the Ziploc bags are articles of plastic that can be found in the household, and can also be classified in heading 3924. But under GRI 3(a), when goods can be classifiable in two or more subheadings, the heading that provides the more specific description wins out. Goods must be used in a specific way to satisfy the terms of heading 3923, while heading 3924 “merely describes the article regardless of its use,” CIT said. “Heading 3923 has requirements that are more difficult to satisfy and describe the article with a greater degree of accuracy and certainty,” the trade court said.
(S.C. Johnson & Son, Inc. v. U.S., Slip Op. 19-158, CIT # 14-00184, dated 12/16/19, Judge Choe-Groves)
(Attorneys: Michael Roll of Pisani & Roll for plaintiff S.C. Johnson & Son; Monica Triana for defendant U.S. government)