Juice Bottle Toppers Aren't Toys, CIT Says, Finding All Utilitarian Goods Excluded From Chapter 95

Juice “bottle toppers” that depict the heads of popular children’s characters are classifiable in the tariff schedule as lids, not as toys, the Court of International Trade said in a May 5 decision. Good2Grow, the importer, argued that the bottle toppers are classifiable in a duty-free provision of Chapter 95, but CIT found that a note excluding kitchenware, tableware, bed linens and similar articles with utilitarian functions from classification in that chapter applies to all goods with a primarily utilitarian purpose, and not just festive articles.

Good2Grow, formerly known as In Zone Brands, had imported the bottle toppers in 2013 and 2014. Affixed to a spout with a valve and threaded base made to screw onto Good2Grow juice bottles, the three-dimensional, molded plastic bottle toppers depict characters such as Iron Man, Thor, Sponge Bob, Angry Birds, Care Bears, Ariel, and Paw Patrol. The bottle toppers are sometimes sold without the juice bottle, but are most often sold at retail locations with the juice bottle included.

At liquidation, CBP classified the bottle toppers under subheading 3923.50.00 as “articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Stoppers, lids, caps and other closures.” Good2Grow protested, arguing they were instead classifiable in subheading 9503.00.00 as “tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages; dolls; other toys; reduced-scale (‘scale’) models and similar recreational models, working or not; puzzles of all kinds; parts and accessories thereof.” CBP issued ruling HQ H264771, confirming the classification of the bottle toppers in Chapter 39.

Note 1(v) to Chapter 95 excludes from classification in that chapter “tableware, kitchenware, toilet articles, carpets and other textile floor coverings, apparel, bed linen, table linen, toilet linen, kitchen linen and similar articles having a utilitarian function (classified according to their constituent material).” A footnote Note 1(v) points to subheading 9817.95, which is for goods used in cultural or religious rituals or holidays.

Good2Grow argued that the footnote means Note 1(v) is “of limited application meant to exclude ‘traditional utilitarian items decorated with a holiday motif’ from classification under Chapter 95.” The government said the text of the note is not so limiting.

CIT agreed that Note 1(v) to Chapter 95 applies beyond festive articles. “Note 1(v)’s language is not so narrow, and nothing referenced by either party indicates that it was limited to utilitarian items with certain festive motifs,” CIT said. “In fact, Heading 9817.959 and the reference to it in Note(1)(v) were added to ensure that certain festive articles received duty-free treatment notwithstanding Note (1)(v). Note 1(v) appears to simply reinforce the longstanding understanding that certain merchandise with a primarily utilitarian purpose is not properly classified under Chapter 95.”

CIT also analyzed the principal use of the bottle toppers, and found that they are not principally used as toys, but rather as juice bottle tops. The bottle toppers are usually not sold separately from the juice bottles, and are sold in the juice aisle of stores, for example.

“The court acknowledges that there is certainly some amusement value to the bottle toppers, but concludes that this is incidental to the product’s practical purposes such that Note 1(v) is applicable here,” CIT said. “Further, viewed in their totality, the relevant factors dictate that the bottle toppers are not commercially fungible with the merchandise in Heading 9503, and thus are not classifiable under that heading.”

Ruling the bottle toppers are classifiable in heading 3923 along with other “stoppers, lids, caps and other closures, of plastics,” CIT also settled a dispute as to whether that heading is “eo nomine,” describing goods by name, or a “principal use” provision. In December, CIT had found the heading was a use provision when it classified S.C. Johnson’s Ziploc bags (see 1912170016). But that holding only applied to “articles for the conveyance or packing of goods, of plastics,” CIT said. A semicolon separates that text in the title of the heading from “stoppers, lids, caps and other closures, of plastics.” The use of a semicolon results in “distinct categories of merchandise,” CIT said.

“’Stoppers, lids, caps and other closures, of plastics,’ is an eo nomine provision as it describes merchandise by name rather than use,” CIT said. “Furthermore, since the principle use of this product is to seal or close the juice bottle applying a principal use analysis would not change the result in this case.”

(In Zone Brands, Inc. v. U.S., Slip Op. 20-59, CIT # 17-00025, dated 05/05/20, Judge Restani)

(Attorneys: Daniel Jarcho for plaintiffs In Zone Brands, Inc. and Good2Grow, Inc.; Peter Mancuso for defendant U.S. government)