Avenues in Leather (Avenues) imported Calcu-Folios, which are 13 inches tall by 11 inches wide and 1.5 inches deep. They are made of paperboard covered in plastic with a padded handle. It is zippered on three sides and contains an interior sleeve, several small pockets, a calculator, and three-ring binder.

The Customs Service (Customs) classified the Calcu-Folio under tariff heading 4202 which covers “trunks, suitcases, vanity cases, attaché cases, briefcases, school satchels, and similar containers”. Avenues claims the Calcu-Folios should be classified under tariff heading 4820 which covers “binders, folders, file covers, memorandum pads, letter pads and similar articles”. Heading 4820 imposes a 3% tariff and heading 4202 imposes a 20% tariff. Avenues sued and the Court of International Trade found for Avenues. Customs appealed.

Questions:

1. Was the Calcu-Folio properly classified as a briefcase or a binder?

2. Why did Avenues Leather challenge the Customs Service classification of these costumes?

3. I thought the U.S. Customs Service stamped passports and looked in your luggage when you reenter the U.S. Why is it up to the Customs Service to distinguish between “briefcase” and “binder?”

4. How did the Customs Service decide the nature of the Calcu-Folios in this case?

5. Why didn’t the court agree with that classification?