This сustoms classification case involves imported toner cartridges that are shaped to fit into specific electrostatic photocopiers. Between 1990 and 1992, the Customs Service classified the cartridges under subheading 3707.90.30 of the Harmonized Tariff Schedule of the Unitеd States (HTSUS). That subheading is termed “chemical preparations for photographic uses,” and at the time it carried a duty of 8.5% ad valorem. Appellant Mita Copystar America challenged the classification in the Court of International Trade, arguing that the toner cartridges should have been classified as “parts and accessories of electrostatic photocopying apparatus” under subheading 9009.90.00 of the HTSUS. Goods in that subheading entered duty free during the time period at issue in this case. See HTSUS subheading 9902.90.90 (1992). The Court of International Trade held that the goods were properly classified as “chemical preparations for photographic uses.” We hold that they should have been classified as “parts and accessories of electrostatic photocopying apparatus,” and we therefore revеrse.
I
In analyzing the classification issue in this ease, the trial court properly began with Rule 1 of the General Rules of Interpretation (GRI) of the HTSUS, which directs that merchandise shall be classified “according to the terms of the headings and any [relevant] section or chaptеr notes.” The court ruled that the toner cartridges could be classified either under subheading 3707.90.30, as “chemical preparations for photographic uses,” or under subheading 9009.90.00, as “parts and accessories of electrostatic photocopying apparatus.” Because subheading 3707.90.30 does not address how the merchandise is packaged, the court found that subheading 3707.90.30 was broad enough to cover cartridges containing toner. In addition, because it was undisputed that the photocopiers that used the toner cartridges could nоt function without them and that the cartridges were dedicated for use solely with certain types of photocopiers, the court held that the cartridges could properly be characterized as either “parts” or “accessories” of those photocopiers under subheading 9009.90.00
The court then pointed out that note 2 in section VI of the HTSUS, which contains heading 3707, provides that goods classifiable in heading 3707 “by reason of being put up in measured doses or for retail sale” are to be classified in that heading “and in no other heading of thе tariff schedule.” That note, according to the court, seemed to require the toner cartridges to be classified under heading 3707. On the other hand, the court pointed out, note 2(b) of chapter 90, which contains heading 9009 provides that “[ojther parts and accessories, if suitable for use solely or principally with a particular kind of
Finding the two notes in conflict, the court concluded that GRI 1 did not resolve the classification dispute, and it therefore looked to the succeeding provisions of the GRI. Turning to GRI 3(b), which directs that composite goods made up of different components should be classified as though they consisted of the material or component that gives them their “essential character,” the court concluded that toner gives the toner cartridges their essential character, and that the toner cartridges were therefore properly classified as “chemical preparations for photographic uses” under subheading 3707.90.30.
II
The parties have previously litigated the proper classification of photocoрy toner. In
Mita Copystar America v. United States,
III
The government contends that the classification decision in this 'case is governed by various provisions of the GRI, including GRI 1, GRI 2(b), GRI 3(b), and GRI 5(b). The structure of the GRI controls the point at which each rule comes into play. The first step in analyzing the classification issue is to determine the applicable subheadings, if possible, under GRI 1. As GRI 1 expressly provides, the other GRI provisions may be consulted only if the headings аnd notes “do not otherwise require” a particular classification. We agree with Mita that the headings and notes resolve the classification dispute in this case. Thus, there is no need to address the government’s arguments with respect to the other GRI provisions.
With respect tо the inquiry under GRI 1, the government argues that the trial court was incorrect in ruling that the toner cartridges at issué in this case constitute “parts and accessories of electrostatic photocopying apparatus” within the meaning of subheading 9009.90.00. According to the government, the tоner cartridges can only be classified under heading 3707 as chemical preparations for photographic use. We disagree.
This court addressed the scope of a tariff subheading for parts in
Amersham v. United States,
As with the special foil here, the metal cartridges were not designed for Or capable of reuse; they served as the standard device for transporting the flammable butane; they were sold with the butane and remained with it throughout its commercial use in the cigarette lighter.
The government seeks to distinguish Am-ersham and Duncan by pointing out that those cases were decided under the prior tariff statute rather thаn the HTSUS. The government points to nothing, however, to suggest that the term “part” was meant to have a different definition under the HTSUS than under its predecessor. To the extent that the government relies on GRI 3(b) of the HTSUS, which governs composite articles, to distinguish Amersham and Duncan, the argument fails because, аs the trial court properly held, it is not appropriate to reach GRI 3(b) if GRI 1 dictates the proper classification for particular merchandise. And if the toner cartridges are considered “parts” of a photocopy machine under the governing princiрles, it is unnecessary to go beyond GRI 1 to classify the cartridges.
In support of its theory that toner cartridges should be classified only according to their contents, the government relies on a number of classification cases in which courts held that the usual containers of merchandise were properly classified according to their contents rather than the nature of the containers. Duncan, Amersham, and this case, however, present a different issue — whether a container that performs a specific function within a machine should be classified as a “part” of that machine.
With respect to the “parts” issue, the government contends that toner cartridges cannot be considered parts of photocopy machines because they are like the film pack components that were held not to be pаrts of a camera in
American Express v. United States,
In addition to finding that the toner cartridges fell within the scope of subheading 9009.90.00, the trial court found that the toner cartridges also fell within the scope of subheading 3707.90.30 as “chemical preparations for photographic uses.” While the parties debate this point on appeal, we can assume withоut deciding that the trial court was correct in interpreting the scope of the terms of 3707.90.30, because even if the toner cartridges are described by both subheadings, note 2(b) of chapter 90 requires that the toner cartridges be classified in subheading 9009.90.00 rather than in subheading 3707.90.30.
The trial court did not regard note 2(b) of chapter 90 as dispositive, because the court construed note 2 of Section VI as containing a contrary directive requiring that the toner cartridges be classified under heading 3707. Mita argues that the court erred in finding note 2 of section VI applicable to the toner cartridges, and we agree.
Section VI is captioned “Products of the Chemical or Allied Industries.” Note 2 of that section reads as follows:
Subject to note 1 above, goods classifiable in heading ... 3707 ... by reason of being put up in measured doses or for rеtail sale are to be classified in those headings and in no other heading of the tariff schedule.
HTSUS, section VI-1 (1992) (emphasis added). Mita points out that, in accordance with
Mita’s argument, which thе government does not challenge, is persuasive. Note 2 to section VI does not say that all goods classifiable in heading 3707 must be classified in that heading, or even that all goods classified in heading 3707 and put up in measured portions or put up for retail sale must be classified in that heading. Instead, it specifically states that the mandatory classification provision applies only if the merchandise in question is classified in heading 3707 “by reason of’ its being put up in measured doses or for retail sale, and the only products under heading 3707 that meet that criteriоn are “unmixed products for photographic uses,” a category that does not include toner. We therefore agree with Mita that note 2 of section VI does not prohibit the classification of toner cartridges under any other heading.
Absent the prohibition of note 2 оf section VI, the trial court’s conclusion that the toner cartridges are “parts” of photocopy machines within the meaning of subheading 9009.90.00 is dispositive of the classification issue in this ease. As the trial court pointed out, note 2(b) of chapter 90 requires that parts of particular machines, instruments, or apparatus “are to be classified with the machines, instruments or apparatus of that kind.” That note resolves any conflict between subheading 3707.90.60 and subheading 9009.90.00, and makes clear that subheading 9009.90.00 applies to the toner cartridges at issue in this case.
REVERSED.