CLA-2 CO:R:C:G 084748 DFC
Ms. L. Ephie Hearne
Sekin Transport International
1245 Royal Lane
DFW Airport, Texas 75261
RE: Tariff classification of a fully glass beaded handbag
Dear Ms. Hearne:
Your letter dated May 9, 1989, addressed to our New York
office concerning the tariff classification of a fully glass
beaded handbag made in China, has been referred to this office
for a direct reply to you. A sample was submitted for
examination.
FACTS:
Sample # 3 designated as style # 20849 is a black rayon
handbag with scalloped top and round body with scale designs. The
beads are black and white with scale pattern. They are of
various sizes and are attached by thread sewn onto a black rayon
cover. There is a black nylon zipper across the top of the
handbag which measures approximately 8 inches long. Along the
scalloped top there are two rows of 1/16 inch diameter, round
glass beads. Along the outer seam of the bag are 4 rows of
black, 1/16 inch diameter, round glass beads. The scale pattern
on each side of the bag is outlined in 1/16 inch diameter round,
white glass beads. The shoulder strap is black braided rayon
with an approximately 22 inch drop from the shoulder.
ISSUE:
Is the handbag classifiable as a handbag or is it
classifiable as an article of glass beads?
LAW AND ANALYSIS:
Classification of goods under the Harmonized Tariff Schedule
of the United States (HTSUSA), is in accordance with the General
Rules of Interpretation (GRI's), taken in order. GRI 1 provides
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that "classification shall be determined according to the terms
of the headings and any relative section or chapter notes, and,
provided such headings or notes do not otherwise require,
according to [the remaining GRI's taken in order]."
Handbags are generally classified under heading 4202,
HTSUSA, which provides for, inter alia, handbags of leather or of
composition leather, of plastic sheeting, of textile materials,
of vulcanized fiber or of paperboard, or wholly or mainly covered
with such materials.
At first glance, it appears that the handbag may be
classified in heading 4202, HTSUSA, or heading 7018, HTSUSA, as
glass beads and articles thereof other than imitation jewelry. In
order to determine which heading is applicable, we must look to
the Explanatory Notes which are the official interpretation of
the HTSUS at the international level.
The Explanatory Notes for heading 4202, HTSUSA, state that
"[t]his heading covers only the articles specifically named
therein and similar containers." The notes go on to say, "[t]he
articles of the second part of the heading [the part in which
handbags are named] must, . . ., be only of the materials
specified therein or must be wholly or mainly covered with such
materials (the foundation may be of wood, metal, etc.) (underline
added).
It appears fairly clear from the Explanatory Notes that in
order to be classified within the provisions of heading 4202,
HTSUSA, the handbag at issue must be only of textile materials,
not textile materials and glass beads, or must have outer
surfaces which are wholly or mainly covered with textile
materials. Since the handbag is completely covered with glass
beads, it cannot be classified under heading 4202, HTSUSA,
because it does not fall within the terms of the heading.
The Explanatory Notes for heading 7018, HTSUSA, contain an
exclusion for "[h]andbags and similar articles of leather or
fabric, decorated with glass beads, imitation pearls or imitation
precious or semiprecious stones (heading 42.02)." We do not
believe this exclusion precludes classification of the instant
handbag. The glass beads covering the outer surface are more
than decoration, they cover the entire, or virtually entire outer
surface. Because of this, as previously discussed, the handbag
cannot be classified in heading 4202.
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HOLDING:
The sample handbag is classifiable under subheading
7018.90.5000, HTSUSA, as articles of glass beads with duty at the
rate of 6.6 percent ad valorem.
Sincerely,
John Durant, Director,
Commercial Rulings Division
cahill library 084748
6cc AD NY Seaport
1cc John Durant
1cc Kevin Gorman NY Seaport
DFCahill:jaj:8/2/89