CLA-2 CO:R:C:T 956017 NLP
Kim Greenwood
Customs Import Administration
Esprit De Corp.
900 Minnesota Street
San Francisco, CA 94107
RE: Modification of PC 890021 and PC 887252; Heading 4202; ENs to
heading 4202; wallets; handbags; articles of a kind normally
carried in the handbag or pocket; HRLs 956241, 953774, 082265,
083992 and 088245
Dear Ms. Greenwood:
On July 12, 1993, and September 16, 1993, Customs issued to
Esprit De Corp., Pre-Entry Classification Ruling Letters (PC)
887252 and 890021, respectively, which classified various
containers under the Harmonized Tariff Schedule of the United
States (HTSUS). In a letter to Customs Headquarters, dated
February 28, 1994, you requested that we reconsider the
classification of two styles of containers subject to these
rulings. Upon review, we are of the opinion that the
classifications of the two containers were incorrect and this
ruling modifies those classifications.
FACTS:
The first article, style no. 170049, is a tri-fold container
made of PVC plastics laminated over a textile backing material with
an adjustable single snap closure and a removable shoulder or neck
strap. It measures 6-3/4 inches (adjustable to 7 inches) by 5-
3/4 inches. The top flap measures approximately 5-3/4 inches by
3-1/2 inches and snaps midway down the outside bottom third of the
article. The strap consists of a 3-3/4 inch by 1/2 inch strip of
laminated plastic material to which each end of the strap is sewn,
thereby forming a closed loop measuring 28-1/2 inches in length.
The strip has two snap halves with holes, which fasten to two
corresponding snap posts on the inside front fold, thereby securing
the strap to the container.
The interior middle section of the article contains a window
identification slot, five credit card slots, a 5-1/2 inch long
slot, an open compartment and a loop to hold a pen or pencil. The
interior bottom section contains an open compartment and a zippered
pocket. The open compartments and zippered pocket are suitable for
the storage of paper money and other small flat personal effects.
An elastic 1-1/4 inch long loop is sewn to the fold between the
interior middle and bottom sections. An accordion fold zippered
pocket is located on the exterior middle section and is suitable
for the storage of coins.
The second article, style no. 870049, is also a tri-fold
container made of PVC plastics laminated over a textile backing
material with a two snap closure and a removable shoulder or neck
strap. This style has the same measurements, slots, compartments
and pockets as style no. 170049. However, this style lacks the
elastic 1-1/4 inch long loop that is present on style no. 170049.
This style's snap closure strap attachment is also somewhat
different than the one on style no. 170049. The strap attachment
consists of two snap halves located on each end of the strap which
fasten to corresponding snap posts located on the inside upper
front fold of the container. Once attached, the strap measures 28-
1/2 inches in length.
PC 890021 classified style 170049 in subheading 4202.22.1500,
HTSUS, which provides for "[t]runks, suitcases...; traveling bags,
toiletry bags, knapsacks and backpacks, handbags...: [h]andbags,
whether or not with shoulder strap, including those without handle:
[w]ith outer surface of sheeting of plastic or of textile
materials: [w]ith outer surface of sheeting of plastic." PC 887252
also classified style 870049 in subheading 4202.22.1500, HTSUS.
It is your position that the articles are classifiable in
subheading 4202.32.1000, HTSUS, which provides for "[t]runks,
suitcases...; traveling bags, toiletry bags, knapsacks and
backpacks, handbags...: [a]rticles of a kind normally carried in
the pocket or in the handbag: [w]ith outer surface of sheeting of
plastic or of textile materials: [w]ith outer surface of sheeting
of plastic: [o]f reinforced or laminated plastics."
ISSUE:
Are the subject tri-fold containers classifiable as handbags
in subheading 4202.22.1500, HTSUS, or as articles normally carried
in the pocket or in the handbag in subheading 4202.32.1000, HTSUS?
LAW AND ANALYSIS:
The classification of goods under the HTSUS is governed by
the General Rules of Interpretation (GRI's), taken in order. GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes. In the event that the goods cannot be classified solely on
the basis of GRI 1, and if the headings and legal notes do not
otherwise require, the remaining GRI's may be applied, taken in
order.
Heading 4202, HTSUS, provides for the following:
Trunks, suitcases, vanity cases, attache cases,
briefcases, school satchels, spectacle cases, binocular
cases, camera cases, musical instrument cases, gun
cases, holsters and similar containers; traveling bags,
toiletry bags, knapsacks and backpacks, handbags,
shopping bags, wallets, purses, map cases, cigarette
cases, tobacco pouches, tool bags, sports bags, bottle
cases, jewelry boxes, powder cases, cutlery cases and
similar containers, of leather or of composition
leather, of sheeting of plastics, of textile materials, of
vulcanized fiber or of paperboard, or wholly or mainly
covered with such materials or with paper.
Thus, handbags, wallets and similar containers with an outer
surface of plastic sheeting are classifiable under heading 4202,
HTSUS.
At the six-digit level, subheading 4202.22, HTSUS, provides
for handbags with outer surface of sheeting of plastic. On the
other hand, subheading 4202.32, HTSUS, encompasses articles of a
kind normally carried in the pocket or in the handbag with an outer
surface of sheeting of plastic. The terms "handbags" and "articles
of a kind normally carried in the pocket or in the handbag" are not
defined in the HTSUS. However, examples of the latter category are
set forth in the Harmonized Commodity Description and Coding System
Explanatory Note to heading 4202, at page 613:
Subheadings 4202.31, 4202.32 and 4202.39
These subheadings cover articles of a kind normally carried
in the pocket or in the handbag and include spectacle cases,
note-cases (bill-folds), wallets, key-cases, cigarette-
cases, cigar-cases, pipe-cases and tobacco-pouches.
Clearly wallets are within the scope of the above subheadings that
cover articles of a kind normally carried in the pocket or handbag.
In Headquarters Ruling Letter (HRL) 956241, dated April 22,
1994, we classified goods substantially similar in design to the
instant merchandise. Though the container in that case was made
out of cotton denim, it had a tri-fold design, measured
approximately 6 inches by 5-1/2 inches, was fitted with four credit
card slots, an identification card slot with a window, two vinyl
lined zippered compartments, one of which was designed to hold
paper currency. It also had an exterior zippered compartment and
a shoulder strap. Citing lexicographic sources, we observed that
the container was prima facie classifiable as a wallet, which is
regarded as an article of a kind normally carried in the pocket or
in the handbag. However, it also had certain features associated
with handbags and was, therefore, prima facie classifiable as a
handbag. As both of these subheadings described the merchandise,
we resorted to the principles of GRI 3 to determine the proper
classification.
We determined that the term "wallet" most specifically
described the tri-fold article. We stated that "[w]allets are
usually specially shaped or fitted to hold articles such as paper
currency, credit cards, coins and identification cards." Moreover,
subheading 4202.32, HTSUS, provides for "articles of a kind
normally carried in the pocket or in the handbag," which implies
that wallets must be small enough for this purpose. Based on the
size and features of the container, we held that it was specially
shaped or fitted to hold articles associated with wallets and would
fit comfortably into a handbag. Therefore, it was classifiable in
subheading 4202.32, HTSUS.
Moreover, in determining that the article was not classifiable
as a handbag, we discussed the term "handbag" stating that it
"applies generally to containers which are suitable for carrying
and holding a variety of small personal effects." The style in HRL
956241 was deemed not large enough to accommodate items normally
carried in a handbag, such as a hairbrush, cosmetics or a set of
keys on a chain. Furthermore, although the carrying strap
suggested that the container would actually be used in a manner
consistent with a handbag, we were of the opinion that the strap
in and of itself should not affect its classification. We
concluded that absent the strap containers such as those would not
be principally used as handbags. See Additional U.S. Rule of
Interpretation 1(a). Therefore, as stated above, the container was
more accurately described as an article of a kind normally carried
in the pocket or handbag.
Similarly, in the instant case, the containers have features
that render them prima facie classifiable as wallets or handbags.
For example, both styles exhibit wallet-like features in that they
are relatively flat and have compartments that are
specially shaped and fitted to hold such items as paper currency,
credit cards and change. However, as the containers have shoulder
straps and are designed to carry money, credit cards and other
small personal effects, they are also prima facie classifiable as
handbags.
After examination of the subject container styles, however,
we conclude that the term "wallet" most specifically describes
them. As stated above, wallets are usually specially shaped or
fitted to hold paper money, credit cards, coins and identification
cards. Here, both styles feature slots and compartments fitted to
hold these articles. In addition, based on their sizes, they will
also fit comfortably in a handbag. Therefore, these containers
will be principally used as articles carried in the handbag.
We do note that the samples also contain compartments which
are not specially shaped or fitted to hold certain personal
effects. In HRL 954337, dated August 2, 1993, we dealt with the
classification of, inter alia, a container that had both wallet
and handbag-like features. While we held that the container was
most specifically described by the term wallet, this container also
had compartments which were not specially shaped or fitted to hold
certain personal effects. They resembled those found in handbags
and were suitable for holding a variety of small personal effects.
However, we found that the compartments were not as large as those
found in a typical handbag and they could not accommodate items
such as a hairbrush, certain cosmetics or a set of keys on a chain.
Therefore, we concluded that these compartments played an
"ancillary role in relation to the entire article." In the instant
case, the unshaped compartments are also not as large as those
found in a typical handbag. They cannot accommodate, for example,
items such as a hairbrush, certain cosmetics or a set of keys on
a chain, which are often placed in handbags. Thus, we conclude
that these compartments also play "an ancillary role in relation
to the entire article."
Moreover, as with the container discussed in HRL 956241, the
presence of the strap does not affect the classification of these
containers. In fact, as the straps on the instant containers are
removable, there is an even stronger argument that these containers
will not be principally used as handbags. See, HRL 082265, dated
March 20, 1989, where in classifying a ski wallet with a textile
braided neck strap, we held that, though the ski
wallet was intended to be worn around the neck for the convenience
of the skier, it was an article of a kind that would normally be
carried in the pocket or handbag. Accordingly, the ski wallet was
classified in heading 4202, HTSUS; HRL 083992, dated April 24,
1992, which classified a nylon neck pouch designed to be worn
around the neck by means of a braided textile cord and HRL 088145,
dated February 26, 1991, which classified a neck money belt
attached to a small cord dropped over the neck, wherein we held
that though the items clearly were designed to be worn around the
neck, they were nonetheless classifiable in heading 4202, HTSUS,
as articles of a kind normally carried in the pocket or handbag.
Thus, the subject containers are classifiable as "articles of a
kind normally carried in the pocket or in the handbag" in
subheading 4202.32, HTSUS.
HOLDING:
Style nos. 170049 and 870049 are classified in subheading
4202.32.1000, HTSUS, which provides for "[t]runks, suitcases...;
traveling bags, toiletry bags, knapsacks and backpacks,
handbags...: [a]rticles of a kind normally carried in the pocket
or in the handbag: [w]ith outer surface of sheeting of plastic or
of textile materials: [w]ith outer surface of sheeting of plastic:
[o]f reinforced or laminated plastics." The rate of duty is 12.1
cent/kg + 4.6% ad valorem.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to importation of this merchandise to
determine the current status of any import restraints or
requirements.
In order to ensure uniformity in Customs classification of
this merchandise and eliminate uncertainty, pursuant to section
177.9(d)(1), Customs Regulations (19 CFR 177.9(d)(1)), PCs 887252
and 890021 are partially modified to reflect the above
classification effective with the date of this letter. For
purposes of future transactions concerning these styles, PCs 887252
and 890021 will not be valid precedent.
Sincerely,
John Durant, Director
Commercial Rulings Division