HQ 960831
January 26,1998
CLA 2 RR:TC:TE 960831 SG
Byron Johnson
McClary, Swift & Co.
Blaine Inc.
P.O. Box 370
Blaine, WA 98230
RE: Classification of a wine bottle bag; decorative covering.
Dear Mr. Johnson:
This is in response to your letter, dated July 1, 1997, on behalf of your client, Eighteen Karet International Product Sourcing, Inc. requesting classification of a drawstring textile fabric wine bottle bag under the Harmonized Tariff Schedules of the United States Annotated (HTSUSA). A sample was submitted to this office.
FACTS:
The submitted sample is a drawstring wine bottle bag constructed of a satin woven fabric which has been cut into panels and assembled by sewing into a bag. Although the fabric used to manufacture the fabric bag has not been identified, it appears to be of man-made filament yarn. The upper third of the bag consists of two layers of fabric which is achieved by folding the fabric down inside the bag and sewing it in place. The doubling of the fabric allows the upper third of the bag to be folded down without exposing an unfinished surface. A polyester cord has been sewn into the bag about 2/3 of the way up the bag from the bottom. The drawstring allows the bottle bag to be tightened around the neck of the bottle. The bag has a separate piece of fabric which forms the bag bottom and it is a size that facilitates a snug fit for a standard wine bottle. The bag appears to be constructed with good quality fabric and is shaped to fit a wine bottle.
You state that the bag is to be used to hold a bottle for decorative purposes.
ISSUE:
What is the proper tariff classification for the drawstring bag?
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LAW AND ANALYSIS:
Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the rules of the headings and any relative section or chapter notes, taken in order. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI.
Heading 4202, HTSUS, provides for, 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. In Totes, Inc., v. United States, 18 C.I.T. 919, 865 F. Supp. 867, 871 (1994), the Court of International Trade concluded that the “essential characteristics and purpose of Heading 4202 exemplars are...to organize, store, protect and carry various items.” The Court also ruled that by virtue of ejusdem generis the residual provision for “similar containers” in heading 4202, HTSUS, is to be broadly construed.
The subject merchandise is designed to suit the needs of the bottle it will carry. The dimensions of the bag comfortably fit over most wine bottles and the cord, in the closed position, is strategically located at the neck of the bottle to allow the bag to be closed with ease. The woven fabric construction does not appear to provide an added cushion of protection for the wine bottle in the event of any sudden blows to the bottle encased therein. The construction of the bag thus appears to ensure that it will be used as a decorative rather than a protective packing for the bottle it will transport.
We note that “bottle cases” are specifically enumerated in heading 4202, HTSUS. The subject bag is not a “case” as it does not share the fundamental characteristics attributable to cases, that is, as it relates to both storage and protection. The lack of these protective and organizational properties preclude the subject merchandise from classification under heading 4202, HTSUS.
Heading 6307, HTSUS, provides for other textile articles not more specifically provided for elsewhere in the tariff schedule. The Explanatory Note (EN) to heading 6307, at page 949, states in pertinent part that the provision includes:
(5) Domestic laundry or shoe bags, stocking, handkerchief or slipper sachets, pajama or
nightdress cases and similar articles.
(6) Garment bags (portable wardrobes) other than those of heading 42.02.
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In addition, the EN to heading 6307, at page 950, state that the heading excludes "travel goods (suit cases, rucksacks, etc.), shopping bags, toilet cases, etc., and all similar containers of heading 42.02." It should be noted that articles such as laundry or shoe bags may take the form of a drawstring bag or pouch.
The foregoing indicates that travel containers of heading 4202, HTSUS, are excluded from heading 6307. Moreover, the exemplars cited as examples of bags classifiable within heading 6307 suggest that certain storage bags are excluded from heading 4202. In practice, the distinction between travel and storage bags is often difficult to apply. For example, garment bags, shoe bags and similar bags may be principally used for either storage or travel depending upon their construction or design. Furthermore, heading 4202 is not limited to containers used for travel purposes. For example, jewelry boxes are classifiable under heading 4202, despite the fact that they are principally used to store and/or display their contents. Other containers of heading 4202, including cutlery cases, cigarette cases and similar cases, may principally be used for storage purposes, depending upon their construction.
In marginal circumstances, we regard the substantiality of the container as a pertinent consideration. Substantial containers are more likely to be used for carrying purposes and are better able to protect their contents. The term "substantial" in this context refers not only to the material composition of the article, but also to whether it has been designed for repetitive use. Thus, lined jewelry pouches constructed of quality materials have been classified in heading 4202 as they were suitable for use during travel. See Headquarters Ruling Letter (HRL) 950000, dated October 31, 1991.
In addition, the Explanatory Note to heading 4202 excludes certain containers which are not specially shaped or fitted. For example, jewelry boxes of a kind sold at retail with their contents are classified in the heading only if they are specially shaped or fitted to hold their contents and suitable for long term use. We regard this requirement as a relevant consideration when classifying merchandise at the periphery of the heading. Containers which are specially shaped or fitted are better suited for organizing and storing merchandise. Thus, jewelry pouches have been excluded from heading 4202 when of an insubstantial nature and not specially fitted to hold jewelry. See HRL 953176, dated March 16, 1993.
In this instance, the bag is insubstantial in the sense that it is not designed for travel or to store or protect its contents. While the bag is capable of re use, it appears to be designed principally as an alternative for gift wrapping and functions as an attractive means for presenting its contents. Moreover, while the pouch is of a size suitable for wrapping a liquor or wine bottle and will be used for this purpose, it is not regarded as specially shaped or fitted. The bag does not feature internal fittings to accommodate a bottle. In addition, it is not shaped to the form of its contents and is capable of holding bottles of various dimensions, as well as any number of smaller items. In HRL 956234, dated November 14, 1994, we classified similar merchandise in heading 6307, HTSUS. Therefore, based on the foregoing, we conclude that the drawstring bag is excluded from heading 4202, HTSUS, and is properly classified in heading 6307, HTSUS.
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HOLDING:
The subject merchandise is classifiable under subheading 6307.90.9989, HTSUS, which provides for other made up articles, including dress patterns: other: other: other: other: other. The applicable rate of duty is 7 percent ad valorem.
The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent negotiations and changes, we suggest that your client check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an issuance of the U.S. Customs Service, which is updated weekly and is available at the local Customs office.
Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, your client should contact the local Customs office prior to importing the merchandise to determine the current status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division