CLA-2 RR:CR:TE 963411 SG
Mr. Irwin A. Seltzer
H.Z. Bernstein Co.
A Division of Union Transport Corp.
2975 Kennedy Boulevard
Jersey City, New Jersey 07306
Re: Request for Ruling on Wine Bottle Bag; For Protecting, Storing and Carrying; Specially Shaped or Fitted; Substantial Construction; Heading 4202, HTSUSA; Not Mere Decorative Covering; Not Other Made Up Textile Articles; Heading 6307, HTSUSA
Dear Mr. Seltzer:
This is in response to your request dated April 19, 1999, on behalf of your client, Acme LLC, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of a wine bottle bag made in China. A sample of the wine bottle bag was provided with the request.
FACTS:
The submitted sample is a wine bottle bag comprised of 2 layers of velveteen fabric. For purposes of this ruling, we assume the bag is constructed of 100% cotton velveteen. The velveteen fabric is a heavy, thick pile fabric. The two layers of fabric are complimentary in color and the wine bottle bag is reversible. The bag measures approximately 15 inches in length and features a rounded bottom measuring approximately five inches in diameter. The wine bottle bag comes with a cabled cord with tassels on each end. There is a loop on both the interior and exterior of the bag approximately five inches from the top of the bag that is for holding the cord. The cord is strategically located at the neck of the bottle which allows the cord to be tied with ease. The upper one third of the bag is designed to be folded down exposing the contrasting colored fabric. This folded down portion of the wine bottle bag design has the dual function of providing a decorative accent and also results in the upper portion of the bag being four layers thick and thus providing exceptional protection against breakage. 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 is of a kind normally sold separately at retail.
ISSUE:
What is the proper tariff classification for the wine bottle bag?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule 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 may then be applied. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI.
We find that the wine bottle bag is similar to drawstring bottle bags previously classified by this office. Drawstring bottle bags of textile materials have been classified under both heading 4202, HTSUSA, and heading 6307, HTSUSA, depending on their construction and the purpose(s) for which they are designed. See Headquarters Ruling Letter (HQ) 957464, dated April 18, 1995; HQ 959538, dated November 7, 1996; HQ 960403, dated August 1, 1997; HQ 960367, dated August 6, 1997; HQ 960831, dated January 26, 1998; HQ 960830, dated July 21, 1998; and HQ 963222, dated August 19, 1999.
Since heading 6307, HTSUSA, is a residual provision covering textile articles not covered elsewhere in the tariff schedule, we will first examine heading 4202, HTSUSA. Heading 4202, HTSUSA, 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.
The EN to heading 4202, HTSUSA, state that the heading only covers the specifically named containers and similar containers. Although “bottle cases” are specifically enumerated in the heading, Customs has stated that wine bottle bags are not “bottle cases” as contemplated by the heading. See HQ 960367, HQ 960403, HQ 960830, HQ 960831 and HQ 963222 (cited above).
In order to warrant classification under heading 4202, HTSUSA, a bottle bag must be found to share the fundamental characteristics attributable to containers of heading 4202, HTSUSA. In Totes, Inc. v. United States, 18 C.I.T. 919, 865 F. Supp. 867, 871 (1994), aff’d, 14 Fed. Cir. (T) ___, 69 F.3d 495 (1995), 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.” With respect to the broad reach of the residual provision for “similar containers” in heading 4202, HTSUSA, the Court found that the rule requires only that the imported merchandise possess the essential character or purpose running through all of the enumerated exemplars. Thus, we must determine whether or not the wine bottle bag is for organizing, storing, protecting and carrying various items.
Several Headquarters Ruling Letters describe wine bottle bags which have been determined to be for protecting, storing, and carrying wine bottles. In each ruling, Customs found that the construction of the bottle bags ensured that they would be used as “protective packing”. In HQ 960367 (cited above), Customs classified a “drawstring cooler sack” imported with a bottle of champagne under heading 4202, HTSUSA. The cooler sack consisted of various layers of material: an exterior layer of nylon fabric, a layer of man-made fiber for insulation, a layer composed of two layers of plastic sheeting combined with a glass fiber scrim, and an innermost layer made of plastic metalized with aluminum. Customs held that the purpose of the cooler sack was to provide protection against breakage of the bottle, insulate the bottle and keep it at a desired temperature, and secure a means by which to carry the bottle. In HQ 960403 and HQ 963222 (cited above), Customs classified wine bottle bags composed of thick velveteen fabric (pile fabric) under heading 4202, HTSUSA. Customs stated that the pile fabric construction provided an added cushion of protection for the wine bottle in the event of any sudden blows to the encased bottle. Customs found that the purpose of the bags was to provide protection against breakage of the bottle and to secure a means by which to carry the bottle. Accordingly, wine bottle bags of durable construction made with quality materials which insulate or protect a bottle will be considered to be for protecting, storing and carrying a wine bottle.
The instant wine bottle bag possesses properties similar to the bottle bags classified under heading 4202, HTSUSA. The wine bottle bag is of strong and durable construction. The sturdy construction of the bag ensures that it will be used as protective packing not only for one wine purchase, but for any future wine purchases. The thick pile fabric comprising the wine bottle bag will preserve or protect a wine bottle against breakage. We note that the thickness of the pile fabric is similar to the wine bottle bag that was the subject of HQ 960403 (cited above). Although the wine bottle bag functions as an attractive means for presenting its contents, it does not appear to be designed principally as an alternative for gift wrapping or merely a decorative cover for a wine bottle. We find that the purpose of the bag is to: 1) provide protection against breakage of the bottle; and 2) secure a means by which to carry the bottle. Thus, the instant wine bottle bag is for protecting, storing, and carrying a wine bottle and is properly classified under heading 4202, HTSUSA.
Additionally, the EN to heading 4202, HTSUSA, excludes certain containers which are not specially shaped or fitted. Customs regards this requirement as a relevant consideration when classifying merchandise at the periphery of the heading. See HQ 960830, HQ 960831 and HQ 963222 (cited above). Containers which are specially shaped or fitted are better suited for organizing and storing merchandise. Customs has stated that although there is no requirement that bags or similar containers of the second part of heading 4202, HTSUSA, be specially shaped or fitted, it is indicative of a 4202, HTSUSA, classification rather than a classification in 6307, HTSUSA. See HQ 960830 and HQ 960831 (cited above). We note that most wine bottle bags classified under heading 4202, HTSUSA, have had a separate circular shaped piece of fabric which formed the bottom of the bottle bags. See HQ 960367 and HQ 963222 (cited above). Although not explicitly stated in the previous rulings, such specially shaped or fitted construction weighed in favor of classification under heading 4202, HTSUSA.
The instant wine bottle bag is regarded as specially shaped or fitted. The wine bag is of a size suitable for presenting a liquor or wine bottle. The bag has a specially shaped bottom formed from a separate piece of fabric which allows the bag to better accommodate a bottle. Given the specially shaped or fitted nature of the instant wine bottle bag combined with our previous conclusion that the bag is for protecting, storing and carrying, the instant wine bag is properly classified under heading 4202, HTSUSA.
Having determined that the wine bottle bag is classified under heading 4202, HTSUSA, a discussion of heading 6307, HTSUSA, is not necessary. However, in order to facilitate understanding of the types of wine bottle bags that are classified under heading 4202, HTSUSA, as opposed to heading 6307, HTSUSA, we will address the reasons why the wine bottle bag is excluded from heading 6307, HTSUSA.
As stated previously, heading 6307, HTSUSA, provides for other textile articles not more specifically provided for elsewhere in the tariff schedule. The EN to heading 6307, HTSUSA, state in pertinent part that the provision includes: domestic laundry or shoe bags; stocking, handkerchief or slipper sachets; pajama or nightdress cases; and garment bags other than those of heading 4202, HTSUSA. Drawstring wine bottle bags are similar to exemplars such as laundry bags and shoe bags in that they may take the form of drawstring bags.
The EN to heading 6307, HTSUSA, also states that travel bags and all similar containers of heading 4202, HTSUSA, are excluded from the heading. Customs has noted that exemplars of heading 6307, HTSUSA, such as garment bags, could be used for travel or storage, depending upon their construction or design. See HQ 957464, HQ 960831 and HQ 960830 (cited above). Thus, it becomes necessary to distinguish between travel bags and storage bags. In practice, the distinction between travel and storage bags is often difficult to apply. To guide us in this matter, Customs has stated that the substantiality of the container is a pertinent consideration. See HQ 957464, HQ 960831 and HQ 960830 (cited above). 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. Accordingly, substantial bottle bags are excluded from heading 6307, HTSUSA.
The wine bottle bag at issue is substantial in the sense that it is designed for travel or to protect, store and carry its contents. The bag is designed for re use and is not designed principally as an alternative for gift wrapping. The thick pile fabric construction provides an added cushion of protection for the wine bottle in the event of any sudden blows to the bottle. The wine bottle bag provides double thickness protection to the bottle when the top of the bag is folded down to reveal the contrasting fabric. The construction of the wine bottle bag thus ensures that it will be used as protective packing or for convenient carrying of a bottle. The bag is constructed of materials durable enough to indicate it is intended to be used as more than a mere storage bag. Furthermore, the wine bottle bag’s durability is inconsistent with use as a gift bag.
We find that the instant wine bottle bag is distinguishable from the wine bottle bags described as “decorative coverings” classified under heading 6307, HTSUSA. See HQ 960831 and HQ 960830 (cited above). In HQ 960831, the wine bottle bag at issue was a decorative drawstring bag comprised of thin satin woven fabric. The bag did not feature any cushioning, insulation or interior lining. In HQ 960830 (cited above), the wine bottle bag at issue had an exterior surface covered with nylon textile flock and was decorated by a strip of white faux fur sewn around the top circumference of the bag. In both cases, Customs stated that the construction and appearance of the bags as a whole ensured that they would be used as decorative rather than protective packing for bottles. Furthermore, emphasis was placed on the fact that the bags were principally designed as alternatives to gift wrapping and functioned as an attractive means for presenting their contents. The instant wine bottle bag is distinguishable in that it provides added cushioning or insulation and is not principally designed as an alternative to gift wrapping. Accordingly, we find that the subject wine bottle bag is substantial and is precluded from classification under heading 6307, HTSUSA.
HOLDING:
The subject merchandise constructed of 100% cotton velveteen is classifiable under subheading 4202.92.6091, HTSUSA, which 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: other: with outer surface of sheeting of plastic or textile material: other: of cotton; other. The general column one duty rate is 6.8 percent ad valorem and the quota category is 369.
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 renegotiations and changes, to obtain the most current information available, we suggest that you or your client check, close to the time of shipment, the Status Report on Current Import Quotas (Restrain Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your 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 applicable to textile merchandise, you or your client should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division