CLA-2: RR:CR:TE: 966842 BtB
Port Director
Bureau of Customs and Border Protection
135 High Street, Room 350
Hartford, CT 06103
RE: Modification of HQ 961942; certain wallets or small handbags
Dear Port Director:
This is in reference to Headquarters Ruling Letter (HQ) 961942, dated October 26, 1999, issued to you by this office regarding the classification, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of two envelope style clutch containers, the Buxton model 39 ("model 39") and the Buxton model 54 ("model 54"). HQ 961942 was initiated by a Request for Internal Advice filed by Meeks & Shepard on behalf of Buxton Company. We have reviewed HQ 961942 and, with respect to model 39, have determined that the ruling is in error. Therefore, this ruling modifies HQ 961942.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed modification of HQ 961942, as described below, was published in the Customs Bulletin, Volume 38, Number 11, on March 10, 2004. No comments were received during the notice and comment period that closed on April 9, 2004.
FACTS:
In HQ 961942, Customs classified model 39 in subheading 4202.21.6000, HTSUSA, as a handbag with an outer surface of leather. The model 39 is a small envelope style clutch container with an outer surface composed of leather. Model 39 is also identified by the importer as an "Ensemble Clutch." Buxton currently imports the model 39 in several different types of cowhide leather and features the model 39 style in several of its ladies’ wallets collections (the “Heiress,” “Elite,” and “Naturale(” collections). The model 39 measures approximately 4 inches in height by 7 1/2 inches in width by 1 inch in depth when empty and in the closed position. A metal zippered closure extends along three sides of the item's central compartment. When unzipped, gussets allow the top opening of the central compartment to expand approximately 6 inches. The inside of the central compartment is divided into two smaller gusseted compartments by a zippered pouch that runs the width of the compartment. There is a single full width slot compartment on each inside wall of the compartment. One wall also features four slots for credit cards or similar objects. The front exterior of the article consists of a flap that folds in a bifold manner and is secured in the closed position by a strap approximately 1 -1/4 inches wide and 2 1/4 inches long with a metal snap fastener. When the fold out flap is in the open position, the article measures approximately 8 inches in height. The interior of the flap contains one slot compartment extending the full width of the article and six slots sized to contain credit cards and similar objects. Inserted permanently into the full-width slot is a check book cover. Also inserted into the full-width slot are 5 transparent envelopes for photos or credit cards. The spine of the flap has an opening allowing for the storage of a thin pen. The interior side opposite the flap features one full width slot compartment and a transparent flat slot pocket for an identification card. The rear exterior features a zippered compartment that extends across the width of the article. The zippered compartment is gusseted on one side which allows that side of the opening to expand approximately 2 inches.
ISSUE:
Whether the merchandise is properly classified in subheading 4202.31, HTSUSA, as an article of a kind normally carried in the pocket or in the handbag, or in subheading 4202.21, as a handbag.
LAW AND ANALYSIS:
Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. If 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.
Heading 4202, HTSUSA, provides for, inter alia, travel bags, handbags, wallets, purses and similar containers. Since the merchandise is similar to handbags and/or wallets, it is covered by the heading. Subheading 4202.21, HTSUSA, covers handbags with outer surface of leather while subheading 4202.31, HTSUSA, covers articles of a kind normally carried in the pocket or in the handbag with outer surface of leather. Accordingly, classification in this case depends on whether or not the item is considered a handbag or an article normally carried in handbags.
The subheading EN to subheadings 4202.31, 4202.32, and 4202.39, HTSUSA, states that the subheading covers "articles of a kind normally carried in the pocket or in the handbag and include spectacle cases, note cases (bill folds), wallets, purses, key cases, cigarette cases, cigar-cases, pipe cases and tobacco pouches." Since subheading 4202.21, HTSUSA, explicitly covers handbags and the EN to subheading 4202.31, HTSUSA, indicates the subheading specifically covers wallets, we must decide whether model 39 is properly classified as a handbag or a wallet.
On June 21, 1995, this office published a General Notice in the Customs Bulletin, Volume 29, Number 25, entitled "The Tariff Classification of `Wallets on a String"' that discussed the attributes of both articles of a kind normally carried in the handbag and handbags. In regard to articles of a kind normally carried in the handbag, the notice states in pertinent part:
Such articles include wallets, which may be described as flat cases or containers fitted to hold credit/identification cards, paper currency, coins and in some instances a checkbook holder ….
In order to be classifiable as a flatgood, the article must fit comfortably in a handbag or pocket. For example, rectangular or square cases measuring approximately 7 1/2 inches by 4 1/2 inches, or 4 3/4 inches by 4 1/2 inches, in their closed position, have been classified as flatgoods.
Combining the characteristics of two flatgoods does not transform a flatgood into a handbag. Thus, the addition of a spectacle case holder to what is otherwise nothing more than a flat case with a carrying strap has been classified as a flatgood.
The addition of a wrap around zipper does not in and of itself transform a flatgood into a handbag, particularly where the zipper functions merely to secure its contents in the closed or carrying position. Specifically, the presence of a zipper which simply holds the two halves of a wallet or similar container together, so that cards, currency or other articles in fitted compartments do not fall out, does not transform the case into a handbag.
With respect to handbags, the notice states:
A hand bag functions as a carry-all container for various small personal effects:
A container which is not fitted to hold articles such as credit/identification cards, paper currency, coins or a checkbook holder is classifiable as a handbag. Therefore, a clutch bag or an evening bag measuring, for example, 7 1/2 inches by 4 1/2 inches, shall be classified as a handbag.
The determinative feature of a handbag is its ability to hold several objects not associated with a wallet. A bag which may accommodate articles such as a hairbrush, cosmetics, keys and other loose personal effects shall be classified as a handbag, even if it also incorporates the features of a flat case fitted to hold the items set forth above.
The presence of gusseted and/or zippered compartments will be taken into consideration in a determination of whether a case has generic carrying capacity. The presence of a wrap around zipper may be an indication that the container is a carry all if the zipper creates an inner space suitable for carrying three dimensional items.
As stated in HQ 953774, dated August 2, 1993, the classification of envelope-style clutch containers proceeds on a case-by-case basis. In prior rulings involving similarly-sized envelope-style clutch containers, we have considered a container’s shape and size, as well as the types, shapes and sizes of its compartments, fittings and openings, to determine if the item is classifiable as a wallet or as a handbag. Generally, if an envelope-style clutch container can fit comfortably into a pocket or handbag, is fitted to hold items normally associated with a wallet such as currency, photos, identification or credit cards, and checkbooks, and is not designed to hold 3-dimensional items not associated with the capacities of a wallet or flatgood, the container would be classifiable as an article normally carried in the pocket or in the handbag.
We have ruled the presence of wrap-around zipper closures (See HQ 957632, dated March 24, 1995), snap closures (See HQ 959185, dated February 10, 1997), spectacle cases (See HQ 957632), belt loops (See HQ 959185), shoulder straps (See HQ 956017, dated June 10, 1994), and check book covers (See HQ 953774), do not preclude an envelope-style clutch container from being classified as a wallet. However, the addition of such features are steps in the direction of an article being classified as a handbag, as the article begins to take the character of a carry-all container. As stated in the June 21, 1995 General Notice and repeated in numerous rulings, the determinative feature of a handbag is its ability to hold several objects not associated with a wallet.
Model 39's central compartment top opening expands to approximately 6 inches when unzipped and fully opened. Because of its gussets, it can, when open, accommodate 3-dimensional personal effects not normally associated with a wallet. However, when the compartment is zipped in the closed position, the compartment is less than one inch thick. Its ability to accommodate personal effects other than small, narrow items such as coins or flat items such as paper currency or credit cards when closed is very limited. The gussets mainly permit the user to expand the compartment to view, insert, and/or remove contents, but they do not appear designed to organize or store 3-dimensional personal effects when the compartment is closed. In fact, the gussets are not functional when the item’s central compartment is zipped. Although a few small 3 dimensional items can be stuffed into the compartment and the zipper forced shut, the result is a container with a distended and awkward appearance. Prolonged storage of small 3-dimensional items could disfigure the container’s sleek leather outer surface. Additionally, most of model 39's other compartments (those under the fold out flap, the interior side compartment opposite the fold out flap, and the rear exterior compartment) can only hold flat items such as paper currency or credit cards. The spine can hold a thin pen, likely for use with a checkbook that the item is designed to hold.
We find that model 39 is classified as an article normally carried in the pocket or in the handbag. Model 39’s compartments are fitted to hold items normally associated with a wallet, such as currency, photos, identification or credit cards, and a checkbook. These compartments cannot easily accommodate small 3-dimensional personal effects when the container is in the closed position. Although model 39 has a wrap-around zipper along the three sides of its central compartment, we find that it functions mainly to secure its contents in the closed position and does not create an inner space suitable for carrying three-dimensional objects. Similarly, while the gussets expand the central compartment to view, insert, and/or remove contents, they do not function to permit the storage of 3-dimensional personal effects when the compartment is zipped.
HOLDING:
HQ 961942, dated October 26, 1999, is hereby modified. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Model 39 is properly classified in subheading 4202.31.6000, HTSUSA, as an article normally carried in the pocket or in the handbag with outer surface of leather. The general column one rate of duty is 8%.
Sincerely,
Myles B. Harmon, Director
Commercial Ruling Division