CLA-2: RR:CR:TE: 967048 BtB
Port Director
Bureau of Customs and Border Protection
10 Causeway Street
Room 603
Boston, MA 02222
Attention: John W. Cox
RE: Decision on Application for Further Review of Protest No.
0401-01-100186
Dear Port Director:
This is a decision on the Application for Further Review (“AFR”) of Protest Number 0401-01-100186, timely filed by Meeks & Sheppard on July 30, 2001, on behalf of Buxton Company, concerning the classification of five models of envelope-style clutch containers entered in 2000, the Buxton model 13, model 29, model 37, model 39, and model 40.
As the classification of model 39 was addressed in Headquarters Ruling (HQ) 966842, dated May 10, 2004, and Buxton Company no longer contests classification of the model 13 as a handbag, this decision addresses only the model 29, model 37 and model 40.
FACTS:
The model 29 is an envelope-style clutch container with an outer surface of leather measuring approximately 3-¾ inches in height by 7 inches in width. It opens in a bifold manner and has top and bottom sections. The top-interior section has an identification window measuring approximately 2 inches high and 3 inches wide and there is a full-width bill slot behind it. Behind the bill slot is the top section’s central compartment. A metal zippered closure extends along three sides of the 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 transparent flat pocket on the front gusseted compartment. Two centered horizontal credit card slots, with a full-width bill slot behind them are situated at the back of the rear gusseted compartment. The top-exterior section has a full-length bill slot and a strap near its top center, measuring approximately 2-3/4 inches long by 1-1/4 inches wide that snaps onto the exterior bottom section with a metal snap fastener for keeping the container in the closed (folded) position. When the strap is unsnapped and the container unfolded, the article measures approximately 8 inches in height. On its bottom-interior section, it has a flap with five vertical credit card slots on its front. There is a full-width bill slot behind the credit card slots. On the reverse side of the flap, is a slot for inserting a checkbook. Below the flap is another full-width slot that contains a plastic insert with 5 transparent envelopes for photos or credit cards. Beneath the envelopes (on the inside bottom wall), there is a vertical slot pocket opening near the left edge and the pocket extends to the right edge of the item. The bottom-exterior features only the portion of the metal fastener to which the top-exterior section flap snaps to close the article.
The model 37 is an envelope-style clutch container with an outer surface of leather measuring approximately 3-¾ inches in height by 7 inches in width. It opens in a bifold manner and has top and bottom sections. The top-interior section has an identification window starting approximately ¾ of an inch from the left edge of the item. The identification window measures approximately 2 inches high by 3 inches wide. On the top right corner of the identification window, there is a metal snap fastener to which the metal snap on the bottom-interior section fastens for keeping the container in the closed (folded) position. To the right of the identification window, there are five vertical credit card slots. Behind the identification window and the slots, there are two full-width bill slots. Behind the bill slots is the top section’s central compartment. A metal zippered closure extends along three sides of the 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 flat zippered pouch that runs the width of the compartment. On the front gusseted compartment, there is a full-width bill slot and, in front of the bill slot, two centered horizontal credit card slots. Two centered horizontal credit card slots, with a full-width bill slot behind them are situated at the back of the rear gusseted compartment The top-exterior section of the item is completely plain and flat, with no compartments or flaps. When the container is unsnapped and unfolded, the article measures approximately 7-3/4 inches in height. The bottom-interior section has a centered identification window measuring approximately 2 inches high by 3 inches wide. At the bottom of the identification window, there is a metal snap fastener that attaches to the fastener on the top-interior section for keeping the container in the closed (folded) position. Behind the identification window are two full-length bill slots. The bottom-exterior section of the container is completely plain and flat, with no compartments or flaps.
The model 40 is an envelope-style clutch container with an outer surface of leather measuring approximately 3-¾ inches in height by 7-1/2 inches in width. It opens in a trifold manner and has a top, a middle, and a bottom section. The top-interior section has an identification window starting approximately 1/2 of an inch from the left edge of the item. The identification window measures approximately 2 inches high by 3 inches wide. On the top right corner of the identification window, there is a metal snap that attaches to either of the two metal fasteners on the bottom-exterior section for keeping the container in the closed (folded) position. To the right of the identification window, there are six vertical credit card slots. Behind the identification window and the slots is a full-width bill slot. The top-exterior section is completely plain and flat, with no compartments or flaps. The middle-interior section has two rows of three horizontal credit card slots. Behind the credit card slots are two full-width bill slots, one with a zipper closure. The middle-exterior section has one main divided compartment, with a metal zippered closure extending along three of its sides. When unzipped, gussets allow the top opening of the main compartment to expand approximately 6 inches. There are no slots or additional compartments in the main compartment. The bottom-interior section has a full-width bill slot and, in front of the bill slot, there is a permanently affixed checkbook cover flap with a pen holder. On the reverse side of flap, there is a slot for inserting a checkbook. Under the flap, there is another full-width slot that contains a plastic insert with 5 transparent envelopes for photos or credit cards. Below the envelopes, approximately ½ of an inch from the left edge, there is an identification window measuring approximately 2 inches high by 3 inches wide. To the right of the identification window, there are six vertical credit card slots. The bottom-exterior section features only the two metal fasteners, either one of which the metal fastener on the top-interior section can snap to, to close the article.
ISSUE:
Whether the model 29, model 37 and model 40 are classified in subheading 4202.31, HTSUSA, as articles of a kind normally carried in the pocket or in the handbag, or in subheading 4202.21, as handbags.
LAW AND ANALYSIS:
Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides, in part, that classification decisions are to be "determined according to the terms of the headings and any relative section or chapter notes." In the event that 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 Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI. While neither legally binding nor dispositive of classification issues, the EN provide commentary on the scope of each heading of the HTSUSA and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
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 items are considered handbags or articles 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 the model 29, model 37 and model 40 are properly classified as a handbags or wallets.
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 checkbook 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.
The compartments of the model 29, model 37 and model 40 are generally fitted only to hold items normally associated with a wallet such as currency, photos, identification or credit cards, and checkbooks. However, each of the models has one compartment that, when unzipped and fully opened, has gussets that allow it to expand to approximately 6 inches at its top opening. When this compartment is open, it can accommodate 3-dimensional personal effects not normally associated with a wallet. However, when this compartment is empty and zipped in the closed position, the compartment measures less than one inch thick in each of the models. This compartment’s 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 to be designed to help organize or store 3-dimensional personal effects when the compartment is closed. In fact, the gussets are not functional when the 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 would likely disfigure the outer surface of the models.
In light of the analysis above, the model 29, model 37 and model 40 are classified as articles normally carried in the pocket or in the handbag. The compartments of the models are fitted to hold items normally associated with a wallet, such as currency, photos, identification or credit cards, and a checkbook. The models’ compartments cannot easily accommodate small 3-dimensional personal effects when in the closed position. Although each of the models has a gusseted compartment with a wrap-around zipper closure, we find that the gussets function mainly to allow the user to view, insert, and/or remove contents and that the zipper closures function mainly to secure the contents of the compartment not to create an inner space for 3-dimensional items.
HOLDING:
The protest should be ALLOWED in regard to model 29, model 37, and model 40, as these models are properly classified in subheading 4202.31.6000, HTSUSA, as articles normally carried in the pocket or in the handbag with outer surface of leather. The general column one rate of duty applicable (in 2000) is 10 percent ad valorem.
In accordance with Section IV of the Customs Protest/Petition Processing Handbook (CIS HB, January 2002, pp. 18 and 21), you are to mail this decision, together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entries in accordance with the decision must be accomplished prior to mailing of the decision. No later than 60 days from the date of this letter, the Office of Regulations and Rulings will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and by other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial Rulings Division