CLA-2 OT:RR:CTF:TCM H025873 GC
Daniel Gluck, Esq.
Serko, Simon, Gluck and Kane, LLP
1700 Broadway, 31st Floor
New York City, New York 10019
RE: Request for reconsideration of NY N022627; Tariff classification of a rolling cooler bag with detachable tote bag
Dear Mr. Gluck:
This letter is in reference to your request, dated April 3, 2008, on behalf of California Innovations, Inc. (California Innovations), for reconsideration of NY N022627, dated February 27, 2008, concerning the classification of a rolling cooler bag with a detachable tote bag under the Harmonized Tariff Schedule of the United States (HTSUS).
In NY N022627, the National Commodity Specialist Division of U.S. Customs and Border Protection (CBP) classified the rolling cooler bag under subheading 4202.92.0807, HTSUS (2008), which provides for, in pertinent part: “…traveling bags, insulated food or beverage bags… of textile materials…: Other: With outer surface of sheeting of plastic or textile materials: Insulated food or beverage bags: With outer surface of textile materials: Other… Of man-made fibers”. The tote bag was separately classified under subheading 4202.92.3031, HTSUS (2008), which provides for, in pertinent part: “…traveling bags… and similar containers… of textile materials…: Other: With outer surface of sheeting of plastic or textile materials: Travel, sports and similar bags: With outer surface of textile materials: Other… Other: Of man-made fibers: Other”. The provisions are unchanged in the 2010 version of the HTSUS. Pursuant to your reconsideration request and your supplemental submission of April 15, 2008, we have reviewed NY N022627 and find it to be in error.
Notice of the proposed action was published in the Customs Bulletin, Vol. 44, No. 24, on June 9, 2010. No comments were received in response to the notice.
FACTS:
In NY N022626, CBP described the rolling cooler bag, in pertinent part, as a soft-sided insulated cooler bag with wheels, the outer surface of which is constructed of both man-made textile material and polyvinyl chloride (PVC) plastic sheeting. The ruling states that the man-made textile material covers the majority of the total outer surface area of the rolling cooler bag. You have since clarified that the rolling cooler bag is not composed of a man-made textile material, but of vinyl. Consequently, the rolling cooler bag would be independently classified under subheading 4202.92.1000, HTSUS, which provides for, in pertinent part: “…traveling bags, insulated food or beverage bags… of textile materials…: Other: With outer surface of sheeting of plastic or textile materials: Insulated food or beverage bags: Other”.
The cooler bag measures approximately 14 inches (width) by 14 inches (height) by 11 inches (depth), and features an insulated interior with a removable plastic lining. There are also two pockets on the side of the cooler bag, the flaps of which are closed via hook-and-loop strips. It can be lifted using two handles, which are connected by a padded strap, or it can be rolled using the retractable handle. The top section of the cooler bag has a zippered storage compartment for storing a removable nylon tote bag.
The nylon tote bag, when removed from its compartment, has approximately the same measurements as the rolling cooler bag and features a drawstring closure and webbed shoulder straps. When used to carry other materials, the tote bag can be carried separately by the shoulder straps or attached to the cooler by means of four hook-and-loop strips, which attach the bottom of the tote bag to the top of the cooler, and two plastic “S” clips, which attach to two hooks located on the cooler’s retractable handle.
In your request to reconsider NY N022627, you argue that the cooler and tote bag are classifiable together as a composite good, with the cooler imparting the merchandise with its essential character.
ISSUE:
Are the rolling cooler bag and detachable tote bag classified together as a composite good or a set per GRI 3? If so, which component, if any, imparts the whole with its essential character?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
4202 Trunks, suitcases, vanity cases, attaché cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage 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:
4202.92 With outer surface of sheeting of plastic or of textile materials:
Insulated food and beverage bags:
4202.92.1000 Other…
* * *
Travel sports and similar bags:
With outer surface of textile materials:
4202.92.30 Other…
4202.92.3031 Other
Initially we note that both the rolling cooler bag and the detachable tote bag fit within the scope of heading 4202, HTSUS. The cooler bag is eo nomine provided for in the heading. See Headquarters Ruling Letter (HQ) H018503, dated January 31, 2008; HQ 962817, dated January 14, 2002. Because the outer surface of the rolling cooler bag is composed of vinyl and not of a man-made woven textile material, the tariff classification of the rolling cooler bag in NY N022627 is incorrect. Accordingly, if imported separately, the rolling cooler bag would be classified in subheading 4202.92.1000, HTSUS, which provides for, in pertinent part: “…traveling bags, insulated food or beverage bags… of textile materials…: Other: With outer surface of sheeting of plastic or textile materials: Insulated food or beverage bags: Other”.
The tote bag is similar to the travel and sports bags described in heading 4202, HTSUS, in that it is designed to organize, store, protect and carry various items. See HQ 957116, dated February 23, 1995 and HQ 960201, dated February 20, 1997. If imported separately, it would be classified under subheading 4202.92.3031, HTSUS, which provides for, in pertinent part: “…traveling bags… and similar containers… of textile materials…: Other: With outer surface of sheeting of plastic or textile materials: Travel, sports and similar bags: With outer surface of textile materials: Other… Other: Of man-made fibers: Other”.
Classification of merchandise within heading 4202, HTSUS, implicates GRI 6, which states:
For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.
GRI 3, which governs the classification of composite goods and sets, states, in pertinent part:
When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings [or subheadings], classification shall be effected as follows:
* * *
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs), constitute the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
Section (IX) of the EN to GRI 3 states the following:
For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts. (Emphasis in original)
The fact that the cooler bag and tote bag are separable raises the issue of whether they are sufficiently adapted to each other and mutually complementary so as to form a composite good within the meaning of GRI 3. The two items are adapted to one another in the sense that when not in use, the tote bag is stored in zippered pocket located on the top of the lid of the rolling cooler bag. Likewise, the rolling cooler bag and tote bag are designed to be used together through the hook and loop strips and “S” clips, which attach the tote bag to the top of the rolling cooler bag and the hooks on the retractable handle. This serves as an indication that the tote bag is intended to be used to carry items complementary to the food preserved in the cooler bag (i.e. non-perishable food, beach supplies, tailgating items, etc.). While a rolling cooler bag and tote bag could generally be sold separately, the fact that these particular items are particularly adapted to be used in conjunction with one another leads to the conclusion that they combine to form a whole that would not normally be offered for sale in separate parts. See HQ 962297, dated April 5, 2002 (where CBP found that a cooler bag and a detachable seat cushion of a similar size and with special features indicating simultaneous use formed a composite good); see also HQ 953523, dated April 22, 1993 and HQ 953705, dated March 2, 1993. Accordingly, we find that the subject merchandise is a composite good described by GRI 3.
As stated in GRI 3(b), a composite good is to be classified according to the material or component that imparts the good with its essential character. In its discussion concerning “essential character,” the EN to GRI 3(b) states that:
The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
While we were not provided with information on the value of each component, the complex construction of the rolling cooler bag in relation to the tote bag indicates that its value predominates. These same features, such as the sturdy frame, insulated layer and removable plastic lining, cause the rolling cooler bag to be bulkier and heavier than the tote bag component. Finally, due to its capability to preserve food for a period of time, the rolling cooler bag performs the most important role of the two components with respect to overall use of the composite good. The fact that the tote bag is designed to collapse within a compartment of the rolling cooler bag and then attach to the rolling cooler bag when desired evinces an ancillary role. Thus, we find that the rolling cooler bag component imparts the subject merchandise with its essential character.
HOLDING:
By application of GRI 1, the rolling cooler bag and detachable tote bag are classified in heading 4202, HTSUS, which provides for, in pertinent part: “…traveling bags, insulated food or beverage bags… and similar containers… of textile materials”. By application GRI 6 and GRI 3(b), the subject merchandise is specifically provided for in subheading 4202.92.1000, HTSUS, which provides for, in pertinent part: “…traveling bags, insulated food or beverage bags… of textile materials…: Other: With outer surface of sheeting of plastic or textile materials: Insulated food or beverage bags: Other”. The column one, general rate of duty is 3.4 percent ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N022627, February 27, 2008, is hereby REVOKED.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division