CLA-2 OT:RR:CTF:CPM H257531 CkG
TARIFF NO: 4202.92.31
Michael Dugan
Western Overseas Corporation
Corporate Headquarters 10731 Walker Street Cypress, CA 90630-475
Re: Revocation of NY 868779 and Modification of NY 871870; classification of money
belts
Dear Mr. Dugan:
This letter is in regards to New York Ruling Letter (NY) 868779, dated November 25, 1991, issued to Western Overseas Corporation on behalf of Packaged Paper Products. In NY 868779, CBP classified a textile money belt in subheading 4202.32.95 of the Harmonized Tariff Schedule of the United States (HTSUS), as articles of a kind normally carried in the pocket or in the handbag, with an outer surface of textile materials. We have also identified NY 871870, dated March 19, 1992, which classified a similar “Cache” money belt in subheading 4202.32.40, HTSUS. We have reconsidered these decisions, and for the reasons set forth below, have determined that the money belts are correctly classified in subheading 4202.92.31, HTSUS.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke NY 868779 and modify NY 871870 was published on November 29, 2017, in Volume 51, Number 48 of the Customs Bulletin. No comments were received in response to that notice.
FACTS:
The subject merchandise is described in NY 868779 as follows:
The submitted sample is a money belt constructed of 60% polyester/40% cotton fibers. It is flat in design, unlined, measures approximately 17 1/2" x 4 3/4" and is designed to be worn around the waist. It has two zippered storage pockets, one larger than the other designed to contain money. The zipper closure is concealed by means of a textile flap.
The money belt at issue in NY 871870 is described as follows:
Item B, described as a "Cache", is a money belt constructed of 100% cotton designed to be worn on the person. The item is flat in design, unlined, and measures approximately 16 inches by 4 1/2 inches designed to be worn around the waist underneath the clothing. It has a zippered compartment with two internal pockets. The zipper closure is concealed by means of a textile flap.
ISSUE:
Whether the money belts are classified in subheading 4202.32, HTSUS, as articles of a kind normally carried in the pocket or a handbag, or in subheading 43202.92, HTSUS, as travel, sport or similar bags.
LAW AND ANALYSIS:
Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings 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 or notes do not require otherwise, the remaining GRIs 2 through 6 may be applied.
The HTSUS provisions under consideration are as follows:
4202: 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, 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 plastics or of textile materials:
Travel, sports and similar bags:
With outer surface of textile materials:
Of vegetable fibers and not of pile or tufted
construction:
4202.92.15: Of cotton…
4202.92.31: Of man-made fibers…
* * * *
Heading 4202, HTSUSA, provides for various types of bags or containers. These bags and containers are broken up into four types, at the five-digit subheading level (4202.1, 4202.2, 4202.3, and 4202.9): “Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers”; “[h]andbags, whether or not with shoulder strap, including those without handle”; “[a]rticles of a kind normally carried in the pocket or in the handbag; and “[o]ther”.
In NY 868779 and 871870, CBP concluded that money belts, measuring 17.5 inches by 4.75 inches and 16 inches by 4.5 inches, respectively, were “of a kind” normally carried in the pocket or a handbag. This conclusion was incorrect. These money belts are not designed to be carried inside any other bag or container; they are designed to fasten around the waist precisely so that they can be transported by themselves, without the need for any other kind of container. Placing either money belt inside a pocket or handbag would defeat the entire purpose of the article, which is to provide secure, easy and unobstructed access to money and other small valuables. Taking the money belt out of the pocket or purse in order to remove the valuables stored within would be an extra, unnecessary step. Additionally, at a width of 17 and 16 inches, both money belts are too large to fit inside most handbags and pockets.
The instant money belts also do not fall under subheading 4202.1 as a trunk, suitcase, briefcase or similar container, or in subheading 4202.2 as a handbag. We note first that the money belts are smaller and less durable than a trunk, suitcase, or any of the other named items of that type. The articles of subheading 4202.1 are designed to carry clothes, laptops, paper files, textbooks and other such items that clearly unsuited for carrying in the money belt. A money belt is also unlike a handbag or purse in that it is designed to be principally worn about the waist like a belt, while purses and handbags are carried in the hand or on the shoulder.
As the money belts do not fall under 4202.1, 4202.2 or 4202.3, they fall under 4202.9 "Other". Under the "Other" provision, 4202.91 provides for articles with an outer surface of leather or of composition leather, and 4202.92 provides for articles "with outer surface of plastic sheeting or of textile materials." The money belt at issue in NY 868779 is made of polyester and cotton; the “Cache” money belt at issue in NY 871870 is made of 100% cotton. Both articles therefore fall under subheading 4202.92. Subheading 4202.92 is further divided into provisions for travel, sports and similar bags, musical instrument cases, and other. A money belt is designed to be worn around the waist while the wearer is traveling, sightseeing, engaged in a sporting activity, or similar activities where quick and convenient but also secure access to money and other small belongings may be necessary. As they are primarily used during travel and for sports, we find that the money belts fall under the category of travel, sports and similar bags.
Additionally, we note that CBP has consistently classified similar articles such as fanny packs and other waist bags or pouches in subheading 4202.92, as travel, sports and similar bags. See e.g., Headquarters Ruling Letter (HQ) 083800, dated June 13, 1989; HQ 957674, dated October 25, 1995; HQ 963567, dated September 18, 2001; NY N261077, dated February 13, 2015; NY N260055, dated January 9, 2015; NY N237379, dated February 8, 2013; NY K81270, dated December 3, 2003; NY I82783, dated June 6, 2002; NY 818841, dated February 27, 1996.
The provision for travel, sports and similar bags under subheading 4202.92 is further subdivided between travel, sports and similar bags of vegetable fibers and those of man-made materials. The “Cache” money belt is made of 100% cotton and is therefore classified in subheading 4202.92.15, HTSUS, as a travel, sports or similar bag, of cotton. The money belt at issue in NY 868779, however, is a composite article of cotton and polyester. At GRI 1, it is therefore not classifiable as either an article of cotton or an article of man-made fibers. We must therefore turn to the remaining GRIs. GRI 2 provides that unfinished articles, as well as mixtures and combinations, are to be classified pursuant to GRI 3. GRI 3(a) states that when merchandise is classifiable under more than one heading, the merchandise should be classified in the most specific heading. However, GRI3(a) further states that “when two or more headings each refer to . . . part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods.” GRI 3(b), in turn, states in relevant part that composite goods consisting of different materials or made up of different components which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the material or component which gives them their essential character.
Subheadings 4202.92.15 and 4202.92.31 each describe only part of the instant money belt; therefore, neither subheading is more specific for the purposes of GRI 3(a). We thus turn to GRI 3(b). Explanatory Note VIII to GRI 3(b) explains that "[t]he 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 the constituent material in relation to the use of the goods." In the instant case, we find that as the polyester makes up the bulk of the article, the money belt is classified at GRI 3 in subheading 4202.92.31, HTSUS, as a travel, sports or similar bag with an outer surface of man-made fibers.
HOLDING:
By application of GRIs 1 and 6, the “Cache” money belt at issue in in NY 871870 is classified in heading 4202, HTSUS, specifically subheading 4202.92.15, HTSUS, 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, 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: With outer surface of sheeting of plastics or of textile materials: Travel, sports and similar bags: With outer surface of textile materials: Of vegetable fibers and not of pile or tufted construction: Of cotton.” The 2017 column one, general rate of duty is 6.3% ad valorem.
By application of GRIs 1, 3 and 6, the money belt at issue in NY 868779 is classified in heading 4202, HTSUS, specifically subheading 4202.92.31, HTSUS, 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, 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: With outer surface of sheeting of plastics or of textile materials: Travel, sports and similar bags: With outer surface of textile materials: Of man-made fibers.” The 2017 column one, general rate of duty is 17.6%.
EFFECT ON OTHER RULINGS:
NY 868779, dated November 25, 1991, is hereby revoked. NY 871870, dated March 19, 1992, is hereby modified with respect to the “Cache” money belt.
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