OT:RR:CTF:CPMM H273867 APP
Bruce Shulman, Esq.
Stein, Shostak, Shostak, Pollack & O’Hara, L.L.P.
1776 K Street, N.W., Suite 2213
Washington, D.C. 20006
RE: Revocation of HQ H235569 and NY N179138, and modification of
NY N230128 and NY N204304; Classification of Bottle Bags
Dear Mr. Shulman:
This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered Headquarters Ruling Letter (“HQ”) H235569, dated May 17, 2013 (issued to Earthwise Bag Company, Inc.); New York Ruling Letter (“NY”) N179138, dated August 24, 2011 (issued to Bella Vita); NY N230128, dated September 5, 2012 (issued to Ghedi International, Inc.); and NY N204304, dated March 9, 2012 (issued to Fiberlinks Textiles, Inc.), regarding the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of bottle bags with outer surface of sheeting of plastic or of textile materials.
CBP classified the non-woven polypropylene bottle bags in HQ H235569 under subheading 4202.92.90, HTSUS (now subheading 4202.92.91, HTSUS), which provided for “ … 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 plastic or of textile materials: Other: Other.”
CBP classified the bottle bags constructed of plastic sheeting material in NY N179138 and the bottle bags constructed of non-woven polypropylene textile material laminated on the outer surface with plastic sheeting in NY N230128 and NY N204304 under subheading 4202.92.90, HTSUS (now subheading 4202.92.97, HTSUS), which provided for “ … 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 plastic or of textile materials: Other: Other.”
For the reasons set forth below, we hereby revoke HQ H235569 and
NY N179138, and modify NY N230128 and NY N204304 with respect to the bottle bags.
Pursuant to section 625(c)(l), Tariff Act of 1930 (19 U.S.C. § 1625(c)(l)), 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), a notice was published in the Customs Bulletin, Volume 52,
No. 23, on June 6, 2018, proposing to revoke HQ H235569 and NY N179138, and modify NY N230128 and NY N204304, and to revoke any treatment accorded to substantially identical transactions. No comments were received in response to this notice.
FACTS:
The non-woven polypropylene bags in HQ H235569 contain two handles and have open tops. These bags measure approximately 9 1/2” (W) x 10” (H) x 7” (D). The bag’s handles are composed of polypropylene and contain a fastener of polypropylene with hook and loop fastener to keep the handles together. The bottom of the bags is composed of two layers of polypropylene fabric with padding inserted in between. The top contains a small loop of polypropylene. The inside of the bottle bags is divided into six equally sized compartments by polypropylene dividers. Each compartment measures approximately 5” (W) x 9” (L) when closed and can expand to fit the bottles inserted therein. The exterior of the bags contains a tri-colored printed design containing grapes and grape leaves. The logos of 13 grocery stores appear below the design. The bags are sold or distributed free of charge at stores that sell food and beverages.
The two bottle bags in NY N179138 are constructed of plastic sheeting material. They are identified as “Chill It 1C” and “Chill It 6”. Both types of bags are of a durable construction and suitable for repetitive use, and have an open top without a means of closure and two carrying handles. The “Chill It 1C” is cylindrical in shape and measures approximately 4" (W) x 12" (H). It is designed to provide storage, protection, portability, and organization to a single bottle. The “Chill It 6” measures approximately 7.5" (W) x 7" (H) x 5" (D) and is designed to provide storage, protection, portability, and organization to six bottles. The interior is divided into two sections, each capable of accommodating three bottles.
The bottle bags (styles 15618 and 15622) in NY N230128 are constructed of non-woven polypropylene textile material that has been laminated on the outer surface with plastic sheeting. The constituent outer surface material is the plastic sheeting. Style 15618 measures 5” (W) x 13.5” (H) x 5.25” (D) and is designed to provide storage, protection, portability, and organization to one bottle. The interior has an unlined storage compartment with no additional features as well as an open top with a carrying handle and a reinforced bottom. It is of a durable construction and suitable for repetitive use. Style 15622 measures approximately 9” (W) x 13.5” (H) x 7” (D) and is designed to provide storage, protection, portability, and organization to four bottles. The interior has four fitted pockets attached to each sidewall for each individual bottle as well as an open top with two carrying handles and a reinforced bottom. It is of a durable construction and suitable for repetitive use.
The six bottle wine bag (style GEB11117/PLB) in NY N204304 measures approximately 11” (W) x 11” (H) x 7” (D). It is constructed of non-woven polypropylene textile material laminated on the outer surface with plastic sheeting. The bag is designed to provide storage, protection, portability, and organization to wine bottles. The interior has three fitted pockets for individual wine bottles attached to each sidewall. The bag has an open top with two carrying handles. It is of a durable construction and suitable for repetitive use.
ISSUE:
Whether the subject bottle bags are classified as shopping bags of subheadings 4202.92.39, HTSUS (with outer surface of textile materials) and 4202.92.45, HTSUS (with outer surface of sheeting of plastics), or as other bags of subheadings 4202.92.91, HTSUS (with outer surface of textile materials) and 4202.92.97, HTSUS (with outer surface of sheeting of plastics).
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation (“AUSR”). The GRIs and the AUSR are part of the HTSUS and are to be considered statutory provision of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in their appropriate order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level.
The HTSUS (2018) provisions under consideration are:
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 plastic or of textile materials:
Travel, sports and similar bags:
With outer surface of textile materials:
4202.92.39 Other
4202.92.45 Other
Other:
Other:
With outer surface of textile materials:
4202.92.91 Of man-made fibers (except jewelry boxes of a kind normally sold at retail with their contents)
Other:
4202.92.97 Other
Additional U.S. Note 1 to chapter 42, HTSUS, states, in relevant part, the following:
For the purposes of heading 4202, the expression “travel, sports and similar bags” means goods, other than those falling in subheadings 4202.11 through 4202.39, of a kind designed for carrying clothing and other personal effects during travel, including backpacks and shopping bags of this heading, but does not include binocular cases, camera cases, musical instrument cases, bottle cases and similar containers.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System 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 these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
EN 42.02 states, in pertinent part, the following:
This heading covers only the articles specifically named therein and similar containers.
There is no dispute that the subject bottle bags are classified in heading 4202, HTSUS. At issue is the proper subheading. As a result, GRI 6 applies.
Additional U.S. Note 1 to chapter 42, HTSUS, defines “travel, sports and similar bags” of heading 4202, HTSUS, as being “of a kind designed for carrying clothing and other personal effects during travel, including backpacks and shopping bags of this heading.” Shopping bags have been characterized by their open tops and long handles that can be used over a person’s shoulder, and reinforced side and bottom panels. Furthermore, these bags are designed for repetitive use in carrying heavier items such as groceries.
CBP has previously classified shopping-style tote bags constructed of non-woven polypropylene textile material or of plastic sheeting with an open top and two carrying handles designed to provide storage, protection, portability, and organization to groceries or other personal effects during travel in subheadings 4202.92.39, HTSUS (outer surface of textile material) and 4202.92.45, HTSUS (outer surface of sheeting of plastics). Similar to the bags in these rulings, the instant bottle bags have an open top and two carrying handles, are of a durable construction, are suitable for repetitive use, and are designed to provide storage, protection, portability, and organization to bottles. Unlike bottle cases of subheadings 4202.92.91, HTSUS and 4202.92.97, HTSUS, which have plastic foam for padding and insulation to provide protection against breakage of the bottles, the instant bags do not provide breakage protection and are similar to shopping bags with two carrying handles and a reinforced bottom, designed for repetitive use in carrying bottles. Therefore, the instant bottle bags are shopping bags as named in Additional U.S. Note 1, and are classified as a type of “travel, sports or similar bag,” in subheadings 4202.92.39, HTSUS and 4202.92.45, HTSUS.
Because the instant bags are prima facie classifiable in subheadings 4202.92.39, HTSUS and 4202.92.45, HTSUS, as shopping bags, they are not classifiable in subheadings 4202.92.91, HTSUS and 4202.92.97, HTSUS, the basket provisions for other bags.
HOLDING:
Under the authority of GRIs 1 and 6, the subject bottle bags in
HQ H235569 are classified in heading 4202, HTSUS, specifically under subheading 4202.92.3900, HTSUSA (Annotated), which provides for “ … 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: Other.” The current duty rate is 17.6% ad valorem.
Under the authority of GRIs 1 and 6, the subject bottle bags in
NY N179138, NY N230128 (styles 15618 and 15622) and NY N204304 (style GEB11117/PLB) are classified in heading 4202, HTSUS, specifically under subheading 4202.92.4500, HTSUSA (Annotated), which provides for “ … 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: Other.” The current duty rate is 20% ad valorem.
This revocation of HQ H235569 and NY N179138, and modification of
NY N230128 and NY N204304 only affects the tariff classification of the specific bottle bags discussed herein.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at https://hts.usitc.gov/current.
EFFECT ON OTHER RULINGS:
HQ H235569, dated May 17, 2013, is hereby REVOKED.
NY N179138, dated August 24, 2011, is hereby REVOKED.
NY N230128, dated September 5, 2012, is hereby MODIFIED with respect to bottle bags styles 15618 and 15622.
NY N204304, dated March 9, 2012, is hereby MODIFIED with respect to bottle bag style GEB11117/PLB.
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
Cc: Mr. Gunnar Hammerbeck
Bella Vita
1000 South Park Lane, Suite 1
Tempe, AZ 85281
Mr. Jim Ghedi
Ghedi International, Inc.
8002 Burleson Road
Austin, TX 78744
Ms. Maria Celis
Neville Peterson, L.L.P.
17 State Street, 19th Floor
New York, NY 10004