CLA-2 CO:R:C:G 084250 CMR

Mr. Marty Langtry
Castelazo & Associates
5420 West 104th Street
Los Angeles, Cal. 90045

RE: Classification of glass beaded handbags from China

Dear Mr. Langtry:

This ruling is in response to your letter of March 21, 1989, on behalf of Seychelles Imports, requesting the classification of two styles of glass beaded handbags.

FACTS:

Two sample handbags were submitted for review. One is a drawstring style, the other has a zipper closure. The handbags are made of rayon satin fabric and glass beads. The outer surfaces of each bag are completely covered with the glass beads with the exception of the top 5.5 centimeters of the drawstring style. The rayon fabric serves as the backing for the beads and the lining fabric. A thin foam padding is inserted between the backing and lining. The shoulder straps on each bag are rayon cord.

ISSUE:

Are the handbags at issue classifiable in subheading 7018, HTSUSA, which provides for, among other things, glass beads and articles thereof other than imitation jewelry, or in subheading 4202, HTSUSA, which provides for, among other things, handbags?

LAW AND ANALYSIS:

Classification of goods under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that "classification shall be determined according to the

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terms of the headings and any relative section or chapter note, and, provided such headings or notes do not otherwise require, according to [the remaining GRI's taken in order]."

Handbags are generally classified under heading 4202, HTSUSA, which provides for, among other things, handbags of leather or of composition leather, of plastic sheeting, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials. The handbags before us, however, are made of textile material and glass beads.

At first glance, it appears the handbags may be classified in heading 4202, HTSUSA, or heading 7018, HTSUSA, which provides for, among other things, glass beads and articles thereof other than imitation jewelry. In order to determine which heading is applicable, we must look to the Explanatory Notes which are the official interpretation of the HTSUS at the international level.

The Explanatory Notes for heading 4202, HTSUSA, state that "[t]his heading covers only the articles specifically named therein and similar containers." The notes go on to say, "The articles of the second part of the heading [the part in which handbags are named] must,. . ., be only of the materials specified therein or must be wholly or mainly covered with such materials (the foundation may be of wood, metal, etc.) (underline added).

It appears fairly clear from the Explanatory Notes that in order to be classified within the provisions of heading 4202, HTSUSA, the handbags at issue must be only of textile materials, not textile materials and glass beads, or must have outer surfaces which are wholly or mainly covered with textile materials. Since the handbags are completely covered with the glass beads, they cannot be classified under heading 4202, HTSUSA, because they do not fall within the terms of the heading.

The Explanatory Notes for heading 7018, HTSUSA, contain an exclusion for "[h]andbags and similar articles of leather or fabric, decorated with glass beads, imitation pearls or imitation precious or semi-precious stones (heading 42.02)." We do not believe this exclusion precludes classification of the subject handbags. The glass beads covering the outer surfaces of these handbags are more than decoration; they cover the entire, or virtually entire, outer surfaces. Because of this, as previously discussed, the handbags cannot be classified in heading 4202.

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HOLDING:

The handbags at issue are classifiable as articles of glass beads in subheading 7018.90.5000, HTSUSA, dutiable at 6.6 percent ad valorem.


Sincerely,

John Durant, Director
Commercial Rulings Division

6cc: Area Director, New York Seaport
1cc: CITA
1cc: Legal Reference Section
1cc: Phil Robins