CLA 2 CO:R:C:G 084340 HP 839533
Mr Marty Langtry
Castelazo & Associates
5420 West 104th Street
Los Angeles, California 90045
RE: Classification of certain braided evening bags
Dear Mr. Langtry:
This ruling is in response to your letter of April 10, 1989, to our San Pedro office,
for classification of certain braided evening bags, stated to have been produced in Hong
Kong, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).
Three samples were submitted for examination.
FACTS:
The submitted samples consist of three styles of braided evening bags. Style 4 4311
measures approximately 28 by 18 centimeters. The handbag's body is a textile fabric
comprised by weight of 55 percent rayon and 45 percent silk. The braided shoulder
strap is of 100 percent nylon. The handbag is closed by means of a metal snap.
Style 6 4279 measures approximately 28 by 18 centimeters. The body of the handbag
is 100 percent rayon. The braided shoulder strap is of 100 percent nylon. The front
panel has a ribbed portion covering approximately 75 percent of the panel. An or
namental bow with three crystals is attached to the upper right portion of the front
panel. The handbag may be closed by a zipper and/or one of two metal snaps.
Style 4 4300 measures approximately 21 by 14 centimeters. The body of the handbag
is 100 percent cotton. The braided shoulder strap is 100 percent nylon. An ornamental
braided overlay trim is attached to the front panel of the handbag approximately 5/16
of an inch from the top closure. The handbag is closed by means of a zipper. The zipper has a tassel attached to it.
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ISSUE:
Whether the braided shoulder straps render the samples "wholly or in part of braid"
for classification purposes under the HTSUSA.
LAW AND ANALYSIS:
Subheading 4202.22.40, HTSUSA, provides for handbags having an outer surface of
textile materials, wholly or in part of braid. As the outer surface of the samples is not
"[w]holly ... of braid," classification must lie in whether the merchandise represented by
the samples is "in part of braid." Classification of products under the HTSUSA is
governed by the sequential application of the General Rules of Interpretation (GRI's).
Goods which cannot be classified in accordance with GRI 1 are to be classified in
accordance with subsequent GRI's, taken in order.
All Styles
GRI 1 provides that classification shall be determined according to the terms of the
headings and any relative section or chapter notes. General Note 7 provides, in
pertinent part,
Definitions. For the purposes of the tariff schedule, unless the context other-
wise requires
* * *
(e) the terms "wholly of", "in part of", and " containing", when used between
the description of an article and a material (e.g., "woven fabrics, wholly of
cotton"), have the following meanings:
* * *
(ii) "in part of" or "containing" mean that the goods contain a significant
quantity of the named material.
With regard to the application of the quantitative concepts specified above,
it is intended that the de minimis rule apply.
The de minimis rule states that an ingredient or component of an article may be
ignored for classification purposes depending upon "whether or not the amount [of the
ingredient or component] has really changed or affected the nature of the article...."
HRL 081483 of April 27, 1989 (quoting Varsity Watch Co. v. United States, 34 CCPA 155,
C.A.D. 359 (1947)). Therefore, if the quantity of braid in the samples submitted
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"served a useful purpose or affected the nature of the [handbag] or increased the
salability of the [handbag], [the handbag] would be considered ' in part of' braid." HRL
083632 of April 27, 1989 (citing HRL 085617 of March 4, 1988). See HRL 081483,
supra, for a discussion on whether an article is "in part of" an ingredient for tariff
classification purposes. Applying General Note 7(e)(ii) and the above interpretations
to the instant samples, it is the opinion of the Customs Service that there does not
exist a significant quantity of braided material on any of the handbags to effectively alter
or affect the nature of the article. There is also no indication that the braided
overlay trim on style 4 4300 or the braided shoulder straps on all the samples increases the
potential salability of the handbags. It appears that the utility of the samples would be
the same whether the material of the strap is of braid or otherwise.
Style 4 4311
The Explanatory Notes to the HTSUSA constitute the official interpretation of
the tariff at the international level. Explanatory Note (XIII) to GRI 2 states that " ...
goods consisting of more than one material or substance, if prima facie classifiable
under two or more headings, must therefore be classified according to the principles of
Rule 3." Explanatory Note (V) to GRI 3 provides that
... when two or more headings refer to part only of the materials or substances
contained in mixed ... goods ..., those headings are to be regarded as equally
specific in relation to those goods .... In such cases, the classification of the
goods shall be determined by Rule 3(b) or 3(c).
Explanatory Note (VII) to GRI 3 determines that
[i]n all ... [Rule 3(b)] cases the goods are to be classified as if they consisted of
the material or component which gives them their essential character, insofar as
this criterion is applicable.
The Customs Service has determined that this reasoning requires products of Chapter
42, containing two or more textile materials, to be regarded as consisting wholly of that
textile material which comprises the greater percentage of material by weight. As a
result, Style 4 4311 is considered wholly of man made fibers (Rayon) for classification
purposes under GRI 3(b).
HOLDING:
In view of the foregoing, we find that the braided construction of the handbags'
straps is not present in a significant quantity so as to cause the handbag to be "in part
of braid." Therefore, the applicable provisions for the styles submitted are as follows:
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Style 4 4300
Subheading 4202.22.4500, textile category 369, as handbags, whether or not with
shoulder strap, including those without handle, with outer surface of textile materials,
other, of vegetable fibers and not of pile or tufted construction, of cotton. The rate of
duty is 7.2 percent ad valorem.
Style 6 4279
Subheading 4202.22.8050, textile category 670, as handbags, whether or not with
shoulder strap, including those without handle, with outer surface of textile materials,
other, other, other, of man made fibers. The rate of duty is 20 percent ad valorem.
Style 4 4311
Subheading 4202.22.8050, textile category 670, as handbags, whether or not with
shoulder strap, including those without handle, with outer surface of textile materials,
other, other, other, of man made fibers. The rate of duty is 20 percent ad valorem.
Due to the changeable nature of the statistical annotation (the ninth and tenth digits
of the classification) and the restraint (quota/visa) categories, you should contact your
local Customs office prior to importing the merchandise to determine the current
applicability of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division