CLA-2 CO:R:C:G 086281 WAW
4820.10.2020, 6601.99.0000, 7009.91.1000, 8470.10.0040,
8506.19.0000, 9608.39.0000, 9615.11.1000
Ms. Elizabeth Brault
4400 Baker Road
Minnetonka, MN 55343
RE: Travel Bag
Dear Ms. Brault:
This letter is in response to your request for a ruling,
dated December 13, 1989, concerning the classification of a
travel bag containing a wallet, mirror, pen, raincoat, memo pad,
umbrella, comb, and calculator. A sample of the merchandise has
been submitted along with your request.
FACTS:
The sample article consists of the following items: a
handbag, a wallet, a pen, a comb, a raincoat, a mirror, a memo
pad, an umbrella, a calculator and a battery. The handbag is
approximately 13 inches long by 9 inches high by 6 inches wide.
It has an adjustable shoulder strap and adjustable pad which
measures approximately 34 inches long. The bag is constructed
with an outer surface of plastic sheeting. It has four "legs" on
the bottom so that the bag may be placed on a flat surface and
remain upright. There are several different compartments that
make up the travel bag. There is one side compartment with a
snap closure. In addition, there is a zippered compartment near
the bottom side of the bag which contains the umbrella. The
back of the bag includes a fold out compartment with a zippered
closure, a wallet that holds credit cards, a memo pad, a pen, a
calculator with a battery, and a removable mirror on the inside
top flap. The bag has a large middle zippered compartment where
the raincoat is stored. The handbag, wallet, pen, and raincoat
are manufactured in China. The other items are made in Hong
Kong. The entire item is assembled in China.
ISSUE:
(1) Whether the travel bag and other accessories are
classifiable as a "set" within the meaning of General Rule of
Interpretation 3(a) of the HTSUSA, or whether the items are
classifiable under separate provisions in the tariff?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) set forth the
manner in which merchandise is to be classified under the HTSUSA.
GRI 1 requires that classification be determined first according
to the terms of the headings of the tariff and any relative
section or chapter notes and, unless otherwise required,
according to the remaining GRI's, taken in order. In other
words, classification is governed first by the terms of the
headings of the tariff and relative section or chapter notes.
The issue to be addressed in this case is whether the
travel bag with its accessories are classifiable as a "set" or
under separate provisions in the tariff. In the instant case,
because no heading, by itself, covers the subject merchandise,
classification cannot be determined by applying GRI 1 alone.
Therefore, reference to the subsequent GRI's is necessary. GRI
2(b), HTSUSA, provides in pertinent part that "[t]he
classification of goods consisting of more than one material or
substance shall be according to the principles of GRI 3."
GRI 3, HTSUSA, provides 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, classification shall be effected as
follows:
(a) The heading which provides the most
specific description shall be preferred to
headings providing a more general
description. However, when two or more
headings each refer to part only of the
materials or substances contained in mixed or
composite goods or 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, even if
one of them gives a more complete or precise
description of the goods.
Since the travel bag and accessories fall under separate
headings in the tariff schedule which describe only a portion of
the materials in the entire unit, the headings are to be regarded
as equally specific under GRI 3(a). Therefore GRI 3(a) fails in
establishing classification, and GRI 3(b) becomes applicable.
GRI 3(b) states in pertinent part:
(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 Explanatory Notes to the HTS constitute the official
interpretation of the tariff at the international level. The
Explanatory Notes for GRI 3, HTSUSA, set forth a three part test
for "goods put up in sets for retail sale." The three step
definition states the following:
For the purposes of this Rule, the term 'goods put up
in sets for retail sale' shall be taken to mean goods
which:
(a) consist of at least two different
articles which are prima facie, classifiable
in different headings;
(b) consist of products or articles put up
together to meet a particular need or carry
out a specific activity; and
(c) are put up in a manner suitable for sale
directly to users without repacking (e.g., in
boxes or cases or on boards).
An article must meet all of the above conditions in order to
be regarded as a "set" for tariff purposes. The travel bag is
classifiable within one heading in the nomenclature while the
other accessories fall under separate provisions in the
nomenclature. It is clear that all of the items are packaged
together for sale directly to users without any further
repacking. Therefore, parts (a) and (c) of the above definition
are fulfilled by the travel bag and accessories unit.
The problem arises with part (b) in the definition of a
"set." The fact that the accessories are packaged together for
retail sale does not mean that the merchandise may be considered
a set for tariff purposes. All of the items which are packaged
together must be dedicated to a "particular need" or "specific
activity." In the instant case, the mere fact that the items may
be useful when traveling does not necessitate calling them a
"set" for tariff purposes. The articles are all multi-
dimensional and are not traditionally used together in such a way
to meet a particular need or carry out a specific activity. For
instance, items such as a calculator and a raincoat are used for
very different purposes and do not normally meet the definition
of a "set." Thus, it is the opinion of this office that the
travel bag and accessories do not constitute a "set" according
to the above definition.
HOLDING:
In view of the foregoing, the travel bag and accompanying
accessories packaged together to be sold as a single unit must be
classified separately, since the articles do not meet the
requirements for a "set." The items do not fulfill the same
particular need nor are they used for the same specific activity.
The appropriate classification for the travel bag is under
subheading 4202.92.4500, HTSUSA, which provides for travel,
sports and similar bags, with outer surface of plastic sheeting.
Items classified under this subheading enter at a rate of duty of
20 percent ad valorem.
The umbrella is classifiable under subheading 6601.99.0000,
HTSUSA, which provides for umbrellas and sun umbrellas: Other:
Other. Items classified under this subheading enter at a rate of
duty of 8.2 percent ad valorem.
The mirror is classifiable under subheading 7009.91.1000,
HTSUSA, which provides for glass mirrors, whether or not framed,
including rear-view mirrors: Other: Unframed: Not over 929 cm2 in
reflecting area. Items classified under this subheading enter at
a rate of duty of 7.8 percent ad valorem.
The calculator is classifiable under subheading
8470.10.0040, HTSUSA, which provides for calculating machines;
accounting machines, cash registers, postage-franking machines,
inter alia, and similar machines, incorporating a calculating
device: electronic calculators capable of operation without an
external source of power, display only. Items classified under
this subheading enter at a rate of duty of 3.7 percent ad
valorem.
The comb is classifiable under subheading 9615.11.1000,
HTSUSA, which provides for combs, hair-slides and the like;
hairpins, curling pins, curling grips, hair-curlers, inter alia,
of hard rubber or plastics: combs: valued not over $4.50 per
gross. Items classified under this subheading enter at a rate of
duty of 14.4 cents/gross + 2 percent ad valorem.
The pen is classifiable under subheading 9608.39.0000,
HTSUSA, which provides for ball point pens; felt tipped and other
porous-tipped pens and markers, fountain pens, stylograph pens
and other pens, inter alia, other than those of heading 9609:
ball point pens. Items classified under this subheading enter at
a rate of duty of 0.8 cents each + 5.4 percent ad valorem.
The wallet is classifiable under subheading 4202.32.2000,
HTSUSA, which provides for traveling bags, toiletry bags,
knapsacks and backpacks, handbags, shopping bags, wallets, inter
alia, and similar containers, 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: articles of a kind normally carried in the pocket or
in the handbag: with outer surface of plastic sheeting or of
textile materials: with outer surface of plastic sheeting: other.
Items classified under this subheading enter at a rate of duty of
20 percent ad valorem.
The raincoat is classifiable under subheading 3926.20.5050,
HTSUSA, which provides for other articles of plastics and
articles of other materials of headings 3901 to 3914: Articles of
apparel and clothing accessories: Other: other. Items classified
under this subheading enter at a rate of duty of 5 percent ad
valorem.
The battery is classifiable under subheading 8506.19.0000,
HTSUSA, which provides for primary cells and primary batteries;
parts thereof: primary cells and primary batteries having an
external volume not exceeding 300 cm3: Other. Items classified
under this subheading enter at a rate of duty of 5.3 percent ad
valorem.
The memo pad is classifiable under subheading 4820.10.2020,
HTSUSA, which provides for registers, account books, notebooks,
order books . . . and similar articles. Items classified under
this subheading enter at a rate of duty of 4 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division