CLA-2 CO:R:C:M 952831 NLP
Mr. Steven S. Weiser
Mr. Paul A. Horowitz
Siegel, Mandell & Davidson
One Astor Plaza
1515 Broadway- 43rd Floor
New York, NY 10036
RE: Handbags; headings 3921, 3923, 3926 and 4202; Explanatory
Notes to Heading 4202; Legal Note 2(a)(5) to heading 5903;
PVC strips; cotton strips; HRLs 081224 and 081374; outer
surface of textile materials and plastics; visual and
tactile quality of outer surface; essential character; GRI
3(b) and 3(c); Explanatory Note (VIII) to GRI 3(b)
Dear Mr. Weiser and Mr. Horowitz:
This is in response to your letter of October 26, 1992, on
behalf of your client, Liz Claiborne Accessories, Inc., in which
you requested the tariff classification for two different handbag
styles under the Harmonized Tariff Schedule of the United States
(HTSUS). Two samples were submitted for our examination and will
be returned to you under separate cover.
FACTS:
Style no. 4917 is a women's handbag with a shoulder strap.
It has a drawstring closure and an interior zippered compartment
sewn on to one side of the bag. The bag is made of polyvinyl
chloride (PVC) and cotton. The PVC is cellular and it is textile
backed: a cotton backing is adhered to the PVC both by heat and
by pressure applied adhesives. The bag has PVC trim around its
opening and sides, a PVC shoulder strap, a PVC drawstring and a
PVC base. The outer surface of the front and back of the bag is
composed of narrow strips of cotton that have been folded and
flattened into 4 mm widths that are interlaced with PVC strips to
create a "lattice" effect. Both of the strips are cut from
larger sheets of material. The lattice work fabrics are loosely
placed over a textile material and are sewn to the textile
material at approximately two inch intervals by a 1/4 inch wide
PVC strip overlay. The bag has a cotton lining beneath this
textile fabric. When fully expanded the bag measures
approximately 10-1/2 inches in height, 13 inches in length and 6
inches in width at the base. The cost of the materials
comprising the bag is $3.08 per square yard of cotton and $3.55
per square yard of PVC material.
Style no. 4916 is also a women's handbag with a shoulder
strap and an interior zippered compartment sewn on to one side of
the bag. This bag closes by means of a snap closure. The bag
has PVC trim around its sides, a PVC shoulder strap and a PVC
base. The bag's flap is PVC-backed. The outer surface of the
front and back of the bag is also composed of PVC and cotton
strips interlaced to create a lattice effect. A textile material
has been either laminated or glued to the lattice work fabric.
When fully expanded, the bag measures approximately 7 inches in
height, 11-1/2 inches in length and 3-1/4 inches in width at the
base. The material costs are the same as those for style no.
4917.
It is your position that the essential character of the
outer surface of the handbags is represented by the plastic
strips, which are not considered plastic sheeting. Therefore,
the handbags are classified in subheading 3923.90.90, HTSUS,
which provides for "[a]rticles for the conveyance or packing of
goods, of plastics;...[o]ther." In the alternative, the handbags
are classified in subheading 3926.90.90, HTSUS, which provides
for "[o]ther articles of plastics and articles of other materials
of headings 3901 to 3914: [o]ther: [o]ther."
Finally, a third alternative for classification of the
handbags is in subheading 4202.22.45, HTSUS, which provides for
"[t]runks, suitcases, vanity cases...: [h]andbags, whether or not
with shoulder strap, including those without handle: [w]ith outer
surface of plastic sheeting or of textile materials: [w]ith outer
surface of textile materials: [o]ther: [o]f vegetable fibers and
not of pile or tufted construction: [o]f cotton."
ISSUE:
What is the tariff classification of the handbags at issue?
LAW AND ANALYSIS:
The classification of goods under the HTSUS is governed by
the General Rules of Interpretation (GRI's), taken in order. 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 and legal notes do not
otherwise require, the remaining GRI's may be applied, taken in
order.
Heading 4202, HTSUS, provides for the following:
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,
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.
The Harmonized Commodity Description and Coding System
Explanatory Notes to heading 4202 provide on page 613 that "[t]he
articles covered by the second part of the heading must, however,
be only of the materials specified therein or must be wholly or
mainly covered with such materials..."
Therefore, to be classified in the above heading, articles
must meet two basic criteria: they must be one of, or similar to
the named articles and they must be "of...or wholly or mainly
covered" with one of the specified materials. The handbags meet
the first criteria as they are specifically enumerated in heading
4202, HTSUS.
The handbags are composed of three primary materials:
plastic strips, plastic sheeting and textile material. The
plastics material is made from a fabric of heading 3921, HTSUS,
which provides for "[o]ther plates, sheets, film, foil and strip,
of plastics." See, Legal Note 2(a)(5) to Heading 5903, HTSUS.
The textile material is a cotton fabric. It is our position that
inasmuch as the outer surface of the samples consists of both
textile material and plastics, classification of the handbags
must be based on the material which imparts the essential
character to the handbags pursuant to GRI 3(b). See, GRI 2(b).
GRI 3 governs the classification of goods which are prima
facie classifiable within two or more headings and provides the
following:
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:
(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.
EN(VIII) to GRI 3(b) provides, on page 4, the following
guidelines for determining the essential character of an article:
(VIII) The 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
In determining the essential character of the outer surface
of the handbags, greater weight is accorded to the visual and
tactile quality of the handbags. See, Headquarters Ruling Letter
(HRL) 081224, dated September 26, 1989. However, it is not the
only factor that we focus on. We also note that the PVC overlays
sewn to the lattice work (which are considered trim on the
handbags) and the PVC shoulder straps do not constitute parts of
the outer surface of the handbags. See, HRL 081224 and HRL
083174, dated August 8, 1988.
Therefore, in determining the essential character of the
handbags' outer surface, we focus on the "lattice work" fabrics.
The woven material contains almost the same number of pieces and
the same lengths of 4mm narrow fabrics of both types. The cost,
weight, and surface coverage are also comparable. While you
state that the handbags do not have the appearance or the feel of
a textile article, it is our position that the visual impact
imparted equally conveys the impression of narrow textile strips
of cotton. Therefore, it is our position that the essential
character is not readily determinable and classification is
determined according to GRI 3(c).
GRI 3(c) provides the following:
(c) When goods cannot be classified by reference to
3(a) or 3(b), they shall be classified under the
heading which occurs last in numerical order among
those which equally merit consideration.
The competing provisions for this article are subheading
3926.90.90, 4202.22.15, HTSUS, and 4202.22.45, HTSUS. Based on
GRI 3(c), the handbag would be classified in subheading
4202.22.45, HTSUS.
HOLDING:
The two handbags are considered to have an outer surface of
textile materials and are classified in subheading 4202.22.4500,
HTSUS, which provides for "[t]runks, suitcases, vanity cases...:
[h]andbags, whether or not with shoulder strap, including those
without handle: [w]ith outer surface of plastic sheeting or of
textile materials: [w]ith outer surface of textile materials:
[o]ther: [o]f vegetable fibers and not of pile or tufted
construction: [o]f cotton." The rate of duty is 7.2% ad valorem.
The applicable textile quota category is 369.
The designated textile and apparel categories may be
subdivided into parts. If so, the visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available we
suggest the importer check, close to the time of shipment, the
Status Report on current Import Quotas (Restraint Levels), an
internal issuance of the U.S. Customs Service which is updated
weekly and is available for inspection at your local Customs
office.
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 importation of this merchandise to
determine the current status of any import restraints or
requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division