CLA-2 CO:R:C:T 956661 BC

John R. Bissell
Venturi, Inc.
1757 Park Drive
Traverse City, MI 49684

RE: Revocation of DD 896054; classification of a textile drawstring pouch imported with a handheld mirror inside; composite good; GRI 3(b); essential character; quota; sets

Dear Mr. Bissell:

This responds to your letter of June 15, 1994, wherein you requested, in effect, a reconsideration of District (Director) Ruling (DD) 896054, which classified the article your company imports: a textile drawstring pouch with a handheld glass mirror inside. We have reviewed the matter and our decision follows.

FACTS:

The merchandise at issue are cotton textile drawstring pouches that are imported with handheld glass mirrors inside. In DD 896054, issued on April 19, 1994, by the District Director of Customs at Ogdensburg, New York, Customs classified the pouches separately from the mirrors in subheading 4202.92.1500, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). This tariff provision imposes a quota restriction, requiring a visa for proper entry of the merchandise. You now request from Headquarters a review of that ruling. Your particular concern is the classification of the pouches.

ISSUE:

What is the proper classification for the subject drawstring textile pouches imported with handheld mirrors inside?

LAW AND ANALYSIS:

There is no dispute as to the classification of the mirrors in subheading 7009.92.1000, HTSUSA. The question is whether the pouches should be classified separately from the mirrors.

In some circumstances, a drawstring pouch can be classified with the article it encloses. In HRL 086343, we classified a windbreaker enclosed in a drawstring pouch as a composite good on the grounds that the pouch was intended to be used as a carrying/storing case for the windbreaker. We concluded that the essential character of the composite good was imparted by the windbreaker. Thus, the carrying bag was classified with the windbreaker. In HRL 087280, we classified a poncho enclosed in a drawstring pouch as a composite good on the grounds that the pouch was intended to be used as a carrying/storing case for the poncho. We held that the essential character of the composite good was imparted by the poncho. Thus, the carrying bag was classified with the poncho. In HRL 953605, we classified plastic blocks enclosed in a textile drawstring pouch as a composite good on the grounds that the pouch was intended to provide a carrying/storing case for the blocks. The essential character of the good was imparted by the blocks. Thus, the pouch was classified with the blocks.

In each of the above cases, classification of the drawstring pouch/bag with the article it enclosed was based on General Rule of Interpretation (GRI) 3(b), which provides, in pertinent part, as follows (see HTSUSA, p. 1):

3. When, by application of rule 2(b) [pertaining to goods consisting of more than one material or substance] 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 . . . shall be classified as if they consisted of the material or component which gives them their essential character . . .

Since, in the above cited cases, the articles enclosed in the drawstring pouches/bags imparted the essential character to the entire composite good (comprising both the pouch/bag and the article enclosed therein), both the pouch/bag and the enclosed article were classified under the tariff provision applicable to the enclosed article.

We conclude that the drawstring pouch at issue here should be classified with the mirror it encloses, since the pouch appears intended to be used as a carrying/storing container for the mirror. The mirror imparts essential character to the entire composite article. Therefore, by application of GRI 3(b), the pouch is classifiable along with the mirror in subheading 7009.92.1000, HTSUSA.

The above classification decision bears on the matter of the quota. When classifying a composite good under GRI 3(b) (as opposed to a set), the quota that applies to the component that imparts essential character is the only quota that is applied to the entire article, even if other components would be subject to quota if entered separately. (See HRL 954073, September 23, 1993, and HRL 954337, October 25, 1993.) Here, the mirror imparts essential character. Since there is no quota applicable to the mirror, there is no quota applicable to the entire article; any quota applicable to the textile pouch (if it were to be classifiable, when imported separately, under a tariff provision that imposes a quota) would not be applicable. (With a set involving textiles and/or textile products, any textile quotas applicable to any components of the set still apply, regardless of which component imparts essential character. See HRL's 085521 (June 6, 1990) and 953064 (February 25, 1993).)

You suggested in your letter that GRI 5(a) should apply to the pouch at issue. Under GRI 5(a), which provides as follows, a container enclosing an article is classified, in certain circumstances, with the article:

5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein:

(a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character.

The pouch at issue does not fall within the ambit of GRI 5(a) because it is not specially shaped or fitted to contain a specific article. Its shape does not precisely follow the contour of the mirror; nor are there any special features which provide a special fit for the mirror. Consequently, GRI 5(a) is inapplicable.

(For your information, we have classified textile drawstring pouches of the kind at issue, when imported separately, in heading 6307, HTSUSA.)

HOLDING:

The subject drawstring textile pouch and handheld mirror, imported together with the mirror enclosed within the pouch, are classified in subheading 7009.92.1000, HTSUSA. This tariff provision is not subject to quota restrictions.

Accordingly, DD 896054 is hereby revoked.

In accordance with section 625, this ruling will become effective 60 days from its publication in the Customs Bulletin. Publication of rulings or decisions pursuant to section 625 does not constitute a change of practice or position in accordance with section 625 does not constitute a change of practice or position in accordance with section 177.10(c)(1), Customs Regulations (19 CFR 177.10(c)(1)).

Sincerely,

John Durant, Director
Commercial Rulings Division