CLA-2 CO:R:C:M: 957019 DFC
Mr. Steven Lambert
325 West Clarkstown Road
Spring Valley, New York 10977
RE: Bags, ladies, evening; glass beaded shoulder bags; Beads,
glass; HRL's 083395 and 084250; NYRL's 874233 and 876196
modified
Dear Mr. Lambert:
This is in reference to New York Ruling Letters (NYRL's)
874233 and 876196, dated June 3, and July 17, 1992, respectively,
addressed to you, on behalf of Innovative Products International
Inc., by the Area Director of Customs, New York Seaport,
concerning, in part, the tariff classification under the
Harmonized Tariff Schedule of the United States (HTSUS), of two
glass beaded evening bags. We have reviewed these rulings and
determined that they are in error. Pursuant to section 625,
Tariff Act of 1930 (19 U.S.C. 1625) as amended by section 623 of
Title VI (Customs Modernization) of the North American Free Trade
Agreement Implementation Act, Pub L. 103-182, 107 Stat. 2057,
2186 (1993) (hereinafter "section 625"), notice of the proposed
modification of NYRL's 874233 and 876196 was published on
November 16, 1994, in the CUSTOMS BULLETIN, Volume 28, Number
45/46.
FACTS:
The merchandise in issue is described as follows:
Black beaded evening Bag "Sung" is a lady's black
shoulder bag which has a rectangular shape and measures
approximately 4-1/4" x 3-3/4" x 1/2". The sides of the
bag are completely covered with black glass rods and
the edges and bottom of the bag are completely covered
with black glass beads. The interior of the bag is
covered with nylon. The bag is secured by an
overlapping flap with a magnetic snap closure and a
textile tassel affixed at the front of the snap
closure.
Colored Round Beaded Evening Bag "Mackie" is a lady's
multicolored shoulder bag which has a cylindrical shape
and measures approximately 5-3/4 inches in height and
3-1/3 inches in diameter. The round lid and sides of
the bag are completely covered with glass rods
(arranged in multicolored diamond patterns) and beads
(which border the diamonds). The bottom and the
interior of the bag are covered with black nylon. The
strap of the bag is a textile cord which passes through
two metal grommets in the lid and is attached to the
inside wall of the bag.
In NYRL's 874233 and 876196, Customs ruled that both glass
beaded evening bags are classifiable under subheading 7018.10.50,
HTSUS, which provides for glass beads, and articles thereof,
glass beads, other. The applicable rate of duty for this
provision is 4.7% ad valorem.
ISSUE:
Are the evening bags considered handbags, or glass beads or
articles of glass beads for tariff purposes?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
"classification shall be determined according to the terms of the
headings and any relative section or chapter notes, and provided
such headings or notes do not otherwise require, according to
[the remaining GRI's]." In other words, classification is
governed first by the terms of the headings and any relative
section or chapter notes.
Handbags are generally classified under heading 4202, HTSUS,
which provides for inter alia, handbags of leather or of
composition leather, of plastic sheeting, of textile materials,
or vulcanized fiber or of paperboard, or wholly or mainly covered
with such materials. However, the handbags before us are made of
textile material, glass beads and de minimis amounts of metal.
At first glance, it appears the evening bags may be
classifiable in heading 4202, HTSUS, or heading 7018, HTSUS,
which provides for, inter alia, glass beads and articles thereof
other than imitation jewelry.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) to the HTSUS, although not dispositive
should be looked to for the proper interpretation of the HTSUS.
See T.D. 89-80, 54 FR 35127, 35128 (August 23, 1989). The EN to
heading 4202, HTSUS, states in pertinent part, at page 613, the
following:
This heading covers only the articles specifically
named therein and similar containers . . . . The
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 or with paper (the foundation may be of wood,
metal, etc.) . . . .
It appears clear from the EN's that in order to be
classified within the provisions of heading 4202, HTSUS, the
evening bags 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 evening bags are completely covered [style "Sung"] or mainly
covered [style "Mackie"] with glass beads, they cannot be
classified under heading 4202, HTSUS, because they do not fall
within the terms of the heading.
The EN to heading 7018, HTSUS, at page 942, 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 instant
evening bags under heading 7018, HTSUS, because the instant bags
have their essential character imparted by the beads and thus are
not considered "of fabric" or merely "decorated" with the beads
with the meaning of the EN. Therefore, because these evening
bags are entirely or mainly covered with glass beads, they are
not classifiable under heading 4202, HTSUS.
The glass beaded evening bags are something more than the
"glass beads" provided for in subheading 7018.10.50, HTSUS. They
are in fact articles of glass beads viz., evening bags the
essential character of which is imparted by the glass beads.
Consequently, the evening bags are classifiable under subheading
7018.90.50, HTSUS. See HRL 084250 dated July 14, 1989, and
083395 dated February 12, 1990.
HOLDING:
The glass beaded evening bags are considered articles of glass
beads for tariff purposes.
The glass beaded evening bags are dutiable at the rate of
6.6% ad valorem under subheading 7018.90.50, HTSUS.
Accordingly, NYRL's 874233 and 876196 are modified to
reflect the correct classification of the glass beaded evening
bags. In accordance with section 625, this ruling will become
effective 60 days after 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 177.10(c)(1), Customs Regulations (19 CFR
177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division