CLA-2 CO:R:C:T 957246 ch
Steven S. Weiser, Esq.
Amy J. Johannesen, Esq.
Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway
43rd Floor
New York, New York 10036-8901
RE: New York Ruling Letter 803074 affirmed; classification
of handbag/wallet; tote bag; shopping bag; travel bag;
not a composite article.
Dear Mr. Weiser and Ms. Johannesen:
This is in response to your letter, dated October 27, 1994,
requesting reconsideration of New York Ruling Letter (NYRL),
dated October 20, 1994, on behalf of your client, Liz Claiborne
Accessories, Inc.. In that decision, a trifold container and a
tote bag were separately classified as a handbag and a tote bag,
respectively, under the Harmonized Tariff Schedule of the United
States (HTSUS). Samples were sent to this office for examination
and will be returned to you under separate cover.
FACTS:
The submitted sample, style 80970, is comprised of two
components. The first component is a trifold container closed by
means of a double snap closure. It measures approximately 7 1/2
inches in length and 4 1/2 inches in width in its closed position
and possesses a detachable shoulder strap. The article is
composed primarily of nylon and opens to reveal a coin/utility
pocket, a removable checkbook holder, an identification card
window, credit card slots and a zippered pocket for paper
currency. The exterior features a full length and width pocket
with magnetic snap closure. The second component is a matching
open top, double handle, tote bag measuring approximately 16 1/2
inches by 15 inches. You indicate that the tote bag will
inserted into the exterior pocket of the trifold and the two
components will be sold as a unit.
ISSUE:
Whether the trifold container is classifiable in subheading
4202.32, HTSUS, as an article of a kind normally carried in the
pocket or in the handbag; or in subheading 4202.22, HTSUS, as a
handbag?
Whether the trifold container and the tote bag are
classified together as a composite article, pursuant to General
Rule of Interpretation (GRI) 3(b); or are classified separately?
LAW AND ANALYSIS:
Heading 4202, HTSUS, provides inter alia for handbags and
wallets. Subheadings 4202.22 through 4202.29, HTSUS, encompass
handbags; subheadings 4202.31 through 4202.39, HTSUS, describe
articles of a kind normally carried in the pocket or handbag.
The subheading Explanatory Note to heading 4202, at page 613,
indicates that wallets are classified as an article of a kind
normally carried in the pocket or in the handbag. Pursuant to
General Rule of Interpretation 6, classification of goods at the
subheading level shall be effected mutatis mutandis with General
Rules of Interpretation 1 through 5.
The term "wallet" is not defined in the HTSUS or in the
applicable Explanatory Note to heading 4202, HTSUS. However, we
note the following definitions of the term "wallet" from
lexicographic sources:
Essential Terms of Fashion: A Collection of
Definitions, Charlotte M. Calasibetta, Fairchild
Publications, 1986: An item used to carry paper money,
credit cards, photographs and sometimes with a change
purse or space for a check book or pad.
The Fashion Dictionary, Mary Brooks Picken, Funk &
Wagnalls, 1973: 1. Flat purse or pocketbook, for
carrying either paper money or coins.
Webster's New Collegiate Dictionary, G. & C. Merriam
Co., 1977: 1. a bag for carrying miscellaneous
articles while traveling; 2 a: billfold b: a
pocketbook with compartments for change, photographs,
cards, and keys.
Webster's New World Dictionary, Third College Edition,
Simon & Schuster, Inc., 1988: 1. [Archaic] a
knapsack; 2. a flat pocketbook, as of leather, with
compartments for paper money, cards, etc.; billfold.
We also recognize that the term "handbag" has been defined
as follows:
Essential Terms of Fashion: A Collection of
Definitions: Accessory carried primarily by women and
girls to hold such items as money, credit cards, and
cosmetics.
The Fashion Dictionary: Soft or rigid bag carried in
hand or on arm. Size, shape, handle, etc., depend on
fashion. Used by women as container for money and
pocket-sized accessories.
Webster's New Collegiate Dictionary: 1. traveling bag;
2. a woman's bag held in the hand or hung from a
shoulder strap and used for carrying small personal
articles and money.
Webster's New World Dictionary: A bag, usually of
leather or cloth, held in the hand or hung by a strap
from the arm or shoulder and used, by women, to carry
money, keys, and personal effects.
The trifold possesses attributes of both a wallet and a
handbag. For example, it features credit card slots, pockets for
paper currency/coins and an identification card window, which are
associated with a wallet. On the other hand, it possesses a
shoulder strap and a spacious exterior pocket suitable for
holding various personal effects, which are characteristics of a
handbag. As the item is described by two subheadings within
heading 4202, HTSUS, we must resort to General Rule of
Interpretation 3 to determine its proper classification.
Although the presence of a carrying strap permits the
article to be worn on the shoulder in a manner consistent with a
handbag, we conclude that a strap in and of itself should not
affect its classification. In this regard, we note that the
provision for handbags specifies that they may or may not have a
shoulder strap. Moreover, in this instance the strap is
detachable, suggesting a dual use for the merchandise as a
handbag or a wallet.
We are of the opinion that the determinative feature of a
handbag is its ability to hold several objects not associated
with a wallet. In this instance, the interior of the container
is fitted to hold objects associated with a wallet (i.e., credit
cards, identification cards, paper currency and coins). However,
the exterior pocket is spacious and may serve as a receptacle for
a variety of personal effects. For example, we were able to
place a small address book, small hairbrush, lipstick, nail
polish and a set of keys on a chain into the pocket
simultaneously. While you indicate that the tote bag will be
inserted into the pocket at the time of importation, these
articles may be separated and used individually after they are
purchased. Although the trifold incorporates the features of a
wallet, taken as a whole it has the character of a carry-all
container. Consequently, it is classifiable as a handbag of
subheading 4202.22, HTSUS.
GRI 3(b) states in pertinent part that composite goods
consisting of different components shall be classified as if they
consist of the component which gives them their essential
character. Explanatory Note (EN) (IX), at page 4, provides that:
For the purposes of this Rule, composite goods made up of
different components shall be taken to mean not only those
in which the components are attached to each other to form a
practically inseparable whole but also those with separable
components, provided these components are mutually
complementary and that together they form a whole which
would not normally be offered for sale in separate parts.
Examples of the latter category of goods are:
(1) Ashtrays consisting of a stand incorporating a
removable ash bowl.
(2) Household spice racks consisting of a specially
designed frame (usually of wood) and an appropriate
number of empty spice jars of suitable shape and size.
(Emphasis added).
Thus, goods consisting of two or more components will be regarded
as composite goods, provided that they are "mutually
complementary" and "that together they form a whole which would
not normally be offered for sale in separate parts."
You contend that the trifold and the tote bag are mutually
complementary and note prior decisions where we have deemed it
significant that components were color coordinated and adapted to
one another. See Headquarters Ruling Letter (HRL) 951112, dated
March 24, 1994 (HRL 950210, dated September 4, 1991, affirmed;
swimshorts with matching belt are adapted to one another and form
composite goods); HRL 081835, dated April 26, 1989 (blouse and
tie of matching color constitute composite goods). Our attention
is directed to a ruling in which we concluded that components
which may be used separately were classified as a composite
article. See HRL 950324, dated December 10, 1991 (nylon belt
which could be used for other purposes classified with a lighting
unit). Finally, you observe that on occasion Customs has
regarded components as mutually complementary solely on the basis
that they were composed of the same material. See NYRL 881356,
dated January 29, 1993 (boxer shorts imported with drawstring
pouch); NYRL 863176, dated June 5, 1991 (raincoat with carrying
bag). As the instant components are composed of the same
material and may be regarded as being adapted to one another, you
conclude that they are mutually complementary.
In addition, you characterize the tote bag as "relatively
flimsy" and argue that it would not normally be sold
individually. Moreover, you reason that the components may be
classified together so long as they "are not normally offered for
sale separately by the importer." In other words, you buttress
your claim by arguing that the importer would not actually sell
these items separately as part of their product line.
Consequently, you conclude that the trifold and the tote bag
satisfy the criteria for a composite article.
However, the phrase "would not normally be sold in separate
parts" does not refer to how the components are actually
marketed. Rather, it pertains to whether the components would
normally or principally be sold independently of one another. In
the decisions set forth above, we concluded or implied that at
least one of the components had no practical value when sold
independently and was not of the type usually sold separately at
retail. Thus, for example, insubstantial belts or ties were
classified with garments so long as they were not of a kind
normally sold in their own right. By way of contrast, we have
determined that ties normally sold as separate accessory items
are not classified with an accompanying playsuit. HRL 953063,
dated June 8, 1993. In this instance, we conclude that there is
a market for both the tote bag and the trifold as separate
articles of commerce. Consequently, we conclude that the these
items do not comprise a composite article and must be classified
separately. We reserve judgment on whether the components are
mutually complementary.
Chapter 42, Additional U.S. Note 1, states that:
For the purposes of heading 4202, the expression "travel,
sports and similar bags" means goods, other than those
falling in subheadings 4202.11 through 4202.39, of a kind
designed for carrying clothing and other personal effects
during travel, including backpacks and shopping bags of this
heading, but does not include binocular cases, camera cases,
musical instrument cases, bottle cases and similar
containers.
The tote bag meets the description of a travel bag and is similar
to a shopping bag in this regard. Consequently, it is
classifiable as a travel bag of subheading 4202.92, HTSUS.
HOLDING:
NYRL 803074 is hereby affirmed. The trifold is classifiable
under subheading 4202.22.8050, HTSUS, which provides for
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 applicable rate of duty is
19.8 percent ad valorem. The textile category is 670.
The tote bag is classifiable under subheading 4202.92.3030,
HTSUS, which provides for travel, sports and similar bags: with
outer surface of textile materials: other, other: of man-made
fibers: other. The applicable rate of duty is 19.8 percent ad
valorem. The textile category is 670.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are the subject of frequent negotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report on Current Import Quotas (Restraint Levels), an issuance
of the U.S. Customs Service, which is updated weekly and is
available at the 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 the local
Customs office prior to importing the merchandise to determine
the current status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division