CLA-2 CO:R:C:T 957630 ch
David Krakauer
RGA Accessories, Inc.
4 West
33 Street
New York, New York 10001-3386
RE: Tariff classification of a nylon/leather container;
coin purse; wallet; notebook; handbag; article of a
kind normally carried in the pocket or in the handbag.
Dear Mr. Krakauer:
This is in response to your letter, dated January 23, 1995,
requesting tariff classification under the Harmonized Tariff
Schedule of the United States (HTSUS) for an article identified
as an "agenda on a string." A sample was sent to this office for
examination.
FACTS:
The submitted sample, style R9118, measures approximately
3.5 inches by 4.75 inches by 1.5 inches in its closed position.
It is comprised of a zippered purse divided into three sections
for holding coins, paper currency and small objects such as keys;
and a tri-fold section with snap closure which contains a
replaceable spiral bound paper notebook, an identification card
holder and a slot suitable for holding a business card. The
article may be carried by means of a detachable shoulder strap
and is composed primarily of nylon, with a decorative suede
leather patch on the front flap.
ISSUE:
What is the proper tariff classification for the subject
merchandise?
LAW AND ANALYSIS:
You contend that the subject merchandise is properly
classified in heading 4820, HTSUS, which provides in part for
diaries, address books, memorandum pads and notebooks, of paper
or paperboard. In prior decisions concerning folders or covers
imported with paper products, we have classified the goods as
articles of paper classifiable within heading 4820. The folders
were characterized as jackets or covers which merely emphasized
the purpose of the article as a place to take notes, memoranda or
daily records. Consequently, the paper component imparted the
essential character to these items and they were regarded as
articles "of paper or paperboard." See Headquarters Ruling
Letter (HRL) 956497, dated August 3, 1994; HRL 955255, dated
November 9, 1993; HRL 951076, dated March 18, 1992.
However, style R9118 cannot be regarded as a cover or jacket
or to be used in conjunction with the notebook. Rather, when
viewed as a whole, the article is a container designed to carry,
store, organize and protect various personal effects, such as a
driver's license, coins, paper currency, keys and a small
notebook. In sum, the container imparts the essential character
to the product. For this reason, the merchandise is not regarded
as being composed "of paper or paperboard" and is excluded from
heading 4820, HTSUS.
Heading 4202, HTSUS, provides in part for wallets and
handbags, wholly or mainly covered with textile materials or
leather. Subheading 4202.22, HTSUS, encompasses handbags,
whether or not with shoulder strap; subheadings 4202.31, 4202.32
and 4202.39, HTSUS, describe articles of a kind normally carried
in the pocket or handbag (a.k.a. flatgoods). 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 subheading Explanatory Note to heading 4202, at page
613, states:
Subheadings 4202.31, 4202.32 and 4202.39
These subheadings cover articles of a kind normally carried
in the pocket or in the handbag and include spectacle cases,
note-cases (bill-folds), wallets, purses, key-cases,
cigarette-cases, cigar-cases, pipe-cases and tobacco-pouches.
The term "handbag" is not defined in the HTSUS or in the
Explanatory Note to heading 4202. However, lexicographic sources
define a "handbag" 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.
Style R9118 may be regarded as either a flatgood or a
handbag. The article is small, features an identification card
holder and small pockets for paper currency/coins, which are
characteristic of flatgoods such as wallets or change purses. On
the other hand, the item possesses a shoulder strap and combines
the features of more than a single flatgood (change purse,
wallet, small note pad). As the merchandise is prima facie
classifiable in 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
determine its classification. In this regard, we note that the
provision for handbags specifies that they may or may not have a
shoulder strap. Thus, the manner in which the item is carried is
not the determinative feature of a handbag. Moreover, in this
instance the strap is detachable, suggesting a dual use for the
merchandise as an article to be carried in a handbag.
We are of the opinion that the distinction between the
applicable subheadings is the ability of the merchandise to hold
various articles. Style R9118 does not possess sufficient
capacity to hold small personal effects which are typically
carried in the handbag (e.g. hairbrush, keys on a chain, certain
cosmetics). In addition, the article is relatively flat and is
largely limited to smaller items such as paper currency, coins
and identification cards. While the article is capable of
holding several items, we conclude that it does not have the
character of a carry-all container. For this reason, the item is
more specifically described by the subheading for articles of a
kind normally carried in the pocket or in the handbag.
Heading 4202, HTSUS, encompasses wallets and similar
containers which are wholly or mainly covered with textile
materials. At the six-digit classification level, articles of
this heading are segregated according to the material composition
of their outer surface. Style R9118 is mainly covered with
textile materials. We regard the decorative leather flap as akin
to trimming. Consequently, the article possesses an outer
surface of textile materials for classification purposes.
HOLDING:
The subject merchandise is classifiable under subheading
4202.32.9550, HTSUS, which provides for articles of a kind
normally carried in the pocket or in the handbag, of man-made
textile fibers. The applicable rate of duty is 19.8 ad valorem.
The textile visa 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