CLA-2 RR:TC:TE 958893 CAB
Jeffrey O. Baldwin
U.S. Customs Port Director
1 E. Bay Street
Room 104
Savannah, Georgia, 31401
RE: Request for Internal Advice 17/95 concerning the
classification of certain wallets; subheading 4202.32.1000 v.
subheading 4202.32.2000
Dear Mr. Baldwin:
This is in response to the request for internal advice
initiated by Siegel, Mandell & Davidson., on behalf of Essex
Manufacturing Inc., regarding the proper tariff classification of
several women's wallets under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA). A representative sample
was submitted for examination.
FACTS:
There are three wallets at issue. Article 4080 is a tri-fold wallet measuring
7 «" x 4 " x 1", when closed, and having a flap closure with a
single snap, as well as a contrast color piece with reinforcement
to hold the snap closure. The interior of the wallet features a
pocket with 1¬" gussets which runs the width of the wallet.
Article 4080 also contains a change pocket section with clasp
closure, a flat pocket without closure having three credit card
slots, a clear plastic identification card slot, two flat
pockets, a clear plastic photo/credit card holder, a zippered
compartment, and a flat pocket without a means or closure.
Article 4081 is a tri-fold wallet measuring 4"x 5 1/4" x 1",
when closed. Article 4081 contains a flap with a single snap
closure, a contrast color piece for reinforcement of the snap
construction, a change pocket with a clasp closure, a compartment
with 1 1/4" gussets, which
runs the width of the wallet, and a flat compartment without
closure. The wallet also features two flat pockets without
closure, three credit card slots, a plastic photo/identification
holder with six slots, and a small zippered pocket with a single
gusset.
Article 4082 is a wallet measuring approximately 4" x 1"
when closed and having a flap with a single snap closure, as well
as a contrast color exterior piece and foam lining for
reinforcement of the snap construction. The wallet has a single
flat zippered exterior pocket with a gusset at one end, and its
interior features a built-in change pocket, two small
compartments without closures containing 1" gussets, and a small
flat compartment without closure.
All three of the subject articles feature an embossed
compact plastics exterior with a brushed polyester/woven cotton
textile backing. The plastics and textile backing are
permanently bonded together by glue which is activated by heat
and pressure.
A proposed Notice of Action of January 3, 1995, concerning
Articles 4080, 4081, and 4082 was issued to Essex Manufacturing
Inc. The Notice of Action proposed to classify the subject
wallets in subheading 4202.32.2000, HTSUSA. The importer
contends that the subject articles are properly classifiable in
subheading 4202.32.1000, HTSUSA.
ISSUE:
Whether the subject wallets are properly classifiable in
subheading 4202.32.2000, HTSUSA, or in subheading 4202.32.1000,
HTSUSA?
LAW AND ANALYSIS:
Classification of goods under the HTSUSA 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. Merchandise
that cannot be classified in accordance with GRI 1 is to be
classified in accordance with subsequent GRI's taken in order.
Heading 4202, HTSUSA, provides for, inter alia, wallets,
purses, and similar articles. Within Heading 4202, HTSUSA, at
the six digit international level, subheading 4202.32, HTSUSA,
provides for articles carried in the pocket or in the handbag
with an outer surface of plastic sheeting. There is no dispute
that the subject wallets are articles normally carried in the
pocket or handbag, have an outer surface of plastic sheeting, and
therefore fit within the purview of Heading 4202.32, HTSUSA.
The issue Customs must address is the proper classification of
the subject articles at the eight digit U.S. level.
The importer contends that the subject articles are
classifiable in subheading 4202.32.1000, HTSUSA, the provision
for articles of reinforced or laminated plastics. The Port
Director of Savannah, Georgia, Customs, proposes to classify the
subject articles in subheading 4202.32.2000, HTSUSA, the
provision for "other" articles, since the subject articles are
not "of" reinforced or laminated plastic, but rather "of" textile
materials.
The classification of articles of subheading 4202.32 with an
outer surface of plastic sheeting is governed by Additional U.S.
Legal Note 2, Chapter 42, HTSUSA, which states the following:
For the purposes of classifying articles under subheadings
4202.12, 4202.32, and 4202.92, articles of textile fabric
impregnated, coated, covered or laminated with plastics
(whether compact or cellular) shall be regarded as having an
outer surface of textile material or of plastic sheeting,
depending on whether and the extent to which the textile
constituent or the plastic constituent makes up the exterior
surface of the article.
In order for the subject articles to be classifiable in
subheading 4202.32.1000, HTSUSA, we must determine that they are
"of reinforced or laminated plastics".
The importer cites several Customs rulings (Headquarter
Ruling Letter (HRL) 950048, dated March 2, 1992, HRL 950983,
dated June 15, 1992, HRL 951047, dated 951047, dated June 15,
1994 ), and T.D. 94-70, dated August 10, 1994, where Customs has
continuously concluded that articles very similar to the subject
wallets which are composed of an outer surface of nonrigid
plastic sheeting and backed or combined with textile material are
of reinforced or laminated plastics and therefore, are
classifiable in subheading 4202.32.1000, HTSUSA.
In the recent case of Amity Leather Company v. United
States, Court No. 95-01-00036, (CIT Aug. 20, 1996), Slip. Op. 96-140, the court had occasion to determine the proper
classification of a change purse comprised of nonrigid plastic
with an outer surface of plastic sheeting backed by a textile
material that provides support. The textile fabric had been
joined to the plastic sheeting by heat and pressure. There was
no dispute that the merchandise therein was classifiable in the
sixth digit subheading of 4202.32, HTSUSA. The issue, as in this
case, was whether the wallet was classifiable in subheading
4202.32.2000, HTSUSA, or 4202.32.1000, HTSUSA. The plaintiffs
attempted to make a distinction between "rigid" and "nonrigid"
plastics. The court concluded "the distinction between HTSUS
subheadings 4202.32.10 and 4202.32.20 does not depend upon the
"rigidity" of the plastics, but on whether the plastics have been
reinforced or laminated with other materials; those reinforced or
laminated are covered by subheading 4202.32.10, HTSUS, and those
that are not are covered by subheading 4202.32.20, HTSUS."
Accordingly, in view of Customs prior rulings and the
decision in Amity Leather, the subject goods are classifiable in
subheading 4202.32.1000, HTSUSA.
HOLDING:
Based on the foregoing, Articles 4080, 4081, and 4082 are
properly classifiable in subheading 4202.32.1000, HTSUSA, which
provides for, inter alia, wallets, purses, and similar articles,
articles of a kind normally carried in the pocket or in the
handbag, with outer surface of
sheeting of plastic or of textile materials, with outer surface
of sheeting of plastic, of reinforced or laminated plastics. The
applicable rate of duty is 12.1 cents per kilogram plus 4.6
percent ad valorem.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division