CLA-2 RR:TC:TE 960046 GGD
Jack D. Mlawski, Esquire
Galvin & Mlawski
440 Park Avenue South, 9th Floor
New York, New York 10016-8067
RE: Reconsideration of NY A87907; "PurseGuard" Alarm with
Carrying Case; Not Composite Good or Set; Not GRI 5(a)
Container
Dear Mr. Mlawski:
This letter is in response to your request of October 25,
1996, on behalf of your client, Zelco Industries, Inc., for
reconsideration of New York Ruling Letter (NY) A87907, issued
October 15, 1996, concerning the classification under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA) of a purse-related alarm device and carrying case made
in Hong Kong. A sample was submitted with the request.
FACTS:
In NY A87907, Customs separately classified the carrying
case in subheading 4202.32.9550, HTSUSA, textile category 670,
the provision for "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 textile
materials: Other: Other, Of man-made fibers," with a general
column one duty rate (in 1996) of 19.5 (now 19.3) percent ad
valorem. The "PurseGuard" alarm device was classified in
subheading 8531.80.8040, HTSUSA, the provision for "Electric
sound or visual signaling apparatus (for example, bells, sirens, -2-
indicator panels, burglar or fire alarms), other than those of
heading 8512 or 8530; parts thereof: Other apparatus: Other,
Other sound signaling apparatus," with a general column one duty
rate (in 1996) of 2.1 (now 1.9) percent ad valorem.
The sample article, identified by model no. 08135, is made
up of two components, one of which is a battery-powered alarm
device enclosed in a small, circular plastic housing, from which
protrudes a metal hanger. The user places the device on the edge
of a table (with the hanger extending below the edge) and sets
the strap of a purse on the hanger. Once activated, the alarm
emits a loud beeping if the purse is removed from the hanger.
The article's other component is a small, sturdy, flat
carrying case or pouch which measures approximately 4-1/2 inches
in length by 2-3/4 inches in height. Customs laboratory testing
reveals that the case has an outer surface composed of embossed
polyvinyl chloride (PVC) plastic that is completely covered with
flocked man-made (rayon) fibers. "Flock" is a textile material
defined in heading 5601, HTS, as "textile fibers, not exceeding 5
millimeters in length." The lining of the case is also made of
PVC plastic material. The item is similar in design to a generic
coin purse and is capable of holding various small items normally
carried in the pockets. The case closes with a hook and loop
fabric fastener.
Advertising literature submitted with the sample states:
"Whether dining out...or even just hanging around the office,
with PurseGuard your purse is always handy, unobtrusive, and
safe...and, when not in use, it stores in its own handsome,
little pouch." The complete article is imported suitable for
direct retail sale without repacking.
ISSUE:
Whether the goods are properly classified as a composite
article, as a set, or as separately classified components.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRI). GRI 1 provides that
the classification of goods shall be determined according to the
terms of the headings of the tariff schedule and any relative
Section or Chapter Notes. In the event that the goods cannot be
classified solely on the basis of GRI 1, and if the headings and
legal notes do not otherwise require, the remaining GRI may then
be applied. The Explanatory Notes (EN) to the Harmonized -3-
Commodity Description and Coding System, which represent the
official interpretation of the tariff at the international level,
facilitate classification under the HTSUS by offering guidance in
understanding the scope of the headings and GRI.
The complete good cannot be classified by reference to GRI 1
because it consists of two individual components classifiable in
different headings, i.e., 4202 and 8531, HTSUS.
In pertinent part, GRI 2(b) states that:
[t]he classification of goods consisting of more than
one material or substance shall be according to the
principles of rule 3.
GRI 3(a) directs that the headings are regarded as equally
specific when they each refer to part only of the materials
contained in composite goods, or of the items in a set put up for
retail sale. Whether the separate headings in this case are
regarded as equally specific depends upon whether the case and
the alarm device constitute a composite good or a set put up for
retail sale.
We look to GRI 3(b), which states in part that:
goods...which cannot be classified by reference to
3(a), shall be classified as if they consisted of the
material or component which gives them their essential
character, insofar as this criterion is applicable.
As with GRI 3(a) above, the applicability of GRI 3(b) is
dependent upon whether the complete article is deemed to comprise
a composite good or a set. In pertinent part, Explanatory Note
IX to GRI 3(b) indicates that:
For 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 adapted one to the
other and are mutually complementary and that together they
form a whole which would not normally be offered for sale in
separate parts.
In this instance, the alarm and carrying case are separable but
not mutually complementary nor adapted to be used together. The
case is designed to store, carry, and/or protect any small item -4-
or items. The alarm is designed to warn that a user's purse has
been tampered with or removed. Such alarms and cases are types
of items normally offered for sale separately. Therefore, we
find that the alarm and carrying case do not comprise a composite
good.
With respect to whether the article may be classified as a
set, Explanatory Note X(b) to GRI 3(b) provides, in pertinent
part, the following guidance:
For the purposes of this Rule, the term "goods put up in
sets for retail sale" shall be taken to mean goods which:
consist of products or articles put up together to meet a
particular need or carry out a specific activity....
As noted above, the alarm produces warning sounds and the case
stores, carries, and/or protects a small item. Since the
components meet separate needs and accomplish divergent
activities, we find that the individual components do not form a
set.
We next note that certain cases or containers may be
classified with the articles they are designed to hold if the
requirements of GRI 5(a) are met. In pertinent part, GRI 5(a)
states that:
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.
The carrying case is suitable for long-term use and is
imported to be sold with an article it is able to contain. It is
not, however, specially shaped or fitted to contain the alarm
device, and such cases are not normally sold with alarms.
Therefore, GRI 5(a) does not operate to render the carrying case
classifiable with the alarm.
You cite to Headquarters Ruling Letters (HQ) 958759, issued
March 21, 1996, and HQ 087870, issued February 13, 1991, to
support the contention that the case should be classified under
heading 8531, HTSUS, since the alarm would provide the essential -5-
character of a composite article. In HQ 958759, this office held
that a pair of slippers and a matching travel pouch comprised a
composite article that was classified in a footwear provision.
Unlike the components of this case, the slippers and pouch were
of the same color, were composed of the same material, and shared
similar features such as satin-like bows and trim. It was found
that the components were adapted to be used together, and that
the pouch was not of a kind likely to be sold independently to
carry other personal effects. We noted that slippers are not
always sold with pouches, but that storage of the slippers in the
pouch during travel would help to keep them together and protect
other clothing from any dirt the slippers might pick up.
In HQ 087870, this office held that a pair of power
speculars (vision aids similar to binoculars but worn like
eyeglasses), a textile cord, and a carrying case, comprised a
composite good that was classified under heading 9005, HTSUS, the
heading pertinent to the speculars component which imparted the
article's essential character. Unlike the "PurseGuard"
components, it was found that the three specular components would
not normally be offered for sale separately. Binoculars and
eyeglasses are also normally sold with cases. The carrying case
for the speculars was composed of plastic sheeting material and
had features which included a nylon top zipper closure, a front
storage pocket, a swagger handle, and loops allowing it to be
worn on a belt. Since classification of the complete article had
been determined by the application of GRI 3(b), the question as
to whether the case was specially shaped or fitted (so as to be
classified in the same provision as its contents pursuant to GRI
5) was said to be immaterial. In light of our findings that the
alarm device and carrying case are not well adapted to one
another, are of a kind normally offered for sale separately, and
that the case is not specially shaped or fitted for the alarm,
the two components must be classified separately. See also HQ
958718, issued August 28, 1996.
HOLDING:
The individual components of the "PurseGuard" alarm with
carrying case, identified by model no. 08135, are separately
classified as follows:
The carrying case is classified in subheading
4202.32.9550, HTSUSA, textile category 670, the provision
for "Articles of a kind normally carried in the pocket or in
the handbag...With outer surface of textile materials...Of
man-made fibers." The general column one duty rate is 19.3
percent ad valorem. -6-
The alarm device is classified in subheading
8531.80.8040, HTSUSA, the provision for "Electric sound or
visual signaling apparatus (for example, bells, sirens,
indicator panels, burglar or fire alarms)...Other sound
signaling apparatus." The general column one duty rate is
1.9 percent ad valorem.
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 subject to frequent renegotiations 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 internal
issuance of the U.S. Customs Service, which is available for
inspection at your 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 applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements.
NY A87907, issued October 15, 1996, is hereby affirmed.
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division