CLA-2 RR:CR:TE 963471 GGD
Arthur W. Bodek, Esquire
Akin, Gump, Strauss, Hauer & Feld, L.L.P.
590 Madison Avenue, 20th Floor
New York, New York 10022
RE: Reconsideration of New York Ruling Letter (NY) E81544; Leather Bag and Belt
Dear Mr. Bodek:
This letter is in response to your request, on behalf of your client, Liz Claiborne, Inc., for reconsideration of New York Ruling Letter (NY) E81544, issued July 15, 1999, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of a woman's carrying bag with belt and shoulder strap, both of which are detachable. The complete article is made in China and a sample was submitted with your request.
FACTS:
In NY E81544, Customs separately classified the belt and the bag. The bag was classified in subheading 4202.21.6000, HTSUSA, which provides for “Trunks...traveling bags...handbags...: Handbags, whether or not with shoulder strap, including those without handle: With outer surface of leather, of composition leather or of patent leather: Other: Valued not over $20 [twenty dollars] each." The belt was classified in subheading 4203.30.0000, HTSUSA, the provision for "Belts and bandoliers with or without buckles."
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The article at issue, identified as a "Leather/Bonded Leather Belt Bag" and by style number FE947210, is a bag that may be carried in the hand, on the shoulder, or at the waist, the latter two carrying options provided by a shoulder strap and a belt, respectively, both of which are detachable. The convertible bag is constructed with a front panel composed of leather printed to simulate a leopard hide. The back panel is composed of polyurethane (PU) -coated composition leather. The bag measures approximately 6 inches in height by 6 inches in width (slightly narrower at the top) by 2 inches in depth (when fully stuffed) in the closed position. The bag has a belt loop sewn to the exterior of the back panel, and a top flap closure which secures by means of a hook and loop fabric fastener. The bag's interior consists of one central compartment that is lined with a woven textile material.
The belt measures approximately 39 inches in length by 7/8 of an inch in width and fastens by means of a gold-toned buckle. The belt is composed of pig suede with a backing of PU plastic. The shoulder strap is of similar material composition and measures approximately 49 inches in length by 3/8 of an inch in width. It may be attached to the bag's interior flap by means of two snap fasteners.
ISSUES:
1) Whether the bag and belt components are classified separately, or as a composite good.
2) Whether the bag is classified in subheading 4202.21.6000, HTSUSA, as a handbag; or in subheading 4202.91.0030, HTSUSA, as a travel bag.
LAW AND ANALYSIS:
Classification under the HTSUSA 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 Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI.
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It is essentially your contention that the complete article at issue is a "belt bag," a container for personal effects that is worn at or around the waist which, if classifiable solely on the basis of GRI 1, would be classified in subheading 4202.91.0030, HTSUSA, the provision for "...traveling bags...: Other: With outer surface of leather, of composition leather or of patent leather: Travel, sports and similar bags." This tariff provision would also be appropriate for the classification of leather travel bags such as fanny packs, backpacks, and tote bags. The complete article, however, is made up of two main components, i.e., a bag (with shoulder strap) and a belt - each of which is classifiable in a different heading - headings 4202 and 4203, HTSUSA. We therefore look to GRI 2(b), which states:
The 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....
Since each of the headings refers to part only of the materials, GRI 3(a) requires that the headings be regarded as equally specific despite any disparity in their texts. For this reason, we next look to GRI 3(b).
GRI 3(b) states, in part, that:
...composite goods...made up of different components...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 somewhat dependent upon whether or not the complete article is deemed to comprise a composite good. 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.
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Although the two components at issue are separable, neither the bag (with shoulder strap) component nor the belt component, forms a whole which would not normally be offered for sale in separate parts. Each component is clearly of a kind that is normally offered for sale in separate parts. Therefore the components of the "Leather/Bonded Leather Belt Bag" do not constitute a composite good and each is properly classified in a separate tariff provision.
Heading 4203, HTSUSA, covers articles of apparel and clothing accessories (including belts) of leather or of composition leather. The belt is classified in subheading 4203.30.0000, HTSUSA, the provision for "Belts and bandoliers with or without buckles."
Since the belt has been separately classified, the bag component remaining to be classified does not possess characteristics that would be typical of a travel bag worn at or around the waist to carry personal effects. The bag may, nevertheless, be classifiable as a travel bag other than a "belt bag" or a handbag. We note that heading 4202, HTSUSA, provides for:
Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber, or of paperboard, or wholly or mainly covered with such materials or with paper. [Emphasis added.]
Subheadings 4202.91 and 4202.92, HTSUSA, provide in part for travel, sports and similar bags. Additional U.S. Note 1 to chapter 42, HTSUSA, states:
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.... [Emphasis added.]
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Subheading 4202.21, HTSUSA, provides in part for "Handbags, whether or not with shoulder strap...: With outer surface of leather...." Since subheading 4202.21, HTSUSA, falls in the range between 4202.11 and 4202.39, according to Additional U.S. Note 1 above, the bag at issue cannot be classified in a provision for "travel, sports and similar bags" unless it is found to be a good "other than" a handbag of subheading 4202.21, HTSUSA. The word “handbag” is defined in Webster’s New World Dictionary, Second College Edition, 1972, as: “1. a small container for money, toilet articles, keys, etc., carried by women; purse 2. a small suitcase or valise.”
In HQ 950708, issued December 24, 1991, we observed judicial guidance as to the attributes of both handbags and bags classifiable under subheading 4202.92, HTSUSA. It was noted that certain tote bags which had no linings or reinforcements, no pockets, no closures (or only single snap closures), provided little protection for their contents and were unlikely to be used in a manner similar to a woman’s handbag. We opined that such bags were used as multipurpose bags to carry any number of sundry articles, such as food, books, and/or clothing. Since the bags did not fit the terms of subheadings 4202.11 through 4202.39, but were a type of bag used to carry clothing and other personal effects during travel, they were considered to be travel, sports and similar bags within the meaning of Additional U.S. Note 1 to chapter 42, HTSUSA.
In HQ 959062, issued January 28, 1997, we reconsidered and reclassified an article described as a “mini-backpack” in subheading 4202.22.4030, HTSUSA, as a handbag. The bag was composed of a pile velveteen fabric and measured approximately 6 inches in length by 7-1/2 inches in width by 5 inches in diameter. The bag had a drawstring closure at the top and a flap adorned with a satin bow. The bag also had double shoulder straps of braided nylon cording which could be run through a snap closure at the base of the bag to create a “mini-backpack” effect. In light of the bag’s overall appearance and construction (i.e., its small size, fabric, and flimsy straps), the legal note, and definitions/common meanings of the terms “handbag” and “backpack,” we found that the “mini-backpack” was designed for use as an evening handbag to contain a female's personal effects.
The bag component here at issue is lined, has a narrow shoulder strap, and is composed of two types of quality leather with an attractive print. In light of the factors noted above, we find that the bag component is designed, constructed, and intended to be used as a woman’s handbag for carrying some small personal effects such as money, keys, and toiletries. The handbag component is classified in subheading 4202.21.6000, HTSUSA.
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HOLDING:
The leather handbag component of style no. FE947210 is classified in subheading 4202.21.6000, HTSUSA, the provision for “...Handbags, whether or not with shoulder strap, including those without handle: With outer surface of leather, of composition leather or of patent leather: Other: Valued not over $20 [twenty dollars] each." The general column one duty rate is 10 percent ad valorem.
The leather belt component of style no. FE947210 is classified in subheading 4203.30.0000, HTSUSA, the provision for "Articles of apparel and clothing accessories, of leather or of composition leather: Belts and bandoliers with or without buckles." The general column one duty rate is 2.7 percent ad valorem.
NY E81544, issued July 15, 1999, is hereby affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division