CLA-2 RR:CTF:TCM H140975 EG
Jennifer Okerlund, Esq.
Target Corporation
1000 Nicollet Mall
TPS-3155
Minneapolis, MN 55403
RE: Classification of Ladies Bags
Dear Ms. Okerlund:
This is in reply to your correspondence, dated June 28, 2010, to U.S. Customs and Border Protection (CBP), on behalf of Target Corporation, in which you request a binding ruling on the classification of three ladies bags, identified as style Numbers: DPCI 024-06-2562, DPCI 024-06-2563 and DPCI 024-06-2564, under the Harmonized Tariff Schedule of the United States (HTSUS). In reaching our decision, we have taken into consideration the product samples and specifications which you submitted. The samples are being returned to you pursuant to your request.
FACTS: The merchandise at issue consists of the following three ladies bags:
Style DPCI 024-06-2562 (Pewter Bag)
Style DPCI 024-06-2562 is pewter in color and has a 100% vinyl exterior and a 100% cotton lining. The bag measures 16'' x 5'' x 15.'' This style features two hooks on each end of the top-zipper that can attach to a metal ring along each end of the satchel's bottom (affixed in the middle). The bag has two short parallel carrying straps affixed to either side by means of silver-colored metal hardware. The interior is closed by a zipper running the length of the bag’s top. The bag has one small interior zipper pocket on one interior side and two small pockets (without zippers) on the opposite interior side intended to hold a cell phone.
Style DPCI 024-06-2563 (Small Berry Bag)
Style DPCI 024-06-2563 is berry in color and has a 100% vinyl exterior and a 100% cotton lining. The bag measures 16'' x 3'' x 11.'' The bag has one strap affixed to either side by means of silver-colored metal hardware. The interior is closed by a magnetic closure on the bag’s top. It has one small interior zipper pocket on one interior side and two small pockets (without zippers) on the opposite interior side.
Style DPCI 024-06-2564 (Big Berry Bag)
Style DPCI 024-06-2564 is berry in color and has a 100% vinyl exterior and a 100% cotton lining. The bag measures 16'' x 5'' x 12.'' The bag features two shoulder or elbow straps, which are attached to the body of the bag by circular silver hardware. The bag also features two exterior side pockets (without any closing mechanisms) on each end. The interior is open and is closed by a zipper running the length of the bag's top. It has one small interior zipper pocket on one interior side and two small pockets (without zippers) on the opposite interior side.
ISSUE:
Are the ladies bags classified in subheading 4202.22.15, HTSUS, as handbags or in subheading 4202.92.45, HTSUS, as travel, sports or similar bags?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 HTSUS provisions under consideration are as follows:
4202 Trunks, suitcases, vanity cases, attaché cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage 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:
Handbags, whether or not with shoulder strap, including those without handle:
4202.22 With outer surface of sheeting of plastic or of textile materials:
4202.22.15 With outer surface of sheeting of plastic …
* * *
Other:
4202.92 With outer surface of sheeting of plastic or of textile materials
Travel, sports and similar bags:
4202.92.45 Other …
* * *
Subheading 4202.22, HTSUS, specifically provides for handbags with an outer surface of sheeting of plastic while subheading 4202.92, HTSUS, provides, in pertinent part, for travel, sports and similar bags with an outer surface of sheeting of plastic. Additional U.S. Note (AUSN 1) to Chapter 42, HTSUS, 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, but does not include binocular cases, camera cases, musical instrument cases, bottle cases and similar containers.
There is no dispute that the subject bag is classified in heading 4202, HTSUS. At issue is the applicable six-digit subheading. As such GRI 6 is implicated. It states:
For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.
Subheading 4202.22, HTSUS, provides for “handbags” – a term which is not defined in the HTSUS. A tariff term that is not defined in the HTSUS is construed in accordance with its common and commercial meaning. Nippon Kogaku (USA) Inc. v. United States, 69 C.C.P.A. 89, 92 (1982). Common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities and other reliable sources. C.J. Tower & Sons v. United States, 69 C.C.P.A. 128, 134, 673 F.2d 1268, 1271 (1982). In HQ H004184, dated July 2, 2007, CBP set forth several dictionary definitions of handbags, such as “[an] accessory carried primarily by women and girls to hold such items as money, credit cards, and cosmetics” and “a woman’s bag held in the hand or hung from a shoulder strap and used for carrying small personal articles and money.” Thus the common meaning of a handbag is a bag carried by women to hold small personal items such as money, credit cards and cosmetics.
CBP has developed a practice of referring to certain bags in subheading 4202.92, HTSUS, as “tote bags”. See, e.g. J.E. Mamiye & Sons, Inc. v. United States, 85 Cust. Ct. 92, 102 (1980), HQ 082271, dated December 1, 1988 and HQ H004184. In J.E. Mamiye & Sons, the U.S. Customs Court (predecessor to the U.S. Court of International Trade) stated that “tote bags are utilized by women as second handbags to carry items which do not ordinarily fit within a handbag.” Id. at 102. This definition of tote bags is not binding because the U.S. Customs Court was referring to a provision in the Tariff Schedule of the United States (predecessor to the HTSUS). However, the U.S. Customs Court’s definition closely mirrors AUSN 1 to Chapter 42, which states that “‘travel, sports and similar bags’ means goods, other than those falling in subheadings 4202.11 through 4202.39, [HTSUS,] of a kind designed for carrying clothing and other personal effects during travel.”
CBP has established several factors to distinguish handbags of subheading 4202.22, HTSUS, from tote bags of subheading 4202.92, HTSUS. With regard to handbags, CBP has stated that they typically: are smaller than tote bags, are designed to carry small personal items, include an inner lining, are reinforced along the bottom and corners, incorporate a substantial closure such as a zipper closure and include compartments to organize small personal items. See HQ 959062, dated January 28, 1997, HQ 960899, dated September 24, 1999 and HQ H005625, dated November 28, 2007. Regarding tote bags, CBP has stated that a tote bag generally has at least one side which exceeds 12 inches in length and can carry many different sundry items such as food, books or clothing. See HQ 082271, dated December 1, 1988 and HQ 950708, dated December 24, 1991.
The capacity of each of the sample bags was tested in our office. We collected two bottles of water, a pair of women’s shoes, books and other large items. Then we placed all of the items inside each bag. With regard to the pewter bag, there are two options for bag capacity. The bag has a much smaller capacity when the two metal side hooks on the top of the bag are clipped into the metal rings on either side of the bag’s bottom. With the metal hooks unclipped, multiple large and sundry items fit easily into the bag and the bag could be zipped closed. However with the clips in place, the larger items did not fit into the bag. Although the pewter bag has design features in common with a handbag (inner lining, reinforced bottom and a substantial closure), the function and size of the bag are similar to a tote bag. Since the bag has a carrying capacity for multiple large and sundry items, as well as one side that exceeds 12 inches in length, this bag is classified as a tote bag of subheading 4202.92, HTSUS.
Next, we placed multiple large and sundry items into the small berry bag. This bag has a width of three inches, while the other two bags have a width of five inches. Moreover, the small berry bag’s strap is very close and taught across the bag’s opening, making it difficult to maneuver larger items into the bag because of the narrow space between the strap and the opening. The bulk of large contents caused the sides of the bag to bulge outwards. With multiple items placed into the bag, the bag could not close because the magnetic closure was obstructed by the items. Thus, we conclude that the small berry bag is designed to carry small personal items. Since the bag is too small to adequately carry various sundry items and be closed, the bag is a handbag of subheading 4202.22, HTSUS.
By contrast, the big berry bag had enough capacity for multiple large and sundry items with plenty of room to spare. We could also easily close the zipper on the big berry bag once all the contents were inside. Similar to the pewter bag, the big berry bag has design features in common with a handbag (inner lining, reinforced bottom and a substantial closure), but it has the same function and size as a tote bag. As such, the big berry bag is a tote of subheading 4202.92, HTSUS, because it is designed to carry many different large items and has at least one side which exceeds 12 inches in length.
HOLDING:
Pursuant to GRI 1 through application of GRI 6, the subject merchandise, style numbers DPCI 024-06-2562 (pewter bag) and DPCI 024-06-2564 (big berry bag) are classified under subheading 4202.92.45, HTSUS, which provides for “[T]raveling bags … handbags … of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper: Other: With outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: Other …” The column one, general rate of duty is 20% ad valorem.
Pursuant to GRI 1 through application of GRI 6, the subject merchandise, style number DPCI 024-06-2563 (small berry bag) is classified under subheading 4202.22.15, HTSUS, which provides for “[T]raveling bags … handbags … of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper: Handbags, whether or not with shoulder strap, including those without handle: With outer surface of sheeting of plastic or of textile materials: With outer surface of sheeting of plastic.” The column one, general rate of duty is 16% ad valorem.
Duty rates are provided for convenience only and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov/tata/hts/. A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch