CLA-2 OT:RR:CTF:TCM H251116 PTM
TARIFF NO: 4202.22.1500
Joseph D. Paterick
Fashion Angels Enterprises
306 North Milwaukee St.
Milwaukee, WI 53202
RE: Request for Reconsideration on New York (“NY”) Ruling N248810; Tariff Classification of a handbag decorating kit.
Dear Mr. Paterick,
We are writing in response to your February 7, 2014, correspondence, in which you request reconsideration of NY N248810, issued by U.S. Customs and Border Protection (“CBP”) concerning a handbag decorating kit. N248810 pertains to the tariff classification in the Harmonized Tariff Schedule of the United States (“HTSUS”) of the “Monster’s High Tapefitti Coffin Clutch Kit.” A sample was provided for our inspection and was used in our analysis. Our response follows.
FACTS:
In NY N248810, CBP stated the following:
The article you refer to as the “Tapeffiti Coffin Clutch Kit,” item 64052, includes a hard-sided clutch-style handbag constructed with an outer surface of plastic sheeting material. It also includes twelve rolls of decorative tape, a tape dispenser, and assembly instructions. The tape and dispenser are used to decorate the bag. The handbag, tape, and instructions are considered a set for tariff purposes. The handbag provides the essential character of the set, General Rule of Interpretation 3(b) noted.
In your request you state that the “Tapeffiti Coffin Clutch Kit” is properly classified as a toy under subheading 9503.00.0073, Harmonized Tariff Schedule of the United States (HTSUS). However, while children may derive some amusement from decorating the handbag, any amusement is incidental to the utilitarian function of the bag. Moreover, articles of Heading 4202, HTSUS, wherein handbags are classified, are excluded from Chapter 95 by application of Note 1(d).
The applicable subheading for Tapeffiti Coffin Clutch Kit will be 4202.22.1500, HTSUS, which provides for handbags, whether or not with shoulder strap, including those without a handle, with outer surface of sheeting of plastic or of textile materials, with outer surface of sheeting of plastics. The rate of duty will be 16 percent ad valorem.
The sample submitted includes the “coffin clutch,” which is a paperboard clutch purse in the shape of a coffin with an imitation leather hand-strap.
The clutch in the set is fully assembled. The user decorates the clutch to suit using the multicolor tape in the package.
It is your position that the Monster High Tapefitti Clutch kit should be classified as a toy, rather than a handbag.
ISSUE:
What is the tariff classification of the “Monster High Tapefitti Clutch”?
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 Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The merchandise at issue here is a kit containing a handheld clutch purse, a tape cutter, and colored tapes that are prima facie classifiable under more than one heading of the HTSUS. Accordingly, in light of the fact that the items comprising the kit are prima facie classifiable under two or more headings and are put up together in a manner suitable for retail sale, we find that the subject merchandise constitutes a “set” per the terms of GRI 3, which provides the following:
When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
* * *
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, 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.
The hand-held clutch purse imparts the coffin clutch kit with its essential character, inasmuch as the other items are used simply to decorate the purse. Consequently, we examine whether the handheld clutch purse is properly classified as a purse or container under heading 4202 HTSUS, or a toy under heading 9503 HTSUS.
The HTSUS provisions at issue are as follows:
4202 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, 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:
4202.22 With outer surface of sheeting of plastic or of textile materials:
4202.22.1500 With outer surface of sheeting of plastic
* * *
9503 Tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages; dolls; other toys; reduced-size (“scale”) models and similar recreational models working or not; puzzles of all kinds.
Note 2(l) to Chapter 42, HTSUS, excludes articles of Chapter 95. However, Note 1(d) to Chapter 95, HTSUS, provides that “[t]his chapter does not cover…(d) Sports bags or other containers of heading 4202, 4303 or 4304.” Thus, if the tapefitti coffin clutch is prima facie classifiable under heading 4202 as a handbag, it is excluded from classification under Chapter 95.
The EN to heading 4202 provides:
This heading covers only the articles specifically named therein and similar containers.
These containers may be rigid or with a rigid foundation, or soft and without foundation.
Subject to Notes 2 and 3 to this Chapter, the articles covered by the first part of the heading may be of any material. The expression “ similar containers ” in the first part includes hat boxes, camera accessory cases, cartridge pouches, sheaths for hunting or camping knives, portable tool boxes or cases, specially shaped or internally fitted to contain particular tools with or without their accessories, etc.
The articles covered by the second part of the heading must, however, be only of the materials specified therein or must be wholly or mainly covered with such materials or with paper (the foundation may be of wood, metal, etc.)….The expression “ similar containers ” in this second part includes note cases, writing cases, pen cases, ticket cases, needle cases, key cases, cigar cases, pipe cases, tool and jewellery rolls, shoe cases, brush cases, etc.
* * *
This heading does not cover…
(h) Articles of Chapter 95 (for example, toys, games, sports requisites).
You state that the coffin clutch purse is not designed for durability or long lasting use, as it is constructed of paperboard material, and that it is intended primarily for play and amusement. However, heading 4202 explicitly covers purses and similar containers of paperboard such as the coffin clutch purse at issue here. Case law provides additional insight. For articles that are both amusing and functional, we look to Ideal Toy Corp. v United States, 78 Cust. Ct. 28 (1977), in which the court stated that "when amusement and utility become locked in controversy, the question becomes one of determining whether amusement is incidental to the utilitarian purpose, or whether the utility purpose is incidental to the amusement." Thus, not all merchandise that provides amusement is properly classified in a toy provision. See also HQ H040737, dated July 23, 2009 (stating that “not all merchandise that provides amusement is properly classified in a toy provision.”). The coffin clutch purse is constructed out of paperboard with plastic sheeting finish. The user, presumably a child or teenager, would derive amusement from decorating the coffin clutch with the colored tapes. However, the clutch is capable of carrying objects such as trinkets, colored pencils or children’s jewelry. The clutch is durable enough to be used for the transportation, storage and protection of the contents contained within. Thus, the clutch purse serves a utilitarian purpose.
Prior CBP rulings have classified articles by their utilitarian function even where the article is decorated. In NY N250115 (Mar. 5, 2014), CBP classified a “collage mirror kit” that contained a mirror and stickers and plastic gems used to decorate the mirror as a mirror rather than an educational toy. In NY N243242 (July 18, 2013), CBP classified a similar product, a “Tapefitti Handbag Design Kit” consisting of two unassembled handbags and three unassembled coin purses that are constructed of plastic sheeting material, twelve rolls of decorative tape, a tape dispenser, hook-and-loop fasteners, and assembly instruction as a bag rather than an educational toy. See also¸ NY N243127 (June 21, 2013) (classifying a speaker decoration kit as loud speakers), N004874 (Jan 24, 2007) (classifying a locker mirror decoration kit as a mirror rather than an educational toy and stating that “the act of decorating the mirror does not involve sufficient educational or manipulative play activity….[t]he user does not actually create a mirror, but can simply decorate a pre-existing mirror….“[t]he mirror is a fully functional article both before and after the decorations are applied.” Similarly, the clutch purse at issue here is fully assembled in the package. The user does not create the purse, they simply decorate it. Thus, while the user does derive some entertainment value in decorating the purse, the entertainment value does not outweigh its utilitarian function, and the fact that the product may be stylized does not cause it to fall outside the scope of heading 4202, HTSUS.
Additionally, the EN to heading 4202 provides that the heading covers rigid containers made of the materials specified therein, which includes paperboard. The coffin clutch at issue here is rigid, and is made of paperboard. Thus, the EN to heading 4202 covers the coffin clutch purse. Because we find that the coffin clutch purse is classifiable under 4202, it is not excluded by exclusion (h) to the EN, which precludes articles of chapter 95.
You cite several rulings in support of your position that the coffin clutch kit should be a toy. In NY J82726, CBP classified a “Barbie Pretty Purse Maker” under heading 9503 HTSUS. However, wallet and keychain which were included in the set were unassembled, and the user crafted the items by lacing them together and then decorating them. The instant product is distinguishable because the clutch purse is fully assembled, so no educational or entertainment value is derived by creating the product from component parts. In NY N028947 CBP classified a “Make Your Own Exercise Bag” kit as a toy. However, this bag also was unassembled and the user would sew the bag together from parts. The amusement value was derived from the assembly of the bag. This case is inapplicable to the current product because the coffin clutch is fully assembled. In N218755, CBP classified a Mosaic Handbag Craft Kit as a toy. The craft kit contained a paper handbag with a plastic handle and a snap closure. The kit also included over 1,000 stick-on foam mosaic and plastic jewels that were matched to numbers on the handbag. That case is distinguishable as the handbag therein was so flimsy that it provided little utilitarian value, while the purse at issue here is sturdy enough to use as a clutch purse for some time.
Based on the foregoing, we find that the Tapefitti Coffin clutch has utilitarian value and is prima facie classifiable under heading 4202 HTSUS. Consequently, it may not be classified as a toy in heading 9503 by operation of Note 1(d) to Chapter 95.
HOLDING:
By application of GRIs 1 (Note 1(d) to Chapter 95), 3(b) and 6, the Tapefitti Coffin Clutch Kit is classified under heading 4202, HTSUS, and specifically in subheading 4202.22.1500, which 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, 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: 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 20% ad valorem. Duty rates are provided for your convenience and 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.
EFFECT ON OTHER RULINGS:
New York Ruling Letter N248110 (Jan. 13, 2014) is AFFIRMED
Sincerely,
Joanne Roman Stump, Acting Director
Commercial and Trade Facilitation Division