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HQ 086281


March 2, 1990

CLA-2 CO:R:C:G 086281 WAW

CATEGORY: CLASSIFICATION

TARIFF NO.: 3926.20.5050, 4202.32.2000, 4202.92.4500, 4820.10.2020, 6601.99.0000, 7009.91.1000, 8470.10.0040, 8506.19.0000, 9608.39.0000, 9615.11.1000

Ms. Elizabeth Brault
4400 Baker Road
Minnetonka, MN 55343

RE: Travel Bag

Dear Ms. Brault:

This letter is in response to your request for a ruling, dated December 13, 1989, concerning the classification of a travel bag containing a wallet, mirror, pen, raincoat, memo pad, umbrella, comb, and calculator. A sample of the merchandise has been submitted along with your request.

FACTS:

The sample article consists of the following items: a handbag, a wallet, a pen, a comb, a raincoat, a mirror, a memo pad, an umbrella, a calculator and a battery. The handbag is approximately 13 inches long by 9 inches high by 6 inches wide. It has an adjustable shoulder strap and adjustable pad which measures approximately 34 inches long. The bag is constructed with an outer surface of plastic sheeting. It has four "legs" on the bottom so that the bag may be placed on a flat surface and remain upright. There are several different compartments that make up the travel bag. There is one side compartment with a snap closure. In addition, there is a zippered compartment near the bottom side of the bag which contains the umbrella. The back of the bag includes a fold out compartment with a zippered closure, a wallet that holds credit cards, a memo pad, a pen, a calculator with a battery, and a removable mirror on the inside top flap. The bag has a large middle zippered compartment where the raincoat is stored. The handbag, wallet, pen, and raincoat are manufactured in China. The other items are made in Hong Kong. The entire item is assembled in China.

ISSUE:

(1) Whether the travel bag and other accessories are classifiable as a "set" within the meaning of General Rule of Interpretation 3(a) of the HTSUSA, or whether the items are classifiable under separate provisions in the tariff?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) set forth the manner in which merchandise is to be classified under the HTSUSA. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff and any relative section or chapter notes and, unless otherwise required, according to the remaining GRI's, taken in order. In other words, classification is governed first by the terms of the headings of the tariff and relative section or chapter notes.

The issue to be addressed in this case is whether the travel bag with its accessories are classifiable as a "set" or under separate provisions in the tariff. In the instant case, because no heading, by itself, covers the subject merchandise, classification cannot be determined by applying GRI 1 alone. Therefore, reference to the subsequent GRI's is necessary. GRI 2(b), HTSUSA, provides in pertinent part that "[t]he classification of goods consisting of more than one material or substance shall be according to the principles of GRI 3."

GRI 3, HTSUSA, provides in pertinent part:

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:

(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

Since the travel bag and accessories fall under separate headings in the tariff schedule which describe only a portion of the materials in the entire unit, the headings are to be regarded as equally specific under GRI 3(a). Therefore GRI 3(a) fails in establishing classification, and GRI 3(b) becomes applicable.

GRI 3(b) states in pertinent part:

(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 Explanatory Notes to the HTS constitute the official interpretation of the tariff at the international level. The Explanatory Notes for GRI 3, HTSUSA, set forth a three part test for "goods put up in sets for retail sale." The three step definition states the following:

For the purposes of this Rule, the term 'goods put up in sets for retail sale' shall be taken to mean goods which:

(a) consist of at least two different articles which are prima facie, classifiable in different headings;

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and

(c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).

An article must meet all of the above conditions in order to be regarded as a "set" for tariff purposes. The travel bag is classifiable within one heading in the nomenclature while the other accessories fall under separate provisions in the nomenclature. It is clear that all of the items are packaged together for sale directly to users without any further repacking. Therefore, parts (a) and (c) of the above definition are fulfilled by the travel bag and accessories unit.

The problem arises with part (b) in the definition of a "set." The fact that the accessories are packaged together for retail sale does not mean that the merchandise may be considered a set for tariff purposes. All of the items which are packaged together must be dedicated to a "particular need" or "specific activity." In the instant case, the mere fact that the items may be useful when traveling does not necessitate calling them a "set" for tariff purposes. The articles are all multi- dimensional and are not traditionally used together in such a way to meet a particular need or carry out a specific activity. For instance, items such as a calculator and a raincoat are used for very different purposes and do not normally meet the definition of a "set." Thus, it is the opinion of this office that the travel bag and accessories do not constitute a "set" according to the above definition.

HOLDING:

In view of the foregoing, the travel bag and accompanying accessories packaged together to be sold as a single unit must be classified separately, since the articles do not meet the requirements for a "set." The items do not fulfill the same particular need nor are they used for the same specific activity. The appropriate classification for the travel bag is under subheading 4202.92.4500, HTSUSA, which provides for travel, sports and similar bags, with outer surface of plastic sheeting. Items classified under this subheading enter at a rate of duty of 20 percent ad valorem.

The umbrella is classifiable under subheading 6601.99.0000, HTSUSA, which provides for umbrellas and sun umbrellas: Other: Other. Items classified under this subheading enter at a rate of duty of 8.2 percent ad valorem.

The mirror is classifiable under subheading 7009.91.1000, HTSUSA, which provides for glass mirrors, whether or not framed, including rear-view mirrors: Other: Unframed: Not over 929 cm2 in reflecting area. Items classified under this subheading enter at a rate of duty of 7.8 percent ad valorem.

The calculator is classifiable under subheading 8470.10.0040, HTSUSA, which provides for calculating machines; accounting machines, cash registers, postage-franking machines, inter alia, and similar machines, incorporating a calculating device: electronic calculators capable of operation without an external source of power, display only. Items classified under this subheading enter at a rate of duty of 3.7 percent ad valorem.

The comb is classifiable under subheading 9615.11.1000, HTSUSA, which provides for combs, hair-slides and the like; hairpins, curling pins, curling grips, hair-curlers, inter alia, of hard rubber or plastics: combs: valued not over $4.50 per gross. Items classified under this subheading enter at a rate of duty of 14.4 cents/gross + 2 percent ad valorem.

The pen is classifiable under subheading 9608.39.0000, HTSUSA, which provides for ball point pens; felt tipped and other porous-tipped pens and markers, fountain pens, stylograph pens and other pens, inter alia, other than those of heading 9609: ball point pens. Items classified under this subheading enter at a rate of duty of 0.8 cents each + 5.4 percent ad valorem.

The wallet is classifiable under subheading 4202.32.2000, HTSUSA, which provides for traveling bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, inter alia, and similar containers, of leather or of composition leather, of plastic sheeting, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials: articles of a kind normally carried in the pocket or in the handbag: with outer surface of plastic sheeting or of textile materials: with outer surface of plastic sheeting: other. Items classified under this subheading enter at a rate of duty of 20 percent ad valorem.

The raincoat is classifiable under subheading 3926.20.5050, HTSUSA, which provides for other articles of plastics and articles of other materials of headings 3901 to 3914: Articles of apparel and clothing accessories: Other: other. Items classified under this subheading enter at a rate of duty of 5 percent ad valorem.

The battery is classifiable under subheading 8506.19.0000, HTSUSA, which provides for primary cells and primary batteries; parts thereof: primary cells and primary batteries having an external volume not exceeding 300 cm3: Other. Items classified under this subheading enter at a rate of duty of 5.3 percent ad valorem.

The memo pad is classifiable under subheading 4820.10.2020, HTSUSA, which provides for registers, account books, notebooks, order books . . . and similar articles. Items classified under this subheading enter at a rate of duty of 4 percent ad valorem.

Sincerely,

John Durant, Director

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