HQ 0083151 - Handbags; Textile materials; Plastic sheeting; Plastics and textile combinations; Fabric coated, covered or laminated with plastics; Wholly or mainly covered; Outer surface; Exterior surface; Customs and Trade Act of 1990. - United States International Trade Commision Rulings

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HQ 083151

January 23, 1992

CLA-2 CO:R:C:G 083151 KWM

CATEGORY: CLASSIFICATION

TARIFF: 4202.22.1500; 4202.32.1000

Mr. Peter W. Klestadt
Grunfeld, Desiderio, Lebowitz & Silverman 12 East 49th Street
New York, New York 10017

RE: Handbags; Textile materials; Plastic sheeting; Plastics and textile combinations; Fabric coated, covered or laminated with plastics; Wholly or mainly covered; Outer surface; Exterior surface; Customs and Trade Act of 1990.

Dear Mr. Klestadt:

This ruling is issued in response to your request for a binding classification ruling for certain handbags manufactured in Italy. Our decision follows.

FACTS:

We have received from you two written submissions as well as samples of the four articles (Herringbone, Saffianto, Regimental and Mark Cross Diamond) at issue. In addition, representatives of this office met with counsel to discuss the issues presented. Your request is for a binding classification ruling for certain women's handbags imported from Italy and manufactured from "polyurethane, textile and leather components."

The handbags are assembled from piece goods cut from plastic sheeting which is specifically manufactured by a technical process designed to produce a leather-like material. The plastic sheet manufacturing process may be described in general terms as follows: First, polyurethane is melted and dyed with color pigments. The liquified polyurethane is poured onto a support cloth comprised of 70% cotton and 30% polyester. As the support cloth moves through rollers, the polyurethane impregnates the cloth and then coagulates into a pliable coating. Additional liquid polyurethane may then be spread over one or both of the surfaces to create thicker layers of polyurethane. The fully covered support cloth is then passed through three ovens at high heat to obtain a final base. The material is pressed and printed with a rotogravure system using engraved cylinders. A chemical dye is used to create the designs and visual effects. Next, the material is embossed using an engraved embossing cylinder to create texture. Lastly, the covered sheets of plastic and textile are paired to a reinforcing inner cloth with heated liquid adhesive. Your submission states that the finished material is, by weight, 57.41% cotton, 13.53% polyester and 29.05% polyurethane. Sheets of the coated material are cut into pieces for assembly into handbags and flatgoods, and may be combined with other plastic, leather and trim components.

Of the samples forwarded with your request, two appear to be manufactured by the method described. Examination of the Herringbone and Saffianto styles reveals that the polyurethane has been built up on both sides of the carrier cloth to obtain a material of substantial weight. Both are backed with a heavy reinforcing cloth which appears to be cotton. The Regimental style handbag is cut from a plastic sheet on which polyurethane has been built up only on one side of the embedded carrier cloth. It is also backed with a heavy reinforcing cloth. The last style, the Mark Cross Diamond ("Diamond"), is distinct in that it does not appear to incorporate a carrier cloth which is fully coated or impregnated with polyurethane. The plastic layer of the Diamond sheet is relatively thin, and is easily separated from the backing cloth (a man-made textile) suggesting that a pre-existing plastic sheet may have been combined with a textile fabric through lamination, rather than the coating method described above. In addition, the Diamond article does not have an inner lining.

In each case, the bulk of the flatgood is made from the polyurethane/textile material which forms the outer shell. In three samples it is combined with a plastics and textile 'liner', which forms the interior of the handbag, and is attached only at the seams. As your letter suggests, there is no textile material visible on the completed products.

Your letter suggests that the handbags at issue are not classified in heading 4202, HTSUSA, because they are not "of" or "wholly or mainly covered" with one of the materials specified in that heading. In the alternative, you have proposed that the handbags are "of" or "wholly or mainly covered" with a textile material and not a plastic sheet. As a second alternative, you propose that the handbags are "of" or "wholly or mainly covered" with leather.

ISSUE:

Is the merchandise classified in heading 4202, HTSUSA, as articles "of" or "wholly or mainly covered" with plastic sheeting or textile materials?

LAW AND ANALYSIS:

Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is made in accordance with the General Rules of Interpretation (GRI's). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relevant Section or Chapter Notes.

Construction of the handbags

The Herringbone, Saffianto and Regimental samples consist of three basic elements: The outer "shell" of the bag, the interior lining, and the trim/handle pieces. The outer shell clearly comprises the bulk of the bag; it gives the article it's shape, it is more rigid, it carries the identifying design of the seller, and contributes the greater bulk and weight. It may also be the most expensive element. Therefore, Customs considers the bags to be "of" or "wholly covered" with the plastics and textile composite material from which the piece goods are cut to assemble the handbag. The Diamond sample has no lining; it is clearly made of only the polyurethane and textiles material.

Your letter suggests that the articles are not made of plastic sheeting; specifically that no plastic sheeting is ever created in the manufacture of the piece goods or flatgoods. We disagree. The description of the manufacturing process provided in your submission clearly indicates that a sheet material is created when the liquified polyurethane and textile carrier cloth are combined. In some instances, the resulting sheet is then thickened by adding polyurethane. The sheet is printed, pressed, embossed and reinforced with textile backing before being cut into individual handbag pieces. Customs has held that an article made directly to shape from liquid plastics cannot be "of" or "wholly covered" with plastic sheet because no sheet is ever formed. We continue to adhere to that position, but find that it is distinguishable from the facts of this case. The instant handbags are not made directly to shape form liquid plastics. Rather, they are assembled from piece goods cut from a sheet material made of plastics and textile.

Plastics and textile combinations; plastic sheets

Combinations of plastics and textiles are governed by several notes to the HTSUSA. Among those, we find the following Legal Note to Chapter 59, HTSUSA:

2. Heading No. 59.03 applies to:
(a) Textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square metre and whatever the nature of the plastic material (compact or cellular), other than:

. . .

(3) Products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of color (chapter 39);

. . .

(5) Plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes.

The effect is to classify as a textile fabric that material which retains the character of a textile, and to classify as a plastic that material which has achieved the character of plastics. The material used to manufacture the Herringbone, Saffianto and Regimental patterned articles is entirely coated on both sides with plastics. The coating or covering is visible to the naked eye, no account being taken of any resulting change in color. Legal Note 2(a)(3) (above) suggests that such material is provided for in Chapter 39, HTSUSA. We find that the plastics and textile material, a constituent material used as an element of the flatgoods should be considered a plastic sheet. In Chapter 39, headings 3920 and 3921, HTSUSA, provide for sheets of plastics, noncellular and not combined with other material (heading 3920) or other sheets (heading 3921). The material used to manufacture the Herringbone, Saffianto and Regimental pattern handbags would be classified in one of these headings. The flatgoods are made of a sheet of polyurethane plastic, combined with textile material in which vegetable fibers predominate by weight. We find that the instant handbags are "of" plastic sheeting, and are therefore included within the scope of heading 4202, HTSUSA.

Your letter of February 2, 1990, asserts that the "Explanatory Notes to Chapter 39, limit the scope of that chapter's coverage to 'plastic sheeting of cellular plastics combined with textile fabrics where the textile is present merely for reinforcing purposes." Therefore, heading 3921, HTSUSA, includes only pre- existing sheets of cellular plastics combined with textile material. We do not agree. First, your citation to the Explanatory Note is inaccurate. The Explanatory Note is not phrased in limiting language; it is descriptive of the types of products included in the chapter's headings. Second, the precise language of the note is identical to Legal Note 2(a)(3) to Chapter 59, cited above. The Note does not refer to "plastic sheeting" but to sheets of plastic combined with textile fabrics, clearly not limited to "pre-existing" sheets. Third, you have selectively relied on an Explanatory Note provision which describes but one of several materials included within the scope of Chapter 39 ,HTSUSA. And as we have indicated, the instant materials are included under one of the other descriptions.

Diamond pattern flatgoods

The material used for the small article printed with the Diamond pattern is not coated or covered in both sides of the carrier fabric. Legal Note 2(a)(3) to Chapter 59, HTSUSA, is not applicable. Further, the plastic does not appear to be cellular in nature and Legal Note 2(a)(5) to Chapter 59 does not apply. The material used to manufacture the flatgoods bearing the Diamond pattern would be considered a textile of heading 5903, HTSUSA.

Heading 4202, HTSUSA

Having determined that the material used to manufacture the Herringbone, Saffianto and Regimental pattern goods is a plastic sheet material contemplated by heading 4202, HTSUSA, we find that the handbags made from such material are classified eo nomine in that heading. The article bearing the Diamond pattern, which may be described as the type of article normally carried in the pocket or handbag, we consider a similar article of textile material and is also classifiable in heading 4202, HTSUSA.

Alternative 4202 headings

Because we find that the merchandise is provided for in heading 4202, HTSUSA, by GRI 1, we have not considered the alternative textile or leather classification arguments raised in your letter. We note, however, that Customs has ruled that trim is not determinative of classification.

Subheading classification

At the four-digit heading level, the tariff classifies handbags "of" certain materials. At the six-digit level, classification is determined by the article's "outer surface." Because the handbag is "of" plastic sheeting, is does not automatically follow that the outer surface is a plastic sheeting material. Customs has held that the outer surface is that which is both visible and tactile. We continue to adhere to that position when determining whether the plastics or textile constituent of a coated or covered textile comprises the outer surface. That rationale was made a part of the tariff by Congress in the enactment of Additional U.S. Note 2 to Chapter 42:

2. For purposes of classifying articles under subheadings . . . 4202.22 . . . articles of textile fabric impregnated coated, covered or laminated with plastics (whether compact or cellular) shall be regarded as having an outer surface of textile material or plastic sheeting, depending upon whether and the extent to which the textile constituent of the plastic constituent makes up the exterior surface of the article.

Although Additional U. S. Legal Note 2 was enacted subsequent to your request, it is an accurate assessment of Customs' established practice for determining classification by "outer surface", a practice being followed at the time of your request. We find that the outer surface of the coated or covered textile material is the plastics constituent; it is that material which is visible and gives the handbag it's distinctive feel. An item made from such material (namely the Herringbone, Saffianto and Regimental patterned handbags) is classified under the subheading which provides for handbags with an outer surface of plastic sheeting.

The Diamond patterned article is, as we noted, of the kind normally carried in the pocket or handbag. As with the plastic sheeting material, is does not automatically follow that a textile material has an outer surface of textiles. In this case, the outer surface is that of the plastics constituent, and we consider the article to have an outer surface of reinforced or laminated plastic sheeting.

HOLDING:

Heading 4202, HTSUSA, provides for handbags of plastic sheeting. The composite material used to produce the Herringbone, Saffianto and Regimental pattern handbags at issue is considered a plastic sheet. The handbags are therefore properly included in heading 4202, HTSUSA. Heading 4202, HTSUSA, also provides for similar articles, particularly those of type normally carried in the pocket or handbag. The composite material used to produce the Diamond pattern flatgood is considered a textile material. The flatgood is therefore properly included in heading 4202, HTSUSA.

Within heading 4202, HTSUSA, subheading 4202.22 provides for handbags with an outer surface of plastic sheeting. Customs considers the outer surface of the handbags to be plastic sheeting if the plastic constituent of a textile and plastic material comprises the exterior surface of the article. In this case it does. The Herringbone, Saffianto and Regimental pattern handbags are therefore classified in subheading 4202.22.1500, HTSUSA, as handbags, of plastic sheeting, whether or not with shoulder strap, including those without handles, with an outer surface of plastic sheeting. The applicable rate of duty is 20 percent ad valorem.

Also within heading 4202, HTSUSA, subheading 4202.32 provides for articles normally carried in the pocket or handbag, with outer surface of plastic sheeting or of textile. Customs considers the outer surface of the handbags to be plastic sheeting if the plastic constituent of a textile and plastic material comprises the exterior surface of the article. In this case it does. Further, the textile material here is present for reinforcing purposes. The article bearing the Diamond pattern is classified in subheading 4202.32.1000, HTSUSA, as an article of the kind normally carried in the pocket or in the handbag, with outer surface of reinforced or laminated plastic sheeting. The applicable rate of duty is 12.1 cents per kilogram plus 4.6 percent ad valorem.

Sincerely,

John A. Durant, Director
Commercial Rulings Division

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