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HQ 950463


October 24, 1991

CLA-2 CO:R:C:T 950463 SK

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.32.9530

Ms. Betsy N. Wolkens
Hayes Specialties Corporation
1761 East Genesee St.
Saginaw, Michigan 48601

RE: Revocation of New York Ruling Letter (NYRL) 864243 (6/18/91); composite goods; key chain; article carried in pocket or handbag; 4202, HTSUSA

Dear Ms. Wolkens:

Customs has been asked to review New York Ruling Letter (NYRL) 864243 which was issued to you June 18, 1991. Upon review, this office has determined that the classification issued in that ruling is incorrect and the proper classification is set forth as follows.

FACTS:

The article at issue consists of a print cotton and latex coin purse measuring approximately 3 1/2" x 2" in the shape of a shoe. It is unlined and secured with a zipper closure with an affixed metal split key ring holder. It is designed to hold change, extra keys, etc. ... and is carried in the pocket or purse.

NYRL 864243 classified the subject merchandise under heading 7326, HTSUSA, which provides for other articles of iron or steel wire. NYRL's 857147, 858138 and 850168 classified similar merchandise under heading 4202, HTSUSA, which provides for, inter alia, articles of a kind normally carried in the pocket or handbag.

ISSUE:

Whether this article is properly classifiable under heading 4202, HTSUSA, which provides for, in relevant part, various containers, or under heading 7326, HTSUSA, which provides for other articles of iron or steel wire?

LAW AND ANALYSIS:

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that articles are classifiable according to the terms of the headings and any relative section or chapter notes and, providing the headings or notes do not otherwise require, according to the remaining GRI's taken in order.

The pertinent headings with regard to this article are heading 7326, HTSUSA, which provides for other articles of iron or steel wire and heading 4202, HTSUSA, which provides for items normally carried in the pocket or purse.

The article at issue is comprised of component parts that are potentially classifiable under these two different headings in the Nomenclature. Accordingly, analysis is provided by GRI

" ... composite goods consisting of different materials that cannot be classified according to GRI 3(a) are to be classified as if they consisted of the material that imparts the item's essential character."

The article at issue cannot be classified under GRI 3(a) because both headings 4202 and 7326, HTSUSA, are equally specific with regard to the subject merchandise.

Explanatory Note VIII to GRI 3(b) sets forth that:

The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

Using this analysis, it is clear that the article's essential character is imparted by the coin purse for several reasons. The coin purse provides most of the article's bulk and value. It is this component which enables one to store change, extra keys, make-up and small miscellaneous items in a compact space which is meant to fit easily into an individual's pocket or handbag. The split key ring only provides the means by which keys hang together. If this article were primarily intended
to be a key holder, the coin purse component would not be attached, nor would it have been designed to specifically accommodate additional items while fitting in a pocket or purse. Moreover, it is the coin purse which is most commercially marketable and provides the most compelling reason to purchase this particular article.

For the reasons set forth supra, it is the coin purse which imparts the essential character to the article at issue and therefore classification is proper under heading 4202, HTSUSA.

HOLDING:

The merchandise at issue is classifiable under subheading 4202.32.9530, HTSUSA, which provides for, in relevant part, articles of a kind normally carried in the pocket or handbag: with outer surface of textile materials: other ... of cotton. The rate of duty is 20 percent ad valorem and the textile category is 369.

In order to ensure uniformity in Customs' classification of this merchandise and eliminate uncertainty, pursuant to section 177.9(d)(1), Customs Regulations (19 CFR 177.9(d)(1)), NYRL 864243 is revoked to reflect the above classification effective with the date of this letter. If, after your review, you disagree with the legal basis for our decision, we invite you to submit any arguments you may have with respect to this matter. Any submission you wish to make should be received within 30 days of the date of this letter.

This revocation is not retroactive. However, NYRL 864243 will not be valid for importations of the subject merchandise arriving in the United States after the date of this notice. We recognize that pending transactions may be adversely affected (i.e., merchandise previously ordered and arriving in the United States subsequent to this revocation will be classified accordingly). If it can be shown that you relied on NYRL 864243 to your detriment, you may apply to this office for relief. However, you should be aware that in some instances involving import restraints, such relief may require separate approvals from other government agencies.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that your client check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is updated weekly and is available at your local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification), and the restraint (quota/visa) categories, your client should contact its local Customs office prior to importing the merchandise to determine the current applicability of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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