HQ 0952831 - Handbags; headings 3921, 3923, 3926 and 4202; Explanatory Notes to Heading 4202; Legal Note 2(a)(5) to heading 5903; PVC strips; cotton strips; HRLs 081224 and 081374; outer surface of textile materials and plastics; visual and tactile quality of outer surface; essential character; GRI 3(b) and 3(c); Explanatory Note (VIII) to GRI 3(b) - United States International Trade Commision Rulings

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HQ 952831

February 24, 1993

CLA-2 CO:R:C:M 952831 NLP

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.22.4500

Mr. Steven S. Weiser
Mr. Paul A. Horowitz
Siegel, Mandell & Davidson
One Astor Plaza
1515 Broadway- 43rd Floor
New York, NY 10036

RE: Handbags; headings 3921, 3923, 3926 and 4202; Explanatory Notes to Heading 4202; Legal Note 2(a)(5) to heading 5903; PVC strips; cotton strips; HRLs 081224 and 081374; outer surface of textile materials and plastics; visual and tactile quality of outer surface; essential character; GRI 3(b) and 3(c); Explanatory Note (VIII) to GRI 3(b)

Dear Mr. Weiser and Mr. Horowitz:

This is in response to your letter of October 26, 1992, on behalf of your client, Liz Claiborne Accessories, Inc., in which you requested the tariff classification for two different handbag styles under the Harmonized Tariff Schedule of the United States (HTSUS). Two samples were submitted for our examination and will be returned to you under separate cover.

FACTS:

Style no. 4917 is a women's handbag with a shoulder strap. It has a drawstring closure and an interior zippered compartment sewn on to one side of the bag. The bag is made of polyvinyl chloride (PVC) and cotton. The PVC is cellular and it is textile backed: a cotton backing is adhered to the PVC both by heat and by pressure applied adhesives. The bag has PVC trim around its opening and sides, a PVC shoulder strap, a PVC drawstring and a PVC base. The outer surface of the front and back of the bag is composed of narrow strips of cotton that have been folded and flattened into 4 mm widths that are interlaced with PVC strips to create a "lattice" effect. Both of the strips are cut from larger sheets of material. The lattice work fabrics are loosely placed over a textile material and are sewn to the textile material at approximately two inch intervals by a 1/4 inch wide PVC strip overlay. The bag has a cotton lining beneath this textile fabric. When fully expanded the bag measures approximately 10-1/2 inches in height, 13 inches in length and 6
inches in width at the base. The cost of the materials comprising the bag is $3.08 per square yard of cotton and $3.55 per square yard of PVC material.

Style no. 4916 is also a women's handbag with a shoulder strap and an interior zippered compartment sewn on to one side of the bag. This bag closes by means of a snap closure. The bag has PVC trim around its sides, a PVC shoulder strap and a PVC base. The bag's flap is PVC-backed. The outer surface of the front and back of the bag is also composed of PVC and cotton strips interlaced to create a lattice effect. A textile material has been either laminated or glued to the lattice work fabric. When fully expanded, the bag measures approximately 7 inches in height, 11-1/2 inches in length and 3-1/4 inches in width at the base. The material costs are the same as those for style no. 4917.

It is your position that the essential character of the outer surface of the handbags is represented by the plastic strips, which are not considered plastic sheeting. Therefore, the handbags are classified in subheading 3923.90.90, HTSUS, which provides for "[a]rticles for the conveyance or packing of goods, of plastics;...[o]ther." In the alternative, the handbags are classified in subheading 3926.90.90, HTSUS, which provides for "[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [o]ther."

Finally, a third alternative for classification of the handbags is in subheading 4202.22.45, HTSUS, which provides for "[t]runks, suitcases, vanity cases...: [h]andbags, whether or not with shoulder strap, including those without handle: [w]ith outer surface of plastic sheeting or of textile materials: [w]ith outer surface of textile materials: [o]ther: [o]f vegetable fibers and not of pile or tufted construction: [o]f cotton."

ISSUE:

What is the tariff classification of the handbags at issue?

LAW AND ANALYSIS:

The classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings 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's may be applied, taken in order.

Heading 4202, HTSUS, provides for the following:

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, 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.

The Harmonized Commodity Description and Coding System Explanatory Notes to heading 4202 provide on page 613 that "[t]he 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..."

Therefore, to be classified in the above heading, articles must meet two basic criteria: they must be one of, or similar to the named articles and they must be "of...or wholly or mainly covered" with one of the specified materials. The handbags meet the first criteria as they are specifically enumerated in heading 4202, HTSUS.

The handbags are composed of three primary materials: plastic strips, plastic sheeting and textile material. The plastics material is made from a fabric of heading 3921, HTSUS, which provides for "[o]ther plates, sheets, film, foil and strip, of plastics." See, Legal Note 2(a)(5) to Heading 5903, HTSUS. The textile material is a cotton fabric. It is our position that inasmuch as the outer surface of the samples consists of both textile material and plastics, classification of the handbags must be based on the material which imparts the essential character to the handbags pursuant to GRI 3(b). See, GRI 2(b).

GRI 3 governs the classification of goods which are prima facie classifiable within two or more headings and 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.

EN(VIII) to GRI 3(b) provides, on page 4, the following guidelines for determining the essential character of an article:

(VIII) 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

In determining the essential character of the outer surface of the handbags, greater weight is accorded to the visual and tactile quality of the handbags. See, Headquarters Ruling Letter (HRL) 081224, dated September 26, 1989. However, it is not the only factor that we focus on. We also note that the PVC overlays sewn to the lattice work (which are considered trim on the handbags) and the PVC shoulder straps do not constitute parts of the outer surface of the handbags. See, HRL 081224 and HRL 083174, dated August 8, 1988.

Therefore, in determining the essential character of the handbags' outer surface, we focus on the "lattice work" fabrics. The woven material contains almost the same number of pieces and the same lengths of 4mm narrow fabrics of both types. The cost, weight, and surface coverage are also comparable. While you state that the handbags do not have the appearance or the feel of a textile article, it is our position that the visual impact imparted equally conveys the impression of narrow textile strips of cotton. Therefore, it is our position that the essential character is not readily determinable and classification is determined according to GRI 3(c).

GRI 3(c) provides the following:

(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

The competing provisions for this article are subheading 3926.90.90, 4202.22.15, HTSUS, and 4202.22.45, HTSUS. Based on GRI 3(c), the handbag would be classified in subheading 4202.22.45, HTSUS.

HOLDING:

The two handbags are considered to have an outer surface of textile materials and are classified in subheading 4202.22.4500, HTSUS, which provides for "[t]runks, suitcases, vanity cases...: [h]andbags, whether or not with shoulder strap, including those without handle: [w]ith outer surface of plastic sheeting or of textile materials: [w]ith outer surface of textile materials: [o]ther: [o]f vegetable fibers and not of pile or tufted construction: [o]f cotton." The rate of duty is 7.2% ad valorem. The applicable textile quota category is 369.

The designated textile and apparel categories may be subdivided into parts. If so, the 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 the importer 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 for inspection 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, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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