HQ 0956015 - Modification of PC 890021; Heading 4202; ENs to heading 4202; wallets; handbags; clutch bags; articles of a kind normally carried in the handbag or pocket; HRLs 956241, 953774 and 082265 - United States International Trade Commision Rulings

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HQ 956015

June 15, 1994

CLA-2 CO:R:C:T 956015 NLP

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.22.1500; 4202.32.1000

Kim Greenwood
Customs Import Administration
Esprit De Corp.
900 Minnesota Street
San Francisco, CA 94107

RE: Modification of PC 890021; Heading 4202; ENs to heading 4202; wallets; handbags; clutch bags; articles of a kind normally carried in the handbag or pocket; HRLs 956241, 953774 and 082265

Dear Ms. Greenwood:

On September 16, 1993, Customs issued to Esprit De Corp., Pre- Entry Classification Ruling Letter (PC) 890021, which classified various containers under the Harmonized Tariff Schedule of the United States (HTSUS). In a letter to Customs Headquarters, dated February 28, 1994, you requested that we reconsider the classification of two styles of containers subject to this ruling. Upon review, we are of the opinion that the classification of one of the two containers was incorrect and this ruling modifies this classification.

FACTS:

The first article at issue, style no. 17665, is a tri-fold container made of PVC plastics laminated over a textile backing material with a two-snap closure and a removable neck or shoulder strap. It measures 4-7/8 inches by 7-3/4 inches when closed and 18-3/8 inches when fully opened. The top flap measures 3-1/2 inches by 4-1/2 inches and snaps midway down the outside bottom third of the wallet. The strap consists of a 3 inch by 1/2 inch strip of laminated plastic material to which each end of the strap is sewn together, thereby forming a closed loop which measures 28- 1/2 inches in length. The strip has two snap halves with holes which fasten to the corresponding two snap posts on the inside front fold of the container.

The interior middle section of the article contains a window identification slot and four credit card slots. A flat open compartment, suitable for the storage of paper currency, is located behind these slots. A zippered pocket is located behind this open compartment. The interior lower section contains a zippered pocket, two flat open compartments and a plastic loop designed to hold a pen or pencil. An elastic 1-1/2 inch long loop is sewn into the fold between the middle and lower third of the container.

The second article, style no. 17549, is a foldover, envelope style clutch-type container that is made of PVC plastics laminated over a textile backing material with a double snap closure and a removable shoulder or neck strap. It measures 7 inches by 4-1/2 inches. It has three open accordion compartments, each of which expands to 1-3/4 inches at the top when fully opened to allow for easy access into each compartment. The interior middle compartment contains four slots suitable for holding credit or identification cards. The exterior back of the container has a zippered pocket suitable for the storage of coins. The removable strap is approximately 28 inches in length and is attached to the container in the same way as the strap in style no. 17665 is attached.

PC 890021 classified style nos. 17665 and 17549 in subheading 4202.22.1500, HTSUS, which provides for "[t]runks, suitcases...; traveling bags, toiletry bags, knapsacks and backpacks, handbags...: [h]andbags, whether or not with shoulder strap, including those without handle: [w]ith outer surface of sheeting of plastic or of textile materials: [w]ith outer surface of sheeting of plastic."

It is your position that the articles are classifiable in subheading 4202.32.1000, HTSUS, which provides for "[t]runks, suitcases...; traveling bags, toiletry bags, knapsacks and backpacks, handbags...: [a]rticles of a kind normally carried in the pocket or in the handbag: [w]ith outer surface of sheeting of plastic or of textile materials: [w]ith outer surface of sheeting of plastic: [o]f reinforced or laminated plastics."

ISSUE:

Are the subject containers classifiable as handbags in subheading 4202.22.1500, HTSUS, or as articles normally carried in the pocket or in the handbag in subheading 4202.32.1000, HTSUS?

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.

Thus, handbags, wallets and similar containers with an outer surface of plastic sheeting are classifiable under heading 4202, HTSUS.

At the six-digit level, subheading 4202.22, HTSUS, provides for handbags with outer surface of sheeting of plastic. On the other hand, subheading 4202.32, HTSUS, encompasses articles of a kind normally carried in the pocket or in the handbag with an outer surface of sheeting of plastic. The terms "handbags" and "articles of a kind normally carried in the pocket or in the handbag" are not defined in the HTSUS. However, examples of the latter category are set forth in the Harmonized Commodity Description and Coding System Explanatory Note to heading 4202, at page 613:

Subheadings 4202.31, 4202.32 and 4202.39

These subheadings cover articles of a kind normally carried in the pocket or in the handbag and include spectacle cases, note-cases (bill-folds), wallets, key-cases, cigarette- cases, cigar-cases, pipe-cases and tobacco-pouches.

Clearly wallets are within the scope of the above subheadings that cover articles of a kind normally carried in the pocket or handbag.

In Headquarters Ruling Letter (HRL) 954337, dated August 2, 1993, we classified articles that were similar to the subject container styles. The articles in that case were made of PVC plastics laminated over a textile backing material and were fold over east/west envelope style containers. One style opened in a tri-fold manner. Each of the containers measured 7-1/2 inches by 4 inches and had a gusset which expanded from a thickness of approximately 1 inch to 1-3/4 inches. Their interiors had view windows for identification cards, credit card slots and compartments suitable for the storage of paper money and other small personal effects. In addition, a checkbook wallet was placed into one of these compartments. The interior of one of the containers also had a full width zippered pouch. The exterior rear of each container featured a zippered pocket. Citing lexicographic sources, we observed that the containers were prima facie classifiable as wallets, which are regarded as articles of a kind normally carried in the pocket or in the handbag. However, they also had certain features associated with handbags and were, therefore, prima facie classifiable as handbags commonly referred to as clutch bags. As both of these subheadings described the merchandise, we resorted to the principles of GRI 3 to determine the proper classification of the containers.

We determined that the term "wallet" most specifically described the containers. We stated that "[w]allets are usually specially shaped or fitted to hold paper money, credit cards, coins and identification cards." Both styles featured slots and compartments fitted to hold these articles. Moreover, based on their sizes, the containers were also able to fit comfortably in a handbag. Therefore, based on the fact that they were specially shaped and fitted to hold small personal effects and on their sizes, we concluded that the containers would be principally used as articles carried in the handbag and they were classifiable in subheading 4202.32, HTSUS.

We also stated that the samples contained compartments which were not specially shaped or fitted to hold certain personal effects. They resembled those found in handbags and were suitable for holding a variety of small personal effects. However, we found that the compartments were not as large as those found in a typical handbag and they could not accommodate items such as a hairbrush, certain cosmetics or a set of keys on a chain. Therefore, we concluded that these compartments played an "ancillary role in relation to the entire article." We note though that we also stated the following "[w]e hasten to add that if the containers were larger, less compartmentalized or exhibited other attributes typically associated in handbags, they could be classified as handbags. Therefore, the classification of envelope style clutch containers will be on a case-by-case basis."

In the instant case, the containers also have features that render them prima facie classifiable as wallets or handbags. For example, style no. 17665 exhibits wallet-like features in that it is relatively flat and has slots and compartments that are specially shaped and fitted to hold such items as paper currency, credit cards and change. Style no. 17549 is also relatively flat and has slots and a zippered pocket. However, both containers have shoulder straps and are designed to carry money, credit cards and other small personal effects. In addition, style no. 17549 features an envelope style and is held in the hand or under the arm. Therefore, both styles are also prima facie classifiable as handbags.

After examination of style no. 17665, we conclude that the term "wallet" most specifically describes it. As stated above, wallets are usually specially shaped or fitted to hold paper money, credit cards, coins and identification cards. This style feature slots and compartments fitted to hold these articles. In addition, based on its size, it will also fit comfortably in a handbag. Therefore, it will be principally used as an article carried in the handbag. While we do note that this container has compartments which are not specially shaped or fitted to hold certain personal effects, they are not as large as those found in a typical handbag. They cannot accommodate, for example, items such as a hairbrush, certain cosmetics or a set of keys on a chain, which are often placed in handbags. Thus, we conclude that these compartments, like the compartments found in the containers in HRL 954337, play "an ancillary role in relation to the entire article."

Furthermore, the presence of the strap does not change the classification of this style. In HRL 956241, dated April 22, 1994, we classified a tri-fold container with a shoulder strap that was substantially similar in design to style no. 17665. We held that it was most specifically described as a wallet. In determining that the container was not classifiable as a handbag, we were of the opinion that, although the carrying strap suggested that the container would actually be used in a manner consistent with a handbag, the strap in and of itself did not affect its classification. We concluded that absent the strap containers such as those would not be principally used as handbags. Thus, in the instant case, given the design and the principal use of the container, the presence of the strap also does not affect its classification. In fact, as the strap on the instant container is removable, there is an even stronger argument that this container will not be principally used as a handbag. See, HRL 082265, dated March 20, 1989, where in classifying a ski wallet with a textile braided neck strap, we held that, though the ski wallet was intended to be worn around
the neck for the convenience of the skier, it was an article of a kind that would normally be carried in the pocket or handbag. Accordingly, the ski wallet was classified in heading 4202, HTSUS.

It is our position, however, that the term handbag most specifically describes style no. 17549. While we have held that envelope style containers can be classifiable as wallets, as demonstrated by our holding in HRL 954337, those containers are distinguishable from style no. 17549. For example, the containers in HRL 954337 were specially shaped and fitted with a variety of slots and compartments to hold articles associated with wallets. The compartments that were not specially shaped and fitted were flat and were not large enough to accommodate items found in a handbag. The instant container is essentially a clutch bag having three open center sections suitable for holding a variety of personal effects. Its only wallet-like features are four credit card slots fabricated into one section's divider. As we stated in HRL 954337, articles that are less compartmentalized could be classified as handbags and the classification of envelope style clutch containers is on a case-by-case basis. Thus, while the size of the container and the fact that the shoulder strap is removable may suggest its use as a wallet, the combination of its envelope styling, open pocket design (in which articles found in a handbag can be placed) and the presence of only one specially shaped and fitted slot area lead us to the conclusion that this style container will be principally used as a clutch handbag. Therefore, style no. 17549 is most specifically described as a clutch handbag and it is classifiable in subheading 4202.22, HTSUS.

HOLDING:

Style no. 17665 is classified in subheading 4202.32.1000, HTSUS, which provides for "[t]runks, suitcases...; traveling bags, toiletry bags, knapsacks and backpacks, handbags...: [a]rticles of a kind normally carried in the pocket or in the handbag: [w]ith outer surface of sheeting of plastic or of textile materials: [w]ith outer surface of sheeting of plastic: [o]f reinforced or laminated plastics." The rate of duty is 12.1 cent/kg + 4.6% ad valorem.

Style no. 17549 is classified in subheading 4202.22.1500, HTSUS, which provides for "[t]runks, suitcases...; traveling bags, toiletry bags, knapsacks and backpacks, handbags...: [h]andbags, whether or not with shoulder strap, including those without handle: [w]ith outer surface of sheeting of plastic or of textile materials: [w]ith outer surface of sheeting of plastic." The rate of duty is 20% ad valorem.

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.

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)), PC 890021 is partially modified to reflect the above classification effective with the date of this letter. For purposes of future transactions concerning style no. 17665, PC 890021 will not be valid precedent.

Sincerely,

John Durant, Director
Commercial Rulings Division

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