HQ 0956016 - Modification of PC 890021 and PC 887252; Heading 4202; ENs to heading 4202; wallets; handbags; articles of a kind normally carried in the handbag or pocket; HRLs 956241, 082265, 083992 and 088245 - United States International Trade Commision Rulings

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HQ 956016

June 9, 1994

CLA-2 CO:R:C:T 956016 NLP

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.32.1000

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

RE: Modification of PC 890021 and PC 887252; Heading 4202; ENs to heading 4202; wallets; handbags; articles of a kind normally carried in the handbag or pocket; HRLs 956241, 082265, 083992 and 088245

Dear Ms. Greenwood:

On July 12, 1993, and September 16, 1993, Customs issued to Esprit De Corp., Pre-Entry Classification Ruling Letters (PC) 887252 and 890021, respectively, 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 four styles of containers subject to these rulings. Upon review, we are of the opinion that the classifications of the four containers were incorrect and this ruling modifies those classifications.

FACTS:

The four containers at issue, style nos. 870492, 870538, 17602 and 170034, are tri-fold in design with removable shoulder or neck straps and are made up of PVC plastic laminated over a textile backing. The measurements of each style are as follows:

STYLE 870492: 4-1/16 inches by 4-5/8 inches by 3/4 of an inch
STYLE 870538: 4-1/8 inches by 4-5/8 inches by 5/8 of an inch STYLE 17602: 4-1/4 inches by 4-5/8 inches by 3/4 of an inch STYLE 170034: 4-3/8 inches by 4-5/8 inches by 3/4 of an inch

Each container measures approximately 11-1/2 inches in length when fully opened. They close by means of a single snap. The fitted interior of each container includes three credit card slots, an identification card slot with a clear window and two larger slots for other small, flat personal items. Each container has an open slot on the lower two-thirds left hand side which is suitable for holding paper currency. The exterior possesses a small zippered pocket for coins. The "ESPRIT" logo appears on the front of each article in the form of either an embossing or an affixed metallic emblem. In addition, each container has a removable, closed loop shoulder or neck strap which measures 1/4 inch wide, varies in length from 26 inches to 28-3/8 inches and is held in place by snaps or placed under a sewn on, snap down flap.

PC 887252 classified styles 870492 and 870538 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." PC 890021 also classified styles 17602 and 170034 in subheading 4202.22.1500, HTSUS.

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 tri-fold 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 outer surface of plastic sheeting are classifiable under heading 4202, HTSUS.

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 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) 956241, dated April 22, 1994, we classified goods substantially similar in design to the instant merchandise. Though the container in that case was made out of cotton denim, it had a tri-fold design, measured approximately 6 inches by 5-1/2 inches, was fitted with four credit card slots, an identification card slot with a window, two vinyl lined zippered compartments, one of which was designed to hold paper currency. It also had an exterior zippered compartment and a shoulder strap. Citing lexicographic sources, we observed that the container was prima facie classifiable as a wallet, which is regarded as an article of a kind normally carried in the pocket or in the handbag. However, it also had certain features associated with handbags and was, therefore, prima facie classifiable as a handbag. As both of these subheadings described the merchandise, we resorted to the principles of GRI 3 to determine the proper classification.

We determined that the term "wallet" most specifically described the tri-fold article. We stated that "[w]allets are usually specially shaped or fitted to hold articles such as paper currency, credit cards, coins and identification cards." Moreover, subheading 4202.32, HTSUS, provides for "articles of a kind normally carried in the pocket or in the handbag," which implies that wallets must be small enough for this purpose. Based on the size and features of the container, we held that it was specially shaped or fitted to hold articles associated with wallets and would fit comfortably into a handbag. Therefore, it was classifiable in subheading 4202.32, HTSUS.

Moreover, in determining that the article was not classifiable as a handbag, we discussed the term "handbag" stating that it "applies generally to containers which are suitable for carrying and holding a variety of small personal effects." The style in HRL 956241 was deemed not large enough to accommodate items normally carried in a handbag, such as a hairbrush, cosmetics or a set of keys on a chain. Furthermore, although the carrying strap suggested that the container would actually be used in a manner consistent with a handbag, we were of the opinion that the strap in and of itself should not affect its classification. We concluded that absent the strap containers such as those would not be principally used as handbags. See Additional U.S. Rule of Interpretation 1(a). Therefore, as stated above, the container was more accurately described as an article of a kind normally carried in the pocket or handbag.

Similarly, in the instant case, we conclude that the term "wallet" most specifically describes the four styles of containers. The container styles at issue here are also specially shaped or fitted to hold articles associated with wallets, such as paper currency, credit cards, coins and identification cards. In addition, based on their sizes, they will also fit comfortably in a handbag. We also note that these containers are not large enough to accommodate items normally carried in a handbag. Finally, as with the container in HRL 956241, the presence of the strap does not affect the classification of these containers. In fact, as the straps on the instant containers are removable, there is an even stronger argument that these containers will not be principally used as handbags. 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; HRL 083992, dated April 24, 1992, which classified a nylon neck pouch designed to be worn around the neck by means of a braided textile cord and HRL 088145, dated February 26, 1991, which classified a neck money belt attached to a small cord dropped over the neck, wherein we held that though the items clearly were designed to be worn around the neck, they were nonetheless classifiable in heading 4202, HTSUS, as articles of a kind normally carried in the pocket or handbag. Thus, the subject containers are classifiable as "articles of a kind normally carried in the pocket or in the handbag" in subheading 4202.32, HTSUS.

HOLDING:

Style nos. 870492, 870538, 17602 and 170034 are 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.

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)), PCs 887252 and 890021 are partially modified to reflect the above classification effective with the date of this letter. For purposes of future transactions concerning these styles, PCs 887252 and 890021 will not be valid precedent.

Sincerely,

John Durant, Director
Commercial Rulings Division

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