HQ 0956017 - 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, 953774, 082265, 083992 and 088245 - United States International Trade Commision Rulings

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HQ 956017

June 10, 1994

CLA-2 CO:R:C:T 956017 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, 953774, 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 two styles of containers subject to these rulings. Upon review, we are of the opinion that the classifications of the two containers were incorrect and this ruling modifies those classifications.

FACTS:

The first article, style no. 170049, is a tri-fold container made of PVC plastics laminated over a textile backing material with an adjustable single snap closure and a removable shoulder or neck strap. It measures 6-3/4 inches (adjustable to 7 inches) by 5- 3/4 inches. The top flap measures approximately 5-3/4 inches by 3-1/2 inches and snaps midway down the outside bottom third of the article. The strap consists of a 3-3/4 inch by 1/2 inch strip of laminated plastic material to which each end of the strap is sewn, thereby forming a closed loop measuring 28-1/2 inches in length. The strip has two snap halves with holes, which fasten to two corresponding snap posts on the inside front fold, thereby securing the strap to the container.

The interior middle section of the article contains a window identification slot, five credit card slots, a 5-1/2 inch long slot, an open compartment and a loop to hold a pen or pencil. The interior bottom section contains an open compartment and a zippered pocket. The open compartments and zippered pocket are suitable for the storage of paper money and other small flat personal effects. An elastic 1-1/4 inch long loop is sewn to the fold between the interior middle and bottom sections. An accordion fold zippered pocket is located on the exterior middle section and is suitable for the storage of coins.

The second article, style no. 870049, is also a tri-fold container made of PVC plastics laminated over a textile backing material with a two snap closure and a removable shoulder or neck strap. This style has the same measurements, slots, compartments and pockets as style no. 170049. However, this style lacks the elastic 1-1/4 inch long loop that is present on style no. 170049. This style's snap closure strap attachment is also somewhat different than the one on style no. 170049. The strap attachment consists of two snap halves located on each end of the strap which fasten to corresponding snap posts located on the inside upper front fold of the container. Once attached, the strap measures 28- 1/2 inches in length.

PC 890021 classified style 170049 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 887252 also classified style 870049 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 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) 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, the containers have features that render them prima facie classifiable as wallets or handbags. For example, both styles exhibit wallet-like features in that they are relatively flat and have compartments that are
specially shaped and fitted to hold such items as paper currency, credit cards and change. However, as the containers have shoulder straps and are designed to carry money, credit cards and other small personal effects, they are also prima facie classifiable as handbags.

After examination of the subject container styles, however, we conclude that the term "wallet" most specifically describes them. As stated above, wallets are usually specially shaped or fitted to hold paper money, credit cards, coins and identification cards. Here, both styles feature slots and compartments fitted to hold these articles. In addition, based on their sizes, they will also fit comfortably in a handbag. Therefore, these containers will be principally used as articles carried in the handbag.

We do note that the samples also contain compartments which are not specially shaped or fitted to hold certain personal effects. In HRL 954337, dated August 2, 1993, we dealt with the classification of, inter alia, a container that had both wallet and handbag-like features. While we held that the container was most specifically described by the term wallet, this container also had 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." In the instant case, the unshaped compartments are also 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 also play "an ancillary role in relation to the entire article."

Moreover, as with the container discussed 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. 170049 and 870049 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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