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HQ 957875



March 25, 1996
CLA-2 RR:TC:TE 957875 SK

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.32.1000

Port Director
U.S. Customs Service
#1 La Puntilla Street
Room 203
San Juan, Puerto Rico 00901

RE: Decision on Application for Further Review of Protest No. 4909-95-100041; classification of a bifold wallet with outer surface of plastic sheeting; 4202.32.1000, HTSUSA; HRL's 957220

Dear Sir or Madam:

This is a decision on application for further review of a protest timely filed by R.E. Delgado, Inc., on behalf of Bagoda, Inc., against your decision regarding the classification of three styles of women's bifold wallets. The protest was filed on March 30, 1995. At issue is a single entry made at the port of San Juan on November 22, 1994, and liquidated on February 10, 1995. A sample of one of the three styles at issue was submitted to this office for examination.

FACTS:

The subject merchandise consists of three styles of women's bifold wallets. This office received style number G41008 for examination. Style G41008 measures approximately 5-1/2 inches by 3-3/4 inches by 1 inch in its closed condition. It is manufactured of a cellular plastics exterior with a scrim fabric backing. The article features two side gussets which expand to a width of approximately 1-1/2 inches. The interior features a zippered change pocket, a slit pocket measuring 4 inches in length, a billfold area, a removable group of heat-sealed clear wings for credit cards, license or photos, a removable identification card window and an additional flat pocket on both
the interior and exterior of the article.

The subject merchandise was liquidated under subheading 4202.22.1500, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for, in pertinent part, "[H]andbags, whether or not with shoulder strap, including those without handle: with outer surface of sheeting of plastic... ." At the time of liquidation (1995), duty was assessed at a rate of 20 percent ad valorem.

Protestant claims that the subject merchandise is properly classifiable under subheading 4202.32.1000, HTSUSA, which provides for, in pertinent part, "[A]rticles of a kind normally carried in the pocket or in the handbag: with outer surface of sheeting of plastic: of reinforced or laminated plastic," dutiable at a rate of 12.1 cents per kilogram plus 4.6 percent ad valorem. Protestant states that as the subject merchandise has the appearance of a wallet, fits into a handbag and is too small to be a clutch purse, classification is proper within this subheading.

Three styles were identified as the subject of this protest: G41008; G41003 ; and G41004. As stated above, this office is only in receipt of style G41008. Without the ability to physically examine styles G41003 and G41004, this office is unable to conclusively grant or deny this protest with regard to these two styles. If, upon physical examination and presentation of these items to Customs, styles G41003 and G41004 are deemed substantially identical to style G41008 in both overall style and dimension, the holding in this ruling shall apply to styles G41003 and G41004.

ISSUE:

What is the proper classification of the subject merchandise?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes, taken in order. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's.

Heading 4202, HTSUSA, provides for, inter alia, handbags and wallets. The determinative issue is whether style G41008 is classifiable as a handbag under subheading 4202.22.1500, HTSUSA, or as a wallet under subheading 4202.32.1000, HTSUSA.

In Headquarters Ruling Letter (HRL) 957220, dated October 31, 1994, this office set forth various lexicographic definitions of "wallet" and "handbag." The following definitions enable Customs to better understand what is commonly contemplated by these terms.

WALLET

Essential Terms of Fashion: A Collection of Definitions, Charlotte M. Calasibetta, Fairchild Publications, 1986: An item used to carry paper money, credit cards, photographs and sometimes with a change purse or space for a check book or pad.

The Fashion Dictionary, Mary Brooks Picken, Funk & Wagnalls, 1973: 1. flat purse or pocketbook, for carrying either paper money or coins.

Webster's New Collegiate Dictionary, G. & C. Merriam Co., 1977: 1. a bag for carrying miscellaneous articles while traveling; 2a: billfold b: a pocketbook with compartments for change, photographs, cards, and keys.

Webster's New World Dictionary, Third College Edition, Simon & Schuster, Inc., 1988: 1. [Archaic] a knapsack; 2. A flat pocketbook, as of leather, with compartments for paper money, cards, etc.; billfold.

HANDBAG

Essential Terms of Fashion: A Collection of Definitions: Accessory carried primarily by women and girls to hold such items as money, credit cards, and cosmetics.

The Fashion Dictionary: Soft or rigid bag carried in hand or on arm. Size, shape, handle, etc., depend on fashion. Used by women as container for money and pocket-sized accessories.

Webster's New Collegiate Dictionary: 1. traveling bag; 2. a woman's bag held in the hand or hung from a shoulder strap and used for carrying small personal articles and money.

Webster's New World Dictionary: A bag, usually of leather or cloth, held in the hand or hung by a strap from the arm or shoulder and used, by women, to carry money, keys and personal effects.

A review of the above-cited definitions of "handbag" reveals that each lexicographic source describes a bag used by women which is designed to carry money, credit cards, keys and small or pocket-sized personal effects. In HRL 957632, dated March 24, 1995, this office noted that "the determinative feature of a handbag is its ability to hold several objects not associated with a wallet." In applying these standards to the subject merchandise, it is eminently clear that while style G41008 is designed to carry money, credit cards and perhaps a key or a lipstick, its relatively small dimensions render it ill-suited for use in carrying several objects not associated with a wallet. Style G41008 does not possess sufficient carrying capacity to hold several small personal effects which are typically carried in the handbag (i.e., hairbrush, cosmetics, keys on a chain).

Style G41008 squarely meets the various descriptions of a wallet set forth supra. It is designed to hold all the articles typically carried in a wallet and the presence of the side gussets, which expand to a width of approximately 1-1/2 inches, do not provide sufficient carrying capacity so as to render this article classifiable as a handbag.

HOLDING:

Style G41008 (and styles G41003 and G41004, if they are substantially identical to G41008 in overall design and dimension), are classifiable under subheading 4202.32.1000, HTSUSA, which provides for, in pertinent part, "[A]rticles of a kind normally carried in the pocket or in the handbag: with outer surface of sheeting of plastic: of reinforced or laminated plastic," dutiable at the 1994 rate of 12.1 cents per kilogram plus 4.6 percent ad valorem.

As the rate of duty under the classification indicated above is lower than the rate under which the subject merchandise was liquidated, you should grant the protest in full with regard to style G41008 (and also with regard to styles G41003 and G41004 if they are substantially identical to G41008 in overall design and dimension).

A copy of this decision should be attached to the Form 19 and provided to the Protestant as part of the notice of action on the protest. In accordance with Section

3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed by your office to the
Protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with this decision must be accomplished prior to the mailing of the decision.

Sixty days from the date of this decision, the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and to the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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