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HQ 958893




January 16, 1997

CLA-2 RR:TC:TE 958893 CAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.32.1000

Jeffrey O. Baldwin
U.S. Customs Port Director
1 E. Bay Street
Room 104
Savannah, Georgia, 31401

RE: Request for Internal Advice 17/95 concerning the classification of certain wallets; subheading 4202.32.1000 v. subheading 4202.32.2000

Dear Mr. Baldwin:

This is in response to the request for internal advice initiated by Siegel, Mandell & Davidson., on behalf of Essex Manufacturing Inc., regarding the proper tariff classification of several women's wallets under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A representative sample was submitted for examination.

FACTS:

There are three wallets at issue. Article 4080 is a tri-fold wallet measuring 7 «" x 4 " x 1", when closed, and having a flap closure with a single snap, as well as a contrast color piece with reinforcement to hold the snap closure. The interior of the wallet features a pocket with 1¬" gussets which runs the width of the wallet. Article 4080 also contains a change pocket section with clasp closure, a flat pocket without closure having three credit card slots, a clear plastic identification card slot, two flat pockets, a clear plastic photo/credit card holder, a zippered compartment, and a flat pocket without a means or closure.

Article 4081 is a tri-fold wallet measuring 4"x 5 1/4" x 1", when closed. Article 4081 contains a flap with a single snap closure, a contrast color piece for reinforcement of the snap construction, a change pocket with a clasp closure, a compartment with 1 1/4" gussets, which runs the width of the wallet, and a flat compartment without closure. The wallet also features two flat pockets without closure, three credit card slots, a plastic photo/identification holder with six slots, and a small zippered pocket with a single gusset.

Article 4082 is a wallet measuring approximately 4" x 1" when closed and having a flap with a single snap closure, as well as a contrast color exterior piece and foam lining for reinforcement of the snap construction. The wallet has a single flat zippered exterior pocket with a gusset at one end, and its interior features a built-in change pocket, two small compartments without closures containing 1" gussets, and a small flat compartment without closure.

All three of the subject articles feature an embossed compact plastics exterior with a brushed polyester/woven cotton textile backing. The plastics and textile backing are permanently bonded together by glue which is activated by heat and pressure.

A proposed Notice of Action of January 3, 1995, concerning Articles 4080, 4081, and 4082 was issued to Essex Manufacturing Inc. The Notice of Action proposed to classify the subject wallets in subheading 4202.32.2000, HTSUSA. The importer contends that the subject articles are properly classifiable in subheading 4202.32.1000, HTSUSA.

ISSUE:

Whether the subject wallets are properly classifiable in subheading 4202.32.2000, HTSUSA, or in subheading 4202.32.1000, HTSUSA?

LAW AND ANALYSIS:

Classification of goods 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. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order.

Heading 4202, HTSUSA, provides for, inter alia, wallets, purses, and similar articles. Within Heading 4202, HTSUSA, at the six digit international level, subheading 4202.32, HTSUSA, provides for articles carried in the pocket or in the handbag with an outer surface of plastic sheeting. There is no dispute that the subject wallets are articles normally carried in the pocket or handbag, have an outer surface of plastic sheeting, and therefore fit within the purview of Heading 4202.32, HTSUSA. The issue Customs must address is the proper classification of the subject articles at the eight digit U.S. level.

The importer contends that the subject articles are classifiable in subheading 4202.32.1000, HTSUSA, the provision for articles of reinforced or laminated plastics. The Port Director of Savannah, Georgia, Customs, proposes to classify the subject articles in subheading 4202.32.2000, HTSUSA, the provision for "other" articles, since the subject articles are not "of" reinforced or laminated plastic, but rather "of" textile materials.

The classification of articles of subheading 4202.32 with an outer surface of plastic sheeting is governed by Additional U.S. Legal Note 2, Chapter 42, HTSUSA, which states the following:

For the purposes of classifying articles under subheadings 4202.12, 4202.32, and 4202.92, articles of textile fabric impregnated, coated, covered or laminated with plastics (whether compact or cellular) shall be regarded as having an outer surface of textile material or of plastic sheeting, depending on whether and the extent to which the textile constituent or the plastic constituent makes up the exterior surface of the article.

In order for the subject articles to be classifiable in subheading 4202.32.1000, HTSUSA, we must determine that they are "of reinforced or laminated plastics".

The importer cites several Customs rulings (Headquarter Ruling Letter (HRL) 950048, dated March 2, 1992, HRL 950983, dated June 15, 1992, HRL 951047, dated 951047, dated June 15, 1994 ), and T.D. 94-70, dated August 10, 1994, where Customs has continuously concluded that articles very similar to the subject wallets which are composed of an outer surface of nonrigid plastic sheeting and backed or combined with textile material are of reinforced or laminated plastics and therefore, are classifiable in subheading 4202.32.1000, HTSUSA.

In the recent case of Amity Leather Company v. United States, Court No. 95-01-00036, (CIT Aug. 20, 1996), Slip. Op. 96-140, the court had occasion to determine the proper classification of a change purse comprised of nonrigid plastic with an outer surface of plastic sheeting backed by a textile material that provides support. The textile fabric had been joined to the plastic sheeting by heat and pressure. There was no dispute that the merchandise therein was classifiable in the sixth digit subheading of 4202.32, HTSUSA. The issue, as in this case, was whether the wallet was classifiable in subheading 4202.32.2000, HTSUSA, or 4202.32.1000, HTSUSA. The plaintiffs attempted to make a distinction between "rigid" and "nonrigid" plastics. The court concluded "the distinction between HTSUS subheadings 4202.32.10 and 4202.32.20 does not depend upon the "rigidity" of the plastics, but on whether the plastics have been reinforced or laminated with other materials; those reinforced or laminated are covered by subheading 4202.32.10, HTSUS, and those that are not are covered by subheading 4202.32.20, HTSUS."

Accordingly, in view of Customs prior rulings and the decision in Amity Leather, the subject goods are classifiable in subheading 4202.32.1000, HTSUSA.

HOLDING:

Based on the foregoing, Articles 4080, 4081, and 4082 are properly classifiable in subheading 4202.32.1000, HTSUSA, which provides for, inter alia, wallets, purses, and similar articles, articles of a kind normally carried in the pocket or in the handbag, with outer surface of
sheeting of plastic or of textile materials, with outer surface of sheeting of plastic, of reinforced or laminated plastics. The applicable rate of duty is 12.1 cents per kilogram plus 4.6 percent ad valorem.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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