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HQ 959042




April 2, 1997

CLA-2 RR:TC:TE 959042 ASM

CATEGORY: CLASSIFICATION

Tariff No.: 4202.92.9035

Ms. Lori Aldinger
Import Coordinator
Rite Aid Corporation
P.O. Box 3165
Harrisburg, Pennsylvania 17105

RE: Tariff classification of insulated cooler bags

Dear Ms. Aldinger:

This letter concerns your request for clarification regarding the tariff classification, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of insulated carrying bags.

FACTS:

At issue are two insulated lunch bags which were classified in the following rulings. The "6 Pack Cooler Lunch Bag" (Style 961313) was classified in New York Ruling Letter (NY) 818179, dated January 29, 1996. This insulated lunch bag consists of 55 percent ramie and 45 percent polyester woven fabric. The article was classified under subheading 4202.92.9035, HTSUSA, which provides, in part, for other travel bags, with outer surface of sheeting of plastic or of textile materials, other other, other. The 1997 rate of duty under the general column one rate is 19.3 percent ad valorem. The textile category for this provision is 870.

The insulated lunch bag (Style 961314) was classified in PD 816734, dated December 5, 1995. The outer suface of the bag is composed of 55 percent ramie and 45 percent polyester. Approximate dimensions for the bag are 5 x 8 x 12 inches. This item was classified under subheading 4202.92.2000, HTSUSA, which provides for travel, sports and similar bags, with outer surfacer of textile materials, of vegetable fibers and not of pile or tufted construction, other. The 1997 rate of duty under the general column one rate is 6.3 percent ad valorem. The textile category for this provision is 870. - 2 -

ISSUE:

What is the basis for classifying these two products, Style 961313 and Style 961314, in two separate provisions under the 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. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN's), which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI's.

The merchandise in question is identical to that which was the subject of SGI, Inc. v. United States, Court of International Trade (CIT), Slip Op. 96-22, January 19, 1996, which was published in the Customs Bulletin, Vol. 30, No. 7, February 14, 1996. In this decsion, the Court held that portable soft-sided vinyl insulated coolers designed for storage of food or beverages at cold termperature are properly classified under subheading 4202.92.90, HTSUSA, which is the provision for "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 sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper: Other: With outer surface of sheeting of plastic or of textile materials: Other." Merchandise classifiable under this provision was dutiable under the general column one rate at 19.5 percent ad valorem.

The earlier ruling, PD 816734, was issued on December 5, 1995, and represents the position of the Customs Service prior to the issuance of the CITdecision. Accordingly, PD 816734 was judicially revoked by SGI, Inc. v. United States (Supra). Section 152.16(e), Customs Regulations (19 CFR 152.16(e)), provides that "Unless the Commissioner of Customs otherwise directs, the prinicples of any court decision adverse to the Government (except for a decision upholding an American manufacturer's petition as covered in paragraph (d) of this section) shall be applied to unliquidated entries and protested entries which have not been denied in whole or in part and in which the same issue is involved as soon as the time within which an application for a rehearing or review may be filed has expired without such application having been made." However, the later file, NY 818179, January 29, 1996, was issued in accordance with the court descision of SGI, Inc, and properly classified the insulated lunch bag under subheading 4202.92.9035, HTSUSA.

HOLDING:

The two items identified as insulated lunch bags (#961313, and #961314), are properly classifiable under subheading 4202.92.9035, HTSUSA, which is the provision for "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 sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper: Other: With outer surface of sheeting of plastic or of textile materials: Other: Other: With outer surface of textile materials: Other: Other." This provision is dutiable under the general column one rate at 19.3 percent ad valorem. The textile quota category is 870. .

Items classifiable under 4202.92.9035, HTSUSA, fall within textile category designation 870. Based upon international textile trade agreements, products of China are subject to quota and visa requirements.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the tariff number) 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.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an issuance of the U.S. Customs Service, which is updated weekly and is available at your local Customs office.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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