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HQ 959185




February 10, 1997

CLA-2 RR:TC:TE 959185 GGD

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.32.1000; 4202.22.1500; 4202.21.6000

Port Director
U.S. Customs Service
10 Causeway Street, Room 603
Boston, Massachusetts 02222-1059

RE: Decision on Application for Further Review of Protest No. 0401-95-100621, filed August 15, 1995, concerning the classification of wallets or small handbags

Dear Sir:

This is a decision on a protest timely filed on August 15, 1995, against your decision in the classification and liquidation of wallets or small handbags, entered in January 1995.

FACTS:

You classified three of the four styles of merchandise, i.e., item numbers 100-31, 100-13, and 102-46, under subheading 4202.22.1500, HTSUSA, the provision for "Handbags, whether or not with shoulder strap, including those without handle: With outer surface of sheeting of plastic or of textile materials: With outer surface of sheeting of plastic," with an applicable duty rate (in 1995) of 19.6 (now 19.2) percent ad valorem.

You classified the remaining style, i.e., item number 285-13, under subheading 4202.21.6000, HTSUSA, the provision for "Handbags, whether or not with shoulder strap, including those without handle: With outer surface of leather, of composition leather or of patent leather: Other: Valued not over 20 dollars each," with an applicable duty rate of 10 percent ad valorem. -2-

The protestant claims that item nos. 100-31, 100-13, and 102-46, should be classified in subheading 4202.32.1000, HTSUSA, the provision for "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," with an applicable duty rate of 12.1 cents per kilogram plus 4.6 percent ad valorem.

The protestant claims that item no. 285-13 should be classified in subheading 4202.31.6000, HTSUSA, the provision for "Articles of a kind normally carried in the pocket or in the handbag: With outer surface of leather, of composition leather or of patent leather: Other," with an applicable duty rate of 8 percent ad valorem.

Three of the four styles of merchandise feature outer surfaces of sheeting of plastic, of reinforced or laminated plastics. Only item no. 285-13 has an outer surface of leather.

Item no. 100-31, described on the invoice as a "mini bag/French purse & strap," resembles a wallet with a snap closure. The item measures approximately 4 inches in height in the closed position (8 inches when open, excluding flap) by 5 inches in width by 1 inch in depth. There is a detachable carrying strap measuring approximately 56 inches in length, and an exterior flat loop which allows the item to be worn on a belt. The article features an expandable central compartment divided into 5 smaller compartments for holding paper currency and other flat items. One of the compartments has a zippered closure for coins. Another has a plastic window to display an identification (i.d.) card or photograph. There are several additional slots, 4 of which are for credit cards. A mirror is permanently attached to the item by means of a short strap.

Item no. 102-46, described on the invoice as an "omni-bag," measures approximately 8 inches in height by 6 inches in width by 2 inches in depth. There is a detachable carrying strap. The front of the bag has a compartment measuring approximately 6 inches in height by 3-1/2 inches in width, secured by a flap with a hook and loop type fastener. The vertical sides of the compartment are gusseted, allowing it to hold items such as a pack of cigarettes or eyeglasses. On the back side of the bag, a large flap secured with a snap closure opens to reveal a mirror, 2 slot compartments for flat items, and a looped elastic band to -3-
hold a lipstick or other tubular cosmetic item. The bag's expandable central compartment is zippered on 3 sides and contains a credit card holder (permanently attached by a short strap), a removable checkbook jacket (with a slot for an i.d. card or photo), and a zippered interior mini compartment that is gusseted on 1 end. The central compartment is designed and able to hold 3-dimensional objects.

Item no. 100-13, described on the invoice as a "check clutch & strap," measures approximately 4-1/2 inches in height in the closed position (9-1/2 inches when open) by 7-1/2 inches in width by 1-1/2 inch in depth. There is a detachable carrying strap, a detachable key ring, and an exterior zippered pocket, the left side of which is gusseted, allowing for outward expansion. The item's interior features 5 separate compartments, 4 of which extend the full width of the bag and one of which is a coin purse, gusseted on one side, with a snap closure. The dimensions of the central compartment - which can hold any of several 3-dimensional objects - approximate those of the entire article. The remaining compartments, one of which has a zippered closure, are suited to hold mainly flat items such as currency. A removable checkbook jacket (with 7 slots for credit cards) is included. The interior of the flap opposite the main compartments has an additional slot compartment as well as a mirror and a plastic window for display of an i.d. card or photo.

Item no. 285-13, which is described on the invoice as an "elite/check clutch & strap," is composed of leather but is otherwise identical to item no. 100-13 in design, measurements, and interior/exterior features.

ISSUE:

Whether the goods are properly classified in subheadings 4202.31 and 4202.32, HTSUS, as articles of a kind normally carried in the pocket or in the handbag; or in subheadings 4202.21 and 4202.22, HTSUS, as handbags.

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be -4-
classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRI.

Among other goods, heading 4202, HTSUS, provides for traveling bags, handbags, wallets, and similar containers. Since all of the styles of merchandise are similar to handbags and/or to wallets, they are covered by the heading.

Subheading 4202.22, as well as subheadings 4202.21 and 4202.29, HTSUS, cover handbags, whether or not with shoulder strap, including those without handles.

Subheading 4202.32, as well as subheadings 4202.31 and 4202.39, HTSUS, cover articles of a kind normally carried in the pocket or handbag. The subheading EN to these three subheadings states:

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, purses, key-cases, cigarette-cases, cigar-cases, pipe-cases and tobacco-pouches.

On June 21, 1995, this office published a General Notice in the Customs Bulletin, Volume 29, Number 25, concerning goods identified as "Wallets on a String." The attributes of both handbags and articles of a kind normally carried in the pocket or in the handbag were discussed. With regard to Articles of a Kind Normally Carried in the Pocket or in the Handbag, the notice stated in pertinent part that:

Such articles include wallets, which may be described as flat cases or containers fitted to hold credit/ identification cards, paper currency, coins and in some instances a checkbook holder. Articles meeting this description which also possess a detachable carrying strap have been classified as flatgoods.

In order to be classifiable as a flatgood, the article must fit comfortably in a handbag or pocket. For example, rectangular or square cases measuring approximately 7-1/2 inches by 4-1/2 inches, or 4-3/4 inches by 4-1/2 inches, in their closed position, have been classified as flatgoods. -5-

Combining the characteristics of two flatgoods does not transform a flatgood into a handbag. Thus, the addition of a spectacle case holder to what is otherwise nothing more than a flat case with a carrying strap has been classified as a flatgood.

With respect to Handbags, the notice stated that:

A handbag functions as a carry-all container for various small personal effects:

A container which is not fitted to hold articles such as credit/identification cards, paper currency, coins or a checkbook holder is classifiable as a handbag. Therefore, a clutch bag or an evening bag measuring, for example, 7-1/2 inches by 4-1/2 inches, shall be classified as a handbag.

The determinative feature of a handbag is its ability to hold several objects not associated with a wallet. A bag which may accommodate articles such as a hairbrush, cosmetics, keys and other loose personal effects shall be classified as a handbag, even if it also incorporates the features of a flat case fitted to hold the items set forth above.

The presence of gusseted and/or zippered compartments will be taken into consideration in a determination of whether a case has generic carrying capacity. The presence of a wrap-around zipper may be an indication that the container is a carry-all if the zipper creates an inner space suitable for carrying three-dimensional objects.

Turning our attention to the protested merchandise, we note that all four styles of articles are fitted to hold items such as credit/identification cards, paper currency, etc. All articles also are at least capable of being carried in a handbag. We find that if item no. 100-31 were filled with the essentially 2-dimensional objects it is designed to carry, it would be likely to fit comfortably in a pocket or handbag. The remaining three styles, however, are designed to additionally hold 3-dimensional items not associated with the capacities of a flatgood. Their compartments and gusseted pockets provide a generic carrying capacity for loose personal effects such as a hairbrush, keys, cosmetics, etc. We thus conclude that item nos. 102-46, 100-13, and 285-13, are classifiable as handbags, and that item no. 100-31 is classifiable as an article of a kind normally carried in the pocket or in the handbag. -6-

HOLDING:

The handbags identified by item nos. 102-46 and 100-13 are classified in subheading 4202.22.1500, HTSUSA, the provision for handbags with outer surface of sheeting of plastic. The applicable duty rate (in 1995) is 19.6 percent ad valorem.

The handbag identified by item no. 285-13 is classified in subheading 4202.21.6000, HTSUSA, the provision for handbags with outer surface of leather. The applicable duty rate is 10 percent ad valorem.

The flatgood identified by item no. 100-31 is classified in subheading 4202.32.1000, HTSUSA, the provision for articles of a kind normally carried in the pocket or in the handbag, with outer surface of sheeting of plastic, of reinforced or laminated plastics. The applicable duty rate is 12.1 cents per kilogram plus 4.6 percent ad valorem.

Except to the extent that reclassification of the merchandise as indicated above results in a net duty reduction and partial allowance, you are instructed to deny the protest. A copy of this decision should be attached to the Form 19 to be returned to the protestant.

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 the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the 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, the Freedom of Information Act, and other public access channels.

Sincerely,

John Durant, Director

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