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HQ 965114




September 17, 2002

CLA-2: RR:CR:TE 965114 ASM

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.92.4500, 7326.20.0070

Robert Stack, Esq.
Tompkins & Davidson, LLP
One Astor Plaza
1515 Broadway
New York, NY 10036-8901

RE: Request for Binding Ruling; ”President Recognition Tote Bag” and Key Ring with Plastic Fob; Not GRI 3(b) Set

Dear Mr. Stack:

This is in response to your request, dated May 10, 2001, on behalf of your client, Avon Products, Inc., concerning the classification under the Harmonized Tariff Schedule of the United States Annotated of the above-captioned merchandise. A sample has been provided with the request.

FACTS:

The sample submitted is identified as a “President Recognition Tote Bag” (style PP 227552). The exterior of the tote bag is constructed of black sheeting of plastic back with a woven textile fabric, and the bag measures approximately 12 inches x 15 inches x 4 inches. A metal key ring (composed, we assume of steel wire) with a round plastic fob has been secured to one handle of the tote by a secure plastic tie. The inside of the plastic fob has been fitted with a decorative round card imprinted with “Avon”™ and “President’s Recognition Program Celebration”. The two smallest sides and base of the tote are constructed of two panels that meet at the center of the tote base and are joined by a seam. The handles of the tote are comprosed of two lengths of green and black woven tape of man-made fabric attached to either side of the bag. These woven tapes are approximately 1.5 inches wide and sewn 7 inches apart on each side of the bag. The woven tape is sewn in a single length from the base of the bag to a point approximately 2.5 inches from the top where it continues to extend another ten inches to form a handle which then descends back down ten inches on the same side to be sewn from a point 2.5 inches from the top and all the way to the base seam. On one side of the tote, the green and black woven tape is sewn along
either side of a 7 inch x 9 inch lined flat pocket. The top of the bag can be left open or nearly completely closed by zippering the 2 inch wide panels that have been sewn to the top of the bag.

The zipper at the top of the tote bag is of heavy-duty construction with a woven zipper pull. The zipper also features a 3.5 inch extension with plastic tab and snap fitting at the base. An interior snap fitting secures the 3.5 inch zipper extension to the inside of the bag. The interior of the tote bag features a large central compartment with a full lining of woven man-made fabric. An interior zippered flat pouch is located at the upper side panel and a large central compartment is constructed from the same lining material. The bag also features an interior removable rectangular base insert of woven man-made fabric covering a cardboard panel measuring approximately 3.5 inches x 14 inches. This removable base can be held in place by securing it underneath two woven bias tape seams of man-made fabric.

ISSUE:

What is the proper classification for the merchandise?

LAW AND ANALYSIS:

Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) 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 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 Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

Customs begins by noting that the subject articles are, prima facie, classifiable in different headings. The tote bag is classifiable in heading 4202, HTSUSA, which provides, in part, for travel sport and similar bags; and in accordance with established precedent, the key ring is properly classified in heading 7326, HTSUSA, covering other articles of iron or steel. See Headquarters Ruling Letter(HQ) 087831, dated November 27, 1990. As such, we cannot initially classify these goods in accordance with GRI 1 because we must first determine whether the tote bag and key fob constitute composite
goods or goods put up in sets for retail sale or whether they are separately classified. See HQ 963593, dated October 15, 2001, where Customs determined that a GRI 3(b) analysis did not apply and separately classified each of the components of a large cosmetic bag imported with cosmetics and cosmetics brushes.

GRI 2(a) is not applicable to the subject merchandise since it covers incomplete or unfinished goods. GRI 2(b) directs that the classification of goods consisting of more than one material or substance shall be determined according to the principles of GRI 3. GRI 3 establishes a hierarchy of methods of classifying goods that fall under two or more headings. GRI 3(a) states that the heading providing the most specific description is to be preferred to a heading, which provides a more general description. However, GRI 3(a) indicates that when two or more headings each refer to part only of the materials or substances in a composite good or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description than the other. In this case, the headings 4202, and 7326, HTSUSA, each refer to only part of the items. Thus, pursuant to GRI 3(a), we must consider the headings equally specific in relation to the goods. Accordingly, the goods are classifiable pursuant to GRI 3(b).

GRI 3(b) provides that “composite goods made up of different components” and “goods put up in sets for retail sale” are to be classified as if they consisted of the component that gives them their essential character. However, for GRI 3(b) to apply, the combination of articles must meet the definition of “composite good” or “goods put up in sets for retail sale.”

Composite goods are goods made up of different components in which the components are attached to each other to form a practically inseparable whole or goods with separable components provided that the components are adapted one to the other, mutually complementary and together form a whole which would not normally be offered for sale in separate parts. See EN, Note IX, to GRI 3(b). In the subject case, both components are designed to be used independently and are typically offered for sale in separate parts. As such, the subject merchandise cannot be considered composite goods.

In relevant part, the ENs to GRI 3(b), Note X, state that the term “goods put up in sets for retail sale” means goods which:

(a) consist of at least two different articles which are, prima facie, classifiable in different headings;

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and

(c) are put up in a manner suitable for sale directly to users without repacking.

The subject merchandise meets two of the aforementioned criteria because it consists of two different articles which are, prima facie, classifiable in two different headings. In addition, the merchandise is put up in a manner suitable for sale directly to users without repacking. However, the articles are not put up together to meet a particular need or carry out a specific activity.

The ENs to GRI 3(b) provide examples of products which have been put up together for retail sale but are not classifiable as a “set” pursuant to GRI 3(b). Specifically, the ENs note the following as an example of a retail set where each component should be classified separately in its own appropriate heading:
a can of shrimps (heading 16.05), a can of pate de foie (heading 16.02), a can of cheese (heading 04.06), a can of sliced bacon (heading 16.02), and a can of cocktail sausages (heading 16.01);

In the instant case, the tote bag and key fob are similar to the example provided above because while they may be packaged together for retail sale, the articles are not put up together to meet a particular need or carry out a specific activity. Thus, it is Customs decision that each component should be classified separately in its own heading.

With respect to the classification of the tote bag, Heading 4202, HTSUSA, specifically covers various cases and containers, and provides as follows:

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, insulated food or beverage 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.

The Additional U.S. Notes to Chapter 42 state, in relevant part: “1. For the purposes of heading 4202, the expression “travel, sports and similar bags” means goods, other than those falling in subheadings 4202.11 through 4202.39, of a kind designed for carrying clothing and other personal effects during travel”.

The EN to 4202 indicates that the heading covers only the articles specifically named and similar containers. The subject tote bag appears to be a spacious, multipurpose bag that has been designed with a top zipper closure for storage of large items and shoulder straps for carrying convenience. As such, we find that the tote is specifically covered by the “traveling bags” exemplar of 4202, HTSUSA. This is supported by HQ 962364, dated December 8, 1998, where “Tote Bags” of cotton denim fabric described as multipurpose bags designed for carrying various personal effects were classified as “travel bags” under subheading 4202.92, HTSUSA.

The appropriate eight digit subheading for articles, which are eo nomine provided for in the second part of heading 4202, HTSUSA, is determined by the constituent material of the outer surface. See Additional U.S. Note 2, to Chapter 42, HTSUSA. Thus, we find that the tote bag is properly classified under subheading 4202.92.4500, HTSUSA as: “ traveling bags, Other: With outer surface of sheeting of plastic:Travel, sports and similar bags: Other”. This is consistent with prior Customs rulings, which have classified tote bags with an outer surface of plastic sheeting in subheading 4202.92.4500, HTSUSA, as follows: HQ 960002, dated October 24, 1997; HQ 9655515, dated May 5, 1994; New York Ruling Letter D84162, dated November 12, 1998.

In accordance with established precedent, the key ring with plastic fob is properly classified, pursuant to a GRI 3(b) analysis, in subheading 7326.20.0070, HTSUSA, which provides for articles of iron or steel wire. See Headquarters Ruling (HQ) 087831, dated November 27, 1990, which characterized a steel key ring with vinyl fob as a GRI 3(b) composite article classifying it in heading 7326, HTSUSA, according to the constituent material which provided the essential character of the entire article, i.e., the steel wire ring.

HOLDING:

The article identified as the “President Recognition Tote Bag” (style PP 227552), is correctly classified in subheading 4202.92.4500, HTSUSA, which provides 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, insulated food or beverage 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: Other: With outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: Other.” The general column one duty rate is 20 percent ad valorem.

The steel key ring and plastic fob is correctly classified in subheading 7326.20.0070, HTSUSA, which provides for: “Other articles of iron or steel: Articles of iron or steel wire, Other.” The general column one duty rate is 3.9 percent ad valorem.

Sincerely,

Myles B. Harmon, Acting Director

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