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HQ 966016




May 30, 2003

CLA-2 RR:CR:TE 966016 ASM

CATEGORY: CLASSIFICATION

TARIFF NO.: 4602.10.2500

Troy Myers
Import Specialist
Limited Logistics Services
Four Limited Parkway East
Reynoldsburg, OH 43068-5300

RE: Request for reconsideration of NY I86076; Tariff classification of basket style rattan handbag from China

Dear Mr. Myers:

This is in response to a letter, dated November 4, 2002, on behalf of Bath and Body Works, Inc., a division of Limited Brands, Inc., requesting reconsideration of Customs New York Ruling (NY) I86076, dated September 19, 2002, which classified a basket style rattan handbag under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A sample was submitted to this office for examination.

FACTS:

The subject handbag is identified as style number 29169. The body of the bag is in the form of a cylindrical basket, which is approximately 5 and ¼ inches in diameter and 7 and ½ inches tall. The bag is constructed of interwoven rattan rods and is fully lined with a textile fabric. The fabric lining is sewn to the rim of the woven rattan body and extends approximately 3 inches above the rim to form a fabric top to the bag. The top edge of the fabric forms a channel that allows a cord to be threaded through to create a drawstring closure. The drawstring cord has a wooden bead on either end and a plastic locking mechanism that provides a secure closure for the bag. Two plastic straps, each forming a 7 and ½ inch loop, have been laced through the rim and riveted in place to form handles.

In NY I86076, the subject handbag was classified under subheading 4602.10.2500, HTSUSA, which provides for “Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601; articles of loofa: Of vegetable materials: Luggage, handbags and flatgoods, whether or not lined: Of rattan or of palm leaf: Other.” You disagree with this classification and assert that the bag is too rigid to be used comfortably as a handbag and propose classification under subheading 4602.10.1400, HTSUSA, which provides for “Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601; articles of loofa: Of vegetable materials: Other baskets and bags, whether or not lined: Of bamboo: Of rattan or of palm leaf: Wickerwork.”

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).

We begin by noting that the subject bag cannot be classified pursuant to GRI 1 because it is composed of two different materials, i.e., textile and rattan. Taken separately, the exterior of the bag would be classifiable as an article of rattan in heading 4602, HTSUSA. The textile lining, which also forms the top exterior portion of the bag, may be classified as an other made up article of textile under heading 6307, HTSUSA. Accordingly, GRI 2(b) provides that the classification of combinations, which are prima facie classifiable under two or more headings, must be classified according to the principles of Rule 3.

GRI 3(b) provides that composite goods consisting of different materials or made up of different components shall be classified as if they consisted of the material or component which gives them their essential character. The EN for GRI 3(b) states, in relevant part, that the factor which determines essential character will vary as between different kinds of goods, e.g., by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

In comparing the two materials used to construct this bag, we have determined that it is the distinctive woven rattan exterior that conveys the most significant visual impression. Furthermore, the woven exterior comprises the greatest exterior surface area of the bag. In this manner it is the woven exterior that conveys the essential character to the subject article and it is our determination that the bag should be classified pursuant to the rattan exterior.

In Headquarters Ruling (HQ) 956657, dated April 11, 1995, it was noted that the term “handbag” is not defined in the HTSUSA, wherein the ruling set forth the following definitions for a “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.

The subject bag has been designed with handles that allow the bag to be carried by hand or on the arm and with sufficient interior space to contain small personal items, money, credit cards, and cosmetics. In accordance with the above definitions, we also note that handbags may be soft or rigid. In addition, the subject bag has a fully lined interior and a 3-inch textile extension at the top of the bag, which allows for even greater storage capacity. The drawstring has been fitted with a plastic closure that fully locks and secures the contents. Such features, in this combination, are not typically seen on wicker baskets. Rather, these are distinctive characteristics of a handbag. In particular, we note previous rulings wherein rigid bags made of woven rattan rods/strips were classified as “handbags” of rattan under subheading 4602.10.2500, HTSUSA. See NY A86049, dated August 27, 1996; NY G83517, dated November 9, 2000; NY G82871, dated November 17, 2000; and NY G84729, dated December 15, 2000.

In view of the foregoing, we affirm NY I86076, dated September 19, 2002, which correctly classified the subject article as a rattan “handbag” under subheading 4602.10.2500, HTSUSA.

HOLDING:

The subject merchandise is correctly classified in subheading 4602.10.2500, HTSUSA, which provides for, “Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601; articles of loofa: Of vegetable materials: Luggage, handbags and flatgoods, whether or not lined: Of rattan or of palm leaf: Other.” The general column one duty rate is 18 percent ad valorem.

Sincerely,

Myles B. Harmon, Director

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