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HQ 967328




November 5, 2004

CLA-2: RR:CR:TE: 967328 BtB

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.21.6000

Barbara Dawley, Esq.
Meeks & Sheppard
1735 Post Road
Suite 4
Fairfield, CT 06824

RE: The tariff classification of a handbag

Dear Ms. Dawley:

This is in response to your letters to the Bureau of Customs and Border Protection (CBP) National Commodity Specialist Division, dated May 19 and August 18, 2004, on behalf of your client, Buxton Company, in which you request the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of a woman’s purse with an outer surface of leather. Your letters have been forwarded to this office for a reply.

FACTS:

The purse is known as the Buxton style 243W07. It has an outer surface of genuine leather and measures approximately 4 inches in height by 8.5 inches in width by 2 inches in depth when empty. The container has one central compartment that opens with a metal zipper closure which extends along the top of the main compartment and curves down approximately 1 inch on each side. When unzipped the compartment can be spread open to approximately 4.5 inches. The compartment has a lining of textile material. Along one wall of the interior of the main compartment, there is a textile compartment with a zipper closure with a gusset on one side that appears to be designed to hold coins. On the outside wall of this compartment is a small pocket that appears to be sized to fit business or credit cards. On the right side of the textile compartment, is an imitation leather cord measuring approximately five inches in length. On the end of the imitation leather cord is a small thin mirror framed in imitation leather that has an elastic loop along its back, enabling it to hold business or credit cards. On the other wall of the interior compartment, there are four horizontal credit card slots made of imitation leather. Behind the four credit card slots, there are two additional horizontal compartments that can hold business or credit cards. Also within the main compartment is a thin detached imitation leather insert measuring approximately 3 inches in height by 6.5 inches in width. As the insert is not attached to any part of the purse, it can be completely removed. On its front, the insert has an identification window measuring approximately 2 inches in height by 3 inches in width and there are three additional vertical credit card slots. On its back, the insert has five vertical credit card slots. On its top edge, the insert has an elastic loop that holds a pen. On one side of the purse’s exterior (the same side that has the textile compartment along the wall of the main compartment), there is a slot which extends the full width of the purse. Inside the slot is a pull-out sleeve (with an imitation leather frame and a transparent plastic window cover) measuring approximately 2 inches high and 3 inches wide. The pull-out sleeve is attached to the inside of the slot with a textile tether. The sleeve houses a thin removable calculator and calculator instructions. On the side of the sleeve opposite the window, there are two vertical credit card slots. On the other side of the purse’s exterior, there is a zippered pouch pocket which extends the full width of the purse. In the pocket, a tethered key ring is permanently attached to one side. The purse has a thin detachable shoulder strap of imitation leather that measures 52 inches in length. Additionally, the purse has at one end a detachable swagger strap of imitation leather which measures 8 inches in length. Both straps attach to the purse with metal clip fasteners.

In your letter, you assert that the Buxton style 243W07 is classifiable in subheading 4202.31, HTSUSA, as an article of a kind normally carried in the pocket or in the handbag. This assertion is based on the premise that the Buxton style 243W07 is substantially similar to other Buxton models that CBP has held to be classified in that subheading.

ISSUE:

Whether the Buxton style 243W07 is classified in subheading 4202.31, HTSUSA, as an article of a kind normally carried in the pocket or in the handbag, or in subheading 4202.21, as a handbag.

LAW AND ANALYSIS:

Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides, in part, that classification decisions are to be "determined according to the terms of the headings and any relative section or chapter notes." In the event that 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, in order. The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI. While neither legally binding nor dispositive of classification issues, the EN provide commentary on the scope of each heading of the HTSUSA and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).

Heading 4202, HTSUSA, provides for, inter alia, travel bags, handbags, wallets, purses and similar containers. Subheading 4202.21, HTSUSA, covers handbags with outer surface of leather while subheading 4202.31, HTSUSA, covers articles of a kind normally carried in the pocket or in the handbag with outer surface of leather. In this case, classification depends on whether or not the Buxton style 243W07 is considered a handbag or an article normally carried in a handbag.

The subheading EN to subheadings 4202.31, 4202.32, and 4202.39, HTSUSA, states that these subheadings cover "articles of a kind normally carried in the pocket or in the handbag and include spectacle cases, notecases (billfolds), wallets, purses, keycases, cigarettecases, cigar-cases, pipecases and tobaccopouches." Since subheading 4202.21, HTSUSA, explicitly covers handbags, and the EN to subheading 4202.31, HTSUSA, indicates the subheading specifically covers wallets, we must decide whether the Buxton style 243W07 is properly classified as a handbag or a wallet.

On June 21, 1995, this office published a General Notice in the Customs Bulletin, Volume 29, Number 25, entitled "The Tariff Classification of `Wallets on a String"' that discussed the attributes of both articles of a kind normally carried in the handbag and handbags. In regard to articles of a kind normally carried in the handbag, the notice states in pertinent part:

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 .

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.

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.

The addition of a wraparound zipper does not in and of itself transform a flatgood into a handbag, particularly where the zipper functions merely to secure its contents in the closed or carrying position. Specifically, the presence of a zipper which simply holds the two halves of a wallet or similar container together, so that cards, currency or other articles in fitted compartments do not fall out, does not transform the case into a handbag.

With respect to handbags, the notice states:

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 wraparound zipper may be an indication that the container is a carryall if the zipper creates an inner space suitable for carrying three dimensional items.

As stated in HQ 953774, dated August 2, 1993, the classification of envelope-style clutch containers proceeds on a case-by-case basis. In prior rulings involving similarly-sized envelope-style clutch containers, we have considered a container’s shape and size, as well as the types, shapes and sizes of its compartments, fittings and openings, to determine if the item is classifiable as a wallet or as a handbag. Generally, if an envelope-style clutch container can fit comfortably into a pocket or handbag, is fitted to hold items normally associated with a wallet such as currency, photos, identification or credit cards, and checkbooks, and is not designed to hold 3-dimensional items not associated with the capacities of a wallet or flatgood, the container would be classifiable as an article normally carried in the pocket or in the handbag.

We have ruled that the presence of wrap-around zipper closures (See HQ 957632, dated March 24, 1995), snap closures (See HQ 959185, dated February 10, 1997), spectacle cases (See HQ 957632), small mirrors (See NY F85018, dated April 5, 2000), belt loops (See HQ 959185), shoulder straps (See HQ 956017, dated June 10, 1994), and checkbook covers (See HQ 953774), does not preclude an envelope-style clutch container from being classified as a wallet. However, the addition of such features are steps in the direction of an article being classified as a handbag, as the article begins to take the character of a carry-all container. As stated in the June 21, 1995 General Notice and repeated in numerous rulings, the determinative feature of a handbag is its ability to hold several objects not associated with a wallet.

The purse at issue, the Buxton style 243W07 has one central or main compartment, a slot on one side of its exterior, and a zippered pouch pocket on the other side of its exterior. While the purse is fitted to hold items normally associated with a wallet such as currency, photos, identification or credit cards, and checkbooks, it can also accommodate 3-dimensional personal effects not normally associated with a wallet. The purse’s main compartment alone can accommodate several 3-dimensional articles not normally associated with a wallet such as a hairbrush, cosmetics, keys, a mirror (included), a pen (included), etc. in both the open and closed positions. The purse’s main compartment can expand to approximately 4 inches in depth when the compartment is filled with 3-dimensional articles. The compartment’s wrap-around zipper closure is also indicative of a handbag. The exterior side compartments (the slot and the zippered pouch pocket) also have features, i.e., a tethered key ring and a removable calculator, that are steps in the direction of a handbag. Furthermore, the detachable shoulder and swagger straps are indicative that the purse will be carried using at least one of them, in a manner consistent with the use of a handbag. When the purse’s main compartment is filled with 3-dimensional items in the closed (zipped) position, the purse measures approximately 4 inches in height by 8.5 in width by 4 inches in depth. In this condition, which reflects its intended use, the purse cannot fit comfortably into a pocket or a small handbag.

In your letter, you refer to the Buxton style 243W07 as a “wallet.” We do not find this characterization to be accurate. As the style can accommodate several items not associated with the capacities of a wallet or flatgood, and possesses several features of a handbag, we find the container to be a handbag, not a wallet. Also, you assert that the Buxton style 243W07 is substantially similar to the Buxton model 39, model 29, model 37, and model 40, other models that we have held to be classified in subheading 4202.31, HTSUSA, as articles of a kind normally carried in the pocket or in the handbag (See HQ 966842, dated May 10, 2004 and HQ 967048, dated July 13, 2004). We do not agree. The model 39, model 29, model 37, and model 40 each have one compartment that, when unzipped and fully opened, has gussets that allow it to expand to approximately 6 inches at its top opening. When this compartment is open, it can accommodate small 3-dimensional personal effects. However, when the compartment is empty and zipped in the closed position, it measures less than one inch in depth in each of the models. The compartment’s ability to accommodate personal effects other than small, narrow items such as coins, or flat items such as paper currency or credit cards when closed is very limited. The gussets in those four models mainly permit the user to expand the compartment to view, insert and/or remove contents, but they do not appear to be designed to help organize or store 3-dimensional personal effects when the compartment is closed. In fact, the gussets are not functional when the compartment is zipped. Although a few small 3dimensional items can be stuffed into the compartment and the zipper forced shut, the result is a container with a distended and awkward appearance. Prolonged storage of small 3-dimensional items would likely disfigure the outer surface of the models.

Unlike the model 39, model 29, model 37, and model 40, the Buxton style 243W07 does not have a gusseted compartment. Rather, the style has a main zippered compartment that can accommodate several 3-dimensional items in the open or closed position. As stated above, when the purse’s main compartment is filled with 3-dimensional items, the purse measures approximately 4 inches in depth. 3-dimensional items can be carried in the style 243W07 without the container assuming a distended and awkward appearance or having its outer surface disfigured. In contrast, the model 39, model 29, model 37, and model 40 have substantially less carrying capacity and cannot accommodate 3-dimensional items while in the closed position. In light of the analysis above, the Buxton style 243W07 is classified in subheading 4202.21, as a handbag.

HOLDING:

The Buxton style 243W07 is classified in subheading 4202.21.6000, HTSUSA, the provision for handbags, whether or not with shoulder strap, including those without handle: [w]ith outer surface of leather, of composition leather or of patent leather: [o]ther: [v]alued not over $20 each. The general column one rate of duty applicable is 10 percent ad valorem.

Sincerely,

Myles B. Harmon, Director

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