CLA-2 CO:R:C:G 082476 c
Louis S. Shoichet, Esq.
Siegel, Mandell & Davidson, P.C.
Counsellors at Law
One Whitehall Street
New York, New York 10004
RE: Tariff classification of a nylon folding shopping bag
manufactured in Taiwan
Dear Mr. Shoichet:
In your letter dated September 22, 1987, you inquired as
to the tariff classification under the Tariff Schedules of the
United States (TSUS) and under the Harmonized Tariff Schedule
Annotated (HTSUSA), of a nylon folding shopping bag. A sample
designated as style No. 402 was submitted for examination.
FACTS:
The sample bag has an open top, double handles, and an
inside zippered pocket. A textile label with the word
"traveler" sewed or stitched thereon is sewn on the front and
bottom of the bag. This bag is designed so that when the
entire article is folded it resembles a wallet which has a
complete zipper closure. When open the bag measures
approximately 15 inches in height by 13-1/2 inches in width.
When folded the bag measures approximately 6 inches by 5-1/2
inches.
ISSUE:
Whether the instant bag is a handbag or a shopping bag
for tariff purposes.
LAW AND ANALYSIS:
Schedule 7, Part 1, Subpart D, Headnote 2(b), TSUS,
provides that "the term 'handbags' covers pocketbooks, purses,
shoulder bags, clutch bags, and all similar articles, by
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whatever name known, customarily carried by women or girls,
but not including luggage or flat goods as defined herein or
shopping bags."
In Headquarters Ruling Letter (HRL) 074556 dated
March 18, 1985, this office ruled that a nylon folding tote
bag similar in all material respects to style 402 is
classifiable under the provision for other articles not
specially provided for, of textile materials, ornamented in
item 386.13, TSUS.
Our rationale for this holding was as follows:
1. There was evidence submitted that the bag was
bought and sold as a shopping bag. The specific
evidence presented consisted of printed matter from
a New York retail store advertising the item as an
"expandable shopping bag" retailing for $15.00.
2. Additional evidence that the bag is a shopping
bag was submitted in the form of Montgomery Ward
catalogs in which the tote bag is advertised as a
"Boxed Shopping Tote" or an "expandable shopping bag"
with a normal retail price of $7.00 and a sales
price of $4.99.
3. The nylon folding bag is designed after folding to
be placed in a handbag and taken out and opened
after purchases are made and thereafter used to
carry the purchases home.
Our decision to classify the nylon folding tote bag under
item 386.13, TSUS, rather than as luggage of textile materials
in item 706.41, TSUS, was later supported by affidavits from a
buyer of women's fashion accessories for all of Bradlees'
stores and from a buyer of luggage for all of the Sears
stores, and from a former fashion accessories buyer for Sears.
The Bradlees affidavit dated February 25, 1988, indicated
that style Nos. 401 (which is similar to 402) and 402 are
bought and sold as folding totes (expanding) tote bags and not
as handbags or as luggage. Furthermore, these bags are
advertised as "shopping totes" which can be folded into a
pouch for use when shopping.
The Sears affidavit dated March 30, 1988, indicates that
style No. 401 does not constitute either a handbag or luggage
within the common or commercial meanings of those terms.
Further, style No. 401 would be used primarily for shopping.
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This affidavit also noted that this style does not have a
handbag-type shape and would not be purchased by a consumer in
lieu of a handbag.
The Sears affidavit dated April 1, 1988, states that
style No. 4010 (similar to 402) was bought and sold by Sears
as folding (expanding) tote shopping bags and not as handbags
or as luggage. Further, the affiant asserts that based on his
experience in the trade, style No. 4010 is not considered to
be a handbag or luggage.
In view of the foregoing, it remains our opinion that
style 402 is a shopping bag for tariff purposes. It is to be
noted that shopping bags are not considered handbags pursuant
to Schedule 7, Part 1, Subpart D, Headnote 2(b), TSUS, supra.
Further, style 402 is not within the purview of the term
"luggage" as defined in Schedule 7, Part 1, Subpart D,
Headnote 2, TSUS, because it is not a travel good or a like
article designed to contain clothing or other personal effects
during travel or is it a like container or case designed to be
carried with the person which is similar to the exemplars
named therein.
Classification under the HTSUSA is resolved under the
rules and specific language in that tariff law. Heading 4202,
HTSUSA, specifically names shopping bags. Additional U.S.
Note 1 to chapter 42 provides in pertinent part as follows:
1. For the purposes of heading 4202, the expres-
sion "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, including backpacks and shopping
bags of this heading, ***.
It is our opinion that because style No. 402 is known in
the trade as a shopping bag, it should be so considered for
purposes of classification under the HTSUSA.
HOLDING:
Style No. 402 is a shopping bag classifiable under the
provision for other articles not specially provided for, of
textile materials, ornamented, in item 386.14 (formerly
386.13), TSUS, and dutiable at the rate of 10 percent ad
valorem.
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Under the HTSUSA style No. 402 is a shopping bag
classifiable under subheading 4202.92.3030, HTSUSA, as travel,
sports and similar bags, with outer surface of textile
materials, other, of man-made fibers, other with duty at the
rate of 20 percent ad valorem. The applicable textile
category number is 670.
The classifications set forth in this letter represent
the current position of the Customs Service regarding the
dutiable status of the merchandise under the HTSUSA which
becomes effective on January 1, 1989. If there are changes
before that date, this advice may not continue to be
applicable.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc: A.D., NY Seaport
1cc: Commerce
1cc: John Durant
CO:R:C:G:DCAHILL:lw 7/21/88:draft:9/13/88:draft:9/14/88:final:
9/15/88