CLA-2 RR:TC:TE 958475 NLP
TARIFF NO: 4202.31.6000
Mr. Kenneth G. Weigel
Ms. Nancy Kao
Kirkland & Ellis
655 Fifteenth Street, N.W.
Washington, D.C. 20005
RE: Reconsideration of NYRL 813767; wallet made of leather and
cotton fabric; heading 4202; GRI 3(b); HRLs 081373 (10/17/88)
and 952831(2/24/93)
Dear Mr. Weigel and Ms. Kao:
On August 29, 1995, Customs issued to your client, Humphreys
Inc., New York Ruling Letter (NYRL) 813767, which classified a
wallet in subheading 4202.32.4000, Harmonized Tariff Schedule of
the United States (HTSUS). In a letter to Customs Headquarters,
dated September 27, 1995, you requested reconsideration of NYRL
813767. On October 31, 1995, representatives from this office
met with you to discuss this issue. Subsequently, you provided
Customs with a second submission, dated November 3, 1995. Upon
review, we are of the opinion that the classification of the
wallets in NYRL 813767 was incorrect and this ruling modifies
that classification. Pursuant to section 625, Tariff Act of 1930
(19 U.S.C. 1625), as amended by section 623 of Title VI (Customs
Modernization ) of the North American Free Trade Agreement
Implementation Act ( Pub. L. No. 103-182, 107 Stat. 2057 (1993))
(hereinafter, section 625), notice of the proposed modification
of NYRL 813767 was published April 3, 1996, in the CUSTOMS
BULLETIN, Volume 30, Number 14. No comments were received in
response to the notice.
FACTS:
The merchandise at issue consists of three styles of
wallets. The first wallet, # 5342, is a tri-fold style and
measures approximately 3-3/8 inches by 4-1/8 inches when closed
and approximately 9-1/4 inches by 4-1/8 inches when opened. The
outer surface features 2 large panels of leather and one smaller
panel of leather. It also has two panels of cotton fabric that
are
sewn in between the leather panels. According to your
submission, the outer surface of the wallet consists of
approximately 26 square inches (67%) of leather and 13 square
inches (33%) of cotton fabric. Our measurements of the outer
surface of the wallet are as follows:
MATERIAL TOTAL WIDTH APPROXIMATE SQ. INCH %
leather 6-1/4 inches 26 67
cotton 3-3/4 inches 14 33
The weight of the leather material used in the outer surface
is approximately 0.06 kg and the weight of the cotton fabric used
in the outer surface is 0.02 kg. The value of the outer
surface's leather component is approximately 10 times that of the
cotton fabric.
The second wallet, style #5343, measures approximately 3-1/8
inches by 4-5/16 inches when closed and approximately 6-1/2
inches and 4-1/4 inches when opened. It features one large
rectangular leather panel and one smaller rectangular leather
panel. Cotton fabric has been sewn into the gap between these
two areas. Based on the measurements you submitted, the outer
surface of the wallet is comprised of 17-1/2 square inches (62%)
of leather and 10-1/2 square inches (38%) of cotton fabric. Our
measurements of the outer surface of the wallet are as follows:
MATERIAL TOTAL WIDTH APPROXIMATE SQ. INCH %
leather 3-3/4 inches 15.9
57
cotton 2-1/2 inches 10 43
The weight of the leather material used in the outer surface
is approximately 0.05 kg and the weight of the cotton fabric is
0.01 kg. The value of the outer surface's leather component is
14 times as great as the value of the cotton fabric.
The third wallet, style #5344, measures approximately 3-1/2
inches by 4-1/8 inches when closed and approximately 7 inches by
4-1/8 inches when opened. The design of the outer surface is the
same style as the above wallet. Based on the measurements you
submitted, the outer surface of the wallet consists of
approximately 18 square inches ( 62%) of leather and 11 square
inches (38%) of cotton fabric. Our measurements of the outer
surface of the wallet are as follows:
MATERIAL TOTAL WIDTH APPROXIMATE SQ. INCH %
leather 4 inches 16 57
cotton 3 inches 11.25 43
The weight of the leather material used in the outer surface
is approximately 0.05 kg and the weight of the cotton fabric is
0.02 kg. The value of the outer surface's leather component is
15 times that of the cotton fabric's value.
NYRL 813767 classified all three styles of wallets in
subheading 4202.32.4000, HTSUS, which provides for "Trunks,
suitcases, ...; wallets ...: 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 textile
materials: Of vegetable fibers and not of pile or tufted
construction: Of cotton."
It is your position that the outer surfaces of the three
wallets are composed predominately of leather and not of textile
materials. Therefore, it is the leather that provides the
essential character of the outer surface of the wallets and they
should be classified in subheading 4202.31.6000, HTSUS, which
provides for "Trunks, suitcases, ...;...wallets ...: 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."
We note that the style numbers utilized in this ruling are
different from those in NYRL 813767. At the time Humphrey's
broker requested the tariff classification ruling that resulted
in NYRL 813767, the wallets had only been assigned the following
temporary style numbers: 95RAMBLK, 95RIZBLU, and 95RAIGRN. The
wallets have now been assigned permanent product code numbers and
this ruling letter refers to the wallets by these codes and not
by the previously assigned style numbers utilized in NYRL 813767.
ISSUE:
Are the subject wallets classifiable in subheading
4202.32.4000, HTSUS, based on their cotton components or in
subheading 4202.31.6000, HTSUS, based on their leather
components?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes. Merchandise
that cannot be classified in accordance with GRI 1 is to be
classified in accordance with subsequent GRI's taken in order.
Heading 4202, HTSUS, is the provision 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, 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.
GRI 3(a) requires that where two or more headings describe
the merchandise, the more specific will prevail; or if two or
more headings each refer to part only of the materials in the
goods, then classification will be by GRI 3(b). GRI 3(b) states
that the material or component which imparts the essential
character to the goods will determine the classification. The
factors which determine essential character of an article will
vary as between different kinds of goods. It may, for example,
be determined 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 general,
essential character has been construed to mean the attribute
which strongly marks or serves to distinguish what an article is;
that which is indispensable to the structure or condition of an
article. See, Harmonized Commodity Description and Coding System
Explanatory Note (VIII) to GRI 3.
The outer surfaces of the wallets at issue here are
constructed of two components: leather and cotton. Wallets with
an outer surface of leather are provided for under subheading
4202.31.6000, HTSUS, whereas those with an outer surface of
textile material are covered in subheading 4202.32.4000, HTSUS.
Therefore, as the outer surface of the wallets consists of two
materials and the above subheadings refer to part only of the
materials of the goods, then classification of the wallets is
based on the material that imparts the essential character to the
outer surface of the wallets pursuant to GRI 3(b).
Headquarters Ruling Letter (HRL) 081373, dated October 17,
1988, dealt with the classification of, inter alia, a woman's
wallet and wallet/credit card holders and the issue of what
material constituted their outer surface. In deciding this
issue, HRL 081373 stated that a determination of essential
character of the outer surface of luggage and related products
cannot be based solely on a physical measurement of the component
materials of the outer surface area. However, this ruling
observed that such a measurement is of paramount importance in
determining the make-up of the exterior surface. This ruling
stated that when viewing luggage and related products, the
materials of the outer surfaces produce a visual impact which in
many instances leaves little or no doubt as to what material
gives the outer surfaces their essential character.
In the instant case, the outer surfaces of the wallets at
issue are comprised of leather and cotton fabric in the following
percentages by weight : style # 5342- 67% leather and 33% cotton;
style # 5343- 57% leather and 43% cotton and style # 5344- 57%
leather and 43% cotton. However, as stated above, this is not
conclusive of classification of the subject wallets. While a
visual examination reveals that the leather predominates on style
#5342, we do note that on the two bi-fold styles, there appears,
based on a visual examination, to be only slightly more leather
than cotton. In determining the essential character of the outer
surface of certain products of heading 4202, HTSUS, greater
weight has been accorded to the visual quality of these products,
however, it is not the only factor we focus on. See, HRL 952831,
dated February 24, 1993, wherein we classified a handbag based on
GRI 3(c) where the visual impact equally conveyed the impression
of narrow textile strips of cotton and strips of PVC and the
cost, weight and surface coverage was also comparable.
In the instant case, when all the factors as discussed in
the EN to GRI 3(b) are taken into consideration, it is the
leather that predominates. For example, the leather predominates
by weight, bulk, value and it provides durability to these
wallets. Therefore, it is the leather that imparts the essential
character to the subject wallets. Thus, style #5342, #5343 and
#5344 are classified in subheading 4402.31.6000, HTSUS.
In conclusion, we would like to briefly address two points
made in your submission. First, it is our position that the
cotton portions of these wallets are more than trim. They are
considered part of the outer surface area of the wallets and were
considered in determining which component provided the essential
character to the outer surface of the wallets. Second, although
NYRL 813767 did not specifically state this, the determination
that the wallets were "equally of leather and cotton" was not
based on a physical measurement, but on a visual inspection of
the wallets and the role of the constituent materials. Implicit
in this ruling was the conclusion that a determination of the
classification could not be made based on GRI 3(b) and,
therefore, classification was based on GRI 3(c). Thus, while we
disagree with the ultimate holding in NYRL 813767, we do not
believe that NYRL 813767 "on its face misstates the facts".
HOLDING:
NYRL 813767 is modified. Wallet styles #5342, #5343 and
#5344 are classified in subheading 4202.31.6000, HTSUS, which
provides for "Trunks, suitcases, ...;...wallets ...: 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." The rate of duty is 8% ad valorem.
In accordance with section 625(c)(1), Tariff Act of 1930 (19
U.S.C. 1625(c)(1)), as amended by section 623 of Title VI
(Customs Modernization) of the North American Free Trade
Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057),
this ruling will become effective 60 days after publication in
the CUSTOMS BULLETIN. Publication of rulings or decisions
pursuant to section 625 does not constitute a change of practice
or position in accordance with section 177.10(c)(1), Customs
Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division