CLA-2 RR:CR:TE 960907 GGD
Port Director
U.S. Customs Service
10 Causeway Street, Room 603
Boston, Massachusetts 02222-1059
RE: Decision on Application for Further Review of Protest No.
0401-97-100358, filed July 17, 1997, concerning the
classification of small handbags or wallets
Dear Sir:
This is a decision on a protest timely filed on July 17, 1997, against your decision in the classification and liquidation of wallets or small handbags that were entered in June 1996.
FACTS:
You classified an article identified as style number 285-13 in subheading 4202.21.6000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), the provision for “Handbags, whether or not with shoulder strap, including those without handle: With outer surface of leather, of composition leather or of patent leather: Other: Valued not over 20 dollars each,” with an applicable duty rate of 10 percent ad valorem.
The protestant claims that style no. 285-13 should be classified in subheading 4202.31.6000, HTSUSA, the provision for “Articles of a kind normally carried in the pocket or in the
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handbag: With outer surface of leather, of composition leather or of patent leather: Other,” with an applicable duty rate of 8 percent ad valorem.
Item no. 285-13 is composed of leather and is described in advertising literature as a “check-clutch-on-a-string.” It measures approximately 4-1/2 inches in height in the closed position (9-1/2 inches when open) by 7-1/2 inches in width by 1-1/2 inch in depth. There is a detachable carrying strap, a detachable key ring, and an exterior zippered pocket which has a gusset on one side, allowing for outward expansion. The item’s interior features 5 separate compartments, 4 of which extend the full width of the bag and one of which is a coin purse with a gusset on one side and a snap closure. The dimensions of the central compartment, which can hold various 3-dimensional objects, are approximately those of the closed article. The remaining compartments, one of which has a zippered closure, are essentially designed to hold flat items such as currency. A removable checkbook jacket (with 7 slots for credit cards) is
included. The interior of the flap opposite the main compartments has an additional slot compartment, a mirror, and a plastic window for display of an i.d. card or photo.
ISSUE:
Whether the article is properly 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, HTSUSA, as a handbag.
LAW AND ANALYSIS:
Classification under the HTSUS 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 Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRI.
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Among other goods, heading 4202, HTSUS, provides for traveling bags, handbags, wallets, and similar containers. Since the merchandise is similar to a handbag and/or to a wallet, it is covered by the heading.
Subheading 4202.21, as well as subheadings 4202.22 and 4202.29, HTSUSA, covers handbags, whether or not with shoulder strap, including those without handles.
Subheading 4202.31, as well as subheadings 4202.32 and 4202.39, HTSUSA, covers articles of a kind normally carried in the pocket or handbag. The subheading EN to these three subheadings states:
These subheadings cover articles of a kind normally carried in the pocket or in the handbag and include spectacle cases, note-cases (bill-folds), wallets, purses, key-cases, cigarette-cases, cigar-cases, pipe-cases and tobacco-pouches.
On June 21, 1995, this office published a General Notice in the Customs Bulletin, Volume 29, Number 25, concerning goods identified as “Wallets on a String.” The attributes of both handbags and articles of a kind normally carried in the pocket or in the handbag were discussed. With regard to Articles of a Kind Normally Carried in the Pocket or in the Handbag, the notice stated in pertinent part that:
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. Articles meeting this description which also possess a detachable carrying strap have been classified as flatgoods.
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.
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With respect to Handbags, the notice stated that:
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 wrap-around zipper may be an indication that the container is a carry-all if the zipper creates an inner space suitable for carrying three-dimensional objects.
With respect to the merchandise at issue, we note that the article is fitted to hold items such as credit cards, i.d. cards, and paper currency. The protestant contends that the item’s gussets only allow easy access to pocket contents and provide no extra capacity for three-dimensional objects. It is asserted that one or two items not normally found in a wallet might be forced into the article, but the resulting distention would be undesirable and suggest the need for a design change in the article’s dimensions. We find that style no. 285-13 is able to hold several 3-dimensional items not associated with the capacity of a flatgood without straining its designed capacity. Although as more and more objects are added to any container, distention may result, the gusseted pockets and compartments of style no. 285-13 provide a generic carrying capacity for loose personal effects such as keys and cosmetics. We find that the article is classifiable as a handbag. For a ruling consistent with this decision, see Headquarters Ruling Letter (HQ) 960180, issued August 12, 1997.
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HOLDING:
The handbag identified by style no. 285-13 and described as a “check-clutch-on-a-string” is classified in subheading 4202.21.6000, HTSUSA, the provision for handbags with outer surface of leather. The applicable duty rate is 10 percent ad valorem.
The protest should be DENIED. In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing of the decision.
No later than 60 days from the date of this letter, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs
Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and by other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division