CLA-2 RR:CR:TE 964768 JFS
Area Director
U.S. Customs Service
New York/Newark Area
1210 Corbin Street
Elizabeth, New Jersey 07201
Re: Internal Advice Request No. 00/31; Backpacks and Coin Purses of Textile Materials; Essential Character; Additional U.S. Rule of Interpretation 1 (d); Section XI, Note 2; Section XI, Subheading Note 2(A).
Dear Madam:
This letter is in response to your memorandum dated November 24, 2000, concerning a request for Internal Advice submitted by Serko & Simon, LLP, on behalf of Pyramid Accessories, Inc., concerning the classification of two styles of backpacks, each with a coin purse attached.
FACTS:
The two backpacks, styles 89166 IM and 89167 IM, are substantially similar in construction. Style 89166, is described by the requestor as:
A dome backpack. It measures approximately 16 inches in height by 11 inches in width by 4 inches in depth (gusset). Each gusset features a zippered side pocket. The dome over the main central compartment is secured by means of a wrap-a-around [sic] zipper. Attached to the zipper by a detachable metal split ring, is a miniature top zippered coin purse in the shape of a travel bag with handles. The front of the backpack features an exterior tapered zippered pocket which measures approximately 9 inches in height by 6 inches in width by 1 ½ inches in depth. The front of this exterior pocket also features a large overlaid embroidered textile patch of the “Pooh” and “Tigger” characters with “Tigger” resting his arm on “Pooh’s” head. Just above this patch, on the top front is another smaller overlaid textile patch, approximately 2 ¼ inches square, with the words “Just Being Friends”. There are two permanently attached, adjustable textile shoulder straps with interior padding, at the rear of the backpack with a textile carry handle affixed at the top between the carrying straps. The exterior surface panels of light blue fabric, plain or printed, that comprises the front panels and gusset of the backpack and coin purse are stated to be a blended fabric made up of 55% Ramie/45% polyester. The exterior surface dark blue panels, which comprise the remainder of the backpack’s exterior surface are stated to be made of 100% polyester fabric.
The dark blue panels that compose the remainder of the backpack’s exterior surface consist of (1) the back panel that comes into contact with the wearer’s back, (2) the bottom of the backpack, and (3) the gusseting that forms the side panels of the front pocket.
Responding to a request to conduct a fiber analysis of style 89166 IM, the United States Customs Laboratory (Laboratory) first noted that the backpack is constructed of two distinct fabrics. The front and side panels are constructed of a blended woven textile fabric that consists of 51.2% ramie fibers and 48.8% polyester fibers. This blended fabric accounts for approximately 55% of the outer surface of the backpack. The back panel, bottom of the backpack and the gussets are constructed of a fabric of 100% polyester fibers, which accounts for approximately 45% of the outer surface of the backpack. With respect to the fiber analysis, in Customs Laboratory report no. 2-1999-11431-001, the Laboratory concluded that the outer shell of the backpack is, by weight, composed of 72% polyester fibers and 28% ramie fibers.
Style 89167 IM, like style 89166 IM, is comprised of two fabrics, and is very similar to style 89166 IM described above. The importer states that the front panels are constructed of a blended fabric of 55% ramie and 45 polyester. The remaining panels are constructed of 100% polyester. The Laboratory did not analyze this backpack.
The backpacks under consideration were entered by the importer under subheading 4202.92.2000, which provides for travel, sports and similar bags, with an outer surface of vegetable fibers, other than cotton. Customs, relying on the results of the fiber analysis that the backpacks are composed of 72% polyester fibers, reclassified the backpacks under 4202.92.3020, HTSUSA, which provides for backpacks with an outer surface of man-made fibers. Subsequently, the importer requested that Customs issue an Internal Advice ruling.
ISSUE:
Should the outer surface of the backpacks be determined by (1) the fiber that predominates by weight throughout the backpacks, or (2) the fabric that predominates by weight in the fabric that imparts the essential character to the backpacks?
LAW AND ANALYSIS:
Classification under the 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), represent 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. The Explanatory Notes, although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUSA, and are generally indicative of the proper interpretation of these headings.
Heading 4202, HTSUSA, covers:
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.
Emphasis added. There is no issue as to whether the backpacks are classified in heading 4202, HTSUSA.
The subheadings at issue are 4202.92.2000, HTSUSA, which provides for, among other goods, backpacks with an outer surface of vegetable fibers, and 4202.92.3020, HTSUSA, which provides for, among other goods, backpacks with outer surface of man-made fibers. The EN to heading 4202, HTSUSA, state, in pertinent part:
The articles covered by the second part of this heading must be only of the materials specified therein or must be wholly or mainly covered with such materials or with paper (the foundation may be of wood, metal, etc.).
Accordingly, we must determine whether the backpacks have an outer surface of vegetable fibers or of man-made fibers.
First, it is necessary to consider the Additional U.S. Rules of Interpretation (U.S. Rules).
U.S. Rule 1(d), states:
The principles of section XI regarding mixtures of two or more textile materials shall apply to the classification of goods in any provision in which a textile material is named.
Therefore, we apply the principles of Section XI of the HTSUSA, which governs the classification of textiles and textile articles. Note 2 to Section XI, HTSUSA, states:
(A) Goods classifiable in chapters 50 to 55 or in heading 5809 or 5902 and of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over each other single textile material.
Polyester fibers, comprising 72% of the outer shell, predominate by weight. If our analysis were concluded at this point, the backpacks would be classified under 4202.92.3020, HTSUSA, as having an outer surface of textile materials of man-made fibers. However, subheading note 2 to Section XI, HTSUSA, states:
(A) Products . . . containing two or more textile materials are to be regarded as consisting wholly of that textile material which would be selected under note 2 to this section . . .
(B) For the application of this rule:
(a) Where appropriate, only the part which determines the classification under general interpretative rule 3 shall be taken into account; * * *
GRI 3 is utilized when, by application of GRI 2(b), a good consists of materials or components which are prima facie classifiable under two or more headings. GRI 3 also applies at the subheading level since GRI 6 provides that classification under subheadings is in accordance with the terms of the subheadings and the GRI's, on the understanding that only subheadings at the same level are comparable.
GRI 3(a) states that when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods, those headings are to be regarded as equally specific in relation to those goods. Because both subheadings provide for materials that make up the backpacks, we must classify them in accordance with the provisions of GRI 3(b).
GRI 3(b) provides that “mixtures, 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.” According to the Explanatory Notes, "the factor which determines essential character 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."
Under the principles of subheading note 2, the component that imparts the essential character under a GRI 3(b) analysis is selected to determine which textile material predominates by weight. See Headquarters Ruling Letter (HQ) 083925, dated June 9, 1989. The front and side panels of the backpacks, with their bright colors, colorful embroidery, and outward visibility, impart the essential character of the backpacks. The front and side panels are constructed of textile materials composed of 51.2% ramie fibers. Therefore, the backpacks are classified under subheading 4202.92.20, HTSUSA, which provides for, among other items, backpacks with an outer surface of textile materials of vegetable fibers.
The backpacks are imported with a “miniature top zippered coin purse in the shape of a travel bag with handles” attached to the zipper. The coin purse is classifiable under subheading 4202.32, HTSUSA, which provides for, among other items, articles of a kind normally carried in the pocket or in the handbag, with an outer surface of textile materials. Accordingly, it is necessary to consider the backpacks in the context of whether, combined with the coin purse, they are sets or composite goods, and if so, how they should be classified.
Explanatory Note IX to GRI 3(b) is helpful in this regard. It states:
For purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.
The backpack and coin purse are separable components are of a kind that are normally offered for sale in separate parts. Therefore, the backpack with coin purse do not form a composite good.
With respect to whether the backpack with coin purse is classifiable as a set, Explanatory Note X(b) to GRI 3(b) provides, in pertinent part, the following guidance:
For the purposes of this Rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which:
(a) consist of at least two articles which are, prima facie, classifiable in different headings [or, by operation of GRI 6 above, different subheadings]....
(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and
(c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).
The backpack and coin purse are classifiable in different subheadings, are put up together to meet the need of carrying various items of personal effects, and are imported suitable for retail sale without repacking. The components therefore constitute goods put up in sets for retail sale. GRI 3(b) by application of GRI 6.
At GRI 3(b), the backpack and coin purse set is classified as if it consisted of the article that gives the set its essential character. Neither of the terms of the competing subheadings more specifically describe the components of the set. The backpack is the component which imparts the essential character. The basis for finding that the backpack component imparts the set's essential character is indicated in Explanatory Note VIII to GRI 3(b), which states:
The factor which determines essential character 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.
The backpack is the component of greatest bulk, weight, and value. Its ability to contain and carry numerous personal effects, including the coin purse component, further establishes the fact that it imparts the set's essential character. The backpack with coin purse set is classified in subheading 4202.92.20, HTSUSA, textile category 870. The backpack and the coin purse components of each set are subject to quota and visa requirements. Thus, for the purpose of determining the proper textile category, the coin purse, assuming it is composed primarily of ramie fibers, is classified in subheading 4202.32.80, HTSUSA, textile category 871.
HOLDING:
The two backpacks with coin purses, identified by style numbers 89166 IM and 89167 IM, are classified as sets put up for retail sale under 4202.92.2000, HTSUSA, textile category 870, which provides for “Trunks, suitcases . . . knapsacks and backpacks . . ., of textile materials . . .: Other: With outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: With outer surface of textile materials: Of vegetable fibers and not of pile or tufted construction: Other.” The general column one rate of duty is 5.9% ad valorem.
The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent negotiations and changes, we suggest that the importer check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an issuance of the U.S. Customs Service, which is updated weekly and is available at the local Customs office.
Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, the importer should contact the local Customs office prior to importing the
merchandise to determine the current status of any import restraints or requirements.
Sincerely,
John Durant, Director Commercial Rulings Division