CLA-2: OT:RR:CTF:TCM H086085 TNA
Sylvia Balev
Logistics Department
Marc Jacobs International
72 Spring Street, 9th Floor
New York, N.Y. 10012
RE: Reconsideration of NY N051855; Classification of the “Stam” leather handbag
Dear Ms. Balev:
This letter is in response to your request for reconsideration, on behalf Marc Jacobs International (“Marc Jacobs”), of New York Ruling Letter (“NY”) N051855, dated March 12, 2009, which classified the Marc Jacobs Classic Quilted Stam Bag (“Stam”) as a handbag in subheading 4202.21.90 of the Harmonized Tariff Schedule of the United States (“HTSUS”). In reaching our decision, we have taken into consideration additional arguments made during a teleconference with members of my staff on April 27, 2011. Two samples have been received and examined by this office. They are being returned as you requested.
FACTS:
The subject merchandise consists of a red quilted bag whose style name is “Stam.” It is made of 100% calf leather and its dimensions are 15” (W) x 11” (H) x 5.5” (D). A zipper around the bottom of the bag allows for an increase in the bag’s carrying capacity. The mouth of the bag has a metal frame with a kiss-lock closure and is smaller than the bottom of the bag. In particular, the mouth is 10 inches long, in contrast to the 15 inch length of the bottom. The difference gives the bag a tapered look. Inside, the bag is approximately nine inches deep and there is one textile-lined storage compartment with a zippered pocket on the sidewall. The bag has double carrying handles and a removable metal chain shoulder strap with metal clips at each end. In addition, the exterior of the bag has a zippered pocket. Overall, the bag is designed to carry small personal effects.
NY N051855 classified the “Stam” in subheading 4202.21.90, HTSUS, which provides, in pertinent part, for “Handbags… of leather or of composition leather…: 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 over $20 each.”
ISSUE:
Whether the “Stam” is classified as a handbag of subheading 4202.21.90, HTSUS, or as a tote bag of subheading 4202.91.00, HTSUS?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 GRIs may then be applied. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and, mutatis mutandis, to the GRIs.
The subheadings at issue are as follows:
4202 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, insulated food or beverage 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:
Handbags, whether or not with shoulder strap, including those without handle:
4202.21 With outer surface of leather, of composition leather or of patent leather:
Other:
4202.21.90 Valued over $20 each
Other:
4202.91.00 With outer surface of leather, of composition leather or of patent leather
There is no dispute that the subject merchandise is classified in heading 4202, HTSUS. At issue is classification at the 6-digit subheading level (i.e., between subheadings 4202.21 and 4202.91, HTSUS).
Subheading 4202.21, HTSUS, provides for “handbags” – a term which is not defined in the HTSUS. A tariff term that is not defined in the HTSUS is construed in accordance with its common and commercial meaning. See Nippon Kogaku (USA) Inc. v. United States, 69 C.C.P.A. 89, 92 (1982). Common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities and other reliable sources. C.J. Tower & Sons v. United States, 69 C.C.P.A. 128, 134, 673 F.2d 1268, 1271 (1982). In Headquarters Ruling (“HQ”) H004184, dated July 2, 2007, CBP set forth several dictionary definitions of the term “handbag,” such as “[an] accessory carried primarily by women and girls to hold such items as money, credit cards, and cosmetics” and “a woman’s bag held in the hand or hung from a shoulder strap and used for carrying small personal articles and money.” Thus, relying on the common meaning of the term, CBP has defined “handbag” as a bag carried by women to hold small personal items such as money, credit cards and cosmetics.
Subheading 4202.91, HTSUS, provides for “other” bags with an outer surface of leather. CBP has developed a practice of referring to certain bags in subheading 4202.91, HTSUS, as “tote bags.” See, e.g. J.E. Mamiye & Sons, Inc. v. United States, 85 Cust. Ct. 92, 102 (1980), HQ 082271, dated December 1, 1988 and HQ H004184, July 2, 2007. In J.E. Mamiye & Sons, the U.S. Customs Court (predecessor to the U.S. Court of International Trade) stated that “tote bags are utilized by women as second handbags to carry items which do not ordinarily fit within a handbag.” Id. at 102. This decision was made when the Tariff Schedule of the United States (“TSUS”) was in effect. As noted in House Conference Report No. 100-576, dated April 20, 1998, on the Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418), decisions by the Customs Service and the courts interpreting nomenclature under the TSUS are not to be deemed dispositive in interpreting the HTSUS. Nevertheless, on a case-by-case basis, prior decisions should be considered instructive in interpreting the HTSUS, particularly where the nomenclature previously interpreted in those decisions remains unchanged and no dissimilar interpretation is required by the text of the HTSUS. See HQ 961127, dated February 16, 1999; HQ H016036, dated April 1, 2008.
In the present case, both the TSUS and the HTSUS contain provisions with similar language that provide for similar merchandise. For example, Item 706, TSUS, which provided for luggage and handbags, contained breakouts for handbags and “other” bags. The breakout for “other” bags contained further provisions for travel bags “designed to contain clothing or other personal effects during travel.” See, e.g., Items 706.04, 706.06, 706.13, TSUS. Similarly, the HTSUS contains breakouts for handbags, both of leather and of other material, as well as “other” bags. See, e.g., subheadings 4202.21 and 4202.91, HTSUS. Furthermore, subheading 4202.91.00, HTSUS, also contains a breakout for “travel, sports and similar bags.” As a result, both the merchandise and the nomenclature of the tariff provisions lend themselves to similar interpretations under both tariff systems.
CBP has established several factors to distinguish handbags of subheading 4202.21, HTSUS, from tote bags of subheading 4202.91, HTSUS. With regard to handbags, CBP has stated that they typically: are smaller than tote bags, are designed to carry small personal items, include an inner lining, are reinforced along the bottom and corners, incorporate a substantial closure such as a zipper closure and include compartments to organize small personal items. See HQ 959062, dated January 28, 1997; HQ 960899, dated September 24, 1999; HQ H005625, dated November 28, 2007. Regarding tote bags, CBP has stated that they generally have at least one side which exceeds 12 inches in length and can carry many different sundry items such as food, books or clothing. See HQ 082271 and HQ 950708, dated December 24, 1991.
The Stam has a small metal-framed opening through which larger items such as large books or clothing would not fit. Its kiss-lock closure is also unlikely to remain shut around such larger objects. In addition, the Stam has two small carry straps which allow for it to be carried in the hand or over the user’s elbow. The shoulder strap, which is removable, is a heavy metal chain that would not be functional if the bag were very heavy.
Furthermore, the Stam measures 15” x 11” x 5.5”. While these dimensions make the Stam slightly larger than other merchandise that has been classified as handbags, it is not excluded from this category because of them. To the contrary, CBP has classified larger bags as handbags where the rest of the bag’s features are indicative of a handbag rather than a tote bag. See, e.g., HQ H097655, dated December 17, 2010 (classifying a bag whose outer dimensions were approximately 16 inches wide x 14 inches long as a handbag in subheading 4202.22.15, HTSUS). In the present case, the Stam’s shape and style also indicate that it is a handbag rather than a tote bag. The top is smaller than the bottom, giving the bag a tapered look that distinguishes it from a tote bag. The interior is small and its modest inner pocket can carry such items as cosmetics, but little else. Overall, these characteristics, in addition to its small metal frame, small carry straps and metal chain, show that the Stam is designed to carry small personal items, but not the larger travel items that characterize a tote bag. As a result, the Stam is classified in subheading 4202.21.90, HTSUS, which provides for “Handbags… of leather or of composition leather…: Handbags, whether or not with shoulder strap, including those without handle: Other: Valued over $20 each.”
At the April 27 teleconference, you noted that Marc Jacobs has subsequently changed the design of the strap so that part of it is now leather, which minimizes the heaviness of the metal chain, and the second sample confirms this. We note, however, that NY N051855 classified the merchandise as imported at the time of the ruling. Furthermore, the chain is only one factor among the many that contribute to how this merchandise is classified; even if we agreed that a difference in the chain spoke in favor of the merchandise being a tote bag, it would not change the bag’s tapered appearance, and its small and stiff opening, which does not accommodate larger items.
HOLDING:
Under the authority of GRIs 1 and 6, the “Stam” is provided for in heading 4202, HTSUS, and specifically in subheading 4202.21.90, HTSUS, which provides for “Handbags… 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: Handbags, whether or not with shoulder strap, including those without handle: Other: Valued over $20 each.” The 2011 column one, general rate of duty is 9% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N051855, dated March 12, 2009, is AFFIRMED.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division