CLA-2-42:RR:NC:3:341 C82464
Mr. Arlen T. Epstein
Serko & Simon, LLP
One World Trade Center, suite 3371
New York, N.Y. 10048
RE: The tariff classification of a novelty coin purse of textile
materials with clasp from China
Dear Mr. Epstein:
In your letter dated December 8, 1997 you requested a
classification ruling. The request is on behalf of Russ Berrie and
Company, Inc. A sample of a novelty coin purse, identified as item
17688, has been submitted and is being returned as requested.
FACTS:
Item 17688 is a novelty coin purse made up to appear similar
to a bear. It is manufactured of textile materials manufactured
in Korea and cut, sewn and assembled in China. The purse is of a
corduroy fabric of 100% cotton and is not stuffed. It has a
simulation of a head, tail and paws of a 100% polyester outer
fabric and fiber filling. The purse has a full width nylon coil
zipper closure and small braided textile loop sewn to the top of
the head. A metal dog leash clasp is affixed to the loop. The
clasp is of the kind normally used to affix the purse to a belt
loop, garment zipper pull or to the "D" ring of another bag such as
a backpack or handbag. You have indicated that the clasp is a "key
chain", however, this office is of the opinion that the component
is a clasp and is of the kind which is normally a component of a
similarly designed child's coin purse. The corduroy fabric is of
an orange color and has a three piece applique sewn to the front.
The applique gives the appearance of a smiling jack-o-lantern
design on the front of a novelty purse, however, without the
appliques, it would be an orange color purse of cotton corduroy
which simulates an animal.
ANALYSIS: CLASSIFICATION
Your submission has suggested that the item be considered a
composite of the "key chain" and the "stuffed bear" and that the
essential character is imparted by the "stuffed bear". The
submission indicates that the item should be classified within
Heading 9505, HTS, as a festive article noting it is a three
dimensional representation of a jack-o-lantern.
The item is not an actual stuffed animal nor a three
dimensional representation of a jack-o-lantern. The main portion
is not stuffed and is a purse. The addition of the simulated head,
paws and tail create a novelty zippered coin purse. The addition
of the three appliques which form the eyes, nose and mouth of a
jack-o-lantern simulate a bear wearing a jack-o-lantern costume or
shirt with appliques but does not cause the purse body to be a
jack-o-lantern. Item 17688 is a fully functional coin purse
designed to be worn on a belt or other garment as well as carried
in the pocket or handbag. The article does not function primarily
as a decoration and used in the celebration of and for
entertainment on a holiday. The fact that the simulated bear is
wearing a jack-o-lantern garment does not cause it to be a jack-o-lantern. The article is not considered a festive article of
Heading 9505, HTSUSA.
Item 17688 is a novelty coin purse and the dog leash clasp is
an integral part of the purse which usually does have a clasp
affixed. The addition of the clasp to the purse does not invoke
application of General Rule of Interpretation (GRI) 3(b). However,
the composition of the textile materials which constitute the
exterior of the purse do require application of GRI 3(b),
composites.
The cotton corduroy and polyester fabrics equally impart the
essential character of the novelty coin purse. There is no
essential character of one fabric over another. Noting GRI 3(c),
the classification will be according to that which appears last in
the tariff.
A coin purse, of textile materials, with outer surface of
cotton corduroy fabric, is classified within HTS 4202.32.9530. A
similar article, with outer surface of man-made textile materials
is classified within HTS 4202.32.9550. The later is the tariff
number which appears last in the tariff.
The applicable subheading for the coin purse, item 17688, will
be 4202.32.9550, Harmonized Tariff Schedule of the United States
(HTS), which provides, in part, for articles of a kind normally
carried in the pocket or in a handbag, with outer surface of
textile materials, of man-made fibers. The duty rate will be 19
percent ad valorem.
ANALYSIS: COUNTRY OF ORIGIN
On December 8, 1994, the President signed into law the Uruguay
Round Agreements Act. Section 334 of that Act (codified at 19
U.S.C. 3592) provides new rules of origin for textiles and apparel
entered, or withdrawn from warehouse, for consumption, on and after
July 1, 1996. On September 5, 1995, Customs published Section
102.21, Customs Regulations, in the Federal Register, implementing
Section 334 (60 FR 46188). Thus, effective July 1, 1996, the
country of origin of a textile or apparel product shall be
determined by sequential application of the general rules set forth
in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states that "The country of origin of a
textile or apparel product is the single country, territory, or
insular possession in which the good was wholly obtained or
produced." As the subject merchandise is not wholly obtained or
produced in a single country, territory or insular possession,
paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states that "Where the country of origin of
a textile or apparel product cannot be determined under paragraph
(c)(1) of this section, the country of origin of the good is the
single country, territory, or insular possession in which each of
the foreign materials incorporated in that good underwent an
applicable change in tariff classification, and/or met any other
requirement, specified for the good in paragraph (e) of this
section:"
Paragraph (e) in pertinent part states that "The following
rules shall apply for purposes of determining the country of origin
of a textile or apparel product under paragraph (c)(2) of this
section":
HTSUS Tariff shift and/or other requirements
4202.32.40-4202.32.95 A change to subheading 4202.32.40
through
4202.32.95 from any other
heading, provided that the change is the
result of the good being wholly
assembled in a single country,
territory, or insular possession.
As the purse is assembled in a single country, that is, China, as
per the terms of the tariff shift requirement, country of origin is
conferred in China.
The country of origin of item 17688 is China. Based upon
international textile trade agreements products of China are
subject to quota and the requirement of a visa.
Goods classified within tariff number 4202.32.9550 fall within
textile category designation 670. Based upon international textile
trade agreements products of China are subject to quota and the
requirement of a visa.
The designated textile and apparel categories may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Part
categories are the result of international bilateral agreements
which are subject to frequent renegotiations and changes. To
obtain the most current information available, we suggest that you
check, close to the time of shipment, the Status Report on Current
Import Quotas (Restraint Levels), an internal issuance of the U.S.
Customs Service, which is available for inspection at your local
Customs office.
This ruling is being issued under the provisions of Part 177
of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above
should be provided with the entry documents filed at the time this
merchandise is imported. If you have any questions regarding the
ruling, contact National Import Specialist Kevin Gorman at 212-466-5893.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division