CLA-2-45:OT:RR:NC:1:130
Ms. Angie McDaniel
Oxford Industries, Inc.
555 S. Victory Drive
Lyons, GA 30436
RE: The classification of an interchangeable cork purse flap from China
Dear Ms. McDaniel:
In your letter, dated August 29, 2017, you requested a binding classification ruling on behalf of your division, Sugartown Worldwide, LLC, dba Lilly Pulitzer. The ruling was requested on an interchangeable cork purse flap. A sample was submitted for our review and will be returned to you, as requested.
The interchangeable purse flap is identified with the Ibiza Interchangeable crossbody bag (Style 28082). You indicate that the flap will be sold separately from associated handbags. The flap measures approximately 6.5” wide by 6.5” long, when laid flat. It is backed with polyurethane and faced with a natural cork sheet which has been printed with a multicolor pattern. The cork layer is backed with a metallic foil which appears through the natural splits in the cork. The flap has three metal snaps along one end, and a metal closure component on the other. The flap incorporates a 3/8”-wide strap.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading, and legal notes do not otherwise require, the remaining GRIs will be applied, in the order of their appearance. Because the backed cork sheet is a composite of multiple materials classifiable in separate headings, neither GRIs 1 nor 2 are applicable; classification under GRI 3 must therefore be considered. The interchangeable flap is constructed of multiple materials, i.e., cork, polyurethane, metal, ink, and foil, all of which are prima facie classifiable in different headings. The flap is therefore a composite good within the meaning of GRI 3(b). GRI 3(b) states, in pertinent part:
Mixtures, composite goods consisting of different materials or made up of different components and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
In accordance with the Explanatory Notes (ENs) for GRI 3(b), the essential character of an item may 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 outer surface of handbags and their components determines the essential character of the item. The cork layer imparts the consumer appeal of the flap; its natural color and texture are the key decorative surface component. The printing and metallic foil, though decorative, lend only secondary decorative aspects and don’t impart essential character. Therefore, we find that the cork imparts the essential character and controls the classification of the flap.
The applicable subheading for the interchangeable cork purse flap will be 4503.90.6000, HTSUS, which provides for Articles of natural cork: Other: Other. The rate of duty will be 14 percent 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 World Wide Web at https://hts.usitc.gov/current.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division