CLA-2-42:OT:RR:NC:N4:441
Mark S. Baxa FerniaCreek Global Supply Chain Consulting Group 2208 Missouri Blvd, Suite 102 Jefferson City, MO 65109
RE: The tariff classification of a novelty handbag from China
Dear Mr. Baxa:
In your letter received in this office on March 11, 2021, you requested a tariff classification ruling on behalf of your client, Spin Master Inc. You have submitted a sample, and we will be retaining it for future reference and training purposes.
The submitted sample is a child’s novelty handbag constructed with an outer surface of plastic sheeting. The interior has an encased mechanical device permanently affixed to the handbag, which takes up less than 50% of the interior storage capacity. The front exterior depicts a unicorn face. When the face is touched, the eyes move and bag emits sound. The handbag has one zippered closure at the top and a shoulder strap. The handbag is designed and sized to contain a child’s small personal effects. The bag measures approximately 6 inches (W) by 4.5 inches (H) by 2.5 inches (D).
The handbag and mechanical device form a composite good for tariff purposes. The essential character is imparted by the handbag, General Rules of Interpretation (GRI) 3(b), noted. Please see Headquarters Ruling Letter H026521, dated March 30, 2010.
In your request, you suggested the article is a toy for classification purposes. As this product has the utilitarian function of being able to carry small items, it is not classifiable in Heading 9503 as a toy in accordance with Legal Note 1(d) to Chapter 95 which excludes “Sports bags or other containers of heading 4202, 4303 or 4304.” Please see HQ H251422 dated November 29, 2019.
The applicable subheading for the novelty handbag will be 4202.22.1500, Harmonized Tariff HTSUS), which provides for handbags, whether or not with shoulder strap, including those without a handle, with outer surface of sheeting of plastic or of textile materials, with outer surface of sheeting of plastics. The general rate of duty will be 16 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading, 4202.22.1500 HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 4202.22.1500, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 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 Vikki Lazaro at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division