us-cbp-cross-rulings-hq-081224•HQ 081224: Tariff classification of ladies' portfolios manufactured in Korea.
HQ 081224: Tariff classification of ladies' portfolios manufactured in Korea.
us-cbp-cross-rulings-hq-081224HQ 081224: Tariff classification of ladies' portfolios manufactured in Korea.Guidance
Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.
HQ 081224
September 26, 1989
CLA-2 CO:R:C:G 081224 DFC
CATEGORY: Classification
TARIFF NO.: 4202.12.0030; 4202.12.8030
Norman C. Schwartz, Esq.
Siegel, Mandell & Davidson, P.C.
Counsellors at Law
One Whitehall Street
New York, New York 10004
RE: Tariff classification of ladies' portfolios manufactured
in Korea.
Dear Mr. Schwartz:
In a letter dated October 22, 1987, you inquired as to the
tariff classification under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA), of ladies' portfolios.
Samples were submitted for examination.
FACTS:
The sample designated as style EG-155 is a leather and
textile portfolio measuring 16-1/4" x 11-1/8". It has leather
handles, 4 pockets, and a leather carry strap. Only one side
has textile embellishment or ornamentation providing a
"brocade" effect.
The sample designated as style "Viaggio" 145 is similar to
style EG-155 except that the textile material appears on both
sides.
ISSUE:
Is the essential character of the outer surfaces of the
portfolios imparted by their leather components?
- 2 -
LAW AND ANALYSIS:
In applying the HTSUSA, the Customs Service must follow
the terms of the statute. Classification of goods under the
HTSUSA is governed by the General Rules of Interpretation
(GRIs). GRI 1 provides that "classification shall be
determined according to the terms of the headings and any
relative section or chapter notes, and, provided such headings
or notes do not otherwise require, according to [the remaining
GRIs, taken in order]." In other words classification is
governed first by the terms of the headings of the tariff and
any relative section or chapter notes.
In this instance General Rule of Interpretation 3 is
applicable. Its relevant portions provide as follows:
(a) The heading which provides the most
specific description shall be
preferred to headings providing a more
general description. However, when two
or more headings each refer to part only
of the materials or substances contained
in mixed or composite goods or to part only
of the items in a set put up for retail
sale, those headings are to be regarded as
equally specific in relation to those goods,
even if one of them gives a more complete
description of the goods.
(b) 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.
The Explanatory Notes for GRI 3(b) state in pertinent part
as follows:
(VIII) 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.
- 3 -
Inasmuch as the outer surface of both sample portfolios
consists of both textile and plastics the competing provisions
are subheading 4202.11.0030, HTSUSA, as attache cases, brief
cases and similar containers with outer surface of leather or
subheading 4202.12.8030, HTSUSA, as attache cases, brief cases
and similar containers with outer surface of textile materials,
of man-made fibers. Since the outer surface of the portfolios
consists of different materials classification must be based on
the material that imparts the essential character to the
merchandise.
You claim that leather imparts the essential character to
the portfolios. In support of this position you cite the case
of Canadian Vinyl Industries, Inc. v. United States, 76 Cust.
Ct. 1, C.D. 4626 (1976), wherein the court found that certain
polyurethane skin with a nylon fabric backing was classifiable
as flexible sheets "almost wholly of plastics" made in
imitation of patent leather in item 771.40, Tariff Schedules of
the United States. For tariff purposes the phrase "almost
wholly of" means that the essential character of the article is
imparted by the named material. In finding that the
polyurethane skin supplied the essential character of the
article, the court concluded that the essential character of
this article is the distinctive visual and tactile quality of
the polyurethane "skin." These qualities gave the article its
own special nature. The court further elaborated saying that
"the polyurethane skin of this importation, in addition to
supplying the essential visual and tactile characteristics,
also contributes attributes of strength and flexibility in
conjunction with the nylon backing."
Following the court's reasoning in the above-cited case
you assert that leather imparts the essential character of the
outer surfaces of the portfolios. You point out that in both
styles, the leather contributes the essential look and feel of
the articles. The textile portions do no more than embellish
or "dress up" the portfolios. Style EG-155 is markedly of
leather as its essential character in that only one of its
sides contains the fabric decoration. Also, while style 145
has both sides embellished with textile material, the label
emphasizes the leather aspects of the item.
Further, you claim that cost considerations support the
conclusion that leather imparts the essential character to the
portfolios noting that the exhibits submitted show that leather
costs clearly predominate. Moreover, a comparison of the
relative quantities of the leather and textile present will
show that leather imparts the essential character.
- 4 -
Specifically, in regard to style 145, the total leather stated
to be therein amounts to 502 square inches whereas the fabric
portion comprises only 240.25 square inches. In the case of
style EG-155, the textile portions are said to amount to only
120.125 inches as compared to a total leather area of 617.5
inches.
The Explanatory Notes for GRI 3(b), HTSUSA, state:
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 . . . its bulk, quantity,
weight or value, or by the role of a constituent
material in relation to the use of the goods.
Although a determination of essential character of the
outer surface of the portfolios cannot be based solely on a
physical measurement of the component materials of the outer
surface area, it is our observation that such a measurement is
of paramount importance in determining whether the outer
surface is leather or textile. Specifically, when one views
style EG-155, the impression given by the outer surface area
which is predominantly leather, is that of a leather article.
With respect to style 145, you indicate that leather
predominates over textile fabric in total square inches of
outer surface covered. It is to be noted that we do not
include straps and handles as constituting part of the outer
surface area of the portfolios. It is our position that only
the outer surface of the main body of style 145 should be
measured in arriving at a decision as to what material
predominates in outer surface area. In this instance, we are
not certain as to what material predominates in surface area
covered although based on your measurements (excluding handles
and straps) leather may still predominate
It is our view with respect to style 145 that the tapestry
portions impart the essential character to the article.
Although the leather portions impart visual and textile
characteristics, it is our observation that the tapestry
portions do likewise. The leather does impart strength;
however, it is not distinctive to a portfolio in that similar
bags can be functional and strong with imitation leather or 100
percent textile bodies. While a customer may be more attracted
to genuine rather than imitation leather the feature which
distinguishes style 145 from others is the tapestry panels.
Further, greater weight must be accorded to the visual and
- 5 -
tactile characteristics of the fabric in conjunction with the
fact that the fabric is intended to make the article distinct
and provides a selling point. With style 145, it is the
tapestry that is intended to attract the customers. Otherwise,
the customer could purchase any other similar quality leather
bag which would have the same attributes of the leather
contained herein.
We do not agree with your conclusion that material cost
considerations support the position that the styles possess the
essential character of leather. While costs in some
circumstances may be a factor in determining essential
character, they have little or no impact in this instance on
determining essential character.
HOLDING:
It is our position that leather imparts the essential
character to style EG-155. Consequently, it is classifiable
under subheading 4202.12.0030, HTSUSA, as trunks, suitcases,
vanity cases, attache cases, briefcases, school satchels, and
similar containers, with outer surface of leather and dutiable
at the rate of 8 percent ad valorem.
It is our position with respect to style 145 that textile
material imparts its essential character. Consequently, style
145 is classifiable under subheading 4202.12.8030, HTSUSA, as
attache cases, brief cases, school satchels and similar
containers, with outer surface of textile materials, other, of
man-made fibers with duty at the rate of 20 percent ad valorem.
The applicable textile category is 670.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc: AD NY Seaport
1cc: Department of Commerce
1cc: Kevin Gorman, NY Seaport
1cc: John Durant
1cc: CITA
DFCahill:jaj:1/30/89 gc/3/6/89 rt3/8/89
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