HQ 084960: Tariff classification of leather attache cases

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 084960

                                 September 28, 1989

          CLA-2 CO:R:C:G  084960 DC

          CATEGORY: Classification

          TARIFF NO.: 4202.12.2030

          Ms. Rosalyn Alberdi
          A.J. Arango, Inc.
          P.O. Box 3007
          Tampa, Florida 33601

          RE: Tariff classification of leather attache cases

          Dear Ms. Alberdi:

               Your letter dated June 2, 1989, addressed to our New York
          office concerning the tariff classification of leather attache
          cases made in Taiwan, has been referred to this office for a
          direct reply to you.  Samples were submitted for examination.

          FACTS:

               The attache case designated as style M142 is fitted on the
          inside with various stationery items such as a ruler, stapler,
          staples, pen, pencil and eraser, etc.  The case designated as
          style 71D175 is empty.  You have informed us that the outer
          surfaces of the attache cases are not coated.  We have been
          informed by our chemists that the leather surfaces on these
          attache cases are covered with a polyurethane plastic coating
          that is 0.333 mm thick.

          ISSUE:

               What material constitutes the outer surfaces of the attache
          cases?

               Does the attache case fitted with various stationery items
          constitute a set for tariff purposes?

          LAW AND ANALYSIS:

               In applying the Harmonized Tariff Schedule of the United
          States Annotated (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 (GRI's).  















                                         -2-


          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 GRI's 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 Headquarters Ruling Letter (HRL) 082803 dated
          December 26, 1988, the term "outer surface" was defined as that
          surface which is both visible and tactile.  However, since that
          ruling concerned plastic coated textiles, it is not controlling
          here.

               As stated in HRL 081839 dated July 6, 1988, "[t]he
          definition of patent leather sets guidelines as to whether coated
          leather is plastic or leather."  Acknowledging the fact that the
          ruling involved a determination as to the "exterior surface" of a
          plastic coated leather upper under Chapter 64, it is nonetheless,
          our position that the same test should be applied to plastic
          coated leather attache cases.

               The Explanatory Notes constitute the official interpretation
          of the HTSUSA at the international level.  Explanatory Note 41.09
          (1) defines patent leather as "leather coated or covered with a
          varnish or lacquer or with a pre-formed sheet of plastics and
          which has a lustrous mirror-like surface."  Under this
          definition, patent leather is considered to be of leather if the
          plastic coating does not exceed 0.15mm [6/100 inch] thick, and as
          plastic if over that thickness.

               In this instance the plastic coating exceeds 0.15 mm in
          thickness.  Thus, the outer surfaces of the sample attache cases
          are considered plastic for tariff purposes.

               GRI 3, HTSUSA, governs the classification of sets.  Its
          relevant portions provide as follows:

               3.   When by application of rule 2(b) or for any other
                    reason, goods are, prima facie, classifiable under two
                    or more headings, classification shall be effected 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 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 gives a more complete or precise
                           description of the goods.











                                         -3-


                    (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 Note to GRI 3 (b), provides 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.

                  (X)      For the purposes of this Rule, the term "goods
                           put up in sets for retail sale" shall be taken
                           to mean goods which:

                           (a)  consist of at least two different articles
                                which are, prima facie, classifiable in
                                different headings.  Therefore, for
                                example, six fondue forks cannot be
                                regarded as a set within the meaning of
                                this Rule:

                           (b)  consist of products or articles put up
                                together to meet a particular need or carry
                                out a specific activity; and

                           (c)  are put up in a manner suitable for sale
                                directly to users without repacking (e.g.,
                                in boxes or cases or on boards).

               The attache case M142 and the fitted stationery articles are
          prima facie, classifiable in different headings.

               The attache case with the fitted stationery items have been
          put together to meet a particular need.  Specifically, stationery
          items are quite often needed at business meetings or while
          traveling and the case provides a convenient holder for them.

               The various stationery articles fitted to the inside cover
          of the case are put up in a manner suitable for retail sale
          directly to users without repacking.











                                         -4-


               In view of the foregoing, it is our view that the attache
          case with the fitted stationery items constitutes a set for
          tariff purposes. However, in order to classify this merchandise
          we must determine that which imparts the essential character to
          the merchandise.  The attache case is the container for the
          various stationery items.  It is apparent that the cost of the
          attache case far exceeds the cost of the stationery items.  That
          fact in itself is not indicative of essential character.
          However, it is our position that the attache case imparts the
          essential character to the combination due to its role in the use
          of the stationery items.  It greatly facilitates the use of the
          stationery items in particular situations and also provides a
          convenient storage for these items when they are not needed.
          The attache case is also the component of the set which has more
          consumer appeal than the stationery items contained therein.

          HOLDING:

               The attache cases are classifiable under subheading
          4202.12.2030, HTSUSA, as attache cases with outer surface of
          plastics and dutiable at the rate 20 percent ad valorem.

                                         Sincerely,




                                         John Durant, Director
                                         Commercial Rulings Division
































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