HQ 950463: Revocation of New York Ruling Letter (NYRL) 864243 (6/18/91); composite goods; key chain; article carried in pocket or handbag; 4202, HTSUSA

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 950463

                        October 24, 1991

CLA-2 CO:R:C:T 950463 SK

CATEGORY: Classification

TARIFF NO.: 4202.32.9530

Ms. Betsy N. Wolkens
Hayes Specialties Corporation
1761 East Genesee St.
Saginaw, Michigan 48601

RE: Revocation of New York Ruling Letter (NYRL) 864243 (6/18/91);
    composite goods; key chain; article carried in pocket or
    handbag; 4202, HTSUSA

Dear Ms. Wolkens:

     Customs has been asked to review New York Ruling Letter
(NYRL) 864243 which was issued to you June 18, 1991.
Upon review, this office has determined that the classification
issued in that ruling is incorrect and the proper classification
is set forth as follows.

FACTS:

     The article at issue consists of a print cotton and latex
coin purse measuring approximately 3 1/2" x 2" in the shape of a
shoe.  It is unlined and secured with a zipper closure with an
affixed metal split key ring holder.  It is designed to hold
change, extra keys, etc. ...  and is carried in the pocket or
purse.

     NYRL 864243 classified the subject merchandise under heading
7326, HTSUSA, which provides for other articles of iron or steel
wire.  NYRL's 857147, 858138 and 850168 classified similar
merchandise under heading 4202, HTSUSA, which provides for, inter
alia, articles of a kind normally carried in the pocket or
handbag.

ISSUE:

     Whether this article is properly classifiable under heading
4202, HTSUSA, which provides for, in relevant part, various
containers, or under heading 7326, HTSUSA, which provides for
other articles of iron or steel wire?


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LAW AND ANALYSIS:

     Classification of merchandise under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) is in accordance
with the General Rules of Interpretation (GRI's).  GRI 1 provides
that articles are classifiable according to the terms of the
headings and any relative section or chapter notes and, providing
the headings or notes do not otherwise require, according to the
remaining GRI's taken in order.

     The pertinent headings with regard to this article are
heading 7326, HTSUSA, which provides for other articles of iron
or steel wire and heading 4202, HTSUSA, which provides for items
normally carried in the pocket or purse.

     The article at issue is comprised of component parts that
are potentially classifiable under these two different headings
in the Nomenclature.  Accordingly, analysis is provided by GRI
3(b):

     " ... composite goods consisting of different materials
     that cannot be classified according to GRI 3(a) are to
     be classified as if they consisted of the material that
     imparts the item's essential character."

     The article at issue cannot be classified under GRI 3(a)
because both headings 4202 and 7326, HTSUSA, are equally specific
with regard to the subject merchandise.

     Explanatory Note VIII to GRI 3(b) sets forth that:

     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.

     Using this analysis, it is clear that the article's
essential character is imparted by the coin purse for several
reasons.  The coin purse provides most of the article's bulk and
value.  It is this component which enables one to store change,
extra keys, make-up and small miscellaneous items in a compact
space which is meant to fit easily into an individual's pocket
or handbag.  The split key ring only provides the means by which
keys hang together.  If this article were primarily intended






                              - 3 -


to be a key holder, the coin purse component would not
be attached, nor would it have been designed to specifically
accommodate additional items while fitting in a pocket or purse.
Moreover, it is the coin purse which is most commercially
marketable and provides the most compelling reason to purchase
this particular article.

     For the reasons set forth supra, it is the coin purse which
imparts the essential character to the article at issue and
therefore classification is proper under heading 4202, HTSUSA.

HOLDING:

     The merchandise at issue is classifiable under subheading
4202.32.9530, HTSUSA, which provides for, in relevant part,
articles of a kind normally carried in the pocket or handbag:
with outer surface of textile materials: other ... of cotton.
The rate of duty is 20 percent ad valorem and the textile
category is 369.

In order to ensure uniformity in Customs' classification of this
merchandise and eliminate uncertainty, pursuant to section
177.9(d)(1), Customs Regulations (19 CFR 177.9(d)(1)), NYRL
864243 is revoked to reflect the above classification effective
with the date of this letter.  If, after your review, you
disagree with the legal basis for our decision, we invite you to
submit any arguments you may have with respect to this matter.
Any submission you wish to make should be received within 30 days
of the date of this letter.

     This revocation is not retroactive.  However, NYRL 864243
will not be valid for importations of the subject merchandise
arriving in the United States after the date of this notice.
We recognize that pending transactions may be adversely affected
(i.e., merchandise previously ordered and arriving in the United
States subsequent to this revocation will be classified
accordingly).  If it can be shown that you relied on NYRL 864243
to your detriment, you may apply to this office for relief.
However, you should be aware that in some instances involving
import restraints, such relief may require separate approvals
from other government agencies.








                              - 4 -


     The designated textile and apparel category may be
subdivided into parts.  If so, visa and quota requirements
applicable to the subject merchandise may be affected.  Since
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 your client 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 updated
weekly and is available at your local Customs office.

     Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification), and the
restraint (quota/visa) categories, your client should contact its
local Customs office prior to importing the merchandise to
determine the current applicability of any import restraints or
requirements.

                            Sincerely,


                            John Durant, Director
                            Commercial Rulings Division