us-cbp-cross-rulings-hq-081375•HQ 081375: Tariff classification of women's handbags and a satchel manufactured in Korea
HQ 081375: Tariff classification of women's handbags and a satchel manufactured in Korea
us-cbp-cross-rulings-hq-081375HQ 081375: Tariff classification of women's handbags and a satchel manufactured in KoreaGuidance
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 081375
October 3, 1988
CLA-2 CO:R:C:G 081375 c
CATEGORY: Classification
TARIFF NO.: 4202.22.4500; 4202.22.1500
Stephen S. Weiser, Esq.
Siegel, Mandell & Davidson, P.C.
Counsellors at Law
One Whitehall Street
New York, New York 10004
RE: Tariff classification of women's handbags and a satchel
manufactured in Korea
Dear Mr. Weiser:
In a letter dated November 18, 1987, you inquired as to
the tariff classification under the proposed Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) of women's
handbags and a satchel.
FACTS:
The sample designated as style 40551 is a women's multi-
compartment handbag (with shoulder strap) measuring approxi-
mately 10-1/2 inches by 7 inches by 2 inches. The bag has a
polyvinyl chloride ("PVC") body with leather piping. A strip
of leather, approximately 1-1/8 inches wide and 9 inches long,
reinforces the edge of the bag's flap and covers the snap
closure thereon. An additional piece of leather, approximate-
ly 2 inches long and 3/4 inch wide has been vertically
attached to this strip to provide additional strength to the
snap closure. The bag's shoulder strap is made of leather and
is approximately 1/2 inch wide and, taking into account all
pieces, approximately 52 inches in length. The strap is
attached to the sides of the bag by means of metal rings which
are themselves connected to each side of the bag by leather
strips. These leather strips measure approximately 1/2 inch
wide and 5 inches long and have been sewn vertically onto each
end of the bag. Finally, the front of the bag contains an
oblong leather logo patch, approximately 1 inch wide and 1-1/2
inches long.
- 2 -
The sample designated as style 41981 is a women's handbag
(with shoulder strap) with a central compartment which
contains an inner zippered compartment. When fully expanded,
the bag measures approximately 10 inches by 11 inches by 5
inches. As with style 40551, the body of the article is
composed of PVC. Six strips of leather, each approximately
3/4 inch wide and 9-1/2 inches long, have been vertically
stitched onto the PVC so that they are fairly equally spaced
on all sides of the bag. The opening and bottom edges of the
bag have been finished with leather piping. The handbag also
contains a leather drawstring which is approximately 5/16 inch
wide and 31 inches in length (including the knotted ends).
The bag's shoulder strap is made of leather and is approxi-
mately 3/4 inch wide and, taking into account all pieces, 48
inches in length. Finally, the front of the bag contains a
circular leather logo patch, approximately 1-1/2 inches in
diameter.
The sample designated as style 47811, described as a
satchel, measures approximately 12 inches by 8 inches by 5
inches. The body of the satchel consists of cotton fabric.
The article contains double leather handles, each approxi-
mately 3/4 inch wide and 18 inches in length, which are
connected by metal rings to additional pieces of leather
(which are approximately 3/4 inch wide, 2 inches long, on
which additional narrower strips of leather have been applied
for reinforcement) sewn on the body of the satchel. A
substantial strip of leather piping, approximately 1/2 inch
wide and 30 inches in length, has been shaped around the
zipper closure. Substantial pieces of leather also reinforce
each corner of the bag near the base. Finally, the front of
the bag contains a circular leather logo patch, approximately
1-1/2 inches in diameter.
The sample designated as style No. 47841 is a women's
multi-compartment handbag (with shoulder strap), measuring
approximately 7 inches by 7 inches by 1-1/2 inches. The body
of the handbag consists of cotton fabric with leather piping.
The handbag's flap closes by means of a leather "belt-type"
closure. This closure, taking into account all of the leather
pieces, is approximately 3/4 inch wide and 6 inches long. The
end of the closure on the bag's flap encircles a circular
leather logo approximately 1-1/4 inches in diameter. The
bag's shoulder strap, which is leather and is approximately
1/2 inch wide and 60 inches in length, is fastened to metal
rings on each side of the bag which are themselves attached to
additional pieces of leather on each side of the bag.
Finally, the top flap of the bag, when pulled open, reveals
interior material completely composed of leather.
- 3 -
You claim that the "essential character" of the women's
handbags and the satchel is imparted by their leather
components and, therefore, each of the articles is properly
classifiable under subheading 4202.21.6000, HTSUSA, as
handbags, valued not over $20.00 each, with outer surface of
leather. The rate of duty for this provision is 10 percent ad
valorem.
ISSUE:
Whether the essential character of the outer surfaces of
the women's handbags and the satchel is imparted by their
leather components?
LAW AND ANALYSIS:
General Rule of Interpretation (GRI) 3 is applicable in
this situation. 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 or precise 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.
- 4 -
You have expressed concern that Customs will determine
"essential character" of the outer surface based solely on a
physical measurement of the surface area of the component
materials comprising the outer surface area. Thus, if a
textile material predominates in area over each other single
outer surface material, the article will be considered to have
an outer surface of textile materials for tariff purposes.
In Headquarters Ruling Letter (HRL) 081165 PR dated
October 27, 1987, this office took the position that with
respect to luggage and related products, a determination of
essential character can be based on a measurement of the
material of the outer surface. Specifically, an item of
luggage or a related product would be considered as having an
outer surface of textile materials if the textile material
predominates in area over each other single outer surface
material.
It is now our position that a determination of essential
character of the outer surface of luggage and related products
cannot be based solely on the material contained therein which
predominates by area over any other single material. Such a
result would be contrary to the Explanatory Notes for GRI
3(b), supra, which set forth additional criteria for
determining "essential character." Consequently, HRL 081165
PR dated October 27, 1987, has been modified by HRL 081374
dated August 8, 1988, to reflect this view.
In support of your 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 purpose 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 women's handbags and satchel for the
following reasons:
- 5 -
(1) leather is integral to the construction
and design of the articles as it is used
on all critical parts where flexibility
and durability are essential;
(2) the leather on the straps and handles of these
articles not only complements the appearance
of the bodies of the articles but is necessary
to ensure the straps' and handles' durability;
(3) the necessity of strong and durable straps and
handles is underscored by the fact that
consumers will not purchase handbags such as
those at issue without straps or handles, as
the bags would then be too susceptible to loss
or theft;
(4) leather shapes the bags more effectively than
PVC or fabric;
(5) leather is vital to the effective use of the
bags, i.e., their ability to securely and
effectively carry items throughout the day;
(6) leather is invaluable from a marketability
standpoint. Consumers perceive a distinct
difference between all-textile or all-PVC
handbags and similar articles with leather
trimming and/or leather handles or straps,
unquestionably preferring the appearance of
articles with leather to those without;
(7) consumers who purchase handbags such as
those at issue demand leather;
(8) for marketing purposes, labels stating
"Genuine Leather Trim" are sewn into the
interior of each of the handbags. If such
labels were not sewn into the bags, some
consumers would not purchase the bags because
they would not be certain the leather is
genuine;
(9) the fact that the leather makes the bags far
more appealing to consumers and significantly
contributes to the effective functioning of
the bags illustrates that leather imparts the
essential character of the outer surface;
- 6 -
(10) the fact that leather is in chief value,
although no longer dispositive for
classification purposes under the Harmonized
System, militates toward a finding that
leather rather than cotton imparts the
essential character of the outer surfaces of
the articles; and
(11) the value of the leather, in and of itself,
attracts consumers to these particular
articles rather than ones with far less (or
no) leather.
Although a determination of essential character of the
outer surface of handbags 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 exterior
surface is "leather" or "textile" or "plastics" for this type
of merchandise. Specifically, when viewing the handbags, the
materials of the outer surface produce a visual impact which
in many instances leaves little or no doubt as to what
material gives the outer surfaces their essential character.
We note that the use of the leather in the handbags and
satchel is confined to use as a trim, as handles or straps for
carrying and as closures for styles 47841 and 40551. When one
views the samples designated as styles 47811 and 47841, the
impression given by the exterior surfaces, which are pre-
dominantly textile, is that of textile articles. When one
views the samples designated as styles 40551 and 41981, the
impression given by the exterior surfaces, which are pre-
dominantly plastic, is that of plastic articles.
Although the leather portions might distinguish the
handbags and satchel from other handbags and satchels without
leather, it is not enough to conclude that leather gives the
surfaces their essential character. For example, the claim
that an article is "trimmed with leather" does not indicate
that leather constitutes the "essential character" a customer
is seeking. To do so would negate the usual method of
advertising such as "linen trimmed with leather" or "canvas
trimmed with leather" or "jute trimmed with leather."
- 7 -
In this instance the use of leather on the handbags and
satchel is confined to use as trim, as handles or straps for
carrying, and as closures for styles 40551 and 47841. When
one views the samples, the impression given by the exterior
surfaces of styles 47841 and 47811 is that of textile articles
while the impression given by the exterior surfaces of styles
40551 and 41981 is that of plastic articles. The presence of
the leather for the purposes stated above is subsidiary to the
presence of the textile materials which constitutes the major
portion of styles 47811 and 47841 and also to the presence of
plastic material which constitutes the major portion of styles
40551 and 41981. Thus, the textile material or the plastic
material as the case may be supplies the distinctive feature
of the bags and is that by which the articles are what they
fundamentally are.
The Explanatory Notes to GRI 3(b) state that value may be
a factor in determining essential character. Here it is
claimed that the value of the leather is greater than the
other exterior materials and is the element that attracts the
buyers. Value, in either situation as proposed by you, has
little or no impact in this case on determining essential
character.
You suggest that confirmation of your view that the
articles are classifiable as handbags with outer surface of
leather under the HTSUSA would be in accord with the
President's intent that the change to the Harmonized System be
duty neutral.
This particular argument is irrelevant in this instance.
The President's guidelines for the conversion from the Tariff
Schedules of the United States (TSUS) to the Harmonized System
do not mandate that every article be subjected to the same
rate of duty under the Harmonized System as it was under the
TSUS.
HOLDING:
Although leather provides esthetic and functional
qualities to these products, the essential character of the
outer surfaces is supplied by the textile material or plastic
material as the case may be.
The satchel, style 47811, and the women's multi-
compartment handbag style 47841 are classifiable under
subheading 4202.22.4500, HTSUSA, as handbags, whether or not
with shoulder strap, including those without handle, with
- 8 -
outer surface of textile materials, other, of vegetable fibers
and not of pile or tufted construction, of cotton. The rate
of duty for this provision is 7.2 percent ad valorem. The
applicable textile category number is 369.
The women's multi-compartment handbag, style 40551, and
the women's handbag, style 41981, are classifiable under
subheading 4202.22.1500, HTSUSA, as handbags, whether or not
with shoulder strap, including those without handle, with
outer surface of plastic sheeting. The rate of duty for this
provision is 20 percent ad valorem.
This classification represents the current position of
the Customs Service regarding the dutiable status of the
merchandise under the HTSUSA which becomes effective on
January 1, 1989. If there are changes before that date, this
advice may not continue to be applicable.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc: A.D., NY Seaport
1cc: Legal Reference
1cc: Commerce
1cc: John Durant
1cc: Kevin Gorman, NY Seaport
CO:R:C:G:DCAHILL:lw:typed:8/15/88:redraft:8/17/88
final:8/18/88:9/12/88
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