HQ 957875: Decision on Application for Further Review of Protest No.4909-95-100041; classification of a bifold wallet with outersurface of plastic sheeting; 4202.32.1000, HTSUSA; HRL's 957220(10/31/94); 957632 (3/24/95).

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 957875
                          March 25, 1996
CLA-2 RR:TC:TE 957875 SK

CATEGORY: Classification

TARIFF NO.: 4202.32.1000

Port Director
U.S. Customs Service
#1 La Puntilla Street
Room 203
San Juan, Puerto Rico 00901

RE: Decision on Application for Further Review of Protest No.
4909-95-100041; classification of a bifold wallet with outer
surface of plastic sheeting; 4202.32.1000, HTSUSA; HRL's 957220
(10/31/94); 957632 (3/24/95).

Dear Sir or Madam:

     This is a decision on application for further review of a
protest timely filed by  R.E. Delgado, Inc., on behalf of Bagoda,
Inc., against your decision regarding the classification of three
styles of women's bifold wallets.  The protest was filed on March
30, 1995.  At issue is a single entry made at the port of San
Juan on November 22, 1994, and liquidated on February 10, 1995. 
A sample of one of the three styles at issue was submitted to
this office for examination.

FACTS:

     The subject merchandise consists of three styles of women's
bifold wallets. This office received style number G41008 for
examination. Style G41008 measures approximately 5-1/2 inches by
3-3/4 inches by 1 inch in its closed condition.  It is
manufactured of a cellular plastics exterior with a scrim fabric
backing.  The article features two side gussets which expand to a
width of approximately 1-1/2 inches.  The interior features a
zippered change pocket, a slit pocket measuring 4 inches in
length, a billfold area, a removable group of heat-sealed clear
wings for credit cards, license or photos, a removable
identification card window and an additional flat pocket on both

                              - 2 -

the interior and exterior of the article.  

     The subject merchandise was liquidated under subheading
4202.22.1500, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), which provides for, in pertinent part,
"[H]andbags, whether or not with shoulder strap, including those
without handle: with outer surface of sheeting of plastic... ." 
At the time of liquidation (1995), duty was assessed at a rate of
20 percent ad valorem. 

     Protestant claims that the subject merchandise is properly
classifiable under subheading 4202.32.1000, HTSUSA, which
provides for, in pertinent part, "[A]rticles of a kind normally
carried in the pocket or in the handbag: with outer surface of
sheeting of plastic: of reinforced or laminated plastic,"
dutiable at a rate of 12.1 cents per kilogram plus 4.6 percent ad
valorem.  Protestant states that as the subject merchandise has
the appearance of a wallet, fits into a handbag and is too small
to be a clutch purse, classification is proper within this
subheading.  

     Three styles were identified as the subject of this protest:
G41008; G41003 ; and G41004.  As stated above, this office is
only in receipt of style G41008.  Without the ability to
physically examine styles G41003 and G41004, this office is
unable to conclusively grant or deny this protest with regard to
these two styles.  If, upon physical examination and presentation
of these items to Customs, styles G41003 and G41004 are deemed
substantially identical to style G41008 in both overall style and
dimension, the holding in this ruling shall apply to styles
G41003 and G41004.

ISSUE:

     What is the proper classification of the subject
merchandise?

LAW AND ANALYSIS:

     Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI's).  GRI 1 provides
that classification shall be determined according to the terms of
the headings and any relative section or chapter notes, taken in
order.  Merchandise that cannot be classified in accordance with
GRI 1 is to be classified in accordance with subsequent GRI's.




                              - 3 -

     Heading 4202, HTSUSA, provides for, inter alia, handbags and
wallets.  The determinative issue is whether style G41008 is
classifiable as a handbag under subheading 4202.22.1500, HTSUSA,
or as a wallet under subheading 4202.32.1000, HTSUSA.  

     In Headquarters Ruling Letter (HRL) 957220, dated October
31, 1994, this office set forth various lexicographic definitions
of "wallet" and "handbag."  The following definitions enable
Customs to better understand what is commonly contemplated by
these terms. 

                              WALLET

Essential Terms of Fashion: A Collection of Definitions,
Charlotte M. Calasibetta, Fairchild Publications, 1986: An item
used to carry paper money, credit cards, photographs and
sometimes with a change purse or space for a check book or pad.

The Fashion Dictionary, Mary Brooks Picken, Funk & Wagnalls,
1973: 1. flat purse or pocketbook, for carrying either paper
money or coins.

Webster's New Collegiate Dictionary, G. & C. Merriam Co., 1977:
1. a bag for carrying miscellaneous articles while traveling; 2a:
billfold b: a pocketbook with compartments for change,
photographs, cards, and keys.

Webster's New World Dictionary, Third College Edition, Simon &
Schuster, Inc., 1988: 1. [Archaic] a knapsack; 2. A flat
pocketbook, as of leather, with compartments for paper money,
cards, etc.; billfold.

                             HANDBAG              

Essential Terms of Fashion: A Collection of Definitions:
Accessory carried primarily by women and girls to hold such items
as money, credit cards, and cosmetics.

The Fashion Dictionary:  Soft or rigid bag carried in hand or on
arm.  Size, shape, handle, etc., depend on fashion.  Used by
women as container for money and pocket-sized accessories.

Webster's New Collegiate Dictionary: 1. traveling bag; 2. a
woman's bag held in the hand or hung from a shoulder strap and
used for carrying small personal articles and money.


                              - 4 -

Webster's New World Dictionary: A bag, usually of leather or
cloth, held in the hand or hung by a strap from the arm or
shoulder and used, by women, to carry money, keys and personal
effects.

     A review of the above-cited definitions of "handbag" reveals
that each lexicographic source describes a bag used by women
which is designed to carry money, credit cards, keys and small or
pocket-sized personal effects.  In HRL 957632, dated March 24,
1995, this office noted that "the determinative feature of a
handbag is its ability to hold several objects not associated
with a wallet."  In applying these standards to the subject
merchandise, it is eminently clear that while style G41008 is
designed to carry money, credit cards and perhaps a key or a
lipstick, its relatively small dimensions render it ill-suited
for use in carrying several objects not associated with a wallet. 
Style G41008 does not possess sufficient carrying capacity to
hold several small personal effects which are typically carried
in the handbag (i.e., hairbrush, cosmetics, keys on a chain).  

     Style G41008 squarely meets the various descriptions of a
wallet set forth supra.  It is designed to hold all the articles
typically carried in a wallet and the presence of the side
gussets, which expand to a width of approximately 1-1/2 inches,
do not provide sufficient carrying capacity so as to render this
article classifiable as a handbag.  

HOLDING:

     Style G41008 (and styles G41003 and G41004, if they are
substantially identical to G41008 in overall design and
dimension), are classifiable under subheading 4202.32.1000,
HTSUSA, which provides for, in pertinent part, "[A]rticles of a
kind normally carried in the pocket or in the handbag: with outer
surface of sheeting of plastic: of reinforced or laminated
plastic," dutiable at the 1994 rate of 12.1 cents per kilogram
plus 4.6 percent ad valorem.

     As the rate of duty under the classification indicated above
is lower than the rate under which the subject merchandise was
liquidated, you should grant the protest in full with regard to
style G41008 (and also with regard to styles G41003 and G41004 if
they are substantially identical to G41008 in overall design and
dimension). 

     A copy of this decision should be attached to the Form 19
and provided to the Protestant as part of the notice of action on
the protest.  In accordance with Section 


                              - 5 -

3A(11)(b) of Customs Directive 099 3550-065, dated August 4,
1993, Subject: Revised Protest Directive, this decision should be
mailed by your office to the 
Protestant no later than 60 days from the date of this letter. 
Any reliquidation of the entry in accordance with this decision
must be accomplished prior to the mailing of the decision.  

     Sixty days from the date of this decision, the Office of
Regulations and Rulings will take steps to make the decision
available to Customs personnel via the Customs Rulings Module in
ACS and to the public via the Diskette Subscription Service,
Freedom of Information Act and other public access channels.
     

                              Sincerely,



                              John Durant, Director
                              Tariff Classification Appeals
Division