us-cbp-cross-rulings-hq-081374•HQ 081374: Tariff classification of a women's tote bag and a knapsack manufactured in Korea
HQ 081374: Tariff classification of a women's tote bag and a knapsack manufactured in Korea
us-cbp-cross-rulings-hq-081374HQ 081374: Tariff classification of a women's tote bag and a knapsack 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 081374
August 8, 1988
CLA-2 CO:R:C:G 081374 c
CATEGORY: Classification
TARIFF NO.: 4202.92.1500
Stephen S. Weiser, Esq.
Siegel, Mandell & Davidson, P.C.
Counsellors at Law
One Whitehall Street
New York, New York 10004
RE: Tariff classification of a women's tote bag and a
knapsack 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 a women's
tote bag and a knapsack. Samples were submitted for
examination.
FACTS:
The sample designated as style 44571 is a women's tote
bag which measures approximately 17 inches by 12 inches by 4
inches. It has a cotton body with a strip of leather running
across the full length of the front of the article near the
handle. This leather strip, which is approximately 17 inches
in length, is tapered and measures approximately 1-1/2 inches
in width at its narrowest (the ends) and approximately 3-1/2
inches in width at its widest (the center). This bag also
possesses double leather handles each of which is
approximately 1/2 inch wide and 32 inches in length (the
leather measurement takes into account the pieces of leather
connected to the handles which anchor the handles to the body
of the bag).
The sample designated as style 47851 is a knapsack which
has a cotton fabric body. The opening of the knapsack is
surrounded by leather piping and may be tightened by means of
a leather drawstring which measures approximately 40 inches in
length and 7/16 inch in width. The opening of the knapsack is
covered by a cotton flap with leather piping. The flap may be
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secured to the body of the knapsack by means of a leather
"belt-type" closure. This closure measures approximately 5-
1/4 inches in length and 1 inch in width (extending to over 2
inches in width at its widest point on the flap, where a logo
has been imprinted). Two outer pockets, which may also be
closed by means of flaps, have been attached to the bottom
portion of the front of the knapsack. The edges of the
pockets and flaps have been reinforced by leather piping. A
leather tab, approximately 3-1/2 inches long and 3/4 inch wide
(widening to approximately 1-1/2 inches in width on the
pocket's flap), appears on each of the flaps. This leather
tab snaps onto a piece of leather (measuring approximately 3
inches by 1-1/4 inches) on the front of the pockets to secure
the flaps in simulation of a "belt-type closure. The two
shoulder straps on the rear of the knapsack are leather and
are each approximately 1 inch wide and 32 inches in length
(each strap actually consists of two pieces of leather held
together by a metal buckle). The straps are connected to
additional pieces of leather (measuring approximately 2 inches
by 1-1/2 inches) sewn into the bottom of the knapsack. The
tops of the knapsack's straps are looped around a strip of
leather (approximately 3/4 inch wide and 17 inches in length)
which is attached to the rear of the knapsack in the shape of
an upside down "U."
You claim that the "essential character" of the outer
surfaces of the tote bag and knapsack is imparted by the
leather components and, therefore, each of the items is
properly classifiable under subheading 4202.91.0030, HTSUSA,
as travel, sports and similar bags, with outer surface of
leather, of composition leather, or of patent leather. The
rate of duty for this provision is 6.8 percent ad valorem.
ISSUE:
Whether the essential character of the outer surfaces of
the tote bag and knapsack is imparted by their leather
components.
LAW AND ANALYSIS:
General Rule of Interpretation (GRI) 3(b), HTSUSA,
provides as follows:
(b) Mixtures, composite goods consisting
of different materials or made up of
different components and goods put
up in sets for retail sale, which
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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 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.
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 sets forth additional
criteria for determining "essential character." Consequently,
HRL 081165 PR dated October 27, 1987, is modified to reflect
this view.
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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 material is the
distinctive visual and tactile quality of the polyurethane
"skin." 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 knapsack and tote bags for the following
reasons:
(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 shoulder straps on the knapsack
through their positioning on the back
of the article may be said to be the
distinguishing feature of the article;
(3) the importance of the handles on the
tote bag is underscored by the fact
that consumers will not purchase such
an article without handles, as the tote
bag then would be too susceptible to
loss or theft;
(4) leather shapes both articles more
effectively than cotton fabric alone,
(5) leather is vital to the effective use
of the bags, i.e., their ability to
carry and store items during travel;
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(6) leather is invaluable from a
marketability standpoint. Consumers
perceive a distinct difference between
all cotton articles and similar articles
with leather trimming and/or leather
straps or handles, unquestionably pre-
ferring the appearance of article
with leather to those without;
(7) 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
(8) 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 luggage and related products 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 the
"essential character" of this type of merchandise.
Specifically, when viewing luggage and related products, the
materials of the outer surfaces 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 leather in the knapsack and tote
bag is confined to use as a trim, as handles or straps for
carrying and as closures for the main compartment and pockets
of the knapsack. When one views the samples the impression
given by the exterior surfaces, which are predominantly
textile, is that of textile articles.
Although the leather portions might distinguish the
knapsack and tote bag from other knapsacks and tote bags
without leather, it is not enough to conclude that leather
gives the surfaces of the articles 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
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"linen trimmed with leather" or "canvas trimmed with leather"
or "jute trimmed with leather." The one common denominator
when a customer purchases a bag having both fabric and leather
is that the customer desires the fabric look. It is our
experience that when tapestry is combined with leather, the
tapestry is the feature sought after.
In this instance the use of leather on the knapsack and
tote bag is confined to use as trim, as handles or straps for
carrying, and as closures for the main compartment and pockets
of the knapsack. When one views the samples, the impression
given by the exterior surfaces is that of a textile article.
The presence of the leather for the purposes stated above is
subsidiary to the presence of the textile material which
constitutes the major portion of the tote bag and knapsack.
Thus, the textile material here supplies the distinctive
feature of the bags and is that by which the bags 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, in and of itself,
attracts customers to these particular articles rather than
ones with far less or no leather. It is our view that the
value of the leather here has little or no impact on
determining "essential character." The customer is not
necessarily attracted to the leather components of the
articles alone, but rather to the combination of leather and
textile.
You suggest that confirmation of your view that the
articles are classifiable as bags with outer surface of
leather under the HTSUSA would be in accord with the
President's intent that 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 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 tariff
schedules.
HOLDING:
Although leather provides esthetic and functional
qualities to these products, the "essential character" of the
outer surfaces is supplied by the textile material.
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The knapsack and tote bag are classifiable under
subheading 4202.92.1500, HTSUSA, as travel, sports and similar
bags with outer surface of textile materials of vegetable
fibers and not of pile or tufted construction: of cotton with
duty at the rate of 7.2 percent ad valorem. The applicable
textile category is 369.
This classification represents the current position of
the Customs Service regarding the dutiable status of the
merchandise under the proposed HTSUSA. If there are changes
before enactment, this advice may not continue to be
applicable.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc: A.D., NY Seaport
1cc Commercial Compliance
2cc: Chief, CIE Branch
1cc: John Durant
1cc: Kevin Gorman, NY Seaport
1cc: Commerce
CO:R:C:G:DCAHILL:lw 8/2/88
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