HQ 959512

February 25, 1999

CLA-2 RR:CR:TE 959512 GGD

CATEGORY: Classification

TARIFF NO.: 4202.22.1500

Port Director

U.S. Customs Service

300 South Ferry Street

Terminal Island, California 90731

RE: Withdrawal of Application for Further Review; Protest No.

2704-96-101888 Denied; Protest Issues Treated as Internal

Advice Request Concerning Classification of Wallets or Small

Handbags

Dear Sir:

By letter dated November 17, 1998 (copy attached), an Application for
Further Review (AFR) of the protest referenced above was withdrawn. The
protest should therefore be denied. Despite the withdrawal of the AFR
and the denial of the protest, however, there remain substantial issues,
the discussion of which may benefit Customs field personnel and the
importing community. We therefore consider this letter to be a response
to an Internal Advice Request made pursuant to 19 CFR 177.11(a),
concerning the issues raised by the protestant.

FACTS:

The first of two samples at issue, identified by item PLDFN 9520, has an
outer layer composed of fabric-backed compact plastics and the plastic
surface faces outward. The item measures approximately four inches in
height in the closed position (eight inches when open) by 7-1/4 inches
in width by one inch in depth. The article is of a trifold, envelope
shape and it has a snap closure. Its interior features two transparent
flat slot pockets for identification or credit cards, a full-

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width flat pocket behind these, a permanently attached checkbook jacket
(with a flat slot pocket and four transparent envelopes for photos or
credit cards), two rows of three credit card slots, a full-width
gusseted pocket behind the slots, a zippered flat, full-width pocket
behind the gusseted pocket, and an additional flat, open, full-width
pocket. On the article's back exterior is an additional zippered
compartment which opens to reveal a double gusseted, full-width pocket
with a divider. The gussets allow this divided, zippered pocket to
expand and form an opening which measures approximately 5-1/4 inches
wide at the top. The gusseted pockets are capable of holding several
small three-dimensional objects at one time.

The second sample, identified by item R8153, has an outer layer composed
of cellular plastics backed by a simple knit fabric. The plastic surface
faces outward. The item measures approximately four inches in height in
the closed position (8-1/4 inches when open) by 5-3/4 inches in width by
1-1/4 inch in depth. The article is a bifold container, and it has a
zipper closure extending along three sides. The item's interior features
a transparent flat slot pocket for an identification card, two flat
pockets behind the card slot (one of which has an insert of four
transparent envelopes for photos or credit cards), two open credit card
slots, and a large flat pocket (which measures approximately 7-1/2
inches by 4-1/2 inches) behind all the other interior pockets. Attached
to the item's rear exterior is a flat loop by which the item may be
attached to and worn on a belt. On the article's front exterior is an
additional zippered compartment which opens to reveal a gusseted,
full-width pocket with a leather strap and key ring attached to the
interior. The gussets allow this zippered pocket to expand and form an
opening which measures approximately 3-3/4 inches wide at the top. The
gusseted pocket is capable of holding several small three-dimensional
objects at one time.

ISSUE:

Whether the goods are properly classified in subheading 4202.32, HTSUS,
as articles of a kind normally carried in the pocket or in the handbag;
or in subheading 4202.22, HTSUS, as handbags.

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General
Rules of Interpretation (GRI). GRI 1 provides that the classification of
goods shall be determined according to the

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terms of the headings of the tariff schedule and any relative Section or
Chapter Notes. In the event that the goods cannot be classified solely
on the basis of GRI 1, and if the headings and legal notes do not
otherwise require, the remaining GRI may then be applied. The
Explanatory Notes (EN) to the Harmonized Commodity Description and
Coding System, which represent the official interpretation of the tariff
at the international level, facilitate classification under the HTSUS by
offering guidance in understanding the scope of the headings and GRI.

Among other goods, heading 4202, HTSUS, provides for traveling bags,
handbags, wallets, and similar containers. Since both styles of
merchandise are similar to handbags and/or to wallets, they are covered
by the heading. Additional U.S. Note 2 to Chapter 42, HTSUS, states:

> For purposes of classifying articles under subheadings 4202.12,
> 4202.22, 4202.32, and 4202.92, articles of textile fabric impregnated,
> coated, covered or laminated with plastics (whether compact or
> cellular) shall be regarded as having an outer surface of textile
> material or of plastic sheeting, depending upon whether and the extent
> to which the textile constituent or the plastic constituent makes up
> the exterior surface of the article.

Subheading 4202.22 (as well as subheadings 4202.21 and 4202.29), HTSUS,
covers handbags, whether or not with shoulder strap, including those
without handles.

Subheading 4202.32 (as well as subheadings 4202.31 and 4202.39), HTSUS,
covers articles of a kind normally carried in the pocket or handbag. The
subheading EN to these three subheadings states:

> These subheadings cover articles of a kind normally carried in the
> pocket or in the handbag and include spectacle cases, note-cases
> (bill-folds), wallets, purses, key-cases, cigarette-cases,
> cigar-cases, pipe-cases and tobacco-pouches.

On June 21, 1995, this office published a General Notice in the Customs
Bulletin, Volume 29, Number 25, concerning goods identified as "Wallets
on a String." The attributes of both handbags and articles of a kind
normally carried in the pocket or

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in the handbag were discussed. With regard to *Articles of a Kind
Normally Carried in the Pocket or in the Handbag*, the notice stated in
pertinent part that:

> Such articles include wallets, which may be described as *flat* cases
> or containers fitted to hold credit/ identification cards, paper
> currency, coins and in some instances a checkbook holder. Articles
> meeting this description which also possess a detachable carrying
> strap have been classified as flatgoods.
>
> In order to be classifiable as a flatgood, the article must fit
> comfortably in a handbag or pocket. For example, rectangular or square
> cases measuring approximately 7-1/2 inches by 4-1/2 inches, or 4-3/4
> inches by 4-1/2 inches, in their closed position, have been classified
> as flatgoods.
>
> Combining the characteristics of two flatgoods does not transform a
> flatgood into a handbag. Thus, the addition of a spectacle case holder
> to what is otherwise nothing more than a flat case with a carrying
> strap has been classified as a flatgood.

With respect to *Handbags*, the notice stated that:

> A handbag functions as a carry-all container for various small
> personal effects:
>
> A container which is not *fitted* to hold articles such as
> credit/identification cards, paper currency, coins or a checkbook
> holder is classifiable as a handbag. Therefore, a clutch bag or an
> evening bag measuring, for example, 7-1/2 inches by 4-1/2 inches,
> shall be classified as a handbag.
>
> The determinative feature of a handbag is its ability to hold several
> objects not associated with a wallet. A bag which may accommodate
> articles such as a hairbrush, cosmetics, keys and other loose personal
> effects shall be classified as a handbag, even if it also incorporates
> the features of a flat case fitted to hold the items set forth above.
>
> The presence of gusseted and/or zippered compartments will be taken
> into consideration in a determination of whether a case has generic
> carrying capacity. The presence of a wrap-

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> around zipper may be an indication that the container is a carry-all
> if the zipper creates an inner space suitable for carrying
> three-dimensional objects.

It is asserted that the classification of the subject items should
conform to the classification of the flatgoods subject to Headquarters
Ruling Letters (HQ) 957630, issued March 24, 1995, and to HQ 953774,
issued August 2, 1993. We do not agree. Although the sample subject to
HQ 957630 featured a detachable shoulder strap and was said, at one
point, to be capable of holding "small objects such as keys," the
article's approximate measurements were only 3-1/2 inches by 4-3/4
inches by 1-1/2 inch, and, unlike both items PLDFN 9520 and R8153, the
presence of gusseted pockets, if any, was not noted. It was found that
the article did not possess sufficient capacity to hold the small
personal effects typically carried in a handbag (e.g., hairbrush, keys
on a chain, certain cosmetics) and did not have the character of a
carry-all container.

The two flatgoods classified in HQ 953774 were each said to measure
approximately 7-1/4 inches by 4 inches, and to possess a gusset which
expanded from a thickness of approximately 1 inch to 1-3/4 inch. We
noted that the articles featured compartments specially fitted to hold
such items as paper money, credit cards, photographs, change, and check
books, and that "they are relatively flat, as they cannot be expanded to
a width greater than 1 3/4 inches." It was ultimately found that the
compartments were not as large as those found in a typical handbag, and
that they could not accommodate items often placed in handbags such as a
hairbrush, certain cosmetics, or a set of keys.

With respect to the subject merchandise, we note that both items are
fitted to hold credit or i.d. cards, photos, paper currency, and that
they are at least capable of being carried

in a handbag. We also find that the articles are designed to hold
3-dimensional items not associated with the capacities of a wallet or
flatgood. Each of the items has at least one gusseted pocket, the
smallest of which (in the case of item R8153) expands to a width of
3-3/4 inches, providing a generic carrying capacity

for loose personal effects such as a small hairbrush, a set of keys,
cosmetics, etc. We thus conclude that items PLDFN 9520 and R8153 are
classified as handbags. For additional rulings consistent with this
decision, see HQ 960180, issued August 12, 1997, HQ 959185, issued
February 10, 1997, and HQ 958644, issued August 29, 1996.

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HOLDING:

The handbags identified by items PLDFN 9520 and R8153 are classified in
subheading 4202.22.1500, HTSUSA, the provision for handbags with outer
surface of sheeting of plastic. The general column one duty rate is 18.4
percent ad valorem.

No later than 60 days from the date of this letter, the Office of
Regulations and Rulings will make the decision available to Customs
personnel, and to the public on the Customs Home Page on the World Wide
Web at www.customs.ustreas.gov, by means of the Freedom of Information
Act, and by other methods of public distribution.

Sincerely,

John Durant, Director

Commercial Rulings Division