HQ 958644

August 29, 1996

CLA-2 RR:TC:TE 958644 GGD

CATEGORY: Classification

TARIFF NO.: 4202.22.1500; 4202.32.1000

Port Director

U.S. Customs Service

Second and Chestnut Streets, Room 102

Philadelphia, Pennsylvania 19106-2999

RE: Decision on Application for Further Review of Protest No.

1101-95-100534, filed August 2, 1995, concerning the

classification of wallets or small handbags

Dear Sir:

This is a decision on a protest timely filed on August 2,

1995, against your decision in the classification and liquidation

of wallets or small handbags, entered in January 1995.

FACTS:

You classified the merchandise under subheading

4202.22.1500, HTSUSA, the provision for \"Handbags, whether or not

with shoulder strap, including those without handle: With outer

surface of sheeting of plastic or of textile materials: With

outer surface of sheeting of plastic,\" with an applicable duty

rate (in 1995) of 19.6 (now 19.2) percent ad valorem.

The protestant claims that the goods should be classified in

subheading 4202.32.1000, HTSUSA, the provision for \"Articles of a

kind normally carried in the pocket or in the handbag: With outer

surface of sheeting of plastic or of textile materials: With

outer surface of sheeting of plastic: Of reinforced or laminated

plastics,\" with an applicable duty rate of 12.1 cents per

kilogram plus 4.6 percent ad valorem.

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The subject goods are identified on invoice documents by two

style numbers - 038-944335 and 038-951780 - each described as a

\"vinyl wallet non-stuffed.\" Sketches submitted with the protest

indicate the dimensions and features of each of the items.

Sketches of style no. 038-944335 indicate that the article

measures approximately 8-1/2 inches in height in the closed

position (perhaps 16 inches when open, excluding flap) by 5-1/2

inches in width by 2 inches in depth (although the invoice

indicates a depth of only 1 inch). There is a detachable

carrying strap measuring approximately 25 inches in length. The

item features at least 2 billfold sections for paper currency,

several slots for credit cards, a pen holder, and 2 windows for

identification cards, or for one card and a mirror. An eye glass

case forms the rear exterior of the folded article.

Sketches of style no. 038-951780 indicate that the item

measures approximately 7-1/2 inches in length by 4 inches in

width (with flap closed). The invoice indicates that the

unexpanded article measures approximately 1/2 inch in depth.

There is a detachable carrying strap measuring approximately 25

inches in length. The item features approximately 5 flat utility

sections (one of which is zippered) and 2 large gusseted pockets,

all of which extend the length of the article. The inside of the

main closure flap contains a window for an identification card.

An eye glass case forms the rear exterior of the article.

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

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

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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

the merchandise is similar to a wallet and/or a handbag, it is

covered by the heading.

Subheading 4202.22, as well as subheadings 4202.21 and

4202.29, HTSUS, cover handbags, whether or not with shoulder

strap, including those without handle.

Subheading 4202.32, as well as subheadings 4202.31 and

4202.39, HTSUS, cover articles of a kind normally carried in the

pocket or handbag. The subheading EN to these three subheadings

states that:

\[t\]hese 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

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.

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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-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.

Turning our attention to the protested merchandise, we note

that both styles of articles are fitted to hold items such as

credit/identification cards, paper currency, etc. Both articles

also are at least capable of being carried in a handbag. We find

that if style no. 038-944335 were filled with the essentially two

dimensional objects it is designed to carry, it would be likely

to fit comfortably in a pocket of handbag. On the other hand,

style no. 038-951780 is designed to additionally hold three

dimensional items not associated with flatgood capabilities. Its

gusseted pockets are expandable and provide a generic carrying

capacity for loose personal effects such as a hairbrush, keys,

cosmetics, etc. We therefore conclude that style no. 038-951780

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is classifiable as a handbag, and that style no. 038-944335 is

classifiable as an article of a kind normally carried in the

pocket or in the handbag.

HOLDING:

The handbag identified by style no. 038-951780 is classified

in subheading 4202.22.1500, HTSUSA, the provision for \"Handbags,

whether or not with shoulder strap, including those without

handle: With outer surface of sheeting of plastic or of textile

materials: With outer surface of sheeting of plastic.\" The

applicable duty rate (in 1995) is 19.6 percent ad valorem.

The flatgood identified by style no. 038-944335 is

classified in subheading 4202.32.1000, HTSUSA, the provision for

\"Articles of a kind normally carried in the pocket or in the

handbag: With outer surface of sheeting of plastic or of textile

materials: With outer surface of sheeting of plastic: Of

reinforced or laminated plastics.\" The applicable duty rate is

12.1 cents per kilogram plus 4.6 percent ad valorem.

Except to the extent that reclassification of the

merchandise as indicated above results in a net duty reduction

and partial allowance, you are instructed to deny the protest. A

copy of this decision should be attached to the Form 19 to be

returned to the protestant.

In accordance with Section 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 the decision

must be accomplished prior to mailing of the decision. Sixty

days from the date of the 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, the Freedom of

Information Act, and other public access channels.

Sincerely,

John Durant, Director

Tariff Classification

Appeals Division