HQ 958174

January 31, 1996

CLA-2 RR:TC:TE 958174 GGD

CATEGORY: Classification

TARIFF NO.: 4202.22.1500

Mr. Michael O\'Neill

O\'Neill & Whitaker, Inc

1809 Baltimore Avenue

Kansas City, Missouri 64108

RE: Reconsideration of New York Ruling Letter (NYRL) 807588;

\"PEANUTS Candy Pouch;\" Heart-Shaped PVC Shoulder Bag; Not

Other Toy; Not Article for Conveyance or Packing of Goods

Dear Mr. O\'Neill:

This letter is in response to your request of July 7, 1995, on behalf of
your client, Russell Stover Candies (Whitman\'s Division), for
reconsideration of NYRL 807588, issued March 14, 1995, pertaining to the
classification under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA) of a heart-shaped container imported from China. A
sample was submitted with your request.

FACTS:

In NYRL 807588, the article was 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,\" with an applicable duty rate (in 1995) of 19.6 (now 19.2)
percent ad valorem. The pouches are imported empty and will be filled
with U.S.-made candy for retail sale as Valentine gift packages.

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The sample, identified by code no. 7220, is a heart-shaped carrying bag
that measures approximately 7 inches in length by 5-1/4 inches in height
by 2 inches in depth. The back and front panels are composed of unbacked
polyvinyl chloride (PVC) sheeting. The back panel is clear plastic and
the front panel is decorated with Valentines and the \"Peanuts\" cartoon
characters Snoopy and Woodstock. The side gusset consists of
fabric-backed PVC. The bag is zippered across the top and has a shoulder
strap that measures approximately 34 inches in length. After
importation, a heart-shaped, paperboard box containing 3-3/4 ounces of
candy will be inserted into the pouch for retail sale.

ISSUE:

Whether the \"PEANUTS Candy Pouch\" is classified as an other toy in
heading 9503, HTSUS; as an article for the conveyance or packing of
goods in heading 3923, HTSUS; or as a handbag or similar container in
heading 4202, HTSUS.

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General
Rules of Interpretation (GRI). The systematic detail of the harmonized
system is such that virtually all goods are classified by application of
GRI 1, that is, 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 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.

Chapter 95, HTSUS, covers \"toys, games and sports equipment; parts and
accessories thereof.\" Note 1(d) to chapter 95 states that \"\[t\]his
chapter does not cover: Sports bags or other containers of heading
4202\....\" Heading 9503, HTSUS, provides for \"Other toys\...and
accessories thereof,\" i.e., all toys not specifically provided for in
the other headings of chapter 95. Although the term \"toy\" is not
defined in the tariff, the EN to chapter 95 indicate that a toy is an
article designed for the amusement of children or adults. It has been
Customs position that the amusement requirement means that toys should
be designed and used principally for amusement. The EN to heading 9503
indicate that certain toys (e.g., electric irons, sewing

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machines, musical instruments, etc.) may be capable of a limited
\"use,\" but they are generally distinguishable by their size and
limited capacity from real sewing machines, etc.

Although the candy pouch is decorated with hearts and amusing cartoon
characters, not all merchandise that amuses is properly classified in a
toy provision. The article is not limited in its use as a functional
container and its decoration provides a clearer invitation for children
to wear the bag (to carry candy, small toys, etc.) than to play with it.
We thus find that the candy pouch is not principally designed for
amusement and is not classifiable in heading 9503, HTSUS.

Heading 3923, HTSUS, provides for articles for the conveyance or packing
of goods, of plastics. The EN to heading 3923 indicate that:

\[t\]his heading covers all kinds of plastics commonly used for the
packing or conveyance of all kinds of products. The articles covered
include:

\(a\) Containers such as boxes, cases, crates, sacks and bags (including
cones and refuse sacks), casks, cans, carboys, bottles and flasks.

The heading also covers cups without handles having the character of
containers used for the packing or conveyance of certain foodstuffs,
whether or not they have a secondary use as tableware or toilet
articles.

\(b\) Spools, cops, bobbins and similar supports.

\(c\) Stoppers, lids, caps and other closures.

In Headquarters Ruling Letter (HRL) 954072, issued September 2, 1993,
this office observed that the exemplars cited in the EN to heading 3923
make it \"clear that this heading provides for cases and containers of
bulk goods and commercial goods and not personal items.\" We find that,
since the \"PEANUTS Candy Pouch\" is not designed to carry, nor does it
carry, bulk or commercial goods, it is not classifiable in heading 3923,
HTSUS.

Heading 4202, HTSUS, provides, in part, for \"\...handbags\...
purses\...and similar containers\...of sheeting of plastics\...or wholly
or mainly covered with such materials\....\" The EN to

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heading 4202 indicate that the containers covered by the heading may be
rigid or with a rigid foundation, or soft and without foundation. Since
the candy pouch is functional and similar to a handbag or purse, it is
covered by the heading. It is classified in subheading 4202.22.1500,
HTSUSA.

HOLDING:

The \"PEANUTS Candy Pouch,\" identified by code no. 7220, is properly
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
rate of duty (in 1995) is 19.6 percent ad valorem.

NYRL 807588, issued March 14, 1995, is hereby affirmed.

Sincerely,

John Durant, Director

Tariff Classification

Appeals Division