HQ 959509

February 25, 1999

CLA-2 RR:CR:TE 959509 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.

2704-96-101886 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Further Review (AFR) of the protest referenced above was withdrawn.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:

Sample item Y8940B has an outer layer composed of fabric-backed cellular
plastics and the plastic surface faces outward. The item measures
approximately 4 inches in height in the closed position (8 inches when
open) by 7-1/2 inches in width by 1 inch in depth. The article has a
bifold, envelope shape and a snap closure. The item's interior features
a transparent flat slot pocket for an identification card, a permanently
attached checkbook jacket (with a flat slot pocket and 4 transparent
envelopes for photos or credit cards), a full-width flat pocket, and 2
rows of 3 credit card slots. Behind these and unsecured by

-2-

the snap closure is an additional compartment, zippered on 3 sides,
which opens to reveal a double gusseted, full-width pocket that is
divided by a zippered flat pocket. The gussets allow the divided,
zippered pocket (which has 4 slot pockets and 2 full-width, flat
pockets) to expand and form an opening which measures approximately 5
inches wide at the top. The gusseted pockets are capable of holding
several small 3-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 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 the subject article is
similar to a handbag and/or to a wallet, it is 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.

-3-

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 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:

-4-

> 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.

It is asserted that the classification of item Y8940B 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 disagree. 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 item Y8940B, 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.

-5-

With respect to the subject merchandise, we note that item Y8940B is
fitted to hold credit or i.d. cards, photos, paper currency, and that it
is at least capable of being carried

in a handbag. We also find that the article is designed to hold
3-dimensional items not associated with the capacities of a wallet or
flatgood. The article has a large gusseted pocket which expands to a
width of 5 inches and provides a generic carrying capacity for loose
personal effects such as a small hairbrush, a set of keys, cosmetics,
etc. We thus conclude that item Y8940B is classified as a handbag. 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.

HOLDING:

The handbag identified by item Y8940B is 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