# HQ W967392

June 16, 2006

**CLA-2** RR:CTF:TCM 967392 KBR

**CATEGORY:** Classification

**TARIFF NO.:** 4202.31.6000

Mr. Rolando E. Portal

ABC Distributing, LLC

P.O. Box 611210

No. Miami, FL 33261-1210

**RE:** Reconsideration of NY K89720; Leather Card Case and Steel Money
Clip with Watch

Dear Mr. Portal:

This is in reference to your letter of October 20, 2004, requesting
reconsideration of New York Ruling Letter (NY) K89720, issued to you by
the Customs and Border Protection ("CBP") National Commodity Specialist
Division, on October 1, 2004, concerning the classification of a
"Buxton®" leather card case and steel money clip with a built-in quartz
watch, style 284533, under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA). A sample was submitted for our review. We
have reviewed NY K89720 and have determined that the classification
determination is incorrect.

Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C.
1625(c)(1)), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement Implementation
Act (Pub. L. 103-182, 107 Stat. 2057), a notice was published on March
29, 2006, in Vol. 40, No. 14 of the *Customs Bulletin*, proposing to
modify NY K89720. No comments were received in response to this notice.

**FACTS:**

NY K89720 concerns a cowhide leather card case which has a removable
metal money clip. The money clip has a built-in quartz watch. The card
case measures approximately 3 ¾ inches by 3 inches. The card case has
three pockets. Two large pockets can be used for holding business cards,
credit cards or paper currency. One of the large pockets is faced with
clear plastic so that a business card can be displayed. The clear
plastic has a cut out designed to permit easy dispensing of business
cards. The third pocket is smaller and is intended for the metal money
clip/watch to slide in to attach to the leather card case. The money
clip/watch is easily removed and may be used separately from the leather
card case. The money clip/watch is designed with a hinged top containing
the watch and is made wholly of the same metal finish. In your request
for reconsideration you state that the quartz watch has a mechanical
movement containing no jewels.

In NY K89720, it was determined that the leather card case with
detachable money clip/watch was not a composite article and the two
components must be individually classified. The leather card case was
classifiable as "\[a\]rticles of a kind normally carried in the pocket
or in the handbag: \[w\]ith outer surface of leather, of composition
leather or patent leather: \[o\]ther" under subheading 4202.31.6000,
HTSUSA. The money clip/watch was not classified because there was
insufficient information provided concerning the type of movement
incorporated in the watch and how many jewels were in the watch
movement.

**ISSUE:**

What is the proper classification of the subject leather card case with
detachable money clip with a built-in watch under the HTSUSA?

**LAW AND ANALYSIS:**

Merchandise is classifiable under the HTSUSA in accordance with the
General Rules of Interpretation (GRIs). The systematic detail of the
HTSUSA 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 GRIs
may then be applied.

In interpreting the headings and subheadings, CBP looks to the
Harmonized Commodity Description and Coding System Explanatory Notes
(EN). Although not legally binding, they provide a commentary on the
scope of each heading of the HTSUS. It is CBP's practice to follow,
whenever possible, the terms of the ENs when interpreting the HTSUSA.
*See* T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The HTSUSA provisions under consideration are as follows:

4202. Trunks, suitcases, vanity cases, attache cases, briefcases, school
      satchels, spectacle cases, binocular cases, camera cases, musical
      instrument cases, gun cases, holsters and similar containers;
      traveling bags, insulated food or beverage bags, toiletry bags,
      knapsacks and backpacks, handbags, shopping bags, wallets, purses,
      map cases, cigarette cases, tobacco pouches, tool bags, sports
      bags, bottle cases, jewelry boxes, powder cases, cutlery cases and
      similar containers, of leather or of composition leather, of
      sheeting of plastics, of textile materials, of vulcanized fiber or
      of paperboard, or wholly or mainly covered with such materials or
      with paper:

\* \* \* \* \*

> Articles of a kind normally carried in the pocket or in the handbag:

4202.31 With outer surface of leather, of composition leather or of
patent leather:

\* \* \* \* \*

4202.31.6000 Other

9102 Wrist watches, pocket watches and other watches, including stop
watches, other than those of heading 9101:

\* \* \* \* \*

Other:

9102.91 Electrically operated:

\* \* \* \* \*

Other:

9102.91.4000 Having no jewels or only one jewel in the movement.

Initially we note that instant article is comprised of a leather card
case and a metal money clip with a built-in watch. The money clip with a
built-in watch is a composite good. Because the item is a composite
good, we turn to GRI 3(b) which states that when goods are *prima facie*
classifiable under two or more headings, classification shall be
effected 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 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.

EN (IX) for GRI 3(b), explains what a composite good is, stating:

> For the purposes of this Rule, composite goods made up of different
> components shall be taken to mean not only those in which the
> components are attached to each other to form a practically
> inseparable whole but also those with separable components,
> **provided** these components are adapted one to the other and are
> mutually complementary and that together they form a whole which would
> not normally be offered for sale in separate parts.

Here the money clip of base metal of heading 7326 and watch of heading
9102 are permanently attached, thereby qualifying as a composite good.

Under EN (VII) for GRI 3(b), goods are to be classified as if they
consisted of the material or component which gives them their essential
character, insofar as this criterion is applicable.

Under EN (VIII) for GRI 3(b), the factor which determines essential
character will vary as 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.

In the instant case, the money clip component is simply a bent piece of
metal. The watch component is the more complex, heavy, and valuable
component. Therefore, the essential character of the money clip with
built-in watch is determined by the watch component, and, as considered
individually, is classifiable in heading 9102, specifically subheading
9102.91.4000, HTSUSA. *See* NY H83146 (July 18, 2001).

Next we will address the full article, the leather card case and
detachable money clip/watch. The money clip/watch may be detached and
used separately from the leather card case. The leather card case and
money clip do not constitute a composite good. The components form a
whole which would normally be offered for sale in separate parts.

However, the leather card case with detachable money clip/watch does
qualify as a set put up for retail sale under GRI 3(b). EN (X) for GRI
3(b) states:

> For purposes of this Rule, the term "goods put up in sets for retail
> sale" shall be taken to mean goods which:

(a) consist of at least two different articles which are, *prima facie*,
    classifiable in different headings. Therefore, for example, six
    fondue forks cannot be regarded as a set within the meaning of this
    Rule;

(b) consist of products or articles put up together to meet a particular
    need or carry out a specific activity; and

(c) are put up in a manner suitable for sale directly to users without
    repacking (e.g. in boxes or cases or on boards).

In this instance, the leather card case is classifiable in heading 4202,
HTSUSA, and the money clip/watch, as discussed above, is classifiable in
heading 9102, HTSUSA, satisfying the first criteria. The leather card
case and money clip/watch are manufactured so that the money clip may be
attached to the leather card case and used together for the purpose of
holding and protecting money, identification, credit cards, and business
cards. The article is packaged for sale directly to the public.
Therefore, the leather card case and money clip/watch qualifies as a set
pursuant to GRI 3(b). *See* HQ 967257 (April 14, 2005)(involving a
detachable brooch attached to a bracelet determined to be a GRI 3(b)
set) and HQ 085577 (January 10, 1990)(determining that audio components
are not a GRI 3(b) composite good but are a GRI 3 (b) set).

As discussed above for composite good analysis of the money clip/watch
component, GRI 3(b) states that sets are to be classified as if they
consisted of the material or component which gives them their essential
character, insofar as this criterion is applicable. We, therefore, look
at the EN (VIII) to GRI 3(b) factors for the set. The bulk of the set is
provided by the leather card case. The money clip/watch attaches to the
leather card case. The role of the card case is to secure valuables for
carrying in the pocket. The money clip/watch functions in conjunction
with the back of the card case. Therefore, the essential character of
the leather card case and money clip/watch set is determined by the
leather card case. *See* PD D84031 (October 30, 1998) and NY F85304
(April 14, 2000)(both finding a card case with attached money clip is
classified in heading 4202). *See, e.g.,* NY G80633 (August 23, 2000) (a
handbag, coin purse and key fob classified in heading 4202, HTSUSA, as a
GRI 3(b) set), and HQ 965103 (September 12, 2002)(finding that a vanity
bag, tri-fold wallet and key fob are classified in heading 4202 as a GRI
3(b) set intended to transport the user's personal articles). *But
c.f.,* NY J88597 (September 22, 2003)(finding two of six samples not to
be a GRI 3(b) set: a belt bag with key fob and identification card
holder; and a checkbook wallet with a mirror/photo holder and split
metal ring), and HQ 964242 (February 8, 2001)(a trinket box found not to
be a GRI 3(b) set with a lipstick case and a cosmetic bag).

Therefore, pursuant to GRI 3(b), the leather card case with money
clip/watch is classifiable under subheading 4202, specifically
subheading 4202.31.6000, HTSUSA, which provides for: "Trunks, suitcases,
vanity cases, attache cases, briefcases, school satchels, spectacle
cases, binocular cases, camera cases, musical instrument cases, gun
cases, holsters and similar containers; traveling bags, insulated food
or beverage bags, toiletry bags, knapsacks and backpacks, handbags,
shopping bags, wallets, purses, map cases, cigarette cases, tobacco
pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder
cases, cutlery cases and similar containers, of leather or of
composition leather, of sheeting of plastics, of textile materials, of
vulcanized fiber or of paperboard, or wholly or mainly covered with such
materials or with paper: Articles of a kind normally carried in the
pocket or in the handbag: With outer surface of leather, of composition
leather or of patent leather: Other."

**HOLDING:**

Pursuant to GRI 3(b), the leather card case with money clip/watch is
classifiable under heading 4202, specifically subheading 4202.31.6000,
HTSUSA, which provides for: "Trunks, suitcases, vanity cases, attache
cases, briefcases, school satchels, spectacle cases, binocular cases,
camera cases, musical instrument cases, gun cases, holsters and similar
containers; traveling bags, insulated food or beverage bags, toiletry
bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses,
map cases, cigarette cases, tobacco pouches, tool bags, sports bags,
bottle cases, jewelry boxes, powder cases, cutlery cases and similar
containers, of leather or of composition leather, of sheeting of
plastics, of textile materials, of vulcanized fiber or of paperboard, or
wholly or mainly covered with such materials or with paper: Articles of
a kind normally carried in the pocket or in the handbag: With outer
surface of leather, of composition leather or of patent leather: Other."
The 2006 column one, general rate of duty rate is 8% *ad valorum*.

Duty rates are provided for your convenience and are subject to change.
The text of the most recent HTSUSA and the accompanying duty rates are
provided on the World Wide Web at
[*www.usitc.gov/tata/hts*](http://www.usitc.gov/tata/hts).

**EFFECT ON OTHER RULINGS:**

NY K889720, dated October 1, 2004, is **MODIFIED**. In accordance with
19 U.S.C. §1625(c), this ruling will become effective sixty (60) days
after publication in the *Customs Bulletin*.

Sincerely,

Myles B. Harmon, Director

Commercial and Trade Facilitation Division