Tariff classification of evening bags manufactured in China

HQ 083264 November 29, 1989 CLA-2 CO:R:C:G 083264 DC CATEGORY: Classification TARIFF NO.: 3926.90.3300 Mr. William Phelps President W. A. Phelps & Co. Inc. One World Trade Center New York, N.Y. 10048 RE: Tariff classification of evening bags manufactured in China Dear Mr. Phelps: Your letter dated July 7, 1988, addressed to our New York office concerning the tariff classification of evening bags, has been referred to this office for a direct reply to you. Samples were submitted for examination. FACTS: The evening bags designated as styles 20214, 20219, 20220, 20221 and 20222 are made of a nylon fabric almost wholly covered with pasted beads of injection molded plastics. ISSUE: What material imparts the essential character to the evening bags? LAW AND ANALYSIS: In applying the Harmonized Tariff Schedule of the United States (HTSUSA), the Customs Service must follow the terms of the statute. Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes, and, provided such headings or notes do not otherwise require, according to [the remaining GRI's taken in order]". In other words classification is governed first by the terms of the headings of the tariff and any relative section or chapter notes. -2- GRI 2(b), HTSUSA, provides in part that "[t]he classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3." We note that evening bags having an outer surface of textile materials are classifiable under heading 4202, HTSUSA, while evening bags of beads are classifiable under heading 3926, HTSUSA. When goods are prima facie classifiable under two or more headings or subheadings in the HTSUSA, classification must be determined based on the sequential application of the principles set out in GRI 3, HTSUSA, which reads in pertinent part as follows: 3. When, by application of Rule 2(b) or for any other reason, goods are prima facie classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (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. Inasmuch as the outer surfaces of the evening bags consist of textile material and plastic beads, it is necessary to determine that material which imparts the essential character to the outer surface pursuant to GRI 3(b), HTSUSA, supra. The Explanatory Notes for GRI 3(b), HTSUSA, state in pertinent part as follows: VIII 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, -3- its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods. It is our opinion that the essential character of all the styles is imparted by the plastic beads. Our rational for this position is that beads occupy almost the entire outer surface of the bags and are also the material which is most clearly designed to appeal to the consumer. In view of the foregoing, it is our position that all styles listed above are classifiable under subheading 3926.90.3300, HTSUSA, as beads, bugles and spangles, not strung (except temporarily) and not set, articles, thereof, not elsewhere specified or included, handbags. HOLDING: The sample evening bags are classifiable under subheading 3926.90.3300, HTSUSA, and dutiable at the rate of 8.2 percent ad valorem. Sincerely, John Durant, Director Commercial Rulings Division DCahill library name: 083264 6cc AD NY Seaport 1cc John Durant 1cc Kevin Gorman NY Seaport 1cc Joan Mazzola NY Seaport