Reconsideration of New York Ruling Letter (NY) D89470;Travel and Similar Bags of Sheeting of Plastics

HQ 962836 June 29, 1999 CLA-2 RR:CR:TE 962836 GGD CATEGORY: Classification TARIFF NO.: 4202.92.4500 Mr. Jack T. Grant Pockets of Learning 30 Cutler Street, Suite 101 Warren, Rhode Island 02885 RE: Reconsideration of New York Ruling Letter (NY) D89470; Travel and Similar Bags of Sheeting of Plastics Dear Mr. Grant: This letter is in response to your request of April 7, 1999, for reconsideration of New York Ruling Letter (NY) D89470, issued March 29, 1999, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of various bags described as packaging for fabric books and stuffed toys for children. The bags are made in the Philippines. Samples were submitted subsequent to your request. FACTS: In NY D89470, Customs classified the bags in subheading 4202.92.4500, HTSUSA, which provides for “Trunks...attache cases...school satchels...traveling bags, toiletry bags...and similar containers...: Other: With outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: Other.” The articles at issue were described in NY D89470 as being carrying bags of clear polyvinyl chloride (PVC) plastic sheeting, which ranged in size from approximately 11-1/2 inches by 10 -2- inches by 3-1/2 inches to 11 inches by 11 inches by 6 inches. Each bag has a top flap closure which secures by means of hook and loop fabric fasteners. The flap, as well as the top 2 to 4 inches of the front and/or back, of each bag is constructed with a base of paperboard that is covered with textile materials. Each bag has a textile fabric carrying handle and a sewn-on, textile fabric patch which bears the “Pockets of Learning” logo. All seams are reinforced with edging of stitched textile materials. Although the bags are imported without contents, they are claimed to be ordinary vinyl packaging materials that are included (at no cost) with purchase of the fabric toys and books they will contain when sold at retail. The packaging is custom-designed for color and, together with detailed hang tags and specially designed shelf displays, helps to complete an overall retail marketing plan. After sale, the bags are intended to function as storage containers to help the end user minimize the need for replacement toys and other pieces. ISSUE: Whether the articles are classified under heading 3923, HTSUSA, as articles for the conveyance or packing of goods, of plastics; or under heading 4202, HTSUSA, which covers, in part, travel bags and similar containers. LAW AND ANALYSIS: Classification under the HTSUSA 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, chapter 42, HTSUSA, covers travel goods, handbags and similar containers. Among other items, heading 4202 provides for “Trunks...school satchels...traveling bags, toiletry -3- bags...and similar containers.” The exemplars named in heading 4202 have in common the purpose of organizing, storing, protecting, and carrying various items. In pertinent part, legal note 2(A)(a) to chapter 42, HTSUSA, states: “...heading 4202 does not cover: Bags made of sheeting of plastics, whether or not printed, with handles, not designed for prolonged use (heading 3923) Among other merchandise, chapter 39, HTSUSA, covers plastics and articles thereof. In pertinent part, note 2(ij) to chapter 39, HTSUSA, states that “[t]his chapter does not cover...trunks, suitcases, handbags or other containers of heading 4202.” Among other merchandise, heading 3923, HTSUSA, covers “Articles for the conveyance or packing of goods, of plastics....” The EN to heading 3923 indicate that the heading covers all articles of plastics commonly used for the packing or conveyance of all kinds of products, including sacks and bags. The EN also state that the heading excludes containers of heading 4202. Each of the subject bags is a custom-designed, substantially constructed container intended to organize, store, protect, and carry the contents with which it is sold, long after the time of sale. Retail packaging is generally designed to favorably present a product, enhance the likelihood of its sale, and protect it during transport from store to home, but not for a prolonged period afterward. We find that the subject PVC bags are designed for prolonged use, are similar to the containers of heading 4202, and are classifiable thereunder. As such, they are precluded from classification under heading 3923 by note 2(ij) to chapter 39, HTSUSA. The PVC bags are classified in subheading 4202.92.4500, HTSUSA. For rulings concerning similar issues, see Headquarters Ruling Letter (HQ) 960009, issued October 16, 1997, and HQ 959679, issued May 8, 1997. HOLDING: The PVC bags are classified in subheading 4202.92.4500, HTSUSA, the provision for “Trunks...school satchels...traveling bags, toiletry bags...and similar containers...: Other: With -4- outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: Other.” The general column one duty rate is 20 percent ad valorem. NY D89470, issued March 29, 1999, is hereby affirmed. Sincerely,  John Durant, Director Commercial Rulings Division