CBP Ruling H097655

HQ H097655 December 17, 2010 CLA-2 RR:CTF:TCM H097655 ASM CATEGORY: Classification TARIFF NO.: 4202.22.1500 Port Director U.S. Customs and Border Protection 301 E. Ocean Blvd. Suite 1400 Long Beach, CA 90802 RE: Application for Further Review of Protest 2704-10-100339; Classification of Woman's bag Dear Port Director: This is in reply to the Application for Further Review of Protest (AFR) 2704-10-100339, which was timely filed on behalf of BCBG Max Azaria Group, Inc. (Protestant). The Protest concerns the classification of a woman's bag under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A sample was submitted to Customs and Border Protection (CBP) for review. FACTS: The sample submitted for our review is a woman's bag constructed with an outer surface of plastic sheeting material. This outer surface has been "quilted" with decorative stitching. There is a lining with an interior zipper pocket on one side and two smaller sized pockets on the other side that could accommodate a cell phone and wallet. The outer dimensions are approximately 16 inches wide x 14 inches long. The bag has a single magnetic closure and features carrying handles that are constructed of a dark silver metal chain that has a folded narrow strip of plastic sheeting woven through it which is the same color as the outer surface material. These carrying handles are not adjustable but are sufficiently long enough to be used as a shoulder bag. The carrying handles are formed by threading a single chain through two sets of grommet metal rings, four on each side, which are embedded in a band of matching plastic sheeting material that has been sewn to the top of the bag. This band serves to reinforce the top edge of the bag and contains the magnetic closure. On each side of the bag, two tabs of material have been sewn into the seam at the top and bottom edge of the seam. These tabs each contain a single metal ring. The same decorative chain used for the handles have been attached to each ring so that a single chain runs the length of the bag at each side. This Protest and AFR concerns one entry. The protestant entered the merchandise on November 19, 2009, under subheading 4202.22.1500, HTSUSA, which provides for "Trunks, suitcases, vanity cases, attaché 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: 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." On December 17, 2009, CBP issued a Notice of Action to rate advance and reclassify the bag in subheading 4202.92.4500, HTSUSA, which provides for "Trunks, suitcases, vanity cases, attaché 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: Other: With outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: Other." CBP liquidated the entry on January 22, 2010, under subheading 4202.92.4500, HTSUSA. Protestant filed the instant Protest and AFR on February 5, 2010. Protestant claims that these bags are properly classified as handbags in subheading 4202.22.1500, HTSUSA. ISSUE: Whether the woman's bag is classified in subheading 4202.22.1500, HTSUSA, as a handbag or in subheading 4202.92.4500, HTSUSA, as travel sports or similar bag. LAW AND ANALYSIS: Initially, we note that the matter is protested under 19 U.S.C. §1514(a)(2) The protest was timely filed within 180 days of liquidation of entry for entries made on or after November 19, 2009. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2)(B)(ii), (iii) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)). Further Review of Protest No. 2704-10-100339 was properly accorded to Protestant pursuant to 19 C.F.R. § 174.24 (a) because protestant alleges that these are ladies handbags and that the decision is inconsistent with previous CBP classification rulings. Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 HTSUSA provisions under consideration are as follows: 4202 Trunks, suitcases, vanity cases, attaché 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: Handbags, whether or not with shoulder strap, including those without handle: 4202.22 With outer surface of sheeting of plastic or of textile materials: 4202.22.1500 With outer surface of sheeting of plastic * * * Other: 4202.92 With outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: With outer surface of textile materials: 4202.92.4500 Other Subheadings 4202.21 through 4202.29, HTSUSA, specifically provide for handbags while subheading 4202.92, HTSUSA, provides, in part, for travel, sports and similar bags. Additional U.S. Note 1 to chapter 42, HTSUSA, states: For the purposes of heading 4202, the expression "travel, sports and similar bags" means goods, other than those falling in subheadings 4202.11 through 4202.39, of a kind designed for carrying clothing and other personal effects during travel, including backpacks and shopping bags of this heading, but does not include binocular cases, camera cases, musical instrument cases, bottle cases and similar containers. There is no dispute that the subject bag is classified in heading 4202, HTSUS. At issue is the applicable six-digit subheading. As such GRI 6 is implicated. It states: For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires. The term "handbag" has been defined as follows: Essential Terms of Fashion: A Collection of Definitions, Charlotte M. Calasibetta, Fairchild Publications, 1986: Accessory carried primarily by women and girls to hold such items as money, credit cards, and cosmetics. The Fashion Dictionary, Mary Brooks Picken, Funk and Wagnalls, 1973: Soft or rigid bag carried in hand or on arm. Size, shape, handle, etc., depend on fashion. Used by women as container for money and pocket-sized accessories. Webster's New Collegiate Dictionary, G & C Merriam Co., 1977: 1. [T]raveling bag; 2. [A] woman's bag held in the hand or hung from a shoulder strap and used for carrying small personal articles and money. Webster's New World Dictionary, Third College Edition, Simon & Schuster, Inc., 1988: A bag, usually of leather or cloth, held in the hand or hung by a strap from the arm or shoulder and used, by women, to carry money, keys, and personal effects. A review of the above-cited definitions of "handbag" reveals that each lexicographic source describes a bag used by women that is designed to carry money, credit cards, keys, and small or pocket-sized personal effects (e.g., a hairbrush, cosmetics, etc.). In HQ 957917, dated July 7, 1995, CBP classified certain "tote" bags as travel, sports and similar bags within the meaning of Additional U.S. Note 1, Chapter 42, HTSUSA. The bags in that ruling were made from coarse, cotton canvas and were often printed with company logos or promotional or advertising information. Two styles had single snap closures; the rest had no means of closure. The bags had no pockets and were not lined or reinforced. Based on those characteristics, we found it unlikely that the bags were used in a manner similar to a women's handbag. We further found that the canvas woman's bags were multipurpose bags used to carry any number of sundry articles, such as food, books and/or clothing. Another ruling in which CBP classified a "tote" under subheading 4202.92, as a travel bag is HQ 955515, dated May 5, 1994. In that ruling, we held that tote bags are generally used to transport from place to place personal belongings, including clothing. We said "transport could be local, such as between home and office, or extended, as when clothing and/or other personal belongings are packed in a woman's bag for a picnic, day at the beach, weekend trip or the like." The bag in that case measured 12 inches by 14.75 inches by 4 inches. The upper portion was made of clear plastic and the bottom was made of leather. It also had leather covered handles. The bag was not lined and had no pockets. In HQ 962364, dated December 8, 1998, we classified three separate bags with outer surfaces of cotton and textile carrying handles. Each bag measured approximately 9 inches in height by 11-1/2 inches in width, and had gussets allowing expansion to approximately 3 inches in depth. Two of the bags had one zippered central compartment, no lining, and no additional pockets, and one of the bags had an open top, central compartment and a flat pocket attached to its interior lining. We found that none of the bags was designed or intended to be used as a container for items normally carried in a woman's handbag, and that all three styles were multipurpose bags for carrying various personal effects other than or in addition to, those normally carried in a womans' handbag. The bags were classified as travel bags in subheading 4202.92.1500, HTSUSA. In HQ 963573, dated April 8, 2002, CBP reclassified a bag identified as "Garden Party." The bag had an outer surface composed of 100 percent polyester textile material. The bag measured approximately 15 inches by 10-1/2 inches by 4 inches, had one zippered central compartment, one zippered pocket sewn into the lining, and two carrying handles that were composed of the same material as the outer surface. Based on the dimensions and features of the bag that indicated that the bag was a multipurpose "tote" for carrying various personal effects other than, or in addition to, those normally carried in a woman's handbag, the bag was classified in subheading 4202.92.3031, HTSUSA. CBP has also classified bags referred to as "totes" under subheading 4202.22, as handbags. The term "handbags" includes pocket books, purses, shoulder bags, clutch bags, and similar articles customarily carried by women or girls, but not including luggage, flat goods or shopping bags. Travel, sports and similar bags are those bags that are larger than handbags. They are substantially constructed and designed to contain various items including clothing and personal effects while traveling, and usually have at least one side which exceeds 12 inches in length. HQ 082271, dated December 1, 1988. In HQ 950708, issued December 24, 1991, we observed judicial guidance as to the attributes of totes and women's handbags. We noted that certain tote bags which had no linings or reinforcements, no pockets, no closures (or only single snap closures), provided little protection for their contents and were unlikely to be used in a manner similar to a woman's handbag. We stated that such tote bags were used as multipurpose bags to carry any number of sundry articles, such as food, books, and/or clothing. Since the bags did not fit the terms of subheadings 4202.11 through 4202.39, but were a type of bag used to carry clothing and other personal effects during travel, they were considered to be travel, sports and similar bags within the meaning of Additional U.S. Note 1 to chapter 42, HTSUS. See also HQ 951113, issued May 19, 1992, affirming HQ 950708. In HQ 955552, dated August 15, 1994, CBP classified a pink lady's shoulder bag as a handbag under subheading 4202.22, HTSUSA. The bag measured approximately 14 inches by 91/2 inches with a tapered gusset two inches wide at the top and four inches wide at the bottom. The bag had two shoulder straps approximately 26 inches in length and was divided into two separate compartments, each with a zipper. The interior of the bag was lined and the bottom and corners were reinforced. We held that the bag was not a multipurpose bag used to carry a number of articles such as food, books, or clothing, and that it was not suitable for travel or shopping. While the bag could conceivably have been employed for some limited use as a sports bag, we stated that the primary purpose of the bag was as a traditional woman's handbag. Its design and construction, notably the shoulder straps, reinforcement, linings, inside zipper pocket, style of compartmentalization and zipper closure were all strongly indicative of a bag which is used normally by women and girls to carry personal items on a daily basis. In HQ 961849, dated June 5, 1998, CBP classified a women's "tote" bag under subheading 4202.22, as a handbag. That bag measured approximately 111/2 inches by 10 inches by 3 inches. It had an outer surface of 100 percent nylon woven fabric and was lined with woven fabric of man-made fibers. It also had two leather carrying straps. The interior featured a large zippered central compartment which divided the bag's interior and created three separate, full-sized compartments, two of which were open at the top and without closures. It also had a smaller zippered pocket within one of the interior sides. In that ruling, we found that the bag was designed, constructed and intended to be used as a woman's handbag, not as a woman's bag or shopping bag. Again, its dimensions, lining, zippered pockets, and manner of compartmentalization indicated its purpose to contain certain items normally carried in a woman's handbag, such as money, keys, glasses, etc. Moreover, the bag had insufficient additional capacity for use as a multipurpose carrier of any number of sundry articles (such as food, books, and/or clothing). In HQ W968454, dated July 10, 2007, CBP classified a bag made of polyvinylchloride (PVC) with an exterior surface of 100% cotton openwork knit fabric as a handbag in 4202.22, HTSUSA. The bag featured a thick silver chain with a narrow textile fabric woven through openings in the top two inches of the body of the bag. Two silver plated rings connected the shoulder strap to the bag. At its widest point the bag measured 14.5 inches by 8.25 inches by 6 inches, excluding the shoulder strap. The width of the bag decreased from the bottom to the top, with the width of the opening of the bag only measuring 10.5 inches. The shoulder strap added 11 inches in height. In addition to the shoulder strap, the bag featured one zippered interior compartment and an interior band with a magnetic closure. In HQ W968454, we reasoned that although the width of the bag is greater than twelve inches at its widest point, the bag does not have additional capacity to carry items that do not ordinarily fit within a woman's handbag. The fact that the bag's dimensions decrease both in depth and width from the bottom to the top prevent the opening of the bag from accommodating larger items than those that would generally fit into a woman's handbag. The instant woman's bag features a large lined interior space with two small pockets and a single magnetic snap. However, the subject bag is not designed to carry bulky or heavy items that do not ordinarily fit within a woman's handbag insofar as the additional chain accents on the side of the bag and chain link shoulder strap are merely for fashionable effect and render it difficult to carry heavy items in the bag during travel. In view of the foregoing, we find that the subject merchandise is classified in subheading 4202.22.1500, HTSUSA, which provides 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." HOLDING: The subject merchandise is properly classified under subheading 4202.22.1500, HTSUSA, which provides 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 general column one rate of duty in effect at the time of entry was 16% ad valorem. Since the rate of duty under the classification indicated above is lower than the liquidated rate, you are instructed to grant the protest in full. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision Regulations and Rulings of the Office of International Trade will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution. Sincerely, Myles B Harmon, Director Commercial and Trade Facilitation Division 8