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HQ 087210


May 10, 1991

CLA-2 CO:R:C:F 087210 SLR

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.22.1500; 4202.92.4500;
4202.12.2050; 4202.32.2000

William J. Maloney, Esq.
Rode & Qualey
295 Madison Avenue
New York, NY 10017

RE: Luggage, Handbag, Wallet and Credit Card Cases; Plastic Coated Textile Material, Leather Trim; Outer Surface of Plastic Sheeting; Exterior Surface of Plastics

Dear Mr. Maloney:

This is in response to your letter of May 21, 1990, on behalf of your client, Michael Cromer, Ltd., requesting the classification for various luggage, handbag, and flatgood articles under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A full color catalogue, along with a swatch of the coated fabric used in the production of the above-mentioned articles, was submitted for our examination.

FACTS:

The five items at issue are identified as:

1. Milano #138 (a handbag with shoulderstrap)

2. Travelbag #006

3. Jet-Suitcase with Casters #082 (a pullman suitcase)

4. Wallet #013

5. Credit Card Case #157

Each item is manufactured of the same materials. Each is composed largely of textile material coated on one side with polyvinyl chloride (PVC) plastics. The PVC is a non-cellular plastics material and the textile is said to be 51 percent cotton by weight. Items 138, 006, and 082 have leather trim; items 013 and 157 do not. All of the items bear the distinctive "MCM" trademark design.

In your letter, you acknowledge that the above-described items are classifiable in heading 4202, HTSUSA. At the heading level, you believe these goods to be of textile. You question, however, whether at the the six-digit subheading level the PVC coating constitutes the outer surface of these articles. You maintain that their outer surface is of either leather or textile materials.

ISSUE:

What constitutes the outer surface of the subject merchandise?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

Heading 4202, HTSUSA, provides for, among other articles:

Trunks, suitcases...; traveling bags, handbags, ...wallets...map-cases, cigarette-cases...and similar containers, of leather or of composition leather, of plastic sheeting, of textile materials, ...or wholly or mainly covered with such materials.

Items 138, 006, 082, 013, and 157 are classifiable in heading 4202, HTSUSA. Either each item is specifically provided for in the heading or it qualifies as a similar container. Customs agrees that at the heading level, items 138, 006, 013, and 157 are of textile materials. [As for item 082, its classification is not predicated upon the presence of any specific material.]

The specific subheadings which apply to the merchandise at issue is controlled by the composition of the outer surface of each item. The material used here is a combination of plastics and textile materials. Thus, when resolving classification, it is necessary to determine whether the plastic coating or textile base constitutes the outer surface of these goods.

The Customs and Trade Act of 1990 [hereinafter "Act"] was passed by Congress and signed into law by the President on August 20, 1990. Section 473 of the Act added Additional U.S. Legal Note (2) to Chapter 42, HTSUSA, to clarify how "outer surface" determinations should be made. It reads:

2. 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.

In other words, an article comprised of a plastics and textile combination which is considered to be of textile at the four-digit heading level may nonetheless at the six-digit subheading level have an outer surface of plastic sheeting if the plastic constituent makes up the exterior surface of the article. Such is the case here. The cross section of the sample swatch clearly reveals that the only material present on the exterior surface is the plastic coating.

As to counsel's contention that the leather material constitutes the outer surface of the subject items, Customs has stated that:

[W]e do not include straps and handles as constituting part of the outer surface area.... It is our position that only the outer surface of the main body of [an article] should be measured in arriving at a decision as to what material predominates in outer surface area.

(See Headquarters Ruling Letter 081224 of September 26, 1989.) Consequently, Customs will not take into account the leather trim of items 138, 006, and 082 when determining their outer surface. Likewise, Customs will not consider the leather material of items 013 and 157. Wallets and credit card cases, in their natural state, are closed. The leather found in items 013 and 157 is only visible when the items are unfolded. This area does not make up part of the "outer surface" for tariff purposes.

HOLDING:

Item 138, Milano handbag, is classifiable in subheading 4202.22.1500, which provides for handbags, with or without shoulder straps, including those without handle: with outer surface of plastic sheeting or of textile materials: with outer surface of plastic sheeting. The applicable rate of duty is 20 percent ad valorem.

Item 006, travel bag, is classifiable in subheading 4202.92.4500, HTSUSA, which provides for other [travel goods] (other than luggage, handbags, or articles of a kind normally carried in the pocket or handbag): with outer surface of plastic sheeting or of textile materials: travel, sports and similar bags, other (than with an outer surface of textile materials). The applicable rate of duty is 20 percent ad valorem.

Item 082, jet suitcase, is classifiable in subheading 4202.12.2050, HTSUSA, which provides for trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers: with outer surface of plastics or of textile materials: with outer surface of plastics, other (than structured, rigid on all sides): trunks, suitcases, vanity cases and similar containers. The applicable rate of duty is 20 percent ad valorem.

Item 013, wallet and 157, credit card case are classifiable in subheading 4202.32.2000, HTSUSA, which provides for articles of a kind normally carried in the pocket or in the handbag: with outer surface of plastic sheeting or of textile materials: with outer surface of plastic sheeting: other (than of reinforced or laminated plastics). The applicable rate of duty is 20 percent ad valorem.

Sincerely,

John Durant, Director

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