October 23, 2008 CBP Bulletin Notice on Classification of a Handbag and Tote Bag with Coordinating Pouch

Proposed modification of ruling; proposed revocation of treatment. CBP is proposing to modify one ruling on the classification of a Handbag and Tote with Coordinating Pouch. Additionally, CBP proposes that this notice covers any rulings on this merchandise which may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.

CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed modification and revocation, or any party involved with a substantially identical transaction, should advise CBP by November 22, 2008, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.

Handbag and Tote Bag, both with Coordinating Pouch. The merchandise at issue is a handbag and pouch, identified as Style 7520 and a tote bag and pouch, identified as Style 7547. Both the handbag with pouch and tote bag with pouch are imported and sold together at retail as a single item. As presented at retail, the pouches are attached to the handbag or tote bag by a plastic "secure tak" fastener.

Style 7520 features a man-made fiber textile outer-surface. The handbag measures approximately 11.5" wide by 8' high by 4.5" deep. It has a zipper closure and a single textile lined interior compartment that includes a hanging zippered pocket. The front exterior of the handbag features a single zippered pocket covering the length of the bag. The pouch measures approximately 7.2" by 5.75". It features a single zippered closure across the top accented by a grosgrain ribbon imprinted with the trademark "Le Sportsac." It is designed to carry or store the handbag when not in use and to organize and carry small articles of a kind normally carried in a handbag, such as cosmetics, a small comb or a mirror.

Style 7547 also exhibits a man-made fiber textile outer surface. The tote bag measures approximately 23" by 12.5" by 4.5". It has a single top zipper closure accented by a grosgrain ribbon imprinted with the repeating trademark "Le Sportsac." The interior is textile lined with an interior zippered pocket and a smaller open pocket. The pouch measures approximately 8.5" by 7" and features a single zipper closure across the top accented by a grosgrain ribbon imprinted with the repeating trademark "Le Sportsac." It is designed to carry or store the handbag when not in use and to organize and carry small articles of a kind normally carried in a handbag such as cosmetics, a small comb or a mirror.

CBP is proposing to issue HQ H031400 in order to modify N025384 and reclassify the handbag with pouch (Style 7520) as a set under HTS 4202.22.8050 as "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 textile materials: Other: Other: Other, Of man-made fibers."

Similarly, CBP is proposing to classify the tote with pouch (Style 7547) as a set under HTS 4202.92.3031 as "Travel, sports and similar bags: With outer surface of textile materials: Other, Other: Other" rather than classifying each item separately, with the handbag under HTS 4202.22.8050 as "Handbags with and outer surface of textile materials: Other: Other: Other, Of man-made fibers," and the tote bag and the pouches under 4202.92.3031 as "Travel, sports and similar bags: With outer surface of textile materials: Other, Other: Other."

CBP proposes this change as a correction based on a prior ruling and the Explanatory Notes to GRI 3(b). CBP states that the subject component articles are properly classified as "sets" because they consist of goods put up in a set for retail sale. In this instance, the pouch is designed to coordinate with the handbag or tote bag in that it is constructed of the same fabric and is color coordinated to match the patterns of the handbag or tote. The pouch is also a typical accessory that one might expect to be sold with a hand bag or tote. The handbag, tote and pouch serve the singular purpose of helping the user to carry various items. Furthermore, the components in this set are, prima facie, classifiable in different subheadings and have been put up in retail packaging suitable for sale directly to users without repacking.

The handbag or tote bag provide the bulk of the set and visual impact therefore CBP states that it is the handbag or tote bag that imparts the essential character to the set.

Therefore by application of GRI 3(b), CBP now proposes that Style 7520 should be classified in subheading 4202.22.8050, 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 textile materials: Other: Other: Other, Of man-made fibers," and Style 7547 should be classified in subheading 4202.92.3031 which provides for "Travel, sports and similar bags: With outer surface of textile materials: Other, Other: Other."

Proposed: handbag and pouch set, 4202.22.8050, 17.6%, tote bag and pouch set, 4202.92.3031, 17.6%;

Current: each item separately, handbag, 4202.22.8050, 17.6%, pouch 4202.92.3031, 17.6%, tote bag 4202.92.3031, 17.6%, pouch, 4202.92.3031, 17.6%.

October 23, 2008 CBP Bulletin (Vol. 42, No. 44) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2008/