In Binding Ruling Letters NY M82559 (May 2, 2006) and NY M84189 (June 16, 2006), Customs and Border Protection ("CBP") classified a rolling pullman case, backpacks, a tote bag, and an insulated lunch bag in heading 4202, Harmonized Tariff Schedule of the United States ("HTSUS"), specifically in subheadings 4202.12.80, HTSUS (rolling bag), 4202.92.08, HTSUS (insulated lunch bag), and 4202.92.30, HTSUS (backpacks and tote bag), as bags with an outer surface of textile materials. CBP has reviewed NY M82559 and NY M84189 and has determined the ruling letters to be in error. It is now CBP’s position that the rolling pullman case, backpacks, a tote bag, and an insulated lunch bag are properly classified, by operation of GRIs 1 and 6, in heading 4202, HTSUS, specifically in subheadings 4202.12.20, HTSUS (rolling pullman case), 4202.92.10, HTSUS (insulated lunch bag), and 4202.92.45, HTSUS (backpacks and tote bag), as bags with an outer surface of other than textile materials.
CBP is proposing to revoke NY M82559 and NY M84189 and to revoke or modify any other ruling not specifically identified. Additionally, CBP is proposing to revoke any treatment previously accorded by CBP to substantially identical transactions.
In NY M82559 and NY M84189, CBP held that the essential character of the bags in question was determined by the textile material which comprised the majority of the external surface area of the bags, even though the plastic front panels featured visually appealing designs such as cartoon characters.
However, the relative external surface area is not the only factor in the classification of such bags. In this case, the plastic front panels of the instant bags feature the popular cartoon characters Dora the Explorer, Tinkerbell, and Spongebob, and characters from the Cars movie. These bags have an immediate visual appeal that is geared towards children, a particularly demanding and vociferous group of customers who are not likely to concern themselves with the composition, cost, sturdiness, or durability of a bag as opposed to the appeal of the design and the specific character represented. The plastic front panel of the instant bags is clearly distinct and given the factors discussed above, is likely to play a significant role in the decision to purchase and use the bag.
The rolling Pullman case is classified at subheading 4202.12.20, HTSUS, which provides for “Trunks, suitcases, vanity cases, attache 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: 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.” The 2016, column one, general rate of duty is 20% ad valorem.
The insulated lunch bag is classified at subheading 4202.92.10, HTSUS, which provides for “Trunks,...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: Insulated food or beverage bags: Other.” The 2016, column one, general rate of duty is 3.4% ad valorem.
The backpacks and tote bag are classified at subheading 4202.92.45, HTSUS, which provides for “Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers...: Other: With outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: Other.” The 2016 column one, general rate of duty is 20% ad valorem.
Before taking this action, consideration will be given to any written comments timely received. Comments must be received on or before August 5, 2016.
You can read the full text of Custom's proposed revocation of the 2006 Rulings in Customs Bulletin and Decisions Vol. 50, No. 27, beginning on Page 33.
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