H328217

HQ H328217 June 9, 2023 OT:RR:CTF:CPMMA H328217 DAC CATEGORY: Classification TARIFF: 4202.92.45 Center Director Consumer Products & Mass Merchandising Center of Excellence and Expertise 157 Tradeport Drive, Suite B Atlanta, Georgia 30354 Attn: SCBPO Terri L. Edward, Port Director of New Orleans RE: Internal Advice; Classification of 100% coated polypropylene bags. Dear Center Director: This is in response to the August 28, 2020, request for Internal Advice made by counsel on behalf of Beads by the Dozen (hereinafter, “Beads” or “requester”), regarding the classification of 100% coated polypropylene bags for use in parades. The requestor contends that the subject merchandise should be classified under subheading 6305.33.0040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for, “[s]acks and bags, of a kind used for the packing of goods: Of man-made textile materials: Other, of polyethylene or polypropylene strip or the like.... Other: Weighing less than 1 kg, with an outer laminated ply of plastics sheeting[.]” Similarly, Beads contends in the internal advice submission that the merchandise was initially misclassified by U.S. Customs and Border Protection (CBP) under heading 4202, HTSUS, rather than in heading 6305, HTSUS, based on an inaccurate product description. FACTS: The subject merchandise was imported into the United States through the Service Port of New Orleans. According to the internal advice submission from Beads “the bags are made of 100% polypropylene material coated with a thin layer of oriented polypropylene to allow a logo to be printed on the sides of the bag.” Beads further states that “the manufacturer constructs the bags by putting together thin strips of polypropylene; the thickness of each strip is between 1.7 mm to 2.0 mm.” Additionally, Beads states the bags are used in New Orleans for the storage and transport of beaded novelty necklaces, also known as the “beads,” before, during and after festivals and parades held in New Orleans. The submission further states that the sturdy construction of the bag is to ensure the bags can carry up to 31 pounds of beads and can withstand inclement weather, and the handle of the bag makes carrying the fully loaded bags less cumbersome and the zipper enables the bags to be securely closed. Images of a sample of the subject bags are provided below. 
 
 Image of sample bag Top view of sample bag (zipper closed) 
 
 Top view of sample bag (zipper open) Detail of handle on bag Prior to February 2011, Beads imported polypropylene bags from China under subheading 3923.29.0000, HTSUSA, which provides for “Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Sacks and bags (including cones): Of other plastics,” with a duty rate of 3 percent ad valorem. In February 2011, Beads was advised via a CF29 for Entry xxx-xxx5164 that the plastic zipper bag with handle, item K-ZB/Crown/01, would be properly classified under 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 plastics or of a textile materials: Other,” and rate advanced to 20 percent ad valorem. In April 2011, Beads was advised via a CF29 that the 19 x 19 blue plastic zip bag with a 36” handle would also be correctly classified under heading 4202, HTSUS. Beads was advised that the article was a reusable shopping-style tote bag with an outer surface of plastic sheeting designed for prolonged use. In October 2011, CBP denied three (3) protests, 2002-11-100035, 2002-11-100081, and 2002-11-100036 and informed Beads that the reusable shopping style tote bags were properly classified under subheading 4202.92.4500, HTSUSA. On August 28, 2020, Beads filed a request for internal advice with the Port of New Orleans which was forwarded to CBP Headquarters. Since 2011, Beads has imported its bags under subheading 4202.92.4500, HTSUSA. However, they contend that the bags are now properly classified under subheading 6305.33.0040, HTSUSA, which provides for “Sacks and bags, of a kind used for the packing of goods: Of man-made textile materials: Other, of polyethylene or polypropylene strip or the like…. Other: Weighing less than 1 kg, with an outer laminated ply of plastics sheeting: Printed with three or more colors,” with a duty rate of 8.4 percent ad valorem. ISSUE: Whether the subject “bead sacks” are classified in heading 4202, HTSUS, as “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 textile materials,” or in heading 6305, HTSUS, as “sacks and bags, of a kind used for the packing of goods.” LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI’s). “GRI 1 dictates that classification shall be determined according to the terms of the headings and any relative section or chapter notes.” Amcor Flexibles Singen GmbH v. United States, 425 F. Supp. 3d 1287, 1298 (C.I.T. 2020). 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’s 2 through 6 may then be applied in order. GRI 6 states that, “[f]or legal purposes, the classification of goods in the subheadings 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.” Additional U.S. Rule of Interpretation 1(a), HTSUS, provides, in relevant part, that: In the absence of special language or context which otherwise requires: … a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the controlling use is the principal use. * * * The HTSUS 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: (con.) Other: (con.) 4202.92 With outer surface of sheeting of plastics or of textile materials: (con.) Travel, sports and similar bags: (con.) 4202.92.45 Other * * * 6305 Sacks and bags, of a kind used for the packing of goods: Of man-made textile materials: 6305.33.00 Other, of polyethyl

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI’s). “GRI 1 dictates that classification shall be determined according to the terms of the headings and any relative section or chapter notes.” Amcor Flexibles Singen GmbH v. United States, 425 F. Supp. 3d 1287, 1298 (C.I.T. 2020). 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’s 2 through 6 may then be applied in order. GRI 6 states that, “[f]or legal purposes, the classification of goods in the subheadings 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.” Additional U.S. Rule of Interpretation 1(a), HTSUS, provides, in relevant part, that:In the absence of special language or context which otherwise requires:… a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the controlling use is the principal use.*    *    *The HTSUS provisions under consideration are as follows:4202 Trunks, suitcases, vanity cases, attaché cases, briefcases,school satchels, spectacle cases, binocular cases, cameracases, musical instrument cases, gun cases, holsters andsimilar containers; traveling bags, insulated food or beveragebags, toiletry bags, knapsacks and backpacks, handbags,shopping bags, wallets, purses, map cases, cigarette cases,tobacco pouches, tool bags, sports bags, bottle cases, jewelryboxes, powder cases, cutlery cases and similar containers, ofleather or