Size Is Differentiator Between Handbag and Tote Bag Classification, CBP Says

The size of imported bags from China is the determining factor for classification as either a handbag or a tote bag, CBP said in Aug. 17 ruling that was recently released (here). Kohl's Department Stores requested reconsideration of a 2008 CBP ruling that also classified the bags as tote bags. "Although the bag at issue is a larger sized bag, it is designed as a daily use handbag, fitting with the current fashion trends," Kohl's said to CBP in its 2008 request for reconsideration. The handbag classification includes a 16 percent duty rate, whereas the tote bag classification has a 20 percent duty rate.

The bag's outer surface is made with plastic sheeting embossed with a snakeskin pattern and "is designed to provide storage, protection, portability, and organization to clothing and other personal effects during travel," said CBP. While the term "handbag" is not defined within the Harmonized Tariff Schedule of the U.S. (HTS), previous CBP rulings have used dictionary definitions that establish "the common meaning of a handbag is a bag carried by women to hold small personal items such as money, credit cards and cosmetics," CBP said. Even though a 1988 court decision said “tote bags are utilized by women as second handbags to carry items which do not ordinarily fit within a handbag,” that decision isn't binding because it was focused on a provision within the Tariff Schedule of the U.S., a predecessor of the HTS, CBP said.

The agency also previously classified similar merchandise in its rulings based on several factors that distinguish handbags from tote bags, it said. "Handbags are typically smaller than tote bags, are designed to carry small personal items, include an inner lining, are reinforced along the bottom and corners, incorporate a substantial closure such as a zipper closure and include compartments to organize small personal items," CBP said. Tote bags, on the other hand, generally have at least one side that exceeds 12 inches in length to allow for a user to carry food, books or clothing, CBP said.

The Kohl's bag at issue "measures 22” wide, .5” deep and 18” high," CBP said. "It is, therefore, substantially larger and has greater capacity to hold larger items." As a result, the bag should be classified in subheading 4202.92.45, which provides for “[T]raveling bags … handbags … 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 ….” The decision affirms CBP's previous ruling and the 20 percent rate of duty.