March 10, 2004 CBP Bulletin Notices on an Envelope-Style Clutch and Abdominal Training Systems
In the March 10, 2004 issue of the U.S. Customs and Border Protection Bulletin (CBPBulletin) (Vol. 38, No. 11), CBP issued notices (a) proposing to modify a classification ruling on an envelope-style clutch, and (b) proposing to revoke or modify two classification rulings regarding abdominal training systems. CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions that are contrary to its position in these notices.
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CBP states that any party who has received a contrary ruling or decision on the merchandise that is subject to the proposed modifications or revocation, or any party involved with a substantially identical transaction, should advise CBP by April 9, 2004, the date that written comments on these proposed rulings 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 these notices.
CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Proposed Modification of Classification Ruling
Envelope-style clutch with outer surface of leather. CBP states that at issue is model 39, which is a small envelope-style clutch container with an outer surface composed of leather that is also identified as an "Ensemble Clutch." The item measures approximately 4 inches in height by 7 inches in width by 1 inch in depth when empty and in the closed position. A metal zippered closure extends along three sides of the item's central compartment, and when unzipped, gussets allow the top opening of the central compartment to expand approximately 6 inches. Among other features, the item has various slots which are sized to contain credit cards and similar objects, and a check book cover is inserted permanently into a full-width slot. In addition, the spine of the flap has an opening allowing for the storage of a thin pen.
CBP is proposing to issue HQ 966842 in order to modify HQ 961942 and reclassify the clutch under HTS 4202.31.6000 as "other articles of a kind normally carried in the pocket or in the handbag with an outer surface of leather, etc." rather than under HTS 4202.21.6000 which provides for "other handbags, whether or not with shoulder strap, including those without a handle, with an outer surface of leather, etc.; valued not over $20 each."
CBP explains that the clutch should be classified as an article normally carried in the pocket or in the handbag because its compartments are fitted to hold items normally associated with a wallet, and they cannot easily accommodate small 3-dimensional items (e.g., a small hairbrush, cosmetics, etc.) when the container is in a closed position.
In addition, CBP states that although the clutch has a wrap-around zipper along the three sides of its central compartment, it functions mainly to secure its contents in the closed position and does not create an inner space suitable for carrying three-dimensional objects.
Therefore, CBP states that the clutch should be classified under HTS 4202.31.6000.
proposed: 4202.31.6000, 8%; current: 4202.21.6000, 10%.
Proposed Revocation or Modification of Two Classification Rulings
Abdominal training systems. According to CBP, at issue are the Slendertone FLEX (proposed HQ 966716) and the Fast Abs (proposed HQ 966973) which are battery-operated muscle stimulation apparatus designed to deliver electronic stimulation signals that are supposed to strengthen and tone the abdominal muscles (and regarding the Slendertone FLEX, without the wearer having to be physically active).
The Slendertone FLEX, among other things, is composed of five basic parts: (1) the main "flex" electrical unit which generates electronic stimulation signals and houses the batteries; (2) the belt, which is made of 100% nylon binding; (3) three adhesive pads which adhere to the belt and conduct the signals from the electrical unit to the abdominal muscles; (4) a nylon travel pouch; and (5) three AAA batteries.
The Fast Abs, among other things, includes a torso adjustable comfort zone belt, a leg and arm adjustable comfort zone belt, an advanced muscle stimulator pad with adjustable tabs, an advanced muscle stimulator unit and two lithium batteries. According to CBP, the system also includes a firming gel that provides the conduit from the belt's impulses to the muscle.
CBP is proposing to issue HQ 966716 and HQ 966973 in order to revoke NY I82223 and modify NY H86520, respectively, and classify the abdominal training systems at issue under HTS 8543.89.96 as "other electrical machines and apparatus, having individual functions, not specified or included elsewhere in Chapter 85, etc." rather than under HTS 9506.91.00 which provides for "articles and equipment for general physical exercise, gymnastics or athletics, etc."
Based on referenced definitions, CBP explains that it appears that for something to be considered exercise, it must involve some physical activity. CBP believes that no real physical activity is involved in using these abdominal training systems, and significantly, they are marketed to/designed for people who want the results of exercising without having to engage in an exercise activity.
Therefore, CBP states that because these abdominal training systems do not involve any active participation on the part of the user, CBP concludes that they should not be classified in HTS 9506 as articles and equipment for general physical exercise but rather should be classified in HTS 8543.89.96.
proposed: 8543.89.96, 2.6%; current: 9506.91.00, 4.6%.
March 10, 2004 CBP Bulletin (Vol. 38, No. 11) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2004/vol38_03102004_no11/