May 26, 2004 CBP Bulletin Notices on an Envelope-Style Clutch and Abdominal Training Systems
In the May 26, 2004 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 38, No. 22), CBP issued notices: (a) modifying a classification ruling on an envelope-style clutch, and (b) revoking or modifying two classification rulings regarding abdominal training systems. CBP states that it is also revoking any treatment it has previously accorded to substantially identical transactions that are contrary to its position in these notices.
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With respect to these modifications and revocation, CBP states that these actions are effective for merchandise entered or withdrawn from warehouse for consumption on or after July 25, 2004.
CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Modification of Classification Ruling
Envelope-style clutch with outer surface of leather. At issue is a small envelope-style clutch container with an outer surface composed of leather.
CBP is issuing HQ 966842 in order to modify HQ 961942 and reclassify the clutch under HTS 4202.31.6000 which provides for "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 is 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 these compartments cannot easily accommodate small 3-dimensional items (e.g., a 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.
(See ITT's Online Archives or 03/17/04 news, 04031750, for BP summary of the proposed ruling, including a complete description of the clutch.)
new: 4202.31.6000, 8%; previous: 4202.21.6000, 10%.
Revocation or Modification of Two Classification Rulings
Abdominal training systems. At issue are the Slendertone FLEX and the Fast Abs which are battery-operated muscle stimulation apparatus designed to deliver electronic stimulation signals that are supposed to strengthen and tone the abdominal muscles.
CBP is issuing HQ 966716 and HQ 966973 in order to revoke NY I82223 and modify NY H86520, respectively, and classify the subject systems under HTS 8543.89.9695 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 as "other articles and equipment for general physical exercise, gymnastics or athletics, etc."
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 concludes that they are not classified in HTS 9506 as articles and equipment for general physical exercise but rather are classified in HTS 8543.89.9695.
(See ITT's Online Archives or 03/17/04 news, 04031750, for BP summary of the proposed rulings, including a complete description of the systems. Subscribers should note that in the proposed rulings, CBP had only specified the proposed classification up to the eight-digit level.)
new: 8543.89.9695, 2.6%; previous: 9506.91.00, 4.6%.
May 26, 2004 CBP Bulletin (Vol. 38, No. 22) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2004/vol38_05262004_no22/