March 29, 2006 CBP Bulletin Notice on Leather Card Case With a Detachable Money Clip/Watch

CBP states that any party who has received an interpretive ruling or decision on merchandise subject to this notice, and/or any person involved in substantially identical transactions should advise CBP by April 28, 2006, the date that written comments on the proposed ruling 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 this notice.

CBP also states that this notice covers any rulings on the subject merchandise that may exist but have not been specifically identified.

Proposed Modification of a Classification Ruling

Leather card case with a detachable money clip that has a built-in watch. At issue is a cowhide leather card case which has a removable, metal money clip. The money clip has a built-in quartz watch. The card case measures approximately 3 and 3/4 inches by 3 inches, and has three large pockets; two of the pockets can be used for holding business cards, credit cards or paper currency while the third pocket is smaller and is intended for the metal money clip/watch to slide in to attach to the leather card case. The money clip/watch is easily removed and may be used separately from the leather card case.

CBP is proposing to issue HQ 967392 in order to modify NY K89720 to reflect the proper classification of the subject merchandise under HTS 4202.31.6000, as articles of a kind normally carried in the pocket or in the handbag: with outer surface of leather, of composition leather or of patent leather: other.

In NY K89720, CBP found that the subject leather card case with a detachable money clip that has a built-in watch was not a composite good, and therefore, the leather card case must be classified separately from the money clip with built-in watch. CBP also notes that the money clip/watch was not classified because there was insufficient information provided. CBP has reviewed the matter and determined that the correct classification of the item as a whole is as a General Rule of Interpretation (GRI) 3(b) set.

GRI 3(b) states in part, that the term "goods put in sets for retail sale" will be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings, (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g. in boxes or cases or on boards).

CBP finds that the leather card case is classifiable in heading 4202, and the money clip/watch is classifiable in heading 9102; thus, satisfying the first criteria from above. Next, CBP states that the subject merchandise is manufactured so that the money clip may be attached to the leather card case and used together for the purposes of holding money, identification, credit cards, and business cards. Lastly, the subject merchandise is packaged for sale directly to the public. Therefore, CBP finds that the subject leather card case and money clip/watch qualify as a set pursuant to the provisions of GRI 3(b) from above.

Furthermore, GRI 3(b) states that sets are to be classified as if they consisted of the material or component which gives them their essential character. CBP explains that the bulk of the set is provided by the leather card case and that the money clip/watch attaches to the leather card case. The role of the leather card case is to secure the valuables for carrying in the pocket whereas the money clip/watch functions in conjunction with the back of the leather card case. Therefore, CBP finds that the essential character of the subject merchandise is determined by the leather card case, which is classified in HTS heading 4202.31.6000.

CBP notes that the money clip of base metal of heading 7326 and watch of heading 9102 are permanently attached, thereby qualifying as a composite good. In addition, the watch component is the more complex, heavy and valuable component; therefore, the essential character of the money clip with built-in watch is determined to by the watch component, and as considered individually, is classifiable under HTS 9102.91.4000.

proposed and current classification: HTS 4202.31.6000, 8%.

March 29, 2006 CBP Bulletin (Vol. 40, No. 14) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_03292006_no14/