Polyethylene Hook and Handle Bags

HQ 954589 June 28, 1994 CLA-2 CO:R:C:F 954589 ALS CATEGORY: Classification TARIFF NO. 3926.90.9590 Mr. Gerard M. Du Corday Vice President Visions 10871 Thorley Road Santa Ana, CA 92705 RE: Polyethylene Hook and Handle Bags Dear Mr. Du Corday: This is reference to your request for reconsideration of Ruling 871719, dated February 26, 1992, issued by our New York Seaport Area Office (NYRL 871719), concerning the subject plastic bags. A sample of the subject bags was furnished with your request. FACTS: The articles under consideration are bags made of clear polyethylene plastic sheeting which is attached by means of a heat seal to a rigid plastic handle. The handle is composed to straight plastic strips, to which the polyethylene sheeting is attached, as well as providing a means to grip the handle and a hook with which to hang the bag and its contents on a rack. The bags come in a variety of sizes depending on the merchandise to be placed therein. ISSUE: What is the classification of polyethylene plastic bags with a handle that permits carrying and hanging. LAW AND ANALYSIS: Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by - 2 - the General Rules of Interpretation (GRI's). GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes. If GRI 1 fails to classify the goods and if the headings and legal notes do not otherwise require, the remaining GRI's are applied, taken in order. In considering the classification of the bags we noted that they are of a heavier gauge than a typical plastic shopping bag and that they have a hook/handle. It is noted that these bags come in 7 sizes and that, according to the sales literature provided, they are designed to accommodate various products and to "assure maximum protection of visibly stored contents." They are referred to as multi-media Display-Storage-Circulation Bags which provide "see-thru storage, easy filing and retrieval, direct charge-out." The sales literature shows the bags are designed to hang on various racks. Such literature is replete with references to the bags hanging and display capabilities, e.g., "store and circulate in one bag and hang your bags where you want", the handle design "lets you hang and display...." The bag is noted to be reusable. Information submitted with the reconsideration request indicates that the bags are designed for display and take-out conveyance. Their use by various businesses for display and conveyance purposes is noted. Their use for conveyance is only noted in the reconsideration request. While we do not question that the design of the handle would permit the bags and their content to be carried, we believe this is a very limited capability. In gripping the handle we noted that the hook portion thereof actually interfered with our ability to close a hand and carry the bag and its contents in a manner similar to the way one would carry a shopping bag from the store to one's destination. This fact and the fact that the bags are composed of a heavier gauge plastic than one would normally find in a shopping bag causes us to conclude that the primary purpose of the subject bags is not for conveyance and packing of goods but for storage and display. HOLDING: A hook handle plastic bag which, while permitting limited conveyance of its contents, is primarily designed to store and display merchandise therein, is classifiable in subheading 3926.90.9590, HTSUSA, as other articles of plastics and articles - 3 - of other materials. Such merchandise is subject to a general rate of duty of 5.3 percent ad valorem. NYRL 871719 is affirmed. Sincerely, John Durant, Director Commercial Rulings Division