HQ 087079: Paper Bags; Modification of Headquarters Ruling Letter (HRL) 084847

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 087079

                          June 12, 1990

CLA-2 CO:R:C:G 087079  WAW

CATEGORY:  Classification

TARIFF NO.:  4819.40.0040

Mr. Mark McLaughlin
The Pack America Corp.
630 Fifth Avenue
Suite 2260
New York, N.Y.  10111

RE:  Paper Bags; Modification of Headquarters Ruling Letter (HRL)
     084847

Dear Mr. McLaughlin:

     This letter is in response to your inquiry, dated April 20,
1990, concerning the tariff classification under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA) of paper
shopping bags.  Samples of the subject merchandise were submitted
along with your ruling request.

FACTS:

     The merchandise the subject of this ruling consists of flat-
bottomed paper shopping bags, designated as OF-J bags, covered
with a plastic laminate or overlay.  The bags are manufactured in
eight standard sizes and are decorated on both sides with various
multicolored motifs.  However, the importer primarily
manufactures the paper shopping bag in the following four sizes
expressed in inches:  16 X 6 X 19, 12-2/5 X 4-3/8 X 11, 11 X 4-
3/8 X 13, 8-5/8 X 4-1/2 X 10-5/8.  Two reinforced braided textile
cords are attached to the upper portion of the bag as handles.
The importer has stated in his submission that the shopping bags
are designed for resale and marketed as an alternative to
wrapping paper.  The sample merchandise will be imported from
Japan.

ISSUE:

     Whether the laminated paper shopping bags are classifiable
as other sacks and bags of paper under Heading 4819, HTSUSA, or
as other articles of paper under Heading 4823, HTSUSA.

LAW AND ANALYSIS:

     The General Rules of Interpretation (GRI's) set forth the
manner in which merchandise is to be classified under the HTSUSA.
GRI 1 requires that classification be determined first according
to the terms of the headings of the tariff and any relative
section or chapter notes and, unless otherwise required,
according to the remaining GRI's, taken in order.  With regard to
the instant shopping bags, the two headings at issue are the
following:

     (1)  4819, Cartons, boxes, cases, bags and other
          packing containers, of paper, paperboard,
          cellulose wadding or webs of cellulose
          fibers; box files, letter trays and similar
          articles, of paper or paperboard of a kind
          used in offices, shops or the like.

     (2)  4823, Other paper, paperboard, cellulose
          wadding and webs of cellulose fibers, cut to
          size or shape; other articles of paper pulp,
          paper, paperboard, cellulose wadding or webs
          of cellulose fibers.

     Since the two headings enumerated above appear to describe
the subject merchandise, classification cannot be determined by
applying GRI 1 alone, and reference to the subsequent GRI's is
necessary.

     GRI 2(a) and GRI 2(b) are not applicable in this case, since
the merchandise is neither an incomplete or unfinished article,
nor does it consist of a mixture or combination of materials or
substances.  However, when goods are prima facie classifiable
under two or more headings, as in the instant case, GRI 3 is
applicable.  GRI 3(a) provides the following:

     (a) The heading which provides the most specific
     description shall be preferred to headings providing a
     more general description. . . .

     Therefore, the inquiry in this case centers on the
determination of which of the competing provisions enumerated
above most accurately describes the sample paper shopping bags.

     The Explanatory Notes constitute the official
interpretation of the tariff at the international level.  The
Explanatory Notes to Heading 4819, HTSUSA, state, in pertinent
part, that this heading covers cartons, boxes, cases, bags and
other packing containers.  These notes also state:

     This group covers containers of various kinds and sizes
     generally used for the packing, transport, storage or
     sale of merchandise, whether or not also having a
     decorative value.  The heading includes cartons, boxes,
     cases, bags, cones, packets, sacks, paperboard drums
     (containers), whether manufactured by rolling or by
     any other method. . . .

     The articles of this group may be printed, e.g., with
     the name of the merchant, directions for use,
     illustrations. . . .

     Based on the above Explanatory Notes and the terms of
Heading 4819, HTSUSA, it is clear that this heading accurately
describes the subject merchandise and that Heading 4823, HTSUSA,
being in the nature of a basket provision for "Other" paper,
would only describe the merchandise in the absence of a specific
provision.  The instant bags are manufactured with various
decorative motifs on both sides and are marketed to retail stores
as an alternative to wrapping paper.  In additiion, all of the
bags have reinforced handles and are of sufficient size to be
used as a means of carrying articles.  Accordingly, it is Customs
view that an article, such as the sample merchandise, which may
be sold at retail as a form of wrapping paper and is of ample
size and construction to hold and transport articles, is properly
classifiable as a paper bag or sack within Heading 4819, HTSUSA.

     In two Headquarters Ruling Letters (HRL) Customs has
classified similar paper shopping bags in separate headings.  In
HRL 084847, dated October 6, 1989, Customs held that similar
coated paper bags, which are sold as merchandise, and used as a
form of wrapping paper are classified under Heading 4823, HTSUSA,
as other articles of coated paper.  In HRL 085559, dated April
13, 1990, Customs held that paper shopping bags, which are of
ample size to facilitate the packing, transport or sale of
merchandise, are classified under Heading 4819, HTSUSA.  In the
instant case, the importer has stated that the paper bags will be
sold as merchandise and used as a form of wrapping paper, thus
falling within the criteria of HRL 084847.  However, it is clear
that since the sample merchandise is of ample size and
construction to facilitate the storage and transportation of
merchandise, it falls within the scope of HRL 085559.  It is our
position that despite the fact that the sample shopping bags may
be sold separately as merchandise, they still qualify as a sack
or bag under Heading 4819, HTSUSA, provided that they are
suitable for the "packing, transport, storage or sale of
merchandise."

HOLDING:

     In view of the foregoing analysis, it is Customs position
that the paper shopping bags with a base width of less than 40
cm. are suitable for the transportation and storage of
merchandise, and are properly classifiable under subheading
4819.40.0040, HTSUSA.  Merchandise classified under this
subheading is subject to a duty rate of 5.3 percent ad valorem.

     HRL 084847 is hereby modified pursuant to 19 CFR 177.9(d).

                                   Sincerely,




                                   John Durant, Director
                                   Commercial Rulings Division