Classification Change, Proposed Fee Reduction for Insulated Lunch Bags

On August 3, 2022, Customs Bulletin and RulingsU.S. Customs and Border Protection is proposing to reclassify insulated lunch bags as bags with a non-textile outer surface under HTSUS 4202.92.10 (3.4% duty) rather than bags with a surface synthetic textile outer under HTSUS 4202.92.08 (7 percent duty).

The articles in issue are constructed with an outer surface of olefin thermoplastic plastic sheets and synthetic textile material. The front panel is constructed entirely with an outer surface of textile material and the side panels are made of approximately 60% of this material, which according to the CBP “creates the most visible and stunning impact”. Forty percent of the side panels and all bottom and rear panels are plain black TPO sheet metal.

These bags are designed to provide storage, protection, organization and portability of food and beverages during travel and to maintain their temperature. The bags have an interior storage compartment with a plastic liner and a layer of plastic foam between the liner and the body. The bags have a flap with a snap buckle closure, a top carry handle and an open mesh pocket on the front exterior.

CBP states that it has always determined that the material making up the bulk of a bag’s exterior surface imparts its essential character, even when the front panel has a visually appealing design. At the same time, with respect to insulated coolers such as the bags at issue, CBP referred to GRI 3(c) in specific cases where it is not possible to determine whether the volume of the surface confers the character essence of an article. CBP concludes that, in this case, none of the materials can be considered to confer the essential character of the bags and therefore proposes to classify the bags in accordance with GRI 3(c) in the subheading that appears last in the order. among those that also deserve consideration.

NY decision N251467 would be revoked to reflect this change. Comments on this proposal are expected no later than September 2.

For more information on how to search or use classification and other rulings, please contact attorney Deb Stern at (305) 894-1007 or via email.

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