CLA-2 CO:R:C:F 087685 RFC
Ms. Loretta J. Evans
Customer Service
Arthur Fritz & Co.
P.O. Drawer G
Blaine, Washington 98230
RE: Modification of Headquarters Ruling Letter (HRL) 084716;
coated paper
Dear Ms. Evans:
In HRL 084716, dated September 14, 1989, you were issued a
tariff classification ruling under the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA) for a textile-reinforced
paper identified as "Lumberwrap Type I." In HRL 084716,
Lumberwrap Type I was classified under heading 4823 of the
HTSUSA. Upon review and reconsideration and for the reasons set
forth below, we have determined that Lumberwrap Type I is
properly classified under heading 4811 of the HTSUSA.
FACTS:
Lumberwrap Type I is a textile-reinforced paper used for
packaging kiln-dried lumber. It consists of kraft paper that is
surface coated on one side with polyethylene followed by a layer
of woven polyolefin fibers (plastic textile scrim). (The
polyethylene or plastic coating on the kraft paper acts as a
binder for the scrim and imparts strength and moisture-resistance
qualities to the kraft paper.)
ISSUE:
What is the proper tariff classification under the HTSUSA of
kraft paper that is surface coated on one side with plastic
followed by a layer of plastic textile scrim?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRIs). GRI 1 states, in
part, that "for legal purposes, classification shall be
determined according to the terms of the headings and any
relative section or chapter notes and..., [unless otherwise
required, then according to the remaining GRIs, taken in
numerical order]." When goods are, prima facie, classifiable
under two or more headings, classification is to be effected
pursuant to the provisions of GRI 3. GRI 3(b) states, in part,
that "[m]ixtures [and] composite goods consisting of different
materials or made up of different components...which cannot be
classified by reference to 3(a)...[(i.e., there exists no heading
that provides the most specific description among headings
providing a more general description)], shall be classified as if
they consisted of the material or component which gives them
their essential character...." Explanatory Note Rule 3(b)(VIII)
states, in part, that "[t]he factor which determines essential
character will vary as between different kinds of goods. It may,
for example, be determined by the nature of the material or
component, its bulk, quantity, weight or value, or the role of a
constituent material in relation to the use of the goods."
In the instant case, the product is a composite good
consisting of plastic coated kraft paper and a plastic textile
scrim. The plastic coated kraft paper is classified under
heading 4811 as paper coated with plastics; and the plastic
textile scrim is classified under heading 5407 as woven fabrics
of synthetic filament yarn. As both of these headings provide
for articles of which the instant product is composed, the
product is, prima facie, classifiable under both of these
headings. GRI 3(b), therefore, is applicable to the instant
classification analysis.
As imported, the product is merely a paper packaging
material for industrial use. The consistency and moisture-
resistant properties of the coated kraft paper is what gives the
product its commercial appeal as a packaging material. On the
other hand, the scrim is merely included as a component to give
the paper added support, and the scrim does not impart the
above-mentioned qualities to the product that the paper does.
Therefore, the role of the coated kraft paper in relation to the
use of the product gives the product it essential character. The
instant product, thus, must be classified as if consisting of the
coated kraft paper, pursuant to GRI 3(b).
HOLDING:
The paper identified above as Lumberwrap Type I is
classified under subheading 4811.39.4040, HTSUSA, which provides
for paper and paperboard coated, impregnated or covered with
plastics, other, other, other. Products classified under this
subheading may be entered free of duty.
In light of the above, HRL 084716 is hereby modified as it
concerns the tariff classification of the paper product
identified therein as Lumberwrap Type I. See 19 C.F.R.
177.9(d).
In order to insure uniformity in Customs' classification of
this merchandise and to eliminate uncertainty, we are modifying
HRL 084716 to reflect the above classification effective as of
the date of this letter. If after review of this modification,
you disagree with the legal basis for our decision, we invite you
to submit any arguments that you may have with respect to this
matter for our review. Your arguments should be received by this
office within thirty (30) days of the date of this letter.
As indicated above, this notice should be considered a
modification of HRL 084716 under 19 CFR 177.9(d)(1). It will
not be applied retroactively to HRL 084716 (19 CFR 177.9(d)(2))
and will not, therefore, affect past transactions for the
importation of the merchandise under that ruling. HRL 084716
will not, however, be valid precedent for future transactions to
the extent it has been modified by this letter. We recognize
that pending transactions may be adversely affected by this
modification, in that current contracts for importations arriving
at a port subsequent to this decision will be classified pursuant
to it. If such a situation arises, your client may, at its
discretion, notify this office and apply for relief from the
binding effects of this decision as may be warranted by the
circumstances. Please be advised, however, that in some
instances involving import restraints, such relief any require
separate approvals from other government agencies.
Sincerely,
John Durant, Director
Commercial Rulings Division