CLA-2 CO:R:C:M 956733 KCC

Ralph H. Sheppard, Esq.
Adduci, Mastriani, Schaumberg & Schill
330 Madison Avenue
39th floor
New York, New York 10017

RE: Labels; aluminum foil covered paper; paper coated with metal powder; uncoated paper; lithographic process; General EN, chapter 48; Note 1(m), chapter 48; EN 48.21; 4911; paper and paperboard labels of all kinds; GRI 3(a); EN 49.11; 7606; aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm

Dear Mr. Sheppard:

This is in response to a letter dated June 30, 1994, from Trans-Border Customs Services, Inc., on behalf of Jonergin (1985) Inc., regarding the tariff classification of labels under the Harmonized Tariff Schedule of the United States (HTSUS). Samples were submitted for our examination. By a letter dated October 25, 1994, you advised us of your representation of Jonergin regarding this matter. Additional information provided in your submission of November 11, 1994, and at a meeting held on February 8, 1995, was taken into consideration in rendering this decision.

FACTS:

The merchandise under consideration are three types of labels designed primarily for the wine and spirits industry to be attached to bottles containing liquor and alcoholic beverages. The labels, which are customized to the users specifications and identify product, price and warning information, will be imported in a finished, cut to shape, ready to use state.

Type A labels are produced by reinforcing sheets of 41 lbs/3000 sq. feet weight paper with one thin sheet of aluminum foil of 11.613 lbs/3000 sq. feet. The foil side does not exceed .000275 mm. The paper is approximately 75% and the foil is approximately 21% of the weight of the completed Type A label. The remaining 4% of weight is attributable to the adhesive and lacquer. The labels are printed by a lithographic process with up to six different colored inks. Then they are embossed and varnished. The labels are then die cut from the printed, embossed and varnished sheets. The aluminum foil gives retention to the embossing of the label; it does not show through the label's colored printed surface.

Type B labels are made on paper coated with a metal powder. The coating is created by blowing a fine metal powder onto the paper surface in an electrostatic process. The paper used in this label is normally of a lighter weight than that used in the production of the Type A labels. This results in a more flexible and slightly cheaper label. Type B labels are printed by a lithographic process with up to six different colored inks and are embossed. The labels are then die cut from the printed and embossed sheets.

Type C labels are printed by a lithographic process, with up to six different colored inks, on uncoated paper. The labels are then cut from the printed sheets. The submitted sample is embossed.

You claim that the labels should be classified as paper and paperboard labels under subheading 4821.10.20 or 4821.10.40, HTSUS, depending on whether or not a lithographic printing process is used, or, alternatively, as other printed matter under subheading 4911.91.10, HTSUS.

The competing headings are as follows:

4821 Paper and paperboard labels of all kinds, whether or not printed....

4911 Other printed matter, including printed pictures and photographs....

7606 Aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm....

ISSUE:

Are the Type A, B and C labels classified under heading 4821, HTSUS, as paper and paperboard labels? LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, 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...."

Note 1(m), chapter 48, HTSUS, states that chapter 48, HTSUS, does not cover:

Metal foil backed with paper or paperboard (section XV)....

The Type A label is not "metal foil backed with paper or paperboard." It is an actual label made from paper covered with aluminum foil, printed by a lithographic process, embossed, varnished, cut to shape and ready for attachment to a bottle. Therefore, this exclusion is inapplicable to the Type A labels.

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, although not dispositive, provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the HTSUS. See, T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

General EN, chapter 48 (pgs. 664-669), describes various types of paper and paperboard, including coated paper and paperboard, which are classifiable in chapter 48, HTSUS. Additionally, General EN, chapter 48 states that powdered metal is a substance used in coating paper.

EN 48.21 (pg. 687), states that:

This heading covers all varieties of paper and paperboard labels of a kind used for attachment to any type of article for the purpose of indicating its nature, identity, ownership, destination, price, etc. They may be of the stick-on type (gummed or self-adhesive) or designed to be affixed by other means, e.g., string.

These labels may be plain, printed to any extent with characters or pictures, gummed, fitted with ties, clasps, hoods or other fasteners or reinforced with metal or other materials. They may be perforated or put up in sheets or booklets...

The heading does not cover "labels" consisting of a relatively strong sheet of base metal covered on one or both sides with a thin sheet of paper, whether or not printed (headings 73.26, 76.16, 79.07, etc., or heading 83.10) (emphasis in original).

Based on the terms of the heading 4821, HTSUS, and the ENs, we are of the opinion that the Type A, B and C labels are classified under heading 4821, HTSUS, as paper and paperboard labels.

The Type A labels are not "'labels' consisting of a relatively strong sheet of base metal covered on one side with a thin sheet of paper." The Type A labels are made by reinforcing sheets of 41 lbs/3000 sq. feet weight paper with one thin sheet of aluminum foil of 11.613 lbs/3000 sq. feet. The paper is approximately 75% and the foil is approximately 21% of the weight of the completed Type A label. The remaining 4% of weight is attributable to the adhesive and lacquer. The Type A labels are not excluded from classification under heading 4821, HTSUS.

Additionally, the Type B label which is printed on paper with a powdered metal coating and the Type C label which is printed on uncoated paper by a lithographic process are classified under heading 4821, HTSUS. Specifically, the Type A, B and C labels are classified under subheading 4821.10.20, HTSUS, which provides for "Paper and paperboard labels of all kinds, whether or not printed...Printed...Printed in whole or in part by a lithographic process."

The labels are not classifiable under heading 4911, HTSUS, as "Other printed matter, including printed pictures and photographs...." GRI 3(a), HTSUS, states that "[t]he heading which provides the more specific description shall be preferred to headings providing a more general description." We are of the opinion that heading 4821, HTSUS, which provides for paper and paperboard labels of all kinds, is more specific than heading 4911, HTSUS. Additionally, EN 49.11 (pgs. 699-700) states that:

This heading covers all printed matter (including photographs and printed pictures) of this Chapter (see the General Explanatory Note above) but not more particularly covered by any of the preceding headings of the Chapter...

The following articles, in particular, are also excluded from this heading:...

(b) Goods of heading 39.18, 39.19, 48.14 or 48.21 or printed paper products of Chapter 48 in which the printed characters or pictures are merely incidental to the primary use of the products (emphasis in original).

Pursuant to EN 49.11, the labels at issue are excluded from classification under heading 4911, HTSUS.

Heading 7606, HTSUS, provides for "Aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm." Since the Type A label is an actual label made from paper covered with aluminum foil, printed by a lithographic process, embossed, varnished, cut to shape and ready for attachment to a bottle, we are of the opinion it is not classifiable under heading 7606, HTSUS, as aluminum foil. As discussed above, the Type A label is specifically provided for under subheading 4821.10.20, HTSUS.

HOLDING:

The Type A, B and C labels are classified under subheading 4821.10.20, HTSUS, which provides for "Paper and paperboard labels of all kinds, whether or not printed... Printed...Printed in whole or in part by a lithographic process." This tariff provision is dutiable at the specific rate of 7.9›/kg.

Sincerely,

John Durant, Director
Commercial Rulings Division