CLA-2 CO:R:C:T 953478 ch
Steve Liptak
Inter-Maritime Forwarding Co., Inc.
156 William Street
New York, New York 10038
RE: Revocation of NYRL 860858; classification of "Reprobond
RC/01 60 gm2" paper from the United Kingdom; coated v.
uncoated paper; Dillingham.
Dear Mr. Liptak:
New York Ruling Letter (NYRL) 860858, dated April 15, 1991,
concerned the classification of Reprobond paper under the
Harmonized Schedule of the United States Annotated (HTSUSA). We
have had occasion to review this ruling and find that the
classification of said merchandise under subheading 4810.11.9000,
HTSUSA, was in error.
FACTS:
The subject item is identified as "Reprobond RC/01 60 gm2"
paper. This merchandise consists of sheets of white translucent
paper weighing 60.0 grams per square meter, having a thickness of
0.065 mm, composed of more than 95 percent chemical bleached pulp
fibers and having a grease resistance greater than 1800 seconds.
Each sheet contains traces of kaolin (China clay) and titanium
dioxide on its surface. The paper will be imported in large
rolls, and it appears that the intended use for the finished
product will be the production of architectural or engineering
drawings on computer-directed dielectric plotters.
In NYRL 860858, the paper was classified under subheading
4810.11.9000, which provides for other clay-coated paper of a
kind used for writing, printing or other graphic purposes,
containing not more than 10 percent by weight of mechanical-
process fibers, weighing not more than 150 grams per square
meter.
ISSUE:
Whether Reprobond paper is classified under subheading
4810.11.9000, HTSUSA, which provides for other paper and
paperboard, coated on one or both sides with kaolin (China clay)
or other inorganic substances, or subheading 4806.20.0000,
HTSUSA, which provides for, inter alia, greaseproof papers and
other glazed transparent or translucent papers, in rolls or
sheets?
LAW AND ANALYSIS:
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRI). GRI 1 provides that
classification is determined first in accordance with the terms
of the headings of the tariff and any relative section or chapter
notes. Where goods cannot be classified on the basis of GRI 1,
the remaining GRI will be applied in order.
Heading 4810, HTSUSA, provides for:
Paper and paperboard, coated on one or both sides with
kaolin (China clay) or other inorganic substances, with
or without a binder, and with no other coating, whether
or not surface-colored, surface-decorated or printed,
in rolls or sheets. (Emphasis added).
This language indicates that kaolin and other inorganic
substances are regarded as coating agents when applied to the
surface of paper or paperboard.
Prior to May 20, 1991, it was our position that any
application of coating agents to the surface of paper or
paperboard would render it "coated" for the purposes of heading
4810. In NYRL 860858, dated April 15, 1991, the New York Customs
Laboratory noted the presence of kaolin and titanium dioxide (an
inorganic substance) on the surface of the subject merchandise.
Accordingly, this paper was regarded as "coated" for
classification purposes.
However, in E. Dillingham, Inc. v. United States, Slip Op.
91-40, dated May 20, 1991, the Court of International Trade
discussed the meaning of this term under the Tariff Schedules of
the United States (TSUS). In that case, the Court found that in
order for paper to be "coated," sufficient coating material must
be applied to constitute a "layer." A "layer" is formed by the
creation of "a new paper surface." Such a surface must be
"smoother and more uniform than the previous surface" in order to
meet the common industry understanding of the term "coated."
These findings represented a rejection of our position with
regard to this issue.
Although decided under the TSUS, we are of the opinion that
the discussion of "coated" paper in Dillingham is applicable to
"coated" paper under the HTSUSA. We have asked the New York
Customs Laboratory to re-examine the subject merchandise in light
of the standards enunciated in Dillingham. Under these
standards, the laboratory has determined that the subject
merchandise is "not coated." Hence, we are re-classifying this
item to reflect this finding.
Subheading 4806.20.0000, HTSUSA, provides in part for
greaseproof papers. The Explanatory Notes (EN) to heading 4806
state, in pertinent part, that greaseproof papers are
"translucent and to a large extent impervious to oil and grease."
The subject item fits this description. Accordingly, it is
classifiable under this subheading.
HOLDING:
The subject merchandise is classifiable under subheading
4806.20.0000, HTSUSA, which provides for vegetable parchment,
greaseproof papers, tracing papers and glassine and other glazed
transparent or translucent papers, in rolls or sheets:
greaseproof papers. This subheading is currently duty free.
This notice to you should be considered a revocation of NYRL
860858 under 19 CFR 177.9(d)(1).
Sincerely,
John Durant, Director