CLA-2 OT:RR:CTF:EMAIN H251008 SKK
Sandra Liss Friedman
Barnes, Richardson & Colburn, LLP
475 Park Avenue South
New York, NY 10016
RE: Revocation of NY N246471 (10/29/13); 8443.99.25, HTSUS; media roll assemblies of pressure-sensitive tape and labels imported on reels with code apertures and designed solely for use with specific machine; GRI 1; Section XVI Note 2(b).
Dear Ms. Friedman:
This letter is in response to your November 27, 2013, request for reconsideration of New York Ruling Letter (NY) N246471, issued to Brother International, Inc. on October 29, 2013, concerning the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of four types of media roll assemblies. In NY N246471, U.S. Customs and Border Protection (CBP) classified the subject articles as follows:
Item DK-2113 (self-adhesive continuous plastic tape on a plastic reel with code apertures), under subheading 3919.10.20, HTSUS, which provides for self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics…in rolls of a width not exceeding 20 cm: other.
Item DK-1207 (self-adhesive die-cut plastic labels on a plastic reel with code apertures), under subheading 3919.90.50, HTSUS, which provides for self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls: other: other.
Item DK-2205 (self-adhesive continuous length paper tape on a plastic reel with code apertures), under subheading 4811.41.21, HTSUS, which provides for paper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810: gummed or adhesive paper and paperboard: self-adhesive: other.
Item DK-1209 (die-cut small self-adhesive paper address labels on a plastic reel with code apertures), under subheading 4821.90.20, HTSUS, which provides for paper and paperboard labels of all kinds, whether or not printed: other (than printed).
Upon reconsideration, we have determined NY 246471 to be in error. Pursuant to the analysis set forth below, CBP is revoking NY N246471.
On May 9, 2018, pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1), as amended by section 623 of Title VI, notice of the proposed action was published in the Customs Bulletin Vol. 52, No. 19. No comments were received in response to that notice.
FACTS:
In NY N246471 the subject merchandise was described as follows:
DK-1207 consists of die-cut self-adhesive plastic CD/DVD labels on a plastic reel with code apertures.
DK-1209 consists of die-cut small self-adhesive paper address labels on a plastic reel with code apertures.
DK-2113 consists of self-adhesive continuous length plastic tape on a plastic reel with code apertures.
DK-2205 consists of self-adhesive continuous length paper tape on a plastic reel with code apertures.
The self-adhesive labels and the continuous length tapes are imported on plastic reels which are designed for use with Brother QL Series Label Printers. Each QL printer is intended to work with specific DK media rolls. The label printers are PC or Mac connectable thermal transfer printers which can print up to 50 labels per minute. Two of the DK media rolls, DK-1209 and DK-1207, consist of die-cut labels which are fed through the appropriate QL printer model to create printed labels. As these are pre-cut, the finished label is peeled off the backing material. DK media rolls DK-2205 and DK 2113 both contain continuous length tape that can be programmed through the QL printer to be cut to specific lengths. In order to load the QL printer with the DK media roll, the user must snap the DK media roll into a compatible QL printer in the center of the carriage. Each model is wound onto a plastic reel or holder that incorporates a unique combination of blocked and open holes in its code aperture. The code aperture allows the printer to distinguish which particular DK media roll is in the printer. A blocked hole will activate the associated switch in the media center switch assembly. When the DK media roll is snapped into the machine, certain switches are engaged while others are not. Switches that touch an area where there is no open hole will be engaged. The holes vary in size as between the different DK tapes as the QL printers have various size media sensor assemblies. When the DK media roll is inserted and the switches are engaged, the
media sensor switch assembly sends a code to the printer which is checked by the printer’s software. This lets the printer know which model DK media roll is in the machine to inform the print area for the specific DK tape which has been inserted. If an incompatible DK tape is inserted in the printer, the computer monitor displays an error message.
ISSUE:
Whether the subject merchandise is classified under: heading 8443, HTSUS, as parts and accessories of printers; heading 3919, HTSUS, as self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics; heading 4811, HTSUS, as paper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810; or heading 4821, HTSUS, as paper and paperboard labels of all kinds, whether or not printed.
LAW AND ANALYSIS: Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods is determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.
The HTSUS provisions under consideration are as follows: 3919 Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls:
4811 Paper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810:
4821 Paper and paperboard labels of all kinds, whether or not printed:
8443 Printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof:
Additional U.S. Rule of Interpretation 1(c) provides:
In the absence of special language or context which otherwise requires…
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(c) A provision for parts of an article covers products solely or principally used as a part of such articles but a provision for ‘parts’ or ‘parts and accessories’ shall not prevail over a specific provision for such part or accessory; …
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The General Notes to Section XVI provide, in pertinent part:
1. This Section does not cover:
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(c) Bobbins, spools, cops, cones, cores, reels or similar supports, of any material (for example, Chapter 39, 40, 44 or 48 or Section XV);
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2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules:
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(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 84.79 or 85.43) are to be classified with the machines of that kind or in heading 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 85.17 and 85.25 to 85.28 are to be classified in heading 85.17.
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As Additional U.S. Rule of Interpretation 1(c) provides that a provision for parts shall not prevail over a specific provision for such a part, our initial analysis is whether the subject merchandise is specifically described in a provision in Chapter 39 or Chapter 48 of the tariff schedule before we examine whether classification as a “part” in Chapter 84 is proper.
Heading 3919, HTSUS, an eo nomine tariff provision, provides for “[S]elf-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls.” Eo nomine provisions are those that describe articles by specific names and not by use. Absent limiting language or contrary legislative intent, eo nomine provisions cover all forms of the named article. Nidec Corporation v. United States, 68 F.3d 1333, 1336 (Fed. Cir. 1995). See Lon-Ron Mft. Co. v. United States, 334 F.3d 1304, 1309 (Fed. Cir. 2003). Further to the issue of eo nomine classification, it is well-established legal precedent that “[W]here an article is in character or function something other than as described by a specific statutory provision – either more limited or more diversified – and the difference is significant, it cannot find classification within such provision. It is said to be more than the article described in the statute.” Robert Bosch Corp. v. United States, 63 Cust. Ct. 96 (Cust. Ct. 2d Div. 1969), citing Cragston Corporation v. United States, 51 CCPA 27, C.A.D. 831 (1963); United States v. The A.W. Fenton Company, Inc., 49 CCPA 45, C.A.D. 794 (1962).
In applying the principles of eo nomine classification to the subject media roll assemblies, referenced Items DK-1207 and DK-2113, we find them to be significantly more differentiated in function than the named exemplars listed in heading 3919, HTSUS. In this regard, we note that Items DK-1207 and DK-2113 are media rolls imported on plastic reels that feature code apertures. As noted supra, the code apertures allow the printer to distinguish which particular DK media roll is in the printer and to selectively activate the associated switch in the printer’s media center switch assembly. The reels are specifically designed to engage mechanically with a specific Brother QL Series Label Printer (i.e., the printer cannot function without the subject media roll assemblies) and are integral to the printer’s intended function of producing finished labels. This technical feature serves to change the identity of the articles and renders them significantly differentiated in function from the exemplars listed in heading 3919, HTSUS (i.e., self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls). Moreover, the subject media roll assemblies are not commercially interchangeable with the plastic articles described in heading 3919, HTSUS, and, as noted above, can only be used with specific Brother QL printers. For these reasons, Items DK-1207 and DK-2113 are not prima facie classifiable in heading 3919, HTSUS. See CamelBak Prods., LLC v. United States, 649 F.3d 1361 (Fed. Cir. 2011), in which the court examined whether certain specifications may be considered “merely an improvement” or whether they serve to change the identity of the article described by the statute. See also Casio, Inc. v. United States, 73 F.3d 1095 (Fed. Cir. 1996), where the court noted that “[T]he criterion is whether the item possess[es] features substantially in excess of those within the common meaning of the term.”
Similarly, pursuant to the above analysis, the subject merchandise identified as Items DK-2205 and DK-1209 are also not prima facie classifiable as rolls or labels of paper. Heading 4811, HTSUS, provides for, “[P]aper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810.” Heading 4821, HTSUS, provides for “[P]aper and paperboard labels of all kinds, whether or not printed.” While Items DK-2205 and DK-1209 are, respectively, self-adhesive continuous length paper tape and die-cut self-adhesive paper address labels, they are both imported on plastic reels that feature code apertures specifically designed to engage mechanically with a specific printer. As
noted above, the code aperture reels render Items DK-2205 and DK-1209 significantly more differentiated in function than mere paper rolls or labels. Therefore, Items DK-2205 and DK-1209 are not prima facie classifiable in headings 4811 or 4821, HTSUS.
We now consider classification of the subject articles within Section XVI, HTSUS, specifically in heading 8443, HTSUS, which provides for, in pertinent part, parts of other printers.
As an initial matter, we note that classification in Section XVI is not precluded by Note 1(c) in that the subject articles are not classifiable as “[B]obbins, spools, cops, cones, cores, reels or similar supports, of any material (for example, Chapter 39, 40, 44 or 48 or Section XV).” The subject articles are not mere reels used to support media; rather, they are designed with apertures that provide a necessary code to a printing device to render it functional.
The term “part” is not defined in the HTSUS. In the absence of a statutory definition, the courts have fashioned two distinct but reconcilable tests for determining whether a particular item qualifies as a “part” for tariff classification purposes. See Bauerhin Techs. Ltd. Pshp. v. United States, 110 F.3d 774, 779 (Fed. Cir. 1997). Under the test initially promulgated in United States v. Willoughby Camera Stores, Inc. (“Willoughby”), 21 C.C.P.A. 322, 324 (1933), an imported item qualifies as a part only if can be described as an “integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article.” Bauerhin, 110 F.3d at 779. Pursuant to the test set forth in United States v. Pompeo, 43 C.C.P.A. 9, 14 (1955), a good is a “part” if it is “dedicated solely for use” with a particular article and, “when applied to that use…meets the Willoughby test.” Bauerhin, 110 F.3d at 779 (citing Pompeo, 43 C.C.P.A. at 14); Ludvig Svensson, Inc. v. United States, 63 F. Supp. 2d 1171, 1178 (Ct. Int'l Trade 1999) (holding that a purported part must satisfy both the Willoughby and Pompeo tests).
In the instant case, the subject media rolls imported on plastic reels with code apertures meet the definition of “parts” as defined by the courts because they are integral to, and dedicated solely for use with, the Brother QL Series Label Printer without which the printer machines could not function. Because the subject merchandise does not fall under the scope of a single heading of Section XVI as goods unto themselves, per Note 2(a) to Section XVI, supra, the subject merchandise is properly classified under heading 8443, HTSUS, as parts of printers by operation of Note 2(b) to Section XVI. Specifically, the subject media rolls imported on plastic reels with code apertures are classifiable under subheading 8443.99.25, HTSUS, which provides for other parts and accessories of printers. Because the section note provides that goods classifiable as parts of printing machines are to be classified as such, CBP need not perform a relative specificity analysis under GRI 3(a).
Classification of the subject media roll assemblies as parts and accessories of printers is consistent with the holding in Mita Copystar America v. United States, 160 F.3d 710 (Fed. Cir. 1998), in which the court classified toner cartridges that were shaped to fit into specific electrostatic photocopiers under heading 8443, HTSUS. The merchandise at issue in Mita Copystar is similar to the subject merchandise in that the media roll assemblies are specially designed for specific printing devices so as to warrant classification as a part of those machines. See also Brother International Corp. v. United States, 26 C.I.T. 867; 248 F. Supp. 2d (2002), in which the court considered the classification of a printing cartridge used in a multifunction center (MFC) and facsimile machine. The court determined that the printing cartridge was prima facie classifiable as part of the MFC and facsimile machines as the machines could not function in their intended capacity without the printing cartridge.
We further note that the subject merchandise at issue is distinguishable from the nylon filament spool cartridge at issue in NY N266336, dated July 23, 2015, which was classified in subheading 3916.90.30, HTSUS, as “[M]onofilament of which any cross-sectional dimension exceeds 1 mm, rods, sticks and profile shapes, whether or not surface-worked but not otherwise worked, of plastics: of other plastics: other: other.” The nylon filament spool cartridge at issue in NY N266336 measures 8 inches by 2 inches in width, and is designed to be placed in a 3D printer (where the nylon filament will be liquefied and extruded onto a glass bed within the printer). The spool cartridge functions only to hold the nylon filament as it is inserted in the printer. In this regard, the spool cartridge at issue in NY N266336 differs significantly in function from the media roll assemblies at issue in this reconsideration in that the subject merchandise is designed with code apertures that allow the printer to distinguish which media roll is in the printer and to selectively activate the associated switch in the printer’s media center switch assembly. As opposed to being a mere conveyance for the continuous tape or labels to be inserted in a printer, the subject media rolls on plastic reels with code apertures are necessary for the printer to perform its intended function of producing labels.
HOLDING: By application of GRI 1, the media rolls imported on plastic reels with code apertures at issue in NY N246471 (referenced Items DK-1207, DK-2113, DK-2205 and DK-1209) are classified in subheading 8443.99.25, HTSUS, which provides for printing machinery…other printers…: parts and accessories: other: parts and accessories of printers: other. The 2018 applicable column one general rate of duty is free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N246471, dated October 29, 2013, is hereby REVOKED pursuant to the above analyses.
In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division