CLA-2 CO:R:C:G 084716 HP
Ms. Loretta J. Evans
Customer Service
Arthur Fritz & Co.
P.O. Drawer `G'
Blaine, Washington 98230
RE: Classification of coated, reinforced paper for wrapping
lumber
Dear Ms. Evans:
In a letter dated April 19, 1989 (NYRL 838558), the Area
Director, New York Seaport, issued you a ruling letter with
respect to tariff classification of Lumberwrap, description
below. Reference your client Twinpak Inc. In the ruling letter,
the Lumberwrap (Type II) was classified under the provisions for
plastic sheets of film combined with textile materials, sub-
heading 3921.90.1500, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), since the plastics constituted more
than half the thickness of the merchandise. Classification of
Lumberwrap Type I was not made for lack of sufficient infor-
mation.
In your letter of May 16, 1989 to our New York Office, you
petitioned for reconsideration of the New York Ruling, due to a
mistake in fact. You now submit information, which we have no
reason to question, that the paper component of Lumberwrap Types
I and II accounts for 52.4 percent of their total thickness. You
contend, as a consequence, that the products should be classified
as articles of paper.
FACTS:
The Merchandise at Issue
The instant merchandise consists of two types of textile-
reinforced paper, manufactured expressly for packaging kiln dried
lumber ("Lumberwrap"). Type I is a three component sheet,
comprised of a reinforcing polyolefin tape scrim, 5 x 4 per
inch2, laminated to a base sheet of 65 g/m2 Kraft paper with 48
g/m2 low density white polyethylene. The process is done by the
extrusion method (infra). The specifications for Type I are as
follows:
% BY % BY
MATER- WEIGHT WEIGHT THICK- TH'K-
IAL NESS NESS
PAPER 65 47.3 4.3 52.4
g/m2 mils
POLY- 34.9 2.0 24.4 48
ETH. g/m2 mils
5x4 24.5 17.8 1.9 23.2
SCRIM g/m2 mils
137.5- 100.0 8.2 100.0
g/m2 mils
Type II is a four component sheet, comprised of a reinforc-
ing polyolefin tape scrim, 5 x 4 per inch2, laminated with 24
g/m2 low density white polyethylene to a base sheet of 65 g/m2
Kraft paper coated with 24 g/m2 low density white polyethylene.
The process is also done by the extrusion method. The
specifications for Type II are as follows:
% BY % BY
MATER- WEIGHT WEIGHT THICK- TH'K-
IAL NESS NESS
PAPER 65 47.3 4.3 52.4
g/m2 mils
PRE- 24 17.5 1.0 12.2
COAT g/m2 mils
5x4 24.5 17.7 1.9 23.2
SCRIM g/m2 mils
TOP- 24 17.5 1.0 12.2
COAT g/m2 mils
137.5- 100.0 8.2 100.0
g/m2 mils
Both types are manufactured in widths of 48 inches to 115
inches (122 cm to 190 cm), in rolls of 1000 feet to 3500 feet
(300 m to 925 m) long. Lumberwrap may be printed upon.
The Extrusion Process
Extrusion laminating spreads the molecular polymer
between two moving substrates [sic.] in a nip of a
rubber and a chill roll. In a continuous operation,
rolls of material are unwound, spliced on the fly, and
prepared by chemical priming or other surface treatment
to make the substrate receptive to the polymer coating,
and develop adhesion between the materials.
* * *
Industrial wraps. The coated product is also used
as a wrapper or part of a protective structure. This
classification covers the range of heavy or reinforced
papers, films, or boards where the coated material may
be added to other media. Examples are composite cans,
drum carton and freight car liners, release or oilproof
[sic.] papers, and bale, lumber, steel, and sheet over-
wraps. [Emphasis added].
S.M. Weiss, Extrusion coating and laminating, MODERN PLASTICS
ENCYCLOPEDIA 1986-1987.
ISSUE:
Whether reinforcing textile fabric coats or covers paper for
classification purposes under the HTSUSA?
LAW AND ANALYSIS:
Subheading 4807.99.2000, HTSUSA, provides for composite
paper, cloth-lined or reinforced, not surface coated or
impregnated. The Explanatory Notes to the HTSUSA constitute the
official interpretation of the tariff at the international level.
The Explanatory Note to heading 4807 defines "composite
paper and paperboard" as "made by sticking two or more layers of
paper or paperboard together with the aid of an adhesive
[emphasis added]." As the merchandise at issue is comprised of
only one layer of paper, it is excluded from consideration under
heading 4807, HTSUSA.
Heading 4811, HTSUSA, provides for coated or impregnated
paper. The General Explanatory Notes to Chapter 48, states that
coatings composed of organic materials, such as plastics and
textile dust, "may not require a binding agent for their
application." As the instant merchandise requires a binder,
polyethylene, to apply the textile scrim to the paper, the
merchandise cannot be considered "coated" with the polyolefin
tape.
Type I Lumberwrap
Type I Lumberwrap cannot be considered "coated" with plas-
tics, as the plastics fail to coat either surface of the finished
product. The polyethylene is added merely as a binder between
the scrim and the paper. We must now decide whether Type I is a
textile or a paper.
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
... classification shall be determined according to the
terms of the headings and any relative section or
chapter notes ....
Goods which cannot be classified in accordance with GRI 1 are to
be classified in accordance with subsequent GRI's, taken in
order.
Note 1(m) to Section XI, HTSUSA, states that this section
does not cover "[p]roducts or articles of chapter 48...."
Neither Chapter 48, nor Section X, HTSUSA, contains a similar
provision excluding products or articles of Section XI.
Therefore, as the instant merchandise is a product of Chapter 48,
the merchandise must be excluded from Section XI, and remains
classifiable in Chapter 48, HTSUSA.
While Type I satisfies the technical requirements for
kraftliner in heading 4804, the Explanatory Note to this heading
excludes paper or paperboard "otherwise processed." As reinforc-
ing is not among the enumerated allowed processes, classification
as kraftliner is impossible. Since reinforced kraft paper is not
otherwise provided for in Chapter 48, HTSUSA, Type I must be
considered "other paper" of heading 4823.
Type II Lumberwrap
The description of Type II Lumberwrap falls within the
definition of coated paper for purposes of Chapter 48, HTSUSA.
While the pre-coat of polyethylene would be considered merely a
binder (see above for reasoning behind binder versus coating
decision), the top coat of plastics, comprising less than 50
percent the total width of the product, is considered a coating.
Ergo, Type II is classifiable under heading 4811, HTSUSA.
HOLDING:
As a result of the foregoing, the merchandise at issue is
classifiable as follows: TYPE I LUMBERWRAP -- subheading
4823.90.8500, HTSUSA, as other paper, paperboard, cellulose
wadding and webs of cellulose fibers, cut to size or shape; other
articles of paper pulp, paper, paperboard, cellulose wadding or
webs of cellulose fibers, other, other, other, other, other.
Articles which meet the definition of "goods originating in the
territory of Canada" (see General Note 3(c)(ii)(B), HTSUSA) are
subject to reduced rates of duty under the United States-Canada
Free Trade Agreement Implementation Act of 1988. If the
merchandise constitutes "goods originating in the territory of
Canada," the applicable rate of duty is 4.2 percent ad valorem;
otherwise, the general rate of 5.3 percent ad valorem applies.
TYPE II LUMBERWRAP -- subheading 4811.39.4040, HTSUSA, as
paper, paperboard, cellulose wadding and webs of cellulose
fibers, coated, impregnated, covered, surface-colored, surface
decorated or printed, in rolls or sheets, other than goods of
heading 4803, 4809, 4810 or 4818, paper and paperboard, coated,
impregnated or covered with plastics (excluding adhesives),
other, other, other. The applicable rate of duty is Free.
Pursuant to section 177.9, Customs Regulations (19 CFR
177.9), the ruling letter of April 19, 1989, is modified in
conformity with the foregoing.
Sincerely,
John Durant, Director
Commercial Rulings Division