CLA-2-48:OT:RR:NC:2:230
Ms. April J. Collier
Pacific Customs Brokers, Inc.
1400 A Street
Blaine, WA 98230
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of self-adhesive paper labels
Dear Ms. Collier:
In your letter, received March 10, 2015, you requested a binding ruling on behalf of your client, Okanagan Label & Print Ltd. The ruling was requested on self-adhesive paper labels. Samples and product information were submitted for our review.
You have requested a ruling regarding classification, country of origin and NAFTA eligibility of the labels. In your letter, you indicate that all of the components of the finished labels are manufactured in the United States, including the self-adhesive paper, inks, coating materials, cutting tools, and cutting plates. You explain that these components will be shipped to Canada, where the processes of printing, coating, cutting, and packaging of the labels will take place.
In your letter, you suggest that the self-adhesive paper is classifiable under heading 4811, Harmonized Tariff Schedule of the United States (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, and that the finished labels are classifiable under heading 4821, HTSUS, which provides for Paper and paperboard labels of all kinds, whether or not printed. We agree with the classification of goods in these headings. Unfortunately, you have not provided sufficient information regarding the printing process of the labels to classify the finished printed labels.
The applicable subheading for the unprinted, self-adhesive paper labels will be 4821.90.2000, HTSUS, which provides for Paper and paperboard labels of all kinds, whether or not printed: Other: Self-adhesive. The rate of duty will be free.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if—
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
You state that the labels are printed, coated, cut, and packaged in Canada from US origin materials. Both Canada and the United States are countries provided for under the NAFTA. Based on the facts provided, the self-adhesive labels qualify for NAFTA preferential treatment, as they meet the requirements of HTSUS General Note 12(b)(i). The labels will be entitled to a free rate of duty under NAFTA upon compliance with all applicable laws, regulations, and agreements.
With regard to country of origin and marking thereof, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Pursuant to 19 CFR Section 134.1(b), the country of origin is the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to a foreign article in the United States must effect a substantial transformation in order to render the final product a good of the U.S. However, for a good of a NAFTA country, the NAFTA Marking Rules (set forth in 19 CFR Part 102) will determine the country of origin. The NAFTA rules govern the current scenario. Applying the terms of Section 102.19(a), the country of origin of the self-adhesive paper labels is Canada. Additionally, while you suggest that the manufacturing completed in Canada is merely “minor processing”, Section 102.20 provides that if the manufacturing results in “a change to heading 4817 through 4822 from any other heading, including another heading within that group…,” country of origin is the country in which that manufacturing takes place. Since the manufacturing in Canada yields a change from heading 4811 to 4821, Canada is the country of origin.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division