CLA-2-48:OT:RR:NC:1:130
James G. Rosselot
American Seafoods Group LLC
2025 1st Avenue, Suite 900
Seattle, WA 98121
RE: The tariff classification of “Top Sheet with PE Flap” from Korea
Dear Mr. Rosselot:
In your letter, dated May 4, 2018, you requested a binding tariff classification ruling. The request was returned to you for additional information, which was received by this office on June 26, 2018. The ruling was requested for a product you identify as “Top Sheet with PE Flap” (“Top Sheet”). A sample and product information were submitted for our review. The sample will be retained for reference.
The Top Sheet is identified by item number NGU F203. It is imported in large sheets, and is a combination of corrugated paperboard and polyethylene (PE) sheet. Each Top Sheet measures approximately 47” L by 39” W by 2mm in thickness. The Top Sheet is made from a 3-ply corrugated paperboard (a single corrugated paper layer combined with flat surface sheets on both sides) that has a wax coating on one side. A 0.03mm-thick PE sheet is laid on top of the corrugated paperboard sheet and is held in place by double-sided tape positioned around the edges of the paperboard. The PE sheet is approximately twice the width of the paperboard sheet, and is positioned so that it extends equally beyond each side edge of the paperboard. You explain that the Top Sheet is used to cover a pallet of processed and packaged seafood product. The paperboard sits atop the pallet load, waxed side down, while the PE “flaps” extend down the sides of the load; when the pallet load is wrapped with securing plastic film, the PE flaps will be captured, holding the pallet cover firmly in place. For each Top Sheet, you state that the paperboard weighs approximately 659g and the PE sheet weighs 73g.
In your original request, you suggest that the Top Sheet is classifiable in accordance with General Rule of Interpretation (GRI) 3b as a composite good. We agree. The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by GRIs, taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require the remaining GRI will be applied, in the order of their appearance. Because the Top Sheet does not conform directly to HTSUS notes, neither GRI 1 nor GRI 2 are applicable.
Because the materials from which the Top Sheet is constructed – corrugated paperboard and PE sheet - are prima facie classifiable in different headings and cannot be separated, the Top Sheet is a composite good within the meaning of General Rule of Interpretation (GRI) 3(b). GRI 3(b) states, in pertinent part:
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
In accordance with the Explanatory Notes (ENs) for GRI 3(b), the essential character of an item may be determined by the nature of the material or component, its bulk, quantity, weight, or value, or by the role of a constituent material in relation to the use of the goods. The corrugated paperboard component of the Top Sheet weighs approximately nine times the weight of the PE sheet. The paperboard component is waxed so as to resist the moisture of the frozen, packaged seafood product. The paperboard component functions as the cover to the pallet load while the PE sheet merely secures the paperboard during shipment. Therefore, we find that the paperboard component imparts the essential character of the Top Sheet.
The Explanatory Notes to heading 4808, HTSUS (which provides for Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in
rolls or sheets, other than paper of the kind described in heading 4803), plainly describe the paperboard product, stating that corrugated paperboard “may consist of a single corrugated layer or may be combined with flat surface sheets on one side (single faced) or both sides (double faced).” As noted, the corrugated paper layer is faced on both sides with flat surface sheets. Therefore, heading 4808 is the appropriate heading for the Top Sheet.
In your original submission, you also argue that the Top Sheet is classifiable under subheading 3923.10.9000, HTSUS, which provides for Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Boxes, cases, crates and similar articles: Other. We disagree with this classification. The Top Sheet is not a box, case, crate, or similar article of plastic. While the Top Sheet is used in the conveyance of goods, the PE sheet component functions more to secure the paperboard than it does to protect the pallet load. Therefore, we do not find that the PE sheet imparts the essential character of the Top Sheet.
The applicable subheading for the “Top Sheet with PE Flap”, Item NGU F203, will be 4808.10.0000, HTSUS, which provides for Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 4803: Corrugated paper and paperboard, whether or not perforated. The rate of duty will be 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 World Wide Web at https://hts.usitc.gov/current.
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,
Steven A. Mack
Director
National Commodity Specialist Division