CLA-2-76:OT:RR:NC:N1:117
Mr. Steve Clyde, LCB
Axxess International, Inc.
3041 Commerce Drive, Suite A-1
Fort Gratiot, MI 48059
RE: The tariff classification of coated aluminum foil from the United States
Dear Mr. Clyde:
In your letter dated October 12, 2018, you requested a tariff classification ruling on behalf of your client, Deluxe Produits De Papier, Inc.
The product under consideration is described as coated aluminum foil. The foil is of U.S. origin and is exported to Deluxe Produits De Papier, Inc. in Canada where it is coated with a water-based enamel also of U.S. origin. The foil thickness prior to coating is 0.023 mm. The foil thickness after the coating is 0.024 mm. Your request is whether the process of applying a U.S. origin, water-based enamel to a U.S. origin aluminum foil is considered minor processing as it applies to U.S. goods returned.
You suggest classification of the foil in special classification provision 9801.00.1098, Harmonized Tariff Schedule of the United States (HTSUS), which provides for products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad: other. You reference 19 CFR 102.1, the Rules of Origin, as the source of the parameters used for eligibility for 9801.00.1098, HTSUS. This office disagrees. While 19 CFR 102.1 is used to determine country of origin, in this specific case it is not used to determine eligibility for special classification provision 9801.00.1098, HTSUS. You state the U.S. origin, water-based enamel, applied to the U.S. origin foil in Canada, represents 5.5 percent of the value of the coated foil. As such, the U.S. origin product has been advanced in value while abroad and therefore is not eligible for special classification provision 9801.00.1098, HTSUS.
The applicable subheading for the foil will be 7607.11.6000, HTSUS, which provides for aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm: not backed: rolled but not further worked: of a thickness not exceeding 0.15 mm: of a thickness exceeding 0.01 mm. The rate of duty will be 5.3 percent ad valorem.
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 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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division