CLA-2-76:OT:RR:NC:N1:117
Mr. Michael J. Lowell, Esq.
Reed Smith LLP
1301 K Street, N.W.
Suite 1000 – East Tower
Washington, DC 20005-3373 RE: The tariff classification of induction seal liners from Canada. Dear Mr. Lowell: In your letter dated February 27, 2019, you requested a tariff classification ruling on induction seal liners on behalf of your client, Selig Sealing Products, Inc. There are five different products under review. All five products are liners with a multi-layer laminate structure comprised of a board backing, a heat seal layer, aluminum foil, and a bonding layer. In all five products the board material predominates, constituting greater than fifty per cent of the content by weight and thickness. The products are manufactured using lamination techniques including dry bond adhesive lamination, wax adhesive lamination, and extrusion coating/ lamination using plastic resins. All products provide a tamper-evident, weld seal and a secondary reseal feature for leak protection and product freshness. The five products vary, by weight and by thickness, in their composition of the board backing, heat seal layer, aluminum foil, and bonding layer.
You suggest classification for all five products in subheading 4823.90.6700, Harmonized Tariff Schedule of the United States (HTSUS), which provides for 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. This office disagrees.
General Rule of Interpretation (GRI) 1, HTSUS, states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3. GRI 3(a) states that the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good is to be determined by GRI 3(b) or GRI 3(c) taken in the appropriate order in which they are set out in GRI 3.
GRI 3(b) states in part that composite goods, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component which gives them their essential character. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among the competing headings which equally merit consideration.
Inasmuch as no essential character can be determined, GRI 3(b) does not apply. After examining the induction seal liner material and the documentation submitted with this ruling request, this office is of the opinion that the paperboard component and the aluminum foil component merit equal consideration. Since heading 7607 occurs last in numerical order in comparison to the paperboard, this office would classify the product as a backed aluminum foil in heading 7607 in accordance with GRI 3(c). The applicable subheading for all of the induction seal liners will be 7607.20.5000, 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: backed: other. The 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 at https://hts.usitc.gov/current. On March 8, 2018, Presidential proclamations 9704 and 9705 imposed additional tariffs and quotas on a number of steel and aluminum mill products. Exemptions have been made on a temporary basis for some countries. Quantitative limitations or quotas may apply for certain exempted countries and can also be found in Chapter 99. Additional duties for steel of 25 percent and for aluminum of 10 percent are reflected in Chapter 99, subheading 9903.80.01 for steel and subheading 9903.85.01 for aluminum. Products classified under subheading 7607.20.5000, HTSUS, may be subject to additional duties or quota. At the time of importation, you must report the Chapter 99 subheading applicable to your product classification in addition to the Chapter 72, 73 or 76 subheading listed above.
The Proclamations are subject to periodic amendment of the exclusions, so you should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 numbers.
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