CLA-2-76:OT:RR:NC:N1:116

Ms. Kiyoko Colburn
Resonac America
2150 North First St.
San Jose, CA 95131

RE:      The tariff classification of laminated aluminum foil (SPALF®/C4 and SPALF®/PC8) from Japan

Dear Ms. Colburn:

In your letter dated February 15, 2023, you requested a tariff classification ruling.

The products under consideration are described as aluminum film material, SPALF®/C4 and SPALF®/PC8, that will be used in the production of battery pouches.  Both articles will be imported in rolls.

According to your submission, product one, SPALF®/C4, is 111 microns (um) (0.11 millimeters (mm)) in thickness and comprised of aluminum foil sandwiched between Oriented Nylon (ON) and Casting Polypropylene (CPP). Product two, SPALF®/PC8, is 153 um (.15 mm) in thickness and comprised of aluminum foil sandwiched between PET (Polyethylene Terephthalate), ON, and CPP.

Both products, SPALF®/C4 and SPALF®/PC8, are comprised of different components (i.e., aluminum, nylon and plastic) and for tariff purposes are considered composite goods.  Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.  Since no one heading in the tariff schedules covers the aluminum, nylon and plastic components of the multi-layered sheets, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character.  EN VIII to GRI 3(b) explains that “the factor which determines essential character will vary as between different kinds of goods.  It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.”  Based on the breakdown of materials by weight and value, the aluminum foil component predominates over the nylon and plastic. Therefore, it is the opinion of this office that the aluminum foil imparts the essential character of both products.

The applicable subheading for laminated aluminum foil sheets, products SPALF®/C4 and SPALF®/PC8, 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 will be free.

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 subheadings.

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