CLA-2-49:OT:RR: NC:4:434
Mary Kastner
PMK International LLC
18900 8th Ave. S Ste. 900
Seatac, WA 98148
RE: The tariff classification of produce labels from Thailand
Dear Ms. Kastner:
In your letter, dated May 5, 2023, you requested a tariff classification ruling on behalf of your client, Schemerhorn Bros. Co. A detailed description and photos of the items were submitted for our review.
The first item under consideration is a produce label made of paper laminated with oriented polypropylene (OPP) plastic. The paper measures 0.085mm in thickness, while the OPP measures 0.025mm in thickness; the overall thickness of the label is 0.11mm. The paper label is cut to a rectangular shape with rounded corners. The label is folded in half over a rubber band and bonded to itself. The rubber band allows the label to be attached to fresh produce and also serves to bundle the vegetables. The label is UV-printed with information identifying the type of vegetable, its country of growth, and an identification number.
The second item under consideration is a printed produce label made of polypropylene (PP) plastic and connected to a band of natural rubber, as the one above. The label is UV printed with information identifying the type of vegetable, its country of growth, and an identification number. It will be affixed to the vegetable by means of the elastic band, which also bundles the vegetables.
The produce labels and bands constitute multiple components that are prima facie classifiable in different headings. As such, they are composite goods whose classification is governed by General Rule of Interpretation (GRI) 3(b). GRI 3(b) of the Harmonized Tariff Schedule of the United States (HTSUS) states as follows: (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.
The essential character of the produce labels with bands is the printed label that identifies the produce for sale.
The Explanatory Notes (ENs) to Heading 4821, HTSUS, provide that paper and paperboard labels may be printed to any extent with information and images designed to convey the nature, identity, ownership, or other information about an article. The ENs also allow that the labels may be “fitted with ties, clasps, hooks, or other fasteners” for attachment to articles. Therefore, the ENs permit that fully printed paper labels fitted with rubber bands are classifiable in heading 4821, HTSUS.
The applicable subheading for Item one, the printed paper labels laminated with OPP will be 4821.10.4000, HTSUS, which provides for Paper and paperboard labels of all kinds, whether or not printed: Printed: Other. The rate of duty will be free.
Regarding the second item, non-adhesive printed plastic labels are not specifically provided for. Rather, the General Explanatory Notes to Chapter 49, HTSUS, provides in pertinent part: “… this Chapter covers all printed matter of which the essential nature and use is determined by the fact of its being printed with motifs, characters or pictorial representations...”
The applicable subheading for Item two, the plastic produce labels, will be 4911.99.8000, HTSUS, which provides for “Other printed matter:… Other: Other: Other: Other.” 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 the 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 Charlene Miller at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division