CLA-2-48:OT:RR:NC:N5:130
CLASSIFICATION: 4811.41.2100; 3919.90.5060
Mr. David G. Forgue
Barnes, Richardson, and Colburn, LLP
303 East Wacker Dr.
Chicago, IL 60601
RE: The country of origin of adhesive-coated sheets for labels
Dear Mr. Forgue:
In your letter, dated September 4, 2024, you requested a binding country of origin ruling on behalf of your
client, LabelEdge, Inc. The request addressed three adhesive-coated labelstock sheet products. Product
information was submitted for our review.
The ruling request addresses three items:
Item 1 is self-adhesive, direct thermal paper labelstock. This item consists of thermal paper laminated to an
adhesive layer and a glassine release paper. The thermal paper coating is
4-Hydroxy-4'-isopropoxydiphenylsulfone, CAS code: 95235-30-6. The paper is imported in rolls measuring
between 10 and 22 inches in width.
Item 2 is a self-adhesive, semi-gloss paper labelstock. This item consists of semi-gloss paper laminated to an
adhesive layer and a glassine release paper. The semi-gloss coating consists of kaolin and calcium
carbonate. The paper is imported in rolls measuring between 10 and 22 inches in width.
Item 3 is self-adhesive, white or clear polypropylene labelstock. This item consists of clear or white compact
polypropylene film coated with an acrylic coating and laminated to an adhesive layer and a glassine release
paper. The polypropylene is imported in rolls measuring between 10 and 22 inches in width.
All of the products will be used by label printers in the United States to print and die-cut labels for sale to
end-users of labels.
The applicable subheading for the self-adhesive direct thermal paper labelstock and the self-adhesive,
semi-gloss paper labelstock will be 4811.41.2100, Harmonized Tariff Schedule of the United States
(HTSUS), which provides for aper, paperboard, cellulose wadding and webs of cellulose fibers, coated,
impregnated, covered, surface-colored, surface-decorated or printed, in rolls or rectangular (including square)
sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810: Gummed or
adhesive paper and paperboard: Self-adhesive: Other: In strips or rolls. The rate of duty will be free.
The applicable subheading for the self-adhesive polypropylene labelstock will be 3919.90.5060, HTSUS,
which provides for self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes of plastic, whether
or not in rolls: other: other: other. The general rate of duty will be 5.8 percent ad valorem.
In your letter, you set forth a manufacturing scenario for each of the three products.
The self-adhesive, direct thermal paper labelstock incorporates 61-inch-wide base paper manufactured in
Japan or Korea. The paper weighs 70 grams per square meter, and consists of fiber, 69 percent of which is
manufactured by the mechanical process. As the paper will be used for printing labels, the paper is for
graphic use. This base paper, classifiable under heading 4802, will be shipped to Canada, where it will be
coated with the thermosensitive coating. The coating is manufactured in China. After being coated with the
thermosensitive coating, the paper will be laminated onto a roll of adhesive-coated glassine release paper.
Both the glassine paper and the adhesive are of Chinese origin. The laminated, self-adhesive, direct thermal
paper is classified under subheading 4811.41. The master roll will then be slit into rolls measuring 10-22
inches in width. The final product, as noted above, will be classified in 4811.41.2100, HTSUS.
The self-adhesive, semi-gloss paper labelstock incorporates 61-inch-wide base paper manufactured in Korea,
Japan, or Indonesia. The base paper is coated with kaolin and calcium carbonate and is classifiable in
heading 4810. The base paper will be shipped to Canada, where it will be laminated to a roll of
adhesive-coated glassine release paper. Both the glassine paper and adhesive are Chinese origin. The
laminated, self-adhesive semi-gloss paper is classified under subheading 4811.41. The master roll will then
be slit into rolls measuring 10-22 inches in width. The final product, as noted above, will be classified in
4811.41.2100, HTSUS.
The polypropylene facestock is produced in either India or the United Arab Emirates. The white
polypropylene facestock has a thickness of 0.060 mm and a weight of 44 g/m2. The clear polypropylene
facestock has a thickness of 0.050 mm and a weight of 45 g/m2. The master roll of facestock is generally 61
inches wide. The face stock is classifiable under subheading 3920.20. The master roll of facestock will be
shipped to Canada. In Canada, the facestock is coated with a thin layer of Chinese-origin acrylic coating
measuring approximately 0.002 mm thickness. This coated facestock is then laminated to an adhesive-coated
glassine release paper. Both the adhesive and glassine paper are of Chinese origin. This results in the creation
of a roll of self-adhesive film which is rolled into jumbo rolls of 10,000 or 20,000 feet by 61 inches. This
self-adhesive film, noted to be labelstock, is slit into rolls of between 10 inches (25.4 cm) wide and 22 inches
(55.88 cm) wide). As noted above, this self-adhesive labelstock is classified in 3919.90.5060, HTSUS.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless
excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a
conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will
permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country
of origin of the article.
The "country of origin" is defined in 19 CFR 134.1(b) as "the country of manufacture, production, or growth
of any article of foreign origin entering the United States. Further work or material added to an article in
another country must effect a substantial transformation in order to render such other country the "country of
origin" within the meaning of this part; however, for a good of a NAFTA or USMCA country, the marking
rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the
country of origin."
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other
USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in
§§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to
goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the
country of origin of a good for marking purposes, with the exception of textile goods which are subject to the
provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11.
Applied in sequential order, 19 CFR Part 102.11(a) provides that the country of origin of a good is the
country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff
classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and
all other applicable requirements of these rules are satisfied.
The self-adhesive, direct thermal labelstock, the self-adhesive, semi-gloss labelstock, and the self-adhesive
polypropylene labelstock are neither "wholly obtained or produced" nor "produced exclusively from
domestic materials." Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of
origin of the products, and paragraph (a)(3) must be applied next to determine the origin of the finished
articles.
The direct thermal labelstock is classified in heading 4802 before processing in Canada and in subheading
4811.41 after processing in Canada. The semi-gloss labelstock is classified in heading 4810 before
processing in Canada and in subheading 4811.41 after processing in Canada. The rolls are also slit from 61”
(155cm) to rolls measuring 10” (25.4cm) to 22” (55.88cm). The tariff shift requirement in Part 102.20 states:
“A change to paper or paperboard in strips or rolls of a width not exceeding 15 cm of heading 4811 from
strips or rolls of a width exceeding 15 cm of heading 4811 or any other heading, except from heading 4817
through 4823.” The direct thermal and semi-gloss labelstock do not meet this tariff shift. The minimum size
of the slit rolls is 10 inches or 25.4cm, which does not meet the term “of a width not exceeding 15cm”. As a
result, part 102.11(a) does not apply.
For the self-adhesive polypropylene labelstock, the tariff shift requirement in Part 102.20 states: “A change to
subheading 3919.10 through 3919.90 from any other subheading outside that group.” The labelstock is
classified in 3920.20 before processing in Canada and in 3919.90 after processing in Canada, therefore, the
tariff shift is met. Accordingly, the country of origin of the adhesive polypropylene labelstock for marking
purposes is Canada.
For the direct thermal and semi-gloss labelstock, Section 102.11(b) states, in relevant part:
Except for a good that is specifically described in the Harmonized System as a set, or is classified as a
set pursuant to General Rule of Interpretation [("GRI")] 3, where the country of origin cannot be
determined under paragraph (a) of this section: The country of origin of the good is the country or
countries of origin of the single material that imparts the essential character to the good…
In determining the "essential character" of the finished good, Section 102.18(b)(1) provides, in relevant part:
(b) (1) For purposes of identifying the material that imparts the essential character to a good under
Part 102.11, the only materials that shall be taken into consideration are those domestic or foreign
materials that are classified in a tariff provision from which a change in tariff classification is not
allowed under Part 102.20 specific rule or other requirements applicable to the good … (ii) Materials
that may be considered include materials produced by the producer of the good and incorporated in
the good. For example, if a producer of a good purchases raw materials and converts those raw
materials into a component that is incorporated in the good, that component is a material that may be
considered for purposes of identifying the materials that impart the essential character to the good,
provided that the component is classified in a tariff provision from which a change in tariff
classification is not allowed under the specific rule?
The self-adhesive direct thermal paper labelstock and the self-adhesive semi-gloss paper labelstock are each
the single component classified in a tariff provision from which a change in tariff classification is not
allowed. ?The self-adhesive paper labelstock imparts the essential character, and, as the self-adhesive paper
labelstock is manufactured in Canada, the country of origin of the direct thermal and semi-gloss paper
labelstocks for marking purposes is Canada.
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/.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
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