CLA-2-76:OT:RR:NC:N5:116
Mr. Damon V. Pike
BDO USA
1601 Forum Place, 9th Floor Centurion Plaza
West Palm Beach, Florida 33401
RE: The tariff classification, country of origin, and status under the United States-Mexico-Canada Trade
Agreement (USMCA) of flexible laminated wrapping products
Dear Mr. Pike:
In your letter dated September 6, 2025, you requested a classification determination, a determination on the
eligibility of preferential trade treatment under USMCA, a country of origin determination for marking
purposes, and a country of origin determination for the purposes of applicability of any trade remedies for
your client, Atlantic Coated Papers, Inc., (“ACP”).
There are four products under consideration: 1) BestCo Inner Wrap, 2) BestCo Outer Wrap, 3) Guardian
Drug Co. packaging material, and 4) Schreiber packaging material. The products are used to wrap a variety
of products.
Product 1, BestCo Inner Wrap, is described as a nutraceutical piece wrapper that is used on individual
servings of products. It consists of five layers, listed from inside to outside: bleach kraft paper, adhesive,
aluminum foil, ink, and overlacquer. An analysis of the thickness of each layer shows that paper is the
thickest layer, followed by the foil, the adhesive, and the ink/overlacquer layer, respectively. An analysis of
the weight of each layer shows that the foil is the heaviest layer, followed by the paper, the adhesive, and the
ink and overlacquer, respectively. An analysis of the cost of each layer shows that the ink and overlacquer
layer is the most expensive, followed by the adhesive, the foil, and the paper, respectively. You stated that
the paper provides support and a printable surface, while the aluminum foil layer provides the barrier
properties to the product. No one layer predominates over another layer in all three values examined:
thickness, weight, and cost.
Product 2, BestCo Outer Wrap, is described as a nutraceutical package wrapper used to wrap multiple
individual servings. It consists of six layers, listed from inside to outside: ionomer resin, aluminum foil, PE
resin, C1S paper, ink, and overlacquer. An analysis of the thickness of the layers shows that the paper layer is
the thickest, followed by the PE resin (Surlyn), the LDPE, the foil, and the ink/overlacquer, respectively. An
analysis of the weight of each layer shows that the paper is the heaviest layer, followed by the Surlyn, the
foil, the LDPE, and the ink and overlacquer, respectively. An analysis of the cost of each layer shows that the
ink and overlacquer layer is the most expensive, followed by the Surlyn, the foil, the paper, and the LDPE,
respectively. You stated that the paper provides support and a printable surface, while the aluminum foil
layer provides the barrier properties to the product. No one layer predominates over another layer in all three
values examined: thickness, weight, and cost.
Product 3, Guardian Drug Co. packaging material, consists of four layers: ionomer resin, aluminum foil, PE
resin, and paper. An analysis of the thickness of the layers shows that the paper is the thickest layer, followed
by the Surlyn (ionomer resin), the foil, and the LDPE layers, respectively. An analysis of the weight of each
layer shows that the foil is the heaviest layer, followed by the paper, the Surlyn, and the LDPE, respectively.
An analysis of the cost of each layer shows that the Surlyn layer is the most expensive, followed by the foil,
the paper, and the LDPE, respectively. You stated that the aluminum foil provides the barrier properties to
the final product. No one layer predominates over another layer in all three values examined: thickness,
weight, and cost. A description of product 3’s use(s) has not been provided.
Product 4, Schreiber packaging material, is described as a food-grade packaging for individual cream cheese
brick wrapping. It consists of six layers, listed from inside to outside: wax, PET, adhesive, aluminum foil,
ink, and overlacquer. An analysis of the thickness of the layers shows that the wax layer is the thickest layer,
followed by the PET, the foil, the adhesive, and the overlacquer, respectively. An analysis of the weight of
each layer shows that the wax is the heaviest layer, followed by the foil, the PET, the adhesive, and the
overlacquer, respectively. An analysis of the cost of each layer shows that the adhesive layer is the most
expensive, followed by the overlacquer, the foil, the wax, and the PET, respectively. The aluminum foil side
is printed with ink and overlacquered. No one layer predominates over another layer in all three values
examined: thickness, weight, and cost.
You indicate that products 1, 2, and 3 are substantially similar to NY ruling N301174, dated November 15,
2018, which determined that three different categories of multilayer packaging materials, each consisting of a
lamination of plastics, paper, and aluminum foil were classified under subheading 4811.59.4040. Using this
ruling as precedent, you suggest classification of products 1 and 2 in subheading 4811.59.6000, Harmonized
Tariff Schedule of the United States (HTSUS), which provides for paper, 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: paper and paperboard, coated, impregnated or covers with plastics (excluding adhesives):
other: other. You suggest classification of product 3 in subheading 4811.59.4040, HTSUS, which provides
for paper, 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: paper and paperboard, coated,
impregnated or covered with plastics (excluding adhesives) other: in strips or rolls of a width exceeding 15
cm or in rectangular (including square) sheets with one side exceeding 36 cm and the other side exceeding 15
cm in the unfolded state: other: other. We disagree.
Ruling N301174 was revoked by operation of law by Amcor Flexibles v. US, Slip Op 20-1, January 3, 2020.
You have indicated that the foil is the functional layer. It is impermeable to gases, moisture, light, etc., while
the paper is supporting and/or backing the foil. It does not matter that one side is covered with plastic and one
side is covered with paper. Per Amcor, "In the alternative, “backing” could be interpreted to mean “on only
one side. Since either side may conceivably be considered to be the “back,” the language of the HTSUS,
dictionary definitions and other guidance noted above do not limit “backed” or “backing” such that only Side
A of the item may have a material affixed to it, while Side B may not. To the contrary, neither the HTSUS
nor other authorities cited limit the placement of materials to only a single side of the material being backed,
and no other limitation precludes specifically a foil laminated with materials on both sides from being
classified as aluminum foil. See, e.g., NYRL F84357 (March 27, 2000) available at
https://rulings.cbp.gov/ruling/F84357 (classifying aluminum foil with plastic film on one side and a heat
sealant on the other under Heading 7607)." The Amcor decision goes on to say “The WCO has stated that the
”backing” is intended to “serve solely to make up for the flimsiness of the foil, which could not otherwise
withstand the handling necessary for transport and subsequent treatment.” Although some of the thickness,
weight, and value analyses indicate that, in some instances, the foil is not the predominant layer, the
aluminum foil layer provides the barrier properties that are necessary for each of the products to perform its
specific function. While the paper layers are adhered to the aluminum foil, it is the aluminum foil that
provides that necessary barrier and remains a critical component of the product. The product’s ability to
function as a wrapper is dependent on its ability to prevent oxygen and moisture from reaching what is
wrapped within. Plastics also contribute to the barrier function, but in a supporting/backing capacity only. As
stated in your submission, “The paper adds support and a printable surface. The aluminum foil provides
barrier properties to the final product.” In other words, the paper and plastic layers facilitate and enable the
aluminum foil to provide the critical barrier property.
For product 4, you suggest classification in subheading 2712.90.2000, HTSUS, which provides for Petroleum
jelly; paraffin wax, microcrystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other
mineral waxes and similar products obtained by synthesis or by other processes, whether or not colored:
other: other. To substantiate your suggested classification, you point to ruling N281977, dated January 13,
2017, to suggest that “CBP has previously focused on the weight of the wax layer (and not the value) as
controlling on the “essential character” test of a packaging material made up of multiple layers.” Ruling
N281977, however, addresses a single layer of blended components and not a multi-layered product such as
the Schreiber packaging material. Therefore, its comparison to the product at issue is not appropriate. You
indicate that because the wax layer’s purpose is to absorb water and other liquids from the cream cheese
block that is wrapped in the Schreiber packaging material, it is the wax layer that provides the essential
character. In the instant product, the microcrystalline wax is merely a coating on the aluminum layer that
serves to enhance the function of the other layer. Therefore, this product is excluded from classification in
2712.90.2000, HTSUS. While the wax layer provides the absorption of the liquids from the cream cheese, it
is the aluminum foil layer that provides the barrier that protects the wrap from leaking and also protects the
cream cheese from oxygen , moisture, and outside contaminants.
As three of the four products are printed at the time of import, the applicable subheading for the BestCo Inner
Wrap, the BestCo Outer Wrap, and the Schreiber packaging material is subheading 7607.20.1000, 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: covered or
decorated with a character, design, fancy effect or pattern. The rate of duty will be 3.7 percent ad valorem.
The applicable subheading for the Guardian Drug Co. packaging material is subheading 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.
USMCA
Regarding the request for a country of origin determination for purposes of eligibility under USMCA, the
USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018.
The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA
Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (“GN”) 11 of the
HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an
originating good for purposes of the USMCA. GN 11(b) states:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff
treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule
as a “good originating in the territory of a USMCA country” only if—
the good is a good wholly obtained or produced entirely in the territory of one or more USMCA
countries;
the good is a good produced entirely in the territory of one or more USMCA countries, exclusively
from originating materials;
the good is a good produced entirely in the territory of one or more USMCA countries using
non-originating materials, if the good satisfies all applicable requirements set forth in this note
(including the provisions of subdivision (o));
Since the articles are not considered a good wholly obtained or produced entirely in a USMCA country under
GN 11(b)(i), nor are the products produced exclusively from originating materials per GN 11(b)(ii), we must
determine whether the product qualifies under GN 11(b)(iii). As previously noted, the products are classified
under heading 7607, HTSUS, at the time of importation into the U.S. The applicable rule of origin for goods
classified under heading 7607, HTSUS, is in GN 11(o), HTSUS, which provides in relevant part:
Heading rule: Beginning on July 1, 2023, and thereafter, the following rules of origin shall apply to
Chapter 76:
7. A change to heading 7607 from any other heading.
For product 1, the foil and the paper are non-originating. While the paper undergoes a tariff shift in Canada,
the foil does not and remains classified in heading 7607, HTSUS. The requirements under GN 11(b) are not
met, therefore the BestCo Inner Wrap is not eligible for preferential treatment under USMCA.
For product 2, only the foil is non-originating. The foil does not undergo a tariff shift in Canada and remains
classified in heading 7607, HTSUS. The requirements under GN 11(b) are not met, therefore the BestCo
Outer Wrap is not eligible for preferential treatment under USMCA.
For product 3, only the foil is non-originating. The foil does not undergo a tariff shift in Canada and remains
classified in heading 7607, HTSUS. The requirements under GN 11(b) are not met, therefore the Guardian
Drug Co. packaging material is not eligible for preferential treatment under USMCA.
For product 4, only the foil is non-originating. The foil does not undergo a tariff shift in Canada and remains
classified in heading 7607, HTSUS. The requirements under GN 11(b) are not met, therefore the Schreiber
packaging material is not eligible for preferential treatment under USMCA.
Marking
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every
article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the
article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to
know by an inspection of the marking on the imported goods the country of which the goods is the product.
The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by
knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should
influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” 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 the marking laws and regulations.
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:
(i) the good is wholly obtained or produced;
(ii) the good is produced exclusively from domestic materials; or
(iii) 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 BestCo Inner Wrap, BestCo Outer Wrap, Guardian Drug Co. packaging material, and the Schreiber
packaging material 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 foil is
classified in heading 7607, HTSUS, both before and after processing in Canada. The tariff shift requirement
in Part 102.20 states: “A change to heading 7606 through 7615 from any other heading, including another
heading within that group. The foil does not meet the tariff shift required. As a result, Part 102.11(a) does
not apply.
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:
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. For purposes of this paragraph (b)(1): (i) The materials to be
considered must be classified in a tariff provision from which a change in tariff classification is not allowed
under the specific rule or other requirements applicable to the good under consideration…; … (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 foil in each product is the single component classified in a tariff provision from which a change in tariff
classification is not allowed. The foil imparts the essential character, and, accordingly, the country of origin
of all of the products for marking purposes is China.
Trade Remedies
When determining the country of origin for purposes of applying current trade remedies, the substantial
transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated
November 6, 2018. The test for determining whether a substantial transformation will occur is whether an
article emerges from a process with a new name, character, or use different from that possessed by the article
prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This
determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16
C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
For the BestCo Inner Wrap, you have indicated that the processing that occurs in Canada consists of adhering
the paper to the foil by laminating them together using a process called wet bond lamination. The paper-foil
product is then printed and lacquered on the paper side. The final stage of the processing that occurs in
Canada converts the master rolls to small widths, weight, and outside diameter.
For the BestCo Outer Wrap, you have indicated that the processing that occurs in Canada consists of a
process called extrusion lamination to bond the paper to the foil. The foil side is coated with a sealing layer of
EVA polymer and the paper side is coated with ink and lacquer. The final stage of the processing that occurs
in Canada converts the master rolls to small widths, weight, and outside diameter.
For the Guardian Drug Co. packaging material, you have indicated that the processing that occurs in Canada
consists of a process called extrusion lamination to bond the paper to the foil. The paper-foil product is then
coated with a layer of Surlyn (EVA). The final stage of the processing that occurs in Canada converts the
master rolls to small widths, weight, and outside diameter.
For the Schreiber packaging material, you have indicated that the processing that occurs in Canada consists
of laminating a PET film to the foil using a process called dry bond lamination. The product is then printed
with ink and over lacquered. A layer of microcrystalline petroleum wax is applied to the PET side of the
product using a hot melt rotogravure applicator providing sealing properties. The final stage of the processing
that occurs in Canada converts the master rolls to small widths, weight, and outside diameter.
Adhering a backing or a wax layer to an aluminum foil layer and then coating, printing, and slitting the
product does not result in a substantial transformation. Therefore, the country of origin for purposes of
applicability of trade remedies is China.
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate
of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition
to subheadings 7607.20.1000 and 7607.20.5000, HTSUS, listed above.
On March 12, 2025, Presidential proclamations 10895 and 10896 imposed additional tariffs on products of
steel and aluminum. Additional duties for steel and aluminum products of 50 percent are reflected in Chapter
99, heading 9903.81.87 for steel and heading 9903.85.02 for aluminum. Products classified under
subheadings 7607.20.1000 and 7607.20.5000, HTSUS, may be subject to additional duties. At the time of
entry, you must report the Chapter 99 heading applicable to your product classification, i.e., 9903.85.02, in
addition to the Chapter 72, 73 or 76 subheadings listed above.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time, products of China, Hong
Kong, and Macau will be subject to an additional ad valorem rate of duty of 10 percent. Your product falls
within an excepted subheading. At the time of entry, you must report the Chapter 99 heading applicable to
your product classification, i.e., 9903.01.33, in addition to subheadings 7607.20.1000 and 7604.20.5000,
HTSUS, listed above.
Pursuant to U.S. Note 31 (b) to Subchapter III, Chapter 99, HTSUS, effective September 27, 2024, products
of China classified under subheading 7607.20.1000 and 7607.20.5000, HTSUS, unless specifically excluded,
are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report
the Chapter 99 subheading, i.e., 9903.91.01, in addition to subheadings 7607.20.1000 and 7607.20.5000,
HTSUS, 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.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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.
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 Angelia Amerson at [email protected].
Sincerely,
(for)
Denise Faingar
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division