CLA-2 OT:RR:CTF:TCM H072717 TNA
Nancy Quirk
Evans and Wood & Co.
612 E. Dallas Rd., Ste. 200
Grapevine, TX 76051
RE: Revocation of NY N056183; Classification of printed stickers from China
Dear Ms. Quirk:
This letter is in reference to New York Ruling Letter (“NY”) N056183, issued to Evans and Wood & Company on April 28, 2009, concerning the tariff classification of chipboard letters, numbers, and punctuation from China. In that ruling, U.S. Customs and Border Protection (“CBP”) classified the merchandise under subheading 4821.10.20, Harmonized Tariff Schedule of the United States (“HTSUS”), as “Paper and paperboard labels of all kinds, whether or not printed: Printed: Printed in whole or in part by a lithographic process.” We have reviewed NY N056183 and found it to be incorrect. For the reasons set forth below, we hereby revoke NY N056183. Your sample is being returned in accordance with your instructions.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke NY N056183 was published on April 8, 2015, in Volume 49, Number 14, of the Customs Bulletin. CBP received no comments in response to this notice.
FACTS:
The subject merchandise consists of two different packages of three- dimensional stickers. Item #509109, entitled “Chipboard Monogram O,” consists of six lithographically, design-printed, die-cut stickers made of paper or paperboard and depicting various forms of the letter “O.” Most are cut to shape the letter itself. The lithographic printing provides only the color and geometric design elements within the shape. Only two are printed with the letter onto rectangular paperboard. The stickers are decorated with small die-cut floral shapes and are embellished with glitter, brads and imitation pearls. The backs contain a square adhesive. The stickers range in size from approximately 1 ¼ inch to 3 inches in diameter.
Item #143073, entitled “Chipboard Wedding,” consists of nine lithographically printed stickers with a wedding theme. Six of them are made of paper or paperboard, and one, which consists of three pieces, is made of textiles. Some have words printed on them, including such words and phrases as “Forever,” “Promise,” “Wedding Day,” “Love of my Life, Love You Forever, and “To Have and to Hold.” The fronts of the merchandise are decorated with embellishments of glitter, braids, sequins and gemstones. Adhesive foam squares are attached to the back. The stickers range in size from approximately 2 inches wide to approximately 4 1/2 inches wide.
In NY N056183, dated April 28, 2009, CBP classified both Item #509109 and Item #143073 under subheading 4821.10.2000, HTSUS, which provides for “paper and paperboard labels of all kinds, whether or not printed: printed: printed in whole or in part by a lithographic process.”
ISSUE:
Where are the subject stickers classified?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied.
The HTSUS provisions under consideration are as follows:
4821 Paper and paperboard labels of all kinds, whether or not printed:
4821.10 Printed
4821.10.20 Printed in whole or in part by a lithographic process
* * *
4823 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:
4823.90 Other:
Other:
Other:
Other:
4823.90.86 Other:
* * *
4911 Other printed matter, including printed pictures and photographs:
Other:
4911.91 Pictures, designs and photographs:
Other:
4911.91.30 Over 0.51 mm in thickness
* * *
4911.99 Other
Other
4911.99.60 Printed on paper in whole or in part by a lithographic process
Note 12 to Chapter 48, HTSUS, states, in pertinent part, the following:
Except for the articles of heading 4814 or 4821, paper, paperboard, cellulose wadding and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods, fall in chapter 49.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The EN for heading 4821, HTSUS, states, in pertinent part:
This heading covers all varieties of paper and paperboard labels of a kind used for attachment to any type of article for the purpose of indicating its nature, identity, ownership, destination, price, etc. They may be of the stick-on type (gummed or self-adhesive) or designed to be affixed by other means, e.g., string.
These labels may be plain, printed to any extent with characters or pictures, gummed, fitted with ties, clasps, hooks or other fasteners or reinforced with metal or other materials. They may be perforated or put up in sheets or booklets.
Self-adhesive printed stickers designed to be used, for example, for publicity, advertising or mere decoration, e.g., “comic stickers” and “window stickers,” are excluded (heading 49.11).
The heading does not cover “labels” consisting of a relatively strong sheet of base metal covered on one or both sides with a thin sheet of paper, whether or not printed (headings 73.26, 76.16, 79.07, etc., or heading 83.10).
The EN to subheading 4821.10, HTSUS, states, in pertinent part:
This subheading covers all printed labels regardless of the significance or extent of the printing thereon. Labels printed, for example, with lines or other simple borders or merely incorporating small motifs or other symbols are therefore regarded as “printed” for the purposes of this subheading.
The EN to heading 4823, HTSUS, states, in pertinent part:
This heading includes:
(A) Paper and paperboard, cellulose wadding and webs of cellulose fibres, not covered by any of the previous headings of this Chapter:
in strips or rolls of a width not exceeding 36 cm;
in rectangular (including square) sheets of which no side exceeds 36 cm in the unfolded state;
cut to shape other than rectangular (including square).
It is to be noted, however, that paper and paperboard in strips or rolls, or in rectangular (including square) sheets, of any size, of headings 48.02, 48.10 and 48.11 remain classified in these headings.
(B) Articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres, not covered by any of the previous headings of this Chapter nor excluded by Note 2 to this Chapter.
The General EN to Chapter 49, HTSUS, states, in pertinent part:
With the few exceptions referred to below, 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 EN to heading 4911, HTSUS, states, in pertinent part:
This heading covers all printed matter (including photographs and printed pictures) of this Chapter (see the General Explanatory Note above) but not more particularly covered by any of the preceding headings of the Chapter…
The heading includes the following in addition to the more obvious products: ...
[C]ertain articles of stationery with printing which is merely incidental to their primary use for writing or typing are classified in Chapter 48 (see Note 12 to Chapter 48 and in particular the Explanatory Notes to headings 48.17 and 48.20).
(10) Self-adhesive printed stickers designed to be used, for example, for publicity, advertising or mere decoration, e.g., “comic stickers” and “window stickers.”
The subject merchandise consists of two different types of three-dimensional stickers. The stickers of Item #509109 are all made of similar paperboard and contain similar designs. Thus, the package of these stickers can be classified under GRI 1. In NY N056183, CBP classified Item #509109 in heading 4821, HTSUS, as paperboard labels. However, while paper labels of heading 4821, HTSUS, are printed, they are used to give information about the merchandise to which they are affixed. Such labels tend to indicate the nature, identity, ownership, destination, price, etc. of this merchandise. See Note 12 to Chapter 48, HTSUS; EN 48.21. In fact, the types of labels that CBP has typically classified in heading 4821, HTSUS, have identified merchandise as gifts or have provided other information about the merchandise such as the country of origin. See, e.g., NY N081716, dated November 4, 2009; NY N081718, dated November 4, 2009; NY N058601, dated May 15, 2009. In other words, the nature and use of the printed matter of heading 4821, HTSUS, is determined by the printing. A label, by definition, is a way of identifying that which it labels. Hence, the printing on a label is not merely incidental to the use of the good. To the contrary, the printing is a label of heading 4821, HTSUS, if the entire reason for existence of a label is to be at all useful as such.
By contrast, Item #509109, consists of colorful, embellished stickers that are intended to decorate objects rather than to give information about them. In addition, paper labels tend to be flat and the subject merchandise is three-dimensional. As such, the subject merchandise is not described by the terms of heading 4821, HTSUS, and must be classified elsewhere.
Heading 4823, HTSUS, provides for articles of paper that have been cut to a shape other than rectangular. Merchandise of this heading can be in the shape of a square, and are cut to a width and length that does note exceed 36 cm. See heading 4823, HTSUS; EN 48.23. Item #509109 meets the terms of this heading and is not excluded by the terms of Note 12 to Chapter 48, HTSUS. See Note 12 to Chapter 48, HTSUS; EN 48.23. Lastly, we note that although the stickers of Item #509109 contain glitter and some contain fake pearls, both are for decoration and form only a minimal amount of the total material. As a result, we find the glitter and fake pearls to be de minimis components that do not affect the classification of the subject chipboard letters. Classification in heading 4823, HTSUS, is also consistent with prior CBP rulings, which have classified self-adhesive, lithographically printed stickers of the kind used for scrapbook embellishments in that heading. See, e.g., NY N040239, dated October 30, 2008; NY L83150, dated March 17, 2005.
In its request for reconsideration, Evans and Woods suggests classification in heading 4911, HTSUS, as “Other printed matter, including printed pictures and photographs.” It is not disputed that the subject stickers are self-adhesive and are made of lithographically printed paper. However, in order to be classified in heading 4911, HTSUS, the printed motifs, characters or pictorial representations must determine the nature of the merchandise rather than being merely incidental to the primary use of the goods. See Note 12 to Chapter 48, HTSUS; EN 49.11.
Citing CBP’s Informed Compliance Publication entitled “Decals, Decorative Stickers and Window Clings,” dated January 2007, Evan and Wood argues that the difference between printed paper labels of heading 4821, HTSUS, and the printed paper stickers of heading 4911, HTSUS, is a matter of principal use. The company argues that because its merchandise is decorative rather than utilitarian, it should be classified under heading 4911, HTSUS.
Indeed, the products of heading 4821, HTSUS, are utilitarian and those of 4911, HTSUS, are generally decorative. However, this is not the determining factor for classification in either heading. Note 12 to Chapter 48, HTSUS, states that the printing, characters or motifs on products of Chapter 48, HTSUS, is “merely incidental” to those products. This is in contrast to the printing, characters, or motifs on products of heading 4911, HTSUS, which define the nature and use of the product. Therefore, products of headings 4821 and 4911, HTSUS, must have printing that determines that use and nature of the good as a whole.
By contrast, the printing on Item #509109 is merely incidental to the use of the good. These stickers are purely decorative. The printing on these letters consists of circles, squares, and other shapes in different colors. This printing does not convey the letter “O” that the whole shape of the stickers conveys. This printing does not change the fact that the stickers are “Os.” Thus, the printing is merely incidental to the primary use of the goods, and Item #509109 cannot be classified in heading 4911, HTSUS.
The other item at issue here, Item #143073, is a package of nine stickers, some of which are made of textile, and others of which are made of paper. As such, the package as a whole cannot be classified in accordance with GRI 1, as there is no single heading which covers both the textile and the paper stickers. Furthermore, none of the headings at issue provide a more specific description of the merchandise; as a result, GRI 3(a) does not resolve the matter, and the analysis proceeds to GRI 3(b). GRI 3(b) states, in pertinent part, that:
When, by application of Rule 2(b) or for any other reason, goods are prima facie classifiable under two or more headings, classification shall be effected as follows: …
Mixtures, composite goods consisting or 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.
Explanatory Note VIII to GRI 3(b) states, in pertinent part, 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, weight, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods.
Explanatory Note (X) to GRI 3(b) states, impertinent part, that:
For the purposes of this Rule, the term “put up in sets for retail sale” shall be taken to mean goods which:
consist of at least two different articles which are prima facie classifiable in different headings…
consist of products or articles put up together to meet a particular needs or carry out a specific activity; and
are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).
Item #143073 contains components that are made of textile and components that are made of paper. They are put up together in a single package to be sold as such to the consumer. Furthermore, the merchandise consists of stickers that are put up together as materials for scrapbooking, which is a specific activity. As a result, the merchandise constitutes a set under GRI 3(b) and must be classified according to its essential character. Six of the nine stickers are made of paper or paperboard. One item, consisting of three pieces, is made of textile. Paper clearly constitutes the greatest number and surface area of these items. As a result, we find that the paper constitutes this set’s essential character of the good.
In NY N056183, CBP classified Item #143073 in heading 4821, HTSUS, as “Paper and paperboard labels of all kinds, whether or not printed.” Much like Item #509109 discussed above, Item #143073 does not meet the terms of heading 4821, HTSUS, because it does not consist of flat, printed labels designed to be affixed to merchandise for the purpose of providing information etc. As such, Item #143073 is precluded from heading 4821, HTSUS, and we examine alternate headings.
The stickers of Item #143073 are gummed, die-cut, lithographically printed stickers on paperboard that are designed to have a three-dimensional appearance and be affixed to the surface of another object. They have been embellished with glitter, grommets, beads, and beaded chains, and most are printed with words and phrases such as “love of my life, love you forever,” “to have and to hold,” etc. These words form a significant part of the merchandise’s design; it is these letters, rather than the rest of the sticker, that make the product a wedding product as its title denotes. As such, the printed words on these stickers are more than merely incidental. As a result, Item #143073 is not described by the terms of heading 4823, HTSUS.
Because this merchandise is made of paper and printed with motifs and words that are more than merely incidental to the primary use of the goods, it is described by the terms of heading 4911, HTSUS, in accordance with Note 12 to Chapter 48, HTSUS; EN 49.11. Specifically, Item #143073 is described by the terms of subheading 4911.99.60, HTSUS, which provides for: “other printed matter, including printed pictures and photographs: other: other: other: Printed on paper in whole or in part by a lithographic process.”
We note that Evans and Wood argues for classification of Item #143073 in subheading 4911.91.30, HTSUS. CBP has classified merchandise in this subheading when the merchandise consists of photographs, reproductions thereof, or framed prints of paintings. See, e.g., HQ W968295, dated January 19, 2007; HQ 963858, dated August 13, 2001. This is in contrast to the subject merchandise, which contains none of these. Furthermore, CBP has stated that at the six digit subheading level, subheading 4911.91, HTSUS, includes other printed matter, pictures, designs, and photographs, while subheading 4911.99, HTSUS, covers printed matter other than pictures, designs, and photographs- that is, printed matter such as characters, symbols, and letters. See HQ 963858. As a result, HQ 963858 classified cards with photos on them in subheading 4911.91, HTSUS.
By contrast, the subject merchandise can readily be distinguished from the merchandise of these rulings, as it contains no photographs or reproductions of photographs; neither does it contain framed prints of paintings. To the contrary, the subject merchandise consists of stickers containing symbols and words associated with weddings and love. As such, these stickers are described by the terms of subheading 4911.99, HTSUS, and will be classified there.
HOLDING:
Under the authority of GRI 1, Item #509109 is provided for in subheading 4823.90.86, 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: other.” The applicable duty rate is free. Under the authority of GRI 3(b), Item #143073 is classified under subheading 4911.99.60, which provides for “other printed matter, including printed pictures and photographs: other: other: other: Printed on paper in whole or in part by a lithographic process.” As such, the duty rate 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 on the internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N056183, dated April 29, 2009, is REVOKED.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division