CLA-2 CO:R:C:G: 085476 jlj

Mr. Ray E. Parry
International Card Corporation
6-1021 Meyerside Drive
Mississauga, Ontario
Canada L5T 1J6

RE: Transaction Receipt Cards, Computer Cards and Coupons; Reconsideration of Headquarters Letter 084648 of August 29, 1989

Dear Mr. Parry:

You requested tariff classifications under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) for transaction receipt cards, computer cards and a coupon imported from Canada. You submitted samples along with your letter.

FACTS:

The transaction receipt cards, computer cards and coupons are paperboard cards of rectangular shape which come in two sizes: 8.25 centimeters by 6.5 centimeters for the receipt cards and 18.75 centimeters by 8.25 centimeters for the computer cards and the coupon. The receipt cards are to be used in automated teller machines commonly operated by financial institutions. The computer cards are intended to dispense information to or to retrieve information from computers or computer-activated machines. Unlike the other two cards, the $50 coupon, which is redeemable for cash, does not operate through any machine.

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In Customs Headquarters Ruling Letter (HRL) 084648 of August 29, 1989, we advised you that the transaction receipt cards and the computer cards were classified under the provision for other articles of paper: other: other: other: other: other, in subheading 4823.90.85, HTSUSA, with the exception of the computer cards suitable for use with punchcard machines, which are classified under the provision for other articles of paper: cards, not punched, for punchcard machines, in subheading 4823.30.00, HTSUSA.

All of the cards and the coupon are printed with letters, figures and motifs related to the use of the articles.

ISSUE:

Are these printed cards and coupons classified as printed matter in Chapter 49 or as articles of paper in Chapter 48?

LAW AND ANALYSIS:

HRL 084648 said that the transaction receipt cards and the computer cards are not classified as other printed matter under Heading 4911 because Heading 4823 provided a better description of the cards. It also said that none of the chapter notes required a different classification (i.e., other than Heading 4823) for these cards. Both of these statements were incorrect.

Chapter Note 11 of Chapter 48, HTSUSA, states "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." This chapter note mandates the classification of printed matter as printed matter in Chapter 49. Heading 4911 covering other printed matter is also more specific than Heading 4823 covering other articles of paper.

All of the cards and the coupon are printed matter. Inasmuch as there is no more specific provision in Chapter 49 to cover them, they are classifiable under the provision for other printed matter: other: other: other: other in subheading 4911.99.8000, HTSUSA.

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HOLDING:

The transaction receipt cards, the computer cards and the coupon are classified in subheading 4911.99.80, HTSUSA, dutiable at the rate of 4.9 percent ad valorem. Articles originating in Canada and classified in this subheading are eligible for a 3.9 percent duty rate under the United States-Canada Free Trade Agreement if all applicable regulations are met.

HRL 084648 is hereby modified accordingly.

Sincerely,

John Durant, Director
Commercial Rulings Division

6 cc: Area Dir., N.Y. Seaport (NIS-234)
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085476jlj