CLA-2 CO:R:C:G 086865 RFC
Ms. Tracey Sandor
Colortech Inc.
8011 Dixie Road
Brampton, Ontario
Canada, L6T 3V1
RE: Reconsideration of New York Ruling Letters (NYRL) 846248 and
843411; coloring matter
Dear Ms. Sandor:
This letter is in response to your letter of March 15, 1990,
on behalf of Colortech Inc., requesting a reconsideration of
NYRLs 846248, dated August 2, 1989, and 843411, dated November
13, 1989. Both of these ruling letters concern the tariff
classification under the Harmonized Tariff Schedule of the United
States (HTSUSA) of certain coloring matter consisting of carbon
black dispersed in plastic.
FACTS:
The goods simply consist of a carbon black dispersed in
plastic and used as a coloring matter.
ISSUE:
Whether a coloring matter consisting of carbon black and
plastic should be classified under the HTSUSA as "concentrated
dispersions of pigments in plastics materials" or as
"preparations based on carbon black."
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRIs). GRI 1 requires
that classification be determined first according to the terms
of the headings of the tariff and any relative section or
chapter notes and, unless otherwise required, then according to
the remaining GRIs, taken in order. Under GRI 3(a), when goods
are, prima facie, classifiable under two or more headings, the
goods shall be classified under the heading that provides the
most specific description from among headings providing a more
general description (i.e., the goods should be classified under
the heading that most clearly identifies them). GRI 6 prescribes
that, for legal purposes, GRI 1 to 5 shall govern, mutatis
mutandis, classification at subheading levels within the same
heading. In view of the above, then, when goods are, prima
facie, classifiable under two or more subheadings within the same
heading, the goods shall be classified under the subheading that
most specifically describes or identifies them.
In the instant classification analysis, the most relevant
heading under which the goods may be classified is heading 3206,
which provides for, among other things, other coloring matter and
preparations. Within this heading, there exist two subheadings
under which the goods may be potentially classified: subheadings
3206.49.10 and 3206.49.40.
Subheading 3206.49.40 provides for "preparations based on
carbon black." Under this broad and expansive article
description, any coloring matter product may be classified under
this subheading as long as it is based on or contains the pigment
carbon black. The carbon black need not be concentrated nor is
there any limit on the number or amounts of other elements that
may be present in the coloring matter product.
The alternate subheading within heading 3206 in which the
instant goods may be classified is subheading 3206.49.10. This
subheading provides for "concentrated dispersions of pigments in
plastics materials" (emphasis added). Subheading 3206.49.10 is,
quite obviously, a very restricted subheading, limited to only
coloring matter products consisting of concentrated dispersions
of pigments (e.g., carbon black) in plastic. The above-quoted
article description for subheading 3206.49.10 fits squarely with
the description that you provide of your product in your March
15, 1990, letter, in paragraphs 1 and 2 on page 1: "carbon black
concentrate...combined with linear low density polyethylene
[i.e., a plastic material]." Given that your product clearly is
more specifically and aptly described by the restrictive article
description for subheading 3206.49.10 than by the broad and
expansive article description for subheading 3206.49.40, then,
pursuant to GRI 3(a) and GRI 6, your product is properly
classified under subheading 3206.49.10, and should be so
classified under that subheading.
A review of heading 3206 shows that preparations based on
iron oxides or based on zinc oxides are provided for in addition
to preparations based on carbon black. (See subheadings
3206.49.20 and 3206.49.30 and 3206.49.40.) Thus, following your
argument in the instant request for reconsideration (which
essentially is that all coloring matter products containing
carbon black are classified under subheading 3206.49.40 even if
they contain plastic), all coloring matter products containing
plastic, in whatever amount or ratio, and either carbon black or
iron oxides or zinc oxides would necessarily always be excluded
from classification under subheading 3206.49.10. In view of the
above, however, the article description of subheading 3206.49.10
most clearly encompasses such products with greater specificity
than the article description of any other subheading within
heading 3206. Moreover, there exists no authority or basis in
the HTSUSA or in the Explanatory Notes to the HTSUSA for the
total exclusion of such coloring matter products from subheading
3206.49.10.
HOLDING:
The goods are properly classified under subheading
3206.49.1000, HTSUSA, which provides for other coloring matter,
other coloring matter and other preparations, other, concentrated
dispersions of pigments in plastics materials. The rate of duty
for goods imported under this subheading and receiving special
tariff treatment under the United States-Canada Free-Trade
Agreement is 3.5 percent ad valorem. The general rate of duty is
5.9 percent ad valorem.
In light of the above, NYRLs 846248 and 843411 are hereby
affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division