CLA-2 CO:R:C:G 087881 ALS
Mr. David A. Sharpe
President
I.C.S. Customs Service, Inc.
2330 Brickvale Drive
Elk Grove Village, IL 60007
RE: Plastic film impregnated with carbon-resin-wax formulated
ink used for image printing which, after importation, is cut into
various widths and lengths, a leader film added, and then the
film is rolled onto cores of an appropriate size prior to
distribution to the customer.
Dear Mr. Sharpe:
This is reference to your letters of July 6, 1990 and August
16, 1990, requesting a tariff classification ruling on the
subject product. A sample of the imported product could not be
provided because folding, which would have been necessary to
furnish the product, would have damaged the coating on the
product. You have, therefore, provided a sample of product as it
is finished after importation into the United States and in the
condition ready for distribution to customers.
FACTS:
The product is a man-made polyester film impregnated with a
carbon-resin-wax formulated ink. It measures 900 mm by 12,000 m,
as imported. After importation, the film is cut to width and
length, a leader film is attached and the film is then rolled
onto cores of appropriate sizes prior to distribution to the
customer. The film is used as a ribbon on machines for image
printing.
ISSUE:
What is the tariff classification of the impregnated
polyester film?
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LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) is governed by the General Rules
of Interpretation (GRI's). GRI 1 provides that classification is
to be determined in accordance with the terms and headings and
any relevant section or chapter notes. If GRI 1 fails to
classify the goods, and if the heading and legal notes do not
otherwise require, the remaining GRI's are applied, taken in
order.
In considering this matter we noted that the film, as
imported on master rolls, is not usable for its intended purpose
of image printing on a machine. The master rolls of the
product, which are 900 mm by 12,000 m, are subsequently cut in
both width and length, a leader is attached and the finished
product is then rolled on a core of appropriate size for
distribution to the customer.
In reviewing the facts in this case, we have considered the
application of subheadings 9612.10.9020,3206.49.4000 and
3921.90.4050, HTSUSA. We initially considered the applicability
of subheading 9612.10.9020, HTSUSA, which provides for typewriter
or similar ribbons, inked or otherwise prepared for giving
impressions, whether or not on spools or in cartridges, other,
other. We noted that the subheading seemed to cover the product
in question and even though, as imported, it is not ready for
use, it might be considered an unfinished machine ribbon and
covered under the last referenced subheading pursuant to GRI 2.
That GRI provides that any reference in a heading to an article
shall be taken to include a reference to that article incomplete
or unfinished, provided that, as presented, the incomplete or
unfinished article has the essential character of the complete or
finished article.
We next referred to Explanatory Note 96.12, which covers
heading 9612, and represents the official interpretation of the
Harmonized System at the international level. That Note
specifies that the heading covers ribbons, whether on spools or
in cartridges, for typewriters, calculating machines, or for any
other machines incorporating a device for printing by means of
such ribbons. It also specifies that inked ribbons, etc. are
included therein and that the ribbons, while usually of textile
material, can be made of plastics or paper.
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On the surface, the product, as imported, would seem to meet
many of qualities necessary for classification under subheading
9612.10.9020, HTSUSA. We, however, note that the product is
imported in sheets measuring 900 mm in width and 12,000 m in
length and that it is wound on a 6 inch core. In this state it
is not marked in any way to indicate size or quantity and it is
neither recognizable as a ribbon nor is it usable as a ribbon.
It is only after importation that the product is slit to width
and cut to length, a leader film added and the film is
transferred to smaller size cores. This is done to meet the
requirements of each customer. In addition, the aforementioned
explanatory note seems to consider a ribbon as being a product
which has at least the width defined, although some of its other
qualities may yet to be completed. Accordingly, we believe that
the instant product has not reached the point, at the time of
importation, where it is identifiable as an unfinished ribbon.
We next considered the fact that the product is composed of
both carbon-resin-wax formulated ink and polyester film. Both
subheadings 3206.49.4000, which provides for other coloring
matter...preparations based on carbon black and subheading
3921.90.4050, which provides for other plates, sheets, film, foil
and strip, of plastics, other flexible, other, seem to have some
applicability. Since neither subheading specifically covers the
product, which is a composite of materials, it is, pursuant to
GRI 2(b), to be classified according to the principles of GRI 3.
Classification under GRI 3(a) is not possible because the two
possible subheading are equally specific. We next considered the
classification of the product under GRI 3(b), which calls for
classification based on the essential character.
According to the Explanatory Notes, essential character may
be determined by the nature of the material or component, its
bulk, quantity, weight or value, or by the role of the
constituent material in relation to the use of the goods. While
it would initially appear that the carbon-resin-wax formulated
ink is the primary element of the product and that it should form
the basis for classification based on essential character, all
objective measuring standards would indicate otherwise. In this
regard, we note that the polyester film makes up 55 percent of
the volume of the roll, 60 percent of the weight and 90 percent
of the cost. We, therefore, do not believe that it is clear as
to which element of the product forms the essential character
thereof.
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Accordingly, classification pursuant to GRI 3(b) was not
possible and we turned to GRI 3(c) to classify the product. That
GRI provides that when goods cannot be classified by reference to
GRI 3(a) or 3(b), they shall be classified under the heading
which occurs last in numerical order among those which equally
merit consideration. Based thereon, the product would be
classified under the provision for plastic sheets and film.
HOLDING:
The plastic film impregnated with carbon-resin-wax
formulated ink is classifiable under subheading 3921.90.4050,
HTSUSA, as other plates, sheets, film, foil and strip, or
plastics, other, other, flexible, other. The applicable rate of
duty is at the general rate of 4.2 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division