CLA-2 CO:R:C:G 088400 KWM
Mr. Roy H. Yahiro
Nissho Iwai American Corporation
Broadway Plaza, Suite 1900
700 South Flower Street
Los Angelos, California 90017-4273
RE: Thermal transfer ribbon; Paper; Tracing paper;
polyethylene terephthalate polyester film; ribbon;
Dear Mr. Yahiro:
This is in response to your correspondence dated January
28, 1991, and the request made on your behalf by James J.
Boyle & Co. for a binding classification ruling for
merchandise described as thermal transfer ribbon.
FACTS:
On August 30, 1990, a request for binding classification
was received by our New York office for goods described as
"thermal transfer ribbon (TTR)." The merchandise consists of
two basic layers: a thin polyester film onto which a color
ink is coated, and a base material. You have indicated that
the initial importations will have base materials of either
paper, tracing paper, or polyethylene terephthalate (PET)
polyester film. The two layers are not laminated together,
but do adhere to each other. The product will be imported in
rolls, and may also be imported in sheet form (possibly z-
folded or fan-folded) in the future. The primary ink color
will be black. The rolls of TTR are used in thermal printers
or plotters. The ink images are transferred to the base
material, or substrate, by the application of heat through a
thermal printing head. The roll material may then be cut to
the desired length and the spent ink film is peeled off and
discarded. The substrate contains the final printed image.
ISSUE:
Which component provides the essential character of the
thermal transfer ribbon?
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's). The
systematic detail of the harmonized system is such that
virtually all goods are classified by application of GRI 1,
that is, according to the terms of the headings of the tariff
schedule and any relevant 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's may be applied, taken in order.
We find no heading which, by its terms, describes the
thermal transfer ribbon. Therefore, for tariff purposes, we
consider the merchandise to be classifiable as a composite
good, composed of two layers: the ink coated polyester and the
substrate material. By application of GRI's 2 and 3, the
classification of the TTR will be determined by that component
which provides the merchandise with its essential character.
The essential character of a product is unique to that
product. It may be influenced by several factors, including
the relative weight, cost, bulk and the role of the
constituent materials. Your letter dated October 10, 1990,
provides the following information regarding the relative
percentages by weight and value of the materials present here:
Weight Value
Inked film (film only) 7.4% 23%
Ink 4.8% 12%
Paper/PET film tracing paper 87.8% 65%
Although we would consider the percentages of the ink and the
film which carries it in the aggregate, together they do not
approach the considerable weight and value contribution of the
substrate material. And, although we recognize that all three
of the materials (paper, PET film and tracing paper) do not
contribute precisely the same percentage of weight and value
considering their obvious differences, we are nonetheless of
the opinion that the role of each is essential to the use of
the product which contains it. We must therefore determine
the classification of the substrate materials.
No technical information was provided regarding the paper
material. However, we believe that it is provided for in
heading 4802, HTSUSA, which includes uncoated paper and
paperboard, of a kind used for writing, printing or other
graphic purposes. Within heading 4802, HTSUSA, subheading
classification will depend on the manufacturing process used
and the weight or type of paper being used. Without this
information, we cannot provide a binding ruling beyond the
four-digit heading.
We also note that no technical information was provided
regarding the tracing paper. However, we believe that it is
provided for in subheading 4806.30.0000, HTSUSA, which
includes vegetable parchment, greaseproof papers tracing
papers and glassine and other glazed transparent or
translucent papers, in rolls or in sheets. As with the paper,
above, we cannot provide a binding ruling at this time absent
the required technical infomation.
Lastly, the polyethylene terephthalate (PET) polyester
film is classified in subheading 3920.10.0000, HTSUSA, which
provides for other plates, sheets, film, foil and strip, of
plastics, noncellular and not reinforced, laminated, supported
or similarly combined with other materials: or polymers or
ethylene. We recognize that the materials here may appear to
be "reinforced, laminated supported or similarly combined",
but we further note that your letter specifically asserts that
the inked film and the PET sheet are not laminated. Further,
for the purposes of classifying a composite good by GRI 3, we
separate the component materials and consider the character
and classification of each individually. After determining
which component material establishes the essential character,
we classify the entire product based on the criterion that the
entire item is composed of that material. That classification
is the classification which provides for the material on its
own. In this case the PET film, if imported separately would
fall under subheading 3920.10.0000, HTSUSA. Therefore, the
composite good is also classified in subheading 3920.10.0000,
HTSUSA.
We do not believe that heading 4820, HTSUSA provides for
these goods. That provision includes "interleaved carbon
sets." However, the Explanatory Notes to the HTSUSA, indicate
that the heading includes multiple pages of paper held
together with a perforated stub and used for typing multiple
copies. The instant goods are not of that type, and we do not
classify them, eo nomine, in heading 4820, HTSUSA, even though
they may be entered in a "fan-fold" or "z-fold" format.
HOLDING:
The merchandise described as "TTR/PET film" and composed
of a plastics film coated with ink (the "thermal transfer
ribbon") and adhered to a base or substrate material is
classified in subheading 3920.10, HTSUSA, as sheets or film of
plastics, noncellular, and not reinforced, laminated,
supported or similarly combined with other materials. The
applicable rate of duty is 4.2 percent ad valorem.
No binding classification ruling is provided for either
the TTR/paper or TTR/tracing paper merchandise.
You may provide, at any time prior to the importation of
this product, further information regarding the paper
components of this merchandise, and we will issue a binding
classification at that time. Otherwise, you should provide
the data to the port of entry at the time of importation to
establish the duty rate.
Sincerely,
John A. Durant
Director
Commercial Rulings Division