CLA-2 CO:R:C:F: 951073 ALS
Mr. Eric Granholm
Brady Mfg. Group
T/A Commander Carbon and Ribbon
70 Spruce Street
Paterson, New Jersey 07501
RE: Magnetic Ink Character Recognition (MICR) Polyethylene
Film in Varying Widths Which Will be Cut in Width and Length
to Make Ribbons for Impact Printers
Dear Mr. Granholm:
This is reference to your request of December 31, 1991, for
a tariff classification ruling on the subject product and empty
plastic cartridges. That portion of your request concerning
empty plastic cartridges has been answered by our New York
Seaport Area Office in their ruling NY 870304, dated January 27,
1992. That portion of your request concerning the plastic film
has been referred to this office for consideration and reply.
You provided samples of the plastic film which was the subject of
your request.
FACTS:
The product is a polyethylene film coated with pigments,
dyes, magnetic iron oxides and binders. It will be imported in
widths ranging from 17 to 31 inches and in lengths of
approximately 18,000 feet. After importation, the film will be
cut in both width and length to make ribbons which will be placed
on plastic cores to be used in impact printers.
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ISSUE:
What is the tariff classification of coated polyethylene
film which will be cut in width and length, subsequent to
importation, and used as ribbons for impact printers?
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 and chapter notes. If GRI 1 fails to
classify the goods, and if the heading 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 jumbo rolls, is not usable for its intended purpose
of impact printing. The jumbo rolls of the product, which are in
widths of 17 to 31 inches and in lengths of approximately 18,000
feet, are cut in both width and length and rolled onto cores
subsequent to importation.
In reviewing the facts in this case, we have considered the
application of subheading 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
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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.
On the surface, the product, as imported, would seem to meet
many of the qualities necessary for classification under
subheading 9612.10.9020, HTSUSA. We, however, note that the
product is imported in jumbo rolls and must be further processed
subsequent to importation before it can be used for its intended
purpose. This processing consists of slitting the film into
appropriate widths and lengths and rolling it onto cores. The
aforementioned Explanatory Note indicates that in order to be a
ribbon a product must at least have its 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
pigments, dyes, magnetic iron oxides and binders and polyethylene
film. Both subheadings 3206.49.4000, HTSUSA, which provides for
other coloring matter...preparations based on carbon black and
subheading 3921.90.4050, HTSUSA, 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 subheadings 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 coating, the most costly part
of the film, is the primary element of the product, and that it
should form the basis for classification based on essential
character, we understand that the polyethylene film makes up most
of the volume and weight of the rolls. 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 there, the product would be
classified under the provision for plastic sheets and film.
HOLDING:
The plastic film coating with pigments, dyes, magnetic iron
oxides and binders is classifiable under subheading 3921.90.4050,
HTSUSA, as other plates, sheets, film foil and strip, or
plastics, other, other, flexible, other. Such products are
dutiable at a general rate of 4.2 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division