CLA-2 CO:R:C:T 952507 CRS

Ms. Cynthia I. Harker
Ted L. Rausch Co. of Oregon
P.O. Box 30419
Portland, OR 97230

RE: Thermal paper; revocation of NYRL 850204

Dear Ms. Harker:

As the result of a recent amendment to the Nomenclature of the Harmonized Commodity Description and Coding System, adopted at the Eighth Session of the Harmonized System Committee (HSC) of the Customs Co-Operation Council, this office has determined that New York Ruling Letter (NYRL) 850204, issued to your company on March 30, 1990, should be revoked. Our decision follows below.

NYRL 850204 concerned the classification of thermal paper for facsimile machines under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The paper in question was imported from South Korea in rolls of less than 610 mm in width and was classified as photographic paper of either subheading 3703.10.6000, HTSUSA, or of subheading 3703.90.6000, HTSUSA, dutiable at the rate of 2.8 percent ad valorem.

However, the HSC has now determined that thermal paper for facsimile machines should be classified either in heading 4811, HTSUSA, or in heading 4823, HTSUSA, and has amended the text of the international nomenclature and the Explanatory Notes to reflect this change.

Heading 4811, HTSUSA, covers paper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or in sheets, other than goods of heading 4803, 4809, 4810 or 4818. Note 7, Chapter 48, HTSUSA, provides in relevant part that heading 4811 applies only to paper in rolls of a width exceeding 15 cm, or in rectangular (including square) sheets with one side exceeding 36 cm and the other side exceeding 15 cm in the unfolded state. Accordingly, if the facsimile paper imported by you meets the requirements of Note 7, it will be classifiable as follows: if weighing not over 15 g/m, the paper will be classifiable in subheading 4811.90.4000, HTSUSA, dutiable at 2.9 percent ad valorem; if weighing more than 15 g/m but not over 30 g/m, it will be classifiable in subheading 4811.90.6000, HTSUSA, free of duty; and if weighing over 30 g/m, it will be classifiable in subheading 4811.90.8000, HTSUSA, dutiable at 2 percent ad valorem.

However, if the facsimile paper imported by your company does not meet the requirements of Note 7, Chapter 48, it will be classifiable in heading 4823, HTSUSA, which provides in pertinent part for other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape. Specifically, if the imported paper contains 25 percent or more by weight of cotton fiber, it will be classifiable in subheading 4823.59.4020, HTSUSA. Otherwise, it will be classifiable in subheading 4823.59.4040, HTSUSA. In either case, it will be dutiable at the rate of 3 percent ad valorem.

Pursuant to section 177.9(d)(1), Customs Regulations (19 CFR 177.9(d)(1)), NYRL 850204 is revoked. This revocation will not be applied retroactively and will not affect past transactions. However, for the purposes of future transactions in merchandise of this type, NYRL 850204 will not be valid precedent. We recognize that pending transactions may be adversely affected by this revocation. If such a situation arises, you may notify this office and apply for relief from the binding effects of this decision, as may be warranted by the circumstances.

Should you have any questions with regard to this matter, we suggest you contact the National Import Specialist for paper and paperboard, who can be reached through our New York office, at (212) 466-5733.

Sincerely,

John Durant, Director