CLA-2 CO:R:C:M 956733 KCC
Ralph H. Sheppard, Esq.
Adduci, Mastriani, Schaumberg & Schill
330 Madison Avenue
39th floor
New York, New York 10017
RE: Labels; aluminum foil covered paper; paper coated with metal
powder; uncoated paper; lithographic process; General EN,
chapter 48; Note 1(m), chapter 48; EN 48.21; 4911; paper and
paperboard labels of all kinds; GRI 3(a); EN 49.11; 7606;
aluminum foil (whether or not printed, or backed with paper,
paperboard, plastics or similar backing materials) of a
thickness (excluding any backing) not exceeding 0.2 mm
Dear Mr. Sheppard:
This is in response to a letter dated June 30, 1994, from
Trans-Border Customs Services, Inc., on behalf of Jonergin (1985)
Inc., regarding the tariff classification of labels under the
Harmonized Tariff Schedule of the United States (HTSUS). Samples
were submitted for our examination. By a letter dated October
25, 1994, you advised us of your representation of Jonergin
regarding this matter. Additional information provided in your
submission of November 11, 1994, and at a meeting held on
February 8, 1995, was taken into consideration in rendering this
decision.
FACTS:
The merchandise under consideration are three types of
labels designed primarily for the wine and spirits industry to be
attached to bottles containing liquor and alcoholic beverages.
The labels, which are customized to the users specifications and
identify product, price and warning information, will be imported
in a finished, cut to shape, ready to use state.
Type A labels are produced by reinforcing sheets of 41
lbs/3000 sq. feet weight paper with one thin sheet of aluminum
foil of 11.613 lbs/3000 sq. feet. The foil side does not exceed
.000275 mm. The paper is approximately 75% and the foil is
approximately 21% of the weight of the completed Type A label.
The remaining 4% of weight is attributable to the adhesive and
lacquer. The labels are printed by a lithographic process with
up to six different colored inks. Then they are embossed and
varnished. The labels are then die cut from the printed,
embossed and varnished sheets. The aluminum foil gives retention
to the embossing of the label; it does not show through the
label's colored printed surface.
Type B labels are made on paper coated with a metal powder.
The coating is created by blowing a fine metal powder onto the
paper surface in an electrostatic process. The paper used in
this label is normally of a lighter weight than that used in the
production of the Type A labels. This results in a more flexible
and slightly cheaper label. Type B labels are printed by a
lithographic process with up to six different colored inks and
are embossed. The labels are then die cut from the printed and
embossed sheets.
Type C labels are printed by a lithographic process, with up
to six different colored inks, on uncoated paper. The labels are
then cut from the printed sheets. The submitted sample is
embossed.
You claim that the labels should be classified as paper and
paperboard labels under subheading 4821.10.20 or 4821.10.40,
HTSUS, depending on whether or not a lithographic printing
process is used, or, alternatively, as other printed matter under
subheading 4911.91.10, HTSUS.
The competing headings are as follows:
4821 Paper and paperboard labels of all kinds, whether or
not printed....
4911 Other printed matter, including printed pictures and
photographs....
7606 Aluminum foil (whether or not printed, or backed with
paper, paperboard, plastics or similar backing
materials) of a thickness (excluding any backing) not
exceeding 0.2 mm....
ISSUE:
Are the Type A, B and C labels classified under heading
4821, HTSUS, as paper and paperboard labels?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, states, in part, that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes...."
Note 1(m), chapter 48, HTSUS, states that chapter 48, HTSUS,
does not cover:
Metal foil backed with paper or paperboard (section XV)....
The Type A label is not "metal foil backed with paper or
paperboard." It is an actual label made from paper covered with
aluminum foil, printed by a lithographic process, embossed,
varnished, cut to shape and ready for attachment to a bottle.
Therefore, this exclusion is inapplicable to the Type A labels.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes (ENs)
may be utilized. The ENs, although not dispositive, provide a
commentary on the scope of each heading of the HTSUS and are
generally indicative of the proper interpretation of the HTSUS.
See, T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
General EN, chapter 48 (pgs. 664-669), describes various
types of paper and paperboard, including coated paper and
paperboard, which are classifiable in chapter 48, HTSUS.
Additionally, General EN, chapter 48 states that powdered metal
is a substance used in coating paper.
EN 48.21 (pg. 687), states that:
This heading covers all varieties of paper and paperboard
labels of a kind used for attachment to any type of article
for the purpose of indicating its nature, identity,
ownership, destination, price, etc. They may be of the
stick-on type (gummed or self-adhesive) or designed to be
affixed by other means, e.g., string.
These labels may be plain, printed to any extent with
characters or pictures, gummed, fitted with ties, clasps,
hoods or other fasteners or reinforced with metal or other
materials. They may be perforated or put up in sheets or
booklets...
The heading does not cover "labels" consisting of a
relatively strong sheet of base metal covered on one or both
sides with a thin sheet of paper, whether or not printed
(headings 73.26, 76.16, 79.07, etc., or heading 83.10)
(emphasis in original).
Based on the terms of the heading 4821, HTSUS, and the ENs,
we are of the opinion that the Type A, B and C labels are
classified under heading 4821, HTSUS, as paper and paperboard
labels.
The Type A labels are not "'labels' consisting of a
relatively strong sheet of base metal covered on one side with a
thin sheet of paper." The Type A labels are made by reinforcing
sheets of 41 lbs/3000 sq. feet weight paper with one thin sheet
of aluminum foil of 11.613 lbs/3000 sq. feet. The paper is
approximately 75% and the foil is approximately 21% of the weight
of the completed Type A label. The remaining 4% of weight is
attributable to the adhesive and lacquer. The Type A labels are
not excluded from classification under heading 4821, HTSUS.
Additionally, the Type B label which is printed on paper
with a powdered metal coating and the Type C label which is
printed on uncoated paper by a lithographic process are
classified under heading 4821, HTSUS. Specifically, the Type A,
B and C labels are classified under subheading 4821.10.20, HTSUS,
which provides for "Paper and paperboard labels of all kinds,
whether or not printed...Printed...Printed in whole or in part by
a lithographic process."
The labels are not classifiable under heading 4911, HTSUS,
as "Other printed matter, including printed pictures and
photographs...." GRI 3(a), HTSUS, states that "[t]he heading
which provides the more specific description shall be preferred
to headings providing a more general description." We are of the
opinion that heading 4821, HTSUS, which provides for paper and
paperboard labels of all kinds, is more specific than heading
4911, HTSUS. Additionally, EN 49.11 (pgs. 699-700) states that:
This heading covers all printed matter (including
photographs and printed pictures) of this Chapter (see the
General Explanatory Note above) but not more particularly
covered by any of the preceding headings of the Chapter...
The following articles, in particular, are also excluded
from this heading:...
(b) Goods of heading 39.18, 39.19, 48.14 or 48.21 or
printed paper products of Chapter 48 in which the
printed characters or pictures are merely incidental to
the primary use of the products (emphasis in original).
Pursuant to EN 49.11, the labels at issue are excluded from
classification under heading 4911, HTSUS.
Heading 7606, HTSUS, provides for "Aluminum foil (whether or
not printed, or backed with paper, paperboard, plastics or
similar backing materials) of a thickness (excluding any backing)
not exceeding 0.2 mm." Since the Type A label is an actual label
made from paper covered with aluminum foil, printed by a
lithographic process, embossed, varnished, cut to shape and ready
for attachment to a bottle, we are of the opinion it is not
classifiable under heading 7606, HTSUS, as aluminum foil. As
discussed above, the Type A label is specifically provided for
under subheading 4821.10.20, HTSUS.
HOLDING:
The Type A, B and C labels are classified under subheading
4821.10.20, HTSUS, which provides for "Paper and paperboard
labels of all kinds, whether or not printed... Printed...Printed
in whole or in part by a lithographic process." This tariff
provision is dutiable at the specific rate of 7.9›/kg.
Sincerely,
John Durant, Director
Commercial Rulings Division