CLA-2 R:C:T 957497 ch
District Director
U.S. Customs Service
Main & Stebbins Streets
P.O. Box 1490
St. Albans, Vermont 05478
RE: Application for further review of Protest No. 0201-94-100432 under 19 U.S.C., section 1514(c)(2); tariff
classification of filler material used in filled rolls
for supercalendars.
Dear Sir:
This is a decision on application for further review of a
protest timely filed by Trans-Border Customs Service, on behalf
of Ahlstrom Jagenberg. We have considered the protest and our
decision follows.
FACTS:
The imported goods are sheets, described as felt paper,
which have been die-cut or guillotined into octagon shape. After
importation, a hole is cut into the sheets so that they may be
placed on a steel shaft. The sheets are compressed onto the
shaft, which is then fitted onto a lathe and ground to a fine
polish. The finished product is referred to as a "filled roll"
and is used in supercalendars.
A supercalendar is an apparatus used to impart a high gloss
or finish to paper. It consists of a vertical stack of
alternating steel and filled rolls through which a paper web is
passed. The steel rolls are indented by means of pressure onto
the filled rolls, causing a friction or rubbing action which
imparts the smooth, glossy appearance to the paper web.
The merchandise was entered in subheading 4805.50.0000,
Harmonized Tariff Schedule of the United States (HTSUS), which
provides for felt paper and paperboard. The appraised
classification is subheading 4823.90.8500, HTSUS, which provides
in part for other paper, paperboard, cellulose wadding and webs
of cellulose fibers, cut to size or shape. The Protestant claims
classification in subheading 8420.91.2000, HTSUS, which provides
for parts (cylinders) for calendering or other rolling machines
for machines for making paper pulp, paper or paperboard.
ISSUE:
What is the proper tariff classification for the instant
material?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the
General Rules of Interpretation (GRI). GRI 1 provides that
classification is determined first in accordance with the terms
of the headings of the tariff and any relative section of chapter
notes. Where goods cannot be classified on the basis of GRI 1,
the remaining GRI will be applied in order.
The filler material was entered as felt paper of subheading
4805.50, HTSUS. Chapter 48, HTSUS, provides for paper and
paperboard and articles thereof. Chapter 48, Note 7, states
that:
Headings 4801, 4802, 4804 to 4808, 4810 and 4811 apply only
to paper, paperboard, cellulose wadding and webs of
cellulose fibers:
(a) In strips or rolls of a width exceeding 15 cm; or
(b) In rectangular (including square) sheets with one side
exceeding 36 cm and the other side exceeding 15 cm in
unfolded state.
(Emphasis added).
Thus, felt paper of heading 4805 must be entered in the form of
strips, rolls, or rectangular (including square) sheets. In this
instance, the sheets have been cut into the shape of an octagon.
Hence, the sheets have been processed in a manner which removes
them from the scope of the heading.
Heading 4823, HTSUS, provides in part for other paper and
paperboard, cut to size or shape. The Explanatory Notes to the
HTSUS, while not legally binding, represent the Customs
Cooperation Council's official interpretation of the Harmonized
System. It has therefore been the practice of the Customs
Service to follow, whenever possible, the terms of the
Explanatory Notes when interpreting the HTSUS. The Explanatory
Note to heading 4823, at page 689, indicates that the heading
includes paper and paperboard cut to shape other than rectangular
(including square). As the imported sheets meet this
description, they are prima facie classifiable in the heading.
Protestant argues that the filler material is properly
classified in subheading 8420.91.2000, HTSUS, which provides for
parts (cylinders) for calendering or other rolling machines. In
support thereof, Protestant contends that the material is capable
of no other use than as an element used for the creation of a
filler roll. In addition, our attention is directed to the
Explanatory Note to heading 8420, at page 1179, which states in
pertinent part:
Parts
Subject to the general provisions regarding the
classification of parts (see the General Explanatory Note to
Section XVI), parts of the machines of this heading are also
classified here. These include cylinders clearly
identifiable as for use with calendering or rolling machines
of this heading. These cylinders may be made of metal, wood
or other suitable material (e.g. compressed paper). They
may be of various lengths and diameters, may be solid or
hollow and, depending on the particular purpose for which
they are required, their surface may be polished,
corrugated, grained, or may bear engraved patterns. They
may also be covered with other materials (e.g., leather,
textile fabric or rubber). Metal cylinders are usually so
designed that they can be heated internally by means of
steam, gas, etc. Sets of cylinders for a particular
calendering machine may comprise cylinders of different
composition. (Emphasis added).
The Explanatory Note indicates that cylinders for calendering or
rolling machines are classifiable as parts within the scope of
heading 8420, HTSUS. Protestant reasons that as the filler
material will be incorporated into a cylinder for a
supercalendering machine after importation, the material should
be classified as a part within the ambit of the heading. We note
that in the alternative the Protestant could claim that the
material is a general part for a paper making machine, pursuant
to subheading 8420.99.2000, HTSUS.
The issue presented is whether the goods have been
sufficiently advanced so that they lose the character of sheets
cut to specific size or shape and take on the character of an
article identifiable as a part for a supercalendering machine.
In this regard, we note General Rule of Interpretation (GRI)
2(a), which provides in pertinent part 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 entered, the incomplete or
unfinished article has the essential character of the
complete or finished article.
Therefore, if the filler material has the "essential character"
of a cylinder or general part for a supercalendering machine, it
is classifiable in heading 8420, HTSUS.
It is the opinion of this office that the cut sheets do not
possess the essential character of a part for supercalendars. At
the time of importation, the filler material is a semi-manufacture which does not have the approximate shape or outline
of a finished part or cylinder. The processing operations
occurring after importation, including cutting, compressing,
lathing and grinding the material, transform the sheets into the
essential shape of the finished part. As goods are classified in
the condition imported, we conclude that the filler material is
not classifiable in heading 8420. Hence, the imported goods are
classifiable as paper cut to specific size or shape, in
subheading 4823.90.8500, HTSUS.
HOLDING:
Therefore, based on the foregoing discussion, this protest
should be denied in full. A copy of this decision should be
attached to the CF 19 Notice of Action to satisfy the notice
requirement of section 174.30(a), Customs Regulations.
In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, this decision should be mailed by your office to the
Protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision. Sixty
days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, Freedom of Information Act
and other public access channels.
Sincerely,
John A. Durant, Director
Commercial Rulings Division