CLA-2 RR:CR:TE 963603 PR
Import Manager
Pez Manufacturing Corporation
35 Prindle Hill Road
Orange, Connecticut 06477
RE: Revocation of HQ 083825 and treatment relating to the classification of wrapper/label labels
Dear Sir or Madam:
On June 14, 1989, this office issued Customs Headquarters Ruling Letter (HQ) 083825, to Hass Food Manufacturing Corporation. We understand that Hass Food Manufacturing Corporation has changed its name to Pez Manufacturing Corporation. We have been asked by our New York office to reconsider the holding in HQ 083825. Our review of the matter indicates that the classification of HQ 083825 is incorrect and, therefore, this ruling revokes HQ 083825.
Pursuant to section 625(c), Tariff Act of 1930, as amended (19 U.S.C. 1625(c)), notice of the proposed revocation of HQ 083825 was published on December 22, 1999, in the Customs Bulletin, Volume 33, Number 51. No comments were received.
FACTS:
The following description of the subject goods is contained in HQ 083825.
The wrappers at issue are sheets of paper measuring 2 1/8 inches by 2 1/4 inches. They are printed in various colors, with the Pez logo, the identifying words (lemon candy, orange candy, sugar-free lemon candy, etc.), the name and address of the candy's manufacturer, a weight
statement and a list of ingredients. The Pez candies are small hard candies that are wrapped first in foil, then in the instant wrappers. The instant wrappers are wrapped around the foil packages, and their ends [edges] are glued together to cover almost all the length of the candy.
HQ 083825 held that the classification of wrapper/ labels was under the provision for other printed matter, subheading 4911.10, Harmonized Tariff Schedule of the United States (HTSUS). The wrapper/labels are produced in Austria.
ISSUE:
The primary issue presented is whether the wrapper/labels in question are properly classifiable under subheading 4911.10, HTSUS, or whether the wrapper/labels should be classified under subheading 4823.90, which provides for other paper cut to size or shape, or under subheading 4821.10, HTSUS, which provides for printed "Paper and paperboard labels of all kinds." (italics added)
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. If goods cannot be classified pursuant to GRI 1, then classification shall be according to the remaining GRIs in the order in which they appear. The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. They facilitate classification under the HTSUS by offering guidance concerning the scope and meaning of the GRIs, notes, and headings.
The following HTSUS headings describe the subject wrapper/labels.
4821 Paper and paperboard labels of all kinds,
whether or not printed:
* * *
4911 Other printed matter, including printed pictures
and photographs:
Heading 4823 is not applicable to the wrapper/labels because it begins with the word "Other", which, in this case, means any paper product other than those described previously in Chapter 48. Since heading 4821 describes the merchandise, heading 4823 does not.
The fact that the wrapper/labels in question serve dual purposes, i.e. enclosing the candies and being labels for the imported candies, does not negate their classification under heading 4821. This is not to say that any paper item purporting to be a label is classifiable within heading 4821. In this instance, the wrapper/labels are large and contain all the information and colors required and reasonably expected on a label. There is no mistaking the fact that the subject goods are clearly intended to be labels.
Since heading 4821 specifically describes the merchandise and heading 4911 merely describes a generic category of goods, the wrapper/labels are, pursuant to GRI 1, classifiable under heading 4821.
HOLDING:
The wrapper/labels are properly classifiable under heading 4821, which provides for printed paper labels of all kinds. If the wrapper/labels are printed in whole or in part by a lithographic process, they are classifiable in subheading 4821.10.20, HTSUS, with duty at the column one rate of 3.5 cents per kilogram. If the wrapper/labels are not printed in whole or in part by a lithographic process, they are classifiable in subheading 4821.10.40, HTSUS, with duty at the column one rate of 1.7 percent ad valorem.
HQ 083825, dated June 14, 1989, is hereby revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
John Durant, Director
Commercial Rulings Division