CLA–2 OT:RR:CTF:TCM H072375 NCD
David M. Murphy
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
339 Park Avenue, 25th Floor
New York, NY 10022-4877
RE: Modification of New York Ruling Letter N057699, dated May 15, 2009; classification of filler paper, composition notebooks, spiral notebooks, and wireless notebooks; eligibility of filler paper for preferential treatment under NAFTA
Dear Mr. Murphy:
This is in response to your June 18, 2009 letter, on behalf of Staples, Inc., requesting reconsideration of New York Ruling Letters (“NY”) N057699, dated May 15, 2009, and NY N063779, dated June 10, 2009. In NY N057699, U.S. Customs and Border Protection (CBP) classified filler paper, composition notebooks, spiral notebooks, and wireless notebooks under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), and determined whether this merchandise is eligible for preferential tariff treatment under the North American Free Trade Agreement (NAFTA). NY N063779 involved determination of the subject products’ countries of origin for marking purposes pursuant to NAFTA. We have found NY N057699 to be in error with regard to the classification of all the subject merchandise and to the eligibility of the subject filler paper for NAFTA treatment, and, for the reasons set forth below, are modifying that ruling.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice of the proposed action was published in the Customs Bulletin, Vol. 49, No. 30, on July 29, 2015. One comment supporting the proposed modification was received in response to that notice.
FACTS:
In NY N057699, CBP responded to your April 13, 2009 request for a ruling on “the status of filler paper, composition notebooks, spiral notebooks, and wireless notebooks from Mexico under NAFTA.” CBP stated in that ruling letter as follows:
You state in your original request that all of the items will be formed from jumbo paper rolls sourced in Taiwan and substantially transformed in Mexico into separate and distinct articles of commerce. You state in your supplemental letter dated May 6, 2009, the items being imported into Mexico would be paper in rolls, weighing 40 g/m2 or more but not more than 150 g/m2. The paper would be in rolls that measure 100 - 102 cm in width. The paper is uncoated, designated as writing paper in the industry, and doesn’t contain fibers obtained by a mechanical or chemi-mechanical process. It is white in color, contains less than 3% ash, has a brightness of 60% or more, and is bleached uniformly throughout the mass. The paper is not embossed, perforated, creped or crinkled at the time of importation into Mexico.
At the time of importation into Mexico, the paper would be classified in subheading 4802.55.1000, Harmonized Tariff Schedule of the United States. You state in your letter dated April 13, 2009, that once in Mexico the rolls will be transformed into filler paper, composition notebooks, spiral notebooks or wireless notebooks. The process for all the transformations begins with unwinding the rolls and processing the paper through a lining machine. The purpose of the lining machine is to print lines and margin rulings on the paper in a continuous manner. The lined paper is then jogged and cut into large sheets. The large sheets are cut and trimmed to the appropriate size of the item being formed.
The filler paper is cut to notebook size (20.3 cm x 26.7 cm and 21.6 cm x 27.9 cm), counted and sorted into the specified number of sheets for each package, and three hole punched. The finished sheets are matched with a cover sheet, shrink wrapped and placed in cartons and shipped to your client in the United States for retail sale.
The composition notebooks are cut from large sheets into medium sheets measuring 39 cm x 50 cm and counted and sorted into the specified number of sheets for each notebook. The lined and cut sheets are matched with the appropriate printed cover sheets. Two cover designs are printed on one cover sheet. One is on the top and the other is on the bottom. The covers and sheets of paper are sewn together to create the spine binding which is then folded over. Spine tape is applied to cover the binding. The composition books are cut and trimmed to their final size of 19 cm x 24 cm and placed in cartons and shipped to your client in the United States for retail sale.
The spiral notebooks are further processed by being simultaneously perforated as it is going through the lining machine. The paper is then jogged and cut into large sheets. The large sheets of lined, perforated paper are cut to the appropriate notebook size 20.3 cm x 26.7 cm, 21.6 cm x 27.9 cm or 22.9 cm x 27.9 cm, counted and sorted into the specified number of sheets for each notebook and are three hole punched. The lined sheets are matched with the printed covers and fly sheets (if applicable) and are bound with wire. Some of the notebooks may be matched with slip-sheets and shrink wrapped. All the finished notebooks are placed in cartons and shipped to your client in the United States for retail sale.
The wireless notebooks like the spiral notebooks are simultaneously perforated as they go through the lining machine. The lined paper is then jogged and cut into large sheets. The large sheets are then cut to medium sheets 21.6 cm x 84 cm and counted and sorted into the specified number of sheets for the notebook. The lined sheets are then matched with printed covers and glued together. A spine tape is applied to cover the binding. The assembled notebooks are then cut to a final size of 21.6 cm x 27.9 cm or 22.9 cm x 27.9 cm and three hole punched. The finished product is placed in cartons and shipped to your clients in the United States.
Based on these descriptions, in NY N057699 CBP classified the filler paper in subheading 4802.57.1000, HTSUSA, as “Writing and cover paper,” and classified the three notebooks under subheading 4820.10.2020, HTSUSA, as “Memorandum pads, letter pads and similar articles.” CBP further determined that the notebooks were eligible for preferential tariff treatment under NAFTA because they met the required tariff shift from heading 4802 to heading 4820 of General Note 12(t). However, CBP determined that the filler paper did not similarly meet the required tariff shift or satisfy any other General Note 12 provisions, and therefore did not qualify for preferential tariff treatment under NAFTA. In NY N063779, CBP ruled that each of the four subject products qualifies as “a good of a NAFTA country” for marking purposes.
In your June 18, 2009 letter, you assert that the filler paper was improperly classified in heading 4802, HTSUSA, and that it is properly classified in heading 4811, specifically in subheading 4811.90.90 as “[o]ther paper, paperboard, cellulose wadding and webs of cellulose fibers.” You further assert that CBP’s erroneous classification of the filler paper resulted in the improper denial of eligibility for preferential tariff treatment of the filler paper under NAFTA. You also contend that the three notebooks were improperly classified in subheading 4820.10.2020, and that their proper classification is subheading 4820.10.2050, HTSUSA. You do not contest CBP’s determinations that the notebooks are eligible for preferential tariff treatment under NAFTA and that each of the four subject products is “a good of a NAFTA country” for marking purposes, although you request revocation of NY N063779 in which the latter determination was made.
ISSUES:
Whether the filler paper is properly classified in subheading 4802.57.1000, HTSUSA, as writing paper, or in subheading 4811.90.9080, HTSUSA, as other paper, and whether the notebooks are properly classified in subheading 4820.10.2020, HTSUSA, as memorandum pads, letter pads, or similar articles, in subheading 4820.10.2030, HTSUSA, as sewn composition books with dimensions of 152.4-381 mm x 222.5-381, in subheading 4820.10.2040, HTSUSA, as other notebooks with dimensions of 152.4-381 mm x 222.5-381, or in subheading 4820.10.2060, HTSUSA, as other notebooks.
Whether the filler paper is eligible for preferential tariff treatment under NAFTA.
LAW AND ANALYSIS:
To determine whether the filler paper is eligible for preferential tariff treatment under NAFTA, we must first ascertain the proper classifications of the filler paper at the time of its entry into Mexico and at the time of its subsequent entry into the U.S. Accordingly, we initially address classification of the filler paper and notebooks under the HTSUSA.
Classification
Merchandise imported into the United States is classified under the HTSUSA. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUSA and are to be considered statutory provisions of law for all purposes.
GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and, mutatis mutandis, to GRIs 1 through 5.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUSA and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to consult, whenever possible, the terms of the ENs when interpreting the HTSUSA. See T.D. 89–80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The 2015 HTSUSA provisions under consideration are as follows:
4802 Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non perforated punch-cards and punch tape paper, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803; hand-made paper and paperboard:
Other paper and paperboard, not containing fibers obtained by a mechanical or chemi-mechanical process or of which not more than 10 percent by weight of the total fiber content consists of such fibers:
4802.57 Other, weighing 40 g/m2 or more but not more than 150 g/m2:
4802.57.1000 Writing and cover paper
4811 Paper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809, or 4810:
4811.90 Other paper, paperboard, cellulose wadding and webs of cellulose fibers:
4811.90.90 Other:
4811.90.9080 Other
4820 Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, exercise books, blotting pads, binders (looseleaf or other), folders, file covers, manifold business forms, interleaved carbon sets and other articles of stationery, of paper or paperboard; albums for samples or for collections and book covers (including cover boards and book jackets) of paper or paperboard:
4820.10 Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles:
4820.10.20 Diaries, notebooks and address books, bound; memorandum pads, letter pads, letter pads and similar articles:
4820.10.2020 Memorandum pads, letter pads and similar articles
4820.10.2030 Sewn composition books with dimensions of 152.4-381 mm (6" - 15"), inclusive (small side) X 222.5-381 mm (8.75" -15"), inclusive (large side)
4820.10.2040 Other note books with dimensions of 152.4-381 mm (6" - 15"), inclusive (small side) X 222.5-381 mm (8.75" -15"), inclusive (large side)
4820.10.2060 Other
As a preliminary matter, we agree with CBP’s determination in NY N057699 that the subject products are classifiable in subheading 4802.55.1000, HTSUSA, at the time of their entry into Mexico. Subheading 4802.55.1000, HTSUSA, provides for “[u]ncoated paper and paperboard, of a kind used for writing…in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803; hand-made paper and paperboard: Weighing 40 g/m2 or more but not more than 150 g/m2, in rolls: Other paper and paperboard, not containing fibers obtained by a mechanical or chemi-mechanical process or of which not more than 10 percent by weight of the total fiber content consists of such fibers: Of a width exceeding 15 cm: Writing and cover paper." Note 3 to Chapter 48 of the HTSUS states as follows:
Subject to the provisions of note 7, headings 4801 to 4805 include paper and paperboard which have been subjected to calendering, super-calendering, glazing or similar finishing, false water-marking or surface sizing, and also paper, paperboard, cellulose wadding and webs of cellulose fibers, colored or marbled throughout the mass by any method. Except where heading 4803 otherwise requires, these headings do not apply to paper, paperboard, cellulose wadding or webs of cellulose fibers which have been otherwise processed.
Additionally, Note 5 to Chapter 48 of the HTSUSA states as follows:
For the purposes of heading 4802, the expressions “paper and paperboard, of a kind used for writing, printing or other graphic purposes” and “nonperforated punch-cards and punch tape paper” mean paper and paperboard made mainly from bleached pulp or from pulp obtained by a mechanical or chemi-mechanical process and satisfying any of the following criteria:
For paper or paperboard weighing not more than 150 g/m2:
…
(c) Containing more than 3 percent ash and having a brightness of 60 percent or more…
According to your submissions, all of the instant products remain incorporated in jumbo paper rolls at the time of their entry into Mexico. The jumbo rolls are uncoated, designated as writing paper, and contain no fibers obtained by a mechanical or chemi-mechanical process. They weigh between 40 g/m2 and 150 g/m2 and measure between 100 and 102 cm in width. In accordance with Note 5(c) to Chapter 48, they are white in color, contain less than 3 percent ash, and have a brightness of 60 percent or more. Thus, at the time of their arrival in Mexico, they are not excluded from heading 4802 by operation of Note 3 to Chapter 48. Accordingly, they are, at that time, classifiable under subheading 4802.55.1000.
While in Mexico, the paper rolls have been imprinted with lines and margin rulings and cut to size. In addition, the filler paper has been three-hole punched, the paper comprising the composition notebooks has been sewn and bound with spine tape, the paper comprising the spiral notebooks has been perforated, three-hole punched and bound with wire, and the paper comprising the wireless notebooks has been perforated, three-hole punched, and bound with glue. None of this additional processing is described by either heading 4802 or Note 3 to Chapter 48, the latter of which explicitly excludes from headings 4801 through 4805 products that have undergone processes beyond those enumerated in the note. Accordingly, all of the products are effectively excluded from heading 4802 and must be classified elsewhere. While this determination is not in dispute with regard to the three notebooks, which CBP classified under heading 4820 in NY N057699, it renders the classification of the filler paper under subheading 4802.57.10, HTSUSA, in that case incorrect.
As stated above, you assert in your June 18, 2009 letter that the filler paper is instead properly classified in heading 4811. This heading covers, among other things, paper in rectangular sheets. The General EN to Chapter 48 provides, in pertinent part, as follows:
This Chapter covers:
Paper… of all kinds, in rolls or sheets:
…
(B) Headings 48.06 to 48.11 relate to…paper, paperboard or cellulose wadding and webs of cellulose fibres which have been subjected to various treatments, such as coating, design printing, ruling, impregnating, corrugation, creping, embossing, and perforation.
(Emphasis added). Additionally, EN 48.11 provides that “[p]aper and paperboard are classified in this heading only if they are in strips or rolls or in rectangular (including square sheets, of any size.” Consistent with these ENs, CBP has repeatedly classified rectangular filler paper that has been ruled, perforated, or three-hole punched in heading 4811, specifically in subheading 4811.90.90. See NY N248171, dated November 27, 2013; NY N233367, dated October 17, 2012; NY N113475, dated July 30, 2010; NY N021510, dated February 6, 2008; NY N021508, dated February 6, 2008; NY L82778, dated March 15, 2005; and NY J81599, dated March 10, 2003. As in these previous rulings, the instant filler paper is in rectangular form, measuring either 20.3 centimeters by 26.7 centimeters or 21.6 centimeters by 27.9 centimeters, and has been imprinted with lines and margin rulings and three-hole punched. Accordingly, we agree with your assertion that it is properly classified in subheading 4811.90.9080, HTSUSA.
You also assert in your letter that, within subheading 4820.10.20, the subject composition notebooks, spiral notebooks, and wireless notebooks qualify as “Diaries, notebooks and address books, bound; memorandum pads, letter pads and similar articles: Other,” which, as of 2010, is described by subheading 4820.10.2060. As support for your contention, you cite several rulings in which CBP classified notepads and notebooks in subheading 4820.10.2050, the predecessor to subheading 4820.10.2060. See Headquarters Ruling Letter (HQ) 965595, dated August 5, 2002; NY N004628, dated January 18, 2007; NY M87370, dated November 14, 2006; and NY M83981, dated June 16, 2006. However, in 2010, following the filing of your letter, subheading 4820.10.20 was revised at the 10-digit level, resulting in the additions of subheading 4820.10.2030, which covers “Sewn composition books with dimensions of 152.4-381 mm (6" - 15"), inclusive (small side) X 222.5-381 mm (8.75" -15"), inclusive (large side),” and subheading 4820.10.2040, which covers “Other note books with dimensions of 152.4-381 mm (6" - 15"), inclusive (small side) X 222.5-381 mm (8.75" -15"), inclusive (large side).” In the wake of these revisions, CBP has consistently classified sewn composition journals in subheading 4820.10.2030 while classifying spiral and other non-sewn notebooks in subheading 4820.10.2040. See NY N255460, dated August 19, 2014; NY N254683, dated July 11, 2014; NY N252384, dated May 5, 2014; NY N246920, dated November 1, 2013; and NY N140787, dated February 2, 2011.
Consequently, while we agree that the notebooks qualified as “Diaries, notebooks and address books, bound; memorandum pads, letter pads and similar articles: Other” at the time your letter was filed, they are now described instead by the terms of subheadings 4820.10.2030 and 4820.10.2040. Specifically, the composition notebooks are properly classified in subheading 4820.10.2030, as they are sewn and boast dimensions of 240 millimeters by 190 millimeters. The spiral notebooks and wireless notebooks are properly classified in subheading 4820.10.2040 because they are not sewn and, similar to the composition notebooks, are of dimensions falling within the measurement ranges described by the subheading.
NAFTA Eligibility
General Note 12, HTSUSA, incorporates Article 401 of the NAFTA into the HTSUSA. GN 12(a)(ii), HTSUSA, provides, in pertinent part, that:
Goods that originate in the territory of a NAFTA party under the terms of subdivision (b) of this note and that qualify to be marked as goods of Mexico under the terms of the marking rules set forth in regulations issued by the Secretary of the Treasury (without regard to whether the goods are marked), and goods enumerated in subdivision (u) of this note, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the "Special" subcolumn followed by the symbol "MX" in parentheses, are eligible for such duty rate, in accordance with section 201 of the North American Free Trade Agreement Implementation Act.
Accordingly, the subject goods will be eligible for the “Special” “MX” rate of duty provided that: (A) They qualify as NAFTA-originating under General Note 12(b), HTSUSA; and (B) they qualify for marking as goods of Mexico under the NAFTA Marking Rules set forth in Part 102 of the Code of Federal Regulations (19 C.F.R. § 102).
A. NAFTA-Originating under General Note 12(b)
GN 12(b), HTSUSA, provides, in pertinent part, as follows:
For the purposes of this note, goods imported into the Customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if—
they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
they have been transformed in the territory of Canada, Mexico and/or the United States so that—
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials.
Because the jumbo paper rolls from which the subject products were cut were produced in Taiwan, they cannot be considered “goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States,” and consequently do not satisfy the requirements of General Note 12(b)(i). Therefore, we must determine whether the non-originating materials undergo an enumerated tariff shift or otherwise satisfy one of the definitions of “goods originating in the territory of a NAFTA party” provided by GN 12(b)(ii). GN 12(t) lists the following applicable changes in relation to heading 4811:
Chapter 48
3A. (A) A change to paper or paperboard in strips or rolls of a width not
exceeding 15 cm of heading 4811 from strips or rolls of a width exceeding 15 cm of heading 4811, floor coverings on a base of paper or paperboard of heading 4811 or any other heading, except from headings 4817 through 4823;
(B) A change to paper or paperboard in rectangular (including square) sheets with the larger dimension not exceeding 36 cm or the other dimension not exceeding 15 cm in the unfolded state of heading 4811 from…any other heading, except headings 4817 through 4832.
…
6. A change to headings 4817 through 4822 from any heading outside that group, except from heading 4823.
As discussed above, the subject filler paper enters Mexico as a product of heading 4802, but leaves the country and subsequently enters the U.S. as a product of heading 4811. Accordingly, we agree with your assertion that the filler paper is covered by GN 12(b)(ii)(A), insofar as it undergoes a change in tariff classification enumerated in GN 12(t) while in the territory of Mexico. We also note that CBP correctly determined the subject notebooks to be within the scope of GN 12(b)(ii)(A) because they underwent a change from heading 4802 to goods of heading 4820 while in Mexico, although this determination is not under dispute.
B. Country of Origin Marking as Goods of Mexico
GN 12(a)(ii) also requires, as a condition for preferential tariff treatment, that the subject NAFTA-originating merchandise qualify for marking as goods of Mexico under the NAFTA Marking Rules. Marking of imports is governed by section 304 of the Tariff Act of 1930, as amended (19 U.S.C. §1304), which mandates that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit in such manner as to indicate to the ultimate purchaser the English name of the country of origin of the article.
Part 134, CBP Regulations (19 C.F.R. Part 134) implements the requirements of and exceptions to 19 U.S.C. §1304. 19 C.F.R. §134.1(b) defines “country of origin” as:
The country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.
Section 134.1(j) provides that the “NAFTA Marking Rules” are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States, as determined under the NAFTA Marking Rules, which are explicated in 19 C.F.R. Part 102. Section 102.11 sets forth the required hierarchy for determining country of origin for marking purposes:
The following rules shall apply for purposes of determining the country of origin of imported goods other than textile and apparel products covered by § 102.21.
(a) The country of origin of a good is the country in which:
(1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
As discussed above, the subject goods are neither wholly obtained or produced in Mexico nor produced solely from materials originating from Mexico. Consequently, to qualify for marking as goods of Mexico, they must undergo changes in classification enumerated in 19 C.F.R. §102.20. Similar to GN 12(t), 19 C.F.R. §102.20(j) describes shifts to heading 4811 from all headings other than headings 4817 to 4823 and shifts to heading 4820 from any other heading. As previously established, all of the subject goods undergo such shifts while in Mexico, insofar as the filler paper shifts from heading 4802 to heading 4811 and the notebooks shift from heading 4802 to heading 4820. Therefore, Mexico is the country of origin for all of the subject goods and the goods must be marked accordingly.
In your June 18, 2009 letter requesting revocation of NY N063779, you correctly assert that the filler paper is a “product of Mexico” pursuant to 19 C.F.R. §102. Yet, this assertion is completely consistent with CBP’s conclusion in NY N063779 that “the imported lined paper notebooks and filler paper are goods of Mexico for marking purposes.” Therefore, we affirm NY N063779.
HOLDING:
By application of GRI 1, the subject filler paper is classified under heading 4811, HTSUSA, specifically under subheading 4811.90.9080, HTSUSA, which provides for “Paper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810: Other paper, paperboard, cellulose wadding and webs of cellulose fibers: Other: Other.” The column one, general rate of duty is free.
By application of GRIs 1 and 6, the subject composition notebooks are classified under heading 4820, HTSUSA, specifically under subheading 4820.10.2030, HTSUSA, which provides for “Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, exercise books, blotting pads, binders (looseleaf or other), folders, file covers, manifold business forms, interleaved carbon set: Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles: Diaries, notebooks and address books, bound; memorandum pads, letter pads and similar articles: Sewn composition books with dimension of 152.4-381 mm (6" - 15") inclusive (smaller side) x 222.5-381 mm (8.75" - 15"), inclusive (large side).” The column one, general rate of duty is free.
By application of GRIs 1 and 6, the subject spiral notebooks and wireless notebooks are classified under heading 4820, HTSUS, specifically under subheading 4820.10.2040, HTSUSA, which provides for “Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, exercise books, blotting pads, binders (looseleaf or other), folders, file covers, manifold business forms, interleaved carbon set: Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles: Diaries, notebooks and address books, bound; memorandum pads, letter pads and similar articles: Other note books with dimension of 152.4-381 mm (6" - 15") inclusive (smaller side) x 222.5-381 mm (8.75" - 15"), inclusive (large side).” The column one, general rate of duty is free.
Because they satisfy General Note 12, HTSUSA, and 19 C.F.R. Parts 134 and 102, the subject filler paper, composition notebooks, spiral notebooks, and wireless notebooks are eligible for preferential tariff treatment under NAFTA, and should be marked as goods of Mexico.
Duty rates are provided for convenience only and are subject to change. The text of the most recent HTSUSA and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N057699, dated May 15, 2009, is MODIFIED in accordance with the above analysis.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Joanne Roman Stump
Acting Director, Commercial & Trade Facilitation Division