CLA-2-48:OT:RR:NC:2:230
Ms. Yenne Luu
Avery Products Corporation
50 Pointe Drive
Brea, CA 92821
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of paper tent card sheets and postcard sheets for printing
Dear Ms. Luu:
In your letter, dated August 7, 2015, you requested a binding tariff classification ruling. The ruling was returned to you for additional information, which was resubmitted to this office on October 6, 2015.
You have requested a ruling regarding classification, country of origin, and NAFTA eligibility of paper tent card sheets and postcard sheets for printing. Product and manufacturing information, as well as samples, have been provided for our review.
The request regards Embossed Paper Tent Cards for Laser/Inkjet Printer, item number 727820530900031, and Postcards for Laser Printers, item number 727820538900026. Both products are sheets measuring 8 ½ inches (W) x 11 inches (L), and are uncoated, perforated, and designed to be printed in a personal ink jet printer. The tent card sheets create one folding card per sheet, while the postcard sheets separate into two 4” x 6” postcards.
In your letter, you state that the paper rollstock is fully manufactured by the kraft (soda) process. You note that it is bleached, has 15 percent by weight of ash in the pulp, weighs 216 g/m², and has a brightness of 97 percent. The width of the rollstock for the tent card sheets is 17 inches, and 11 inches for the postcard sheets.
You explain that the rollstock is exported from the United States to Mexico for further manufacturing. For both products, the rollstock material is printed with the company logo, cut into 8 ½” x 11” sheets, and microperforated for removal of the printed margins after consumer purchase. The tent card sheets are also creased for folding, and the postcard sheets are microperforated for separation into smaller cards. You indicate that all of the processes are done on the same machine in a single pass. The final sheets are packaged with product literature for retail sale.
The rollstock for both products meets the terms of Note 5 to Chapter 48, Harmonized Tariff Schedule of the United States (HTSUS), and is classifiable in heading 4802, HTSUS, which provides for 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. Because of its processing, weight, and use for printing, the stock is classifiable under 4802.58.2080, HTSUS. As noted, the final tent card sheets are embossed and perforated, while the postcard sheets are perforated. Both treatments are provided for in heading 4808, HTSUS, however, Note 8(b) to Chapter 48, HTSUS, precludes classification therein due to the size of the sheets: “Headings 4801 and 4803 to 4809 apply only to paper, paperboard, cellulose wadding and webs of cellulose fibers: (b) In rectangular (including square) sheets with one side exceeding 36 cm (approximately 14 inches) and the other side exceeding 15 cm (approximately 6 inches) in the unfolded state.” The only remaining heading which provides for sheets of paper so manufactured and printed is 4823, HTSUS.
The applicable subheading for the tent card sheets and postcard sheets is 4823.90.8600, HTSUS, which provides for Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of
cellulose fibers: Other: Other: Other: Other: Other. The rate of duty will be free.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
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—
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States.
The rollstock is a product of the United States, and the manufacturing is completed in Mexico. Both Mexico and the United States are countries provided for under the NAFTA. Based on the facts provided, the tent card sheets and postcard sheets qualify for NAFTA preferential treatment, as they meet the requirements of HTSUS General Note 12(b)(i). The tent card sheets and postcard sheets will be entitled to a free rate of duty under NAFTA upon compliance with all applicable laws, regulations, and agreements.
With regard to country of origin and marking thereof, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides 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 a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Pursuant to 19 CFR Section 134.1(b), the country of origin is the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to a foreign article in the United States must effect a substantial transformation in order to render the final product a good of the U.S. However, for a good of a NAFTA country, the NAFTA Rules of Origin (set forth in 19 CFR Part 102) will determine the country of origin and marking. The NAFTA rules govern the current scenario.
Applying the terms of Section 102.20, the country of origin of the tent card sheets and postcard sheets is Mexico. Section 102.20 provides that, for goods of subheading 4823.90, HTSUS, the manufacturing must result in a change of classification to subheading 4823.90, HTSUS, from any other subheading. Because the rollstock is classifiable in subheading 4802.58, HTSUS, and the final products are classifiable in subheading 4823.90, HTSUS, this rule has been met. As such, the country of origin of the final products to be imported into the United States is, therefore, Mexico. They may be marked with Mexico as the country of origin, in accordance with 19 CFR 134, Subpart E. Both the markings “Made in Mexico” and “Product of Mexico” are acceptable.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division