CLA-2-45:OT:RR:NC:3:230
Mr. Charles Spoto
Alba Wheels Up International, Inc.
1 E Lincoln Ave.
Valley Stream, NY 11580
RE: The classification of backed cork sheet from China
Dear Mr. Spoto:
In your letter, dated June 26, 2017, you requested a binding classification ruling on behalf of your client Baum Textile Mills, Inc. The ruling was returned to you for additional information, which was received by this office on August 28, 2017. The ruling was requested on backed cork sheet. A sample was submitted for our review and will be retained for reference.
The backed cork sheet measures approximately 135cm in width, and is imported in rolls. The product consists of a thin layer of natural cork that has been laminated onto a backing. The backing consists of polyurethane that has been overlaid with a decorative foil film. The foil film is visible through the natural splits in the cork layer. The polyurethane is backed with a woven textile consisting of 30 percent cotton and 70 percent polyester. The polyurethane and textile both thicken and stabilize the cork layer. The backed cork sheet is to be sold to fabric stores for use as a fabric.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that 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 will be applied, in the order of their appearance. Because the backed cork sheet is a composite of multiple materials classifiable in separate headings, neither GRIs 1 nor 2 are applicable; classification under GRI 3 must therefore be considered. The backed cork sheet is constructed of multiple materials, i.e., cork, polyurethane, and textile, all of which are prima facie classifiable in different headings. The backed cork sheet is therefore a composite good within the meaning of GRI 3(b). GRI 3(b) states, in pertinent part:
Mixtures, composite goods consisting of different materials or made up of different components and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
In accordance with the Explanatory Notes (ENs) for GRI 3(b), the essential character of an item may be determined by the nature of the material or component, its bulk, quantity, weight, or value, or by the role of a constituent material in relation to the use of the goods. The cork layer imparts the consumer appeal of the sheet; the purchaser uses the sheet as a fabric with the cork layer acting as the facing, decorative surface. The polyurethane and textile thicken and stabilize the sheet, and the foil lends a secondary decorative aspect, but none of the three impart the essential character of the sheet. Therefore, we find that the cork imparts the essential character and controls the classification of the sheet.
The applicable subheading for the backed cork sheet will be 4503.90.6000, HTSUS, which provides for Articles of natural cork: Other: Other. The rate of duty will be 14 percent ad valorem.
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 the World Wide Web at https://hts.usitc.gov/current.
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,
Steven A. Mack
Director
National Commodity Specialist Division