H304576

 HQ H304576 January 8, 2021 OT:RR:CTF:CPMMA H304576 AJK CATEGORY: Classification TARIFF NO: 7607.20.50 Mr. Michael J. Lowell, Esq. Reed Smith LLP 1301 K Street, N.W. Suite 1000 – East Tower Washington, DC 20005-3373 RE: Request for Reconsideration of NY N303268; Classification of Induction Seal Liners Dear Mr. Lowell: This letter is in response to your letter, dated June 3, 2019, in which you requested a reconsideration of New York Ruling Letter (NY) N303268, issued to you by U.S. Customs and Border Protection (CBP) on March 29, 2019, concerning the classification of induction seal liners under the Harmonized Tariff Schedule of the United States (HTSUS). In light of the COVID-19 crisis, we regret the extended delay in responding to your reconsideration request. We have reviewed NY N303268 and found it to be correct with respect to the classification of the induction seal liners. For the reasons set forth below, however, we modify the analysis. FACTS: The subject merchandise was described in NY N303268 as follows: There are five different products under review. All five products are liners with a multi-layer laminate structure comprised of a board backing, a heat seal layer, aluminum foil, and a bonding layer. In all five products the board material predominates, constituting greater than fifty percent of the content by weight and thickness. The products are manufactured using lamination techniques including dry bond adhesive lamination, wax adhesive lamination, and extrusion coating/ lamination using plastic resins. All products provide a tamper-evident, weld seal and a secondary reseal feature for leak protection and product freshness. The five products vary, by weight and by thickness, in their composition of the board backing, heat seal layer, aluminum foil, and bonding layer. ISSUE: Whether the subject merchandise is classified in chapter 48, HTSUS, as paper; or heading 7607, HTSUS, as aluminum foil. LAW AND ANALYSIS: Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined 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 headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. 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. GRI 3(c) states, in pertinent part: When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. * * * * * * The HTSUS provisions at issue 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 4804 Uncoated kraft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 4803 4805 Other uncoated paper and paperboard, in rolls or sheets, not further worked or processed than as specified in note 3 to this chapter 7607 Aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm: 7607.20 Backed: 7607.20.50 Other…. * * * * * * Note 2 to Chapter 48, HTSUS, provides, in pertinent part: This Chapter does not cover: … (n) Metal foil backed with paper or paperboard (generally Section XIV or XV); .... Note 1(d) to Chapter 76, HTSUS, provides, in pertinent part: Headings 76.06 and 76.07 apply, inter alia, to plates, sheets, strip and foil with patterns (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings. * * * * * * The Harmonized Commodity Description and Coding System (HS) Explanatory Notes (ENs) constitute the official interpretation of the HS. While not legally binding or dispositive, the ENs provide a commentary on the scope of each heading of the HS at the international level, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). The General EN to Chapter 76, HTSUS, provides, in pertinent part: Products and articles of aluminium are frequently subjected to various treatments to improve the properties or appearance of the metal, to protect it from corrosion, etc. These treatments are generally those referred to at the end of the General Explanatory Note to Chapter 72, and do not affect the classification of the goods. EN 74.10, HTSUS, provides, in pertinent part, as follows: Other foil, such as that used for making fancy goods, is often backed with paper, paperboard, plastics or similar backing materials, either for convenience of handling or transport, or in order to facilitate subsequent treatment, etc. * * * * * * It is undisputed that the induction seal liners are composite goods, which contain layers of: paper, wax, aluminum foil, adhesives and plastic. The paper component predominates by thickness, weight, and value. In NY N303268, CBP classified the merchandise in heading 7607, HTSUS, as aluminum foil under GRI 3(c), because it found that neither the aluminum foil nor the paper component predominates or is more functional in the sealing of a bottle. In your reconsideration request, you assert that CBP’s classification is incorrect, and that the merchandise should be classified in heading 4811, HTSUS, as paper, due to the predominance of the paper in both physical measures and utility of the merchandise. Upon our reconsideration, we uphold CBP’s classification but modify the analysis. As a preliminary matter, we clarify that the induction seal liners are composite goods, which are composed of two independent products: (1) paper, and (2) aluminum foil laminated with either plastic film, plastic film and plastic coating, or paper and plastic coating. The paper and aluminum foil components are temporarily bonded together by a layer of wax. After importation, the induction seal liners undergo an induction process, during which the wax melts and separates the foil from the paper. The paper is then pressed into the bottle cap while the aluminum foil seals the opening of a bottle. Accordingly, the heading of each independent good must be determined prior to classifying the composite good. Under GRI 3, the merchandise is classified according to the heading in which one of the independent goods is classified. Classification of Paper The paper component consists of a single layer of paper. As the paper is not coated and is imported in either rolls or rectangular sheets, it is classifiable in three competing headings: 4802, HTSUS, as uncoated paper; 4804, HTSUS, as uncoated kraft paper; or 4805, HTSUS, as other uncoated paper. Each heading includes uncoated paper in rolls or sheets; however, it is distinguished by the manufacturing process of paper. In the instant case, the exact heading cannot be determined because the information regarding the manufacturing process was not furnished to CBP. As explained below, however, CBP’s inability to classify the paper component in the instant case does not impact the classification of the induction seal liners. Classification of Aluminum Foil Laminated with Plastic and/or Paper The second component of the induction 

Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined 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 headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. 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.GRI 3(c) states, in pertinent part: When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.* * * * * *The HTSUS provisions at issue 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 paperboard4804 Uncoated kraft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 48034805 Other uncoated paper and paperboard, in rolls or sheets, not further worked or processed than as specified in note 3 to this chapter7607 Aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm:7607.20 Backed:7607.20.50 Other….* * * * * *Note 2 to Chapter 48, HTSUS, provides, in pertinent part: This Chapter does not cover: … (n) Metal foil backed with paper or paperboard