N342477

N342477 October 1, 2024 CLA-2-48:OT:RR:NC:N5:130 CATEGORY: COUNTRY OF ORIGIN CLASSIFICATION: 4811.41.2100; 3919.90.5060 Mr. David G. Forgue Barnes, Richardson, and Colburn, LLP 303 East Wacker Dr. Chicago, IL 60601 RE: The country of origin of adhesive-coated sheets for labels Dear Mr. Forgue: In your letter, dated September 4, 2024, you requested a binding country of origin ruling on behalf of your client, LabelEdge, Inc. The request addressed three adhesive-coated labelstock sheet products. Product information was submitted for our review. The ruling request addresses three items: Item 1 is self-adhesive, direct thermal paper labelstock. This item consists of thermal paper laminated to an adhesive layer and a glassine release paper. The thermal paper coating is 4-Hydroxy-4'-isopropoxydiphenylsulfone, CAS code: 95235-30-6. The paper is imported in rolls measuring between 10 and 22 inches in width. Item 2 is a self-adhesive, semi-gloss paper labelstock. This item consists of semi-gloss paper laminated to an adhesive layer and a glassine release paper. The semi-gloss coating consists of kaolin and calcium carbonate. The paper is imported in rolls measuring between 10 and 22 inches in width. Item 3 is self-adhesive, white or clear polypropylene labelstock. This item consists of clear or white compact polypropylene film coated with an acrylic coating and laminated to an adhesive layer and a glassine release paper. The polypropylene is imported in rolls measuring between 10 and 22 inches in width. All of the products will be used by label printers in the United States to print and die-cut labels for sale to end-users of labels. The applicable subheading for the self-adhesive direct thermal paper labelstock and the self-adhesive, semi-gloss paper labelstock will be 4811.41.2100, Harmonized Tariff Schedule of the United States (HTSUS), which provides for aper, 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: Gummed or adhesive paper and paperboard: Self-adhesive: Other: In strips or rolls. The rate of duty will be free. The applicable subheading for the self-adhesive polypropylene labelstock will be 3919.90.5060, HTSUS, which provides for self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes of plastic, whether or not in rolls: other: other: other. The general rate of duty will be 5.8 percent ad valorem. In your letter, you set forth a manufacturing scenario for each of the three products. The self-adhesive, direct thermal paper labelstock incorporates 61-inch-wide base paper manufactured in Japan or Korea. The paper weighs 70 grams per square meter, and consists of fiber, 69 percent of which is manufactured by the mechanical process. As the paper will be used for printing labels, the paper is for graphic use. This base paper, classifiable under heading 4802, will be shipped to Canada, where it will be coated with the thermosensitive coating. The coating is manufactured in China. After being coated with the thermosensitive coating, the paper will be laminated onto a roll of adhesive-coated glassine release paper. Both the glassine paper and the adhesive are of Chinese origin. The laminated, self-adhesive, direct thermal paper is classified under subheading 4811.41. The master roll will then be slit into rolls measuring 10-22 inches in width. The final product, as noted above, will be classified in 4811.41.2100, HTSUS. The self-adhesive, semi-gloss paper labelstock incorporates 61-inch-wide base paper manufactured in Korea, Japan, or Indonesia. The base paper is coated with kaolin and calcium carbonate and is classifiable in heading 4810. The base paper will be shipped to Canada, where it will be laminated to a roll of adhesive-coated glassine release paper. Both the glassine paper and adhesive are Chinese origin. The laminated, self-adhesive semi-gloss paper is classified under subheading 4811.41. The master roll will then be slit into rolls measuring 10-22 inches in width. The final product, as noted above, will be classified in 4811.41.2100, HTSUS. The polypropylene facestock is produced in either India or the United Arab Emirates. The white polypropylene facestock has a thickness of 0.060 mm and a weight of 44 g/m2. The clear polypropylene facestock has a thickness of 0.050 mm and a weight of 45 g/m2. The master roll of facestock is generally 61 inches wide. The face stock is classifiable under subheading 3920.20. The master roll of facestock will be shipped to Canada. In Canada, the facestock is coated with a thin layer of Chinese-origin acrylic coating measuring approximately 0.002 mm thickness. This coated facestock is then laminated to an adhesive-coated glassine release paper. Both the adhesive and glassine paper are of Chinese origin. This results in the creation of a roll of self-adhesive film which is rolled into jumbo rolls of 10,000 or 20,000 feet by 61 inches. This self-adhesive film, noted to be labelstock, is slit into rolls of between 10 inches (25.4 cm) wide and 22 inches (55.88 cm) wide). As noted above, this self-adhesive labelstock is classified in 3919.90.5060, HTSUS. The marking statute, 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. The "country of origin" is defined in 19 CFR 134.1(b) 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 the meaning of this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin." Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11. Applied in sequential order, 19 CFR Part 102.11(a) provides that 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 Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. The self-adhesive, direct thermal labelstock, the self-adhesive, semi-gloss labelstock, and the self-adhesive polypropylene labelstock are neither "wholly obtained or produced" nor "produced exclusively from domestic materials." Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the products, and paragraph (a)(3) must be applied next to determine the origin of the finished articles. The direct thermal labelstock is classified in heading 4802 before processing in Canada and in subheading 4811.41 after processing in Canada. The 

set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. 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 laurel.duvall@cbp.dhs.gov. 
Sincerely,
 (for) Steven A. Mack Director National Commodity Specialist Division