Reconsideration of NY N056181; Classification of chipboard letters

HQ H072716 July 31, 2013 CLA-2 OT:RR:CTF:TCM H072716 TNA CATEGORY: Classification TARIFF NO.: 4823.90.86 Nancy Quirk Evans and Wood & Co. 612 E. Dallas Rd., Ste. 200 Grapevine, TX 76051 RE: Reconsideration of NY N056181; Classification of chipboard letters Dear Ms. Quirk: This letter is in reference to New York Ruling Letter (“NY”) N056181, issued to Evans and Wood & Company on April 29, 2009, concerning the tariff classification of chipboard letters, numbers, and punctuation from China. In that ruling, U.S. Customs and Border Protection (“CBP”) classified the merchandise under subheading 4823.90.86, Harmonized Tariff Schedule of the United States (“HTSUS”), as 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. We have reviewed NY N056181 and found it to be correct. For the reasons set forth below, we hereby affirm NY N056181. FACTS: On March 26, 2009, Evans and Wood & Co. requested a tariff classification ruling for its chipboard letters, numbers, and punctuation from China. The merchandise at issue consisted of three different types of die-cut chipboard shapes, which were self-adhesive coated with paperboard. All three are designed to be used in scrap booking. Only the classification of one item, Item #866970, is at issue in this reconsideration. Item #866970 consists of chipboard letters. It contains upper case letters with designs, argyle, dots and stripes, printed on them. The letters measure approximately 3 inches in height. These letters are imported and sold at retail in a blister pack. A sample, which was received and examined by this office, is being returned to you at your request. ISSUE: Whether letters made of clipboard and containing designs on the front and an adhesive back should be classified under subheading 4823.90.86, HTSUS, as “other paperboard… cut to size or shape,” or under subheading 4911.91.30, HTSUS, as “lithographically printed designs on paperboard”? LAW AND ANALYSIS: Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods 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 GRI may then be applied. The HTSUS provisions under consideration are as follows: 4823 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: 4823.90 Other: Other: Other: Other: 4823.90.86 Other 4911 Other printed matter, including printed pictures and photographs: Other: 4911.91 Pictures, designs and photographs: Other: 4911.91.30 Over 0.51 mm in thickness Note 12 to Chapter 48, HTSUS, states, in pertinent part, the following: Except for the articles of heading 4814 or 4821, paper, paperboard, cellulose wadding and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods, fall in chapter 49. 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 HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN to heading 4823, HTSUS, states, in pertinent part, the following: This heading includes: (A)  Paper and paperboard, cellulose wadding and webs of cellulose fibres, not covered by any of the previous headings of this Chapter: in strips or rolls of a width not exceeding 36 cm; in rectangular (including square) sheets of which no side exceeds 36 cm in the unfolded state; cut to shape other than rectangular (including square)…   (B)  Articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres, not covered by any of the previous headings of this Chapter nor excluded by Note 2 to this Chapter. Thus the heading includes: (1)   Filter paper and paperboard (folded or not). Generally these are in shapes other than rectangular (including square), such as circular filter papers and boards… (3)   Paper and paperboard, of a kind used for writing, printing or other graphic purposes, not covered in the earlier headings of this Chapter, cut to shape other than rectangular (including square)…. The EN to heading 4911, HTSUS, states, in pertinent part, the following: This heading covers all printed matter (including photographs and printed pictures) of this Chapter (see the General Explanatory Note above) but not more particularly covered by any of the preceding headings of the Chapter… The heading includes the following in addition to the more obvious products: ...  (10) Self-adhesive printed stickers designed to be used, for example, for publicity, advertising or mere decoration, e.g., “comic stickers” and “window stickers.”   In NY N056181, CBP classified the subject merchandise under subheading 4823.90.86, HTSUS. Evans and Wood challenges that classification as being inconsistent with CBP’s published guidance in its informed compliance bulletin entitled “Decals, Decorative Stickers and Window Clings,” dated January 2007. Citing to this publication, Evan and Wood states that the difference between printed paper labels classified in heading 4821, HTSUS, and the printed paper stickers classified in heading 4911, HTSUS, is a matter of principal use. The company therefore argues that because its merchandise is decorative rather than utilitarian, it should be classified under heading 4911, HTSUS. We disagree. Decorative stickers, such as the subject articles, are classified according to their composition. See, e.g., HQ 959719, dated October 21, 1997. In the present case, the subject letters are made of chipboard and will be classified according to it. We note that although the subject chipboard letters contain a paper backing that is attached to the letters via an adhesive layer, both the paper and the adhesive are minimal. As a result, we find them to be de minimis components that do not affect the classification of the subject chipboard letters. Heading 4823, HTSUS, provides for articles of paper that have been cut to a shape other than rectangular. Merchandise of this heading can be in the shape of a square, and are cut to a width and length that does not exceed 36 cm. See heading 4823, HTSUS; EN 48.23. The subject chipboard stickers meet the terms of this heading in that they have been cut in the shape of letters, so they are not rectangular. Furthermore, they are smaller than 36 cm. They are also not excluded from heading 4823, HTSUS, by the terms of Note 2 to Chapter 48, HTSUS. See Note 2 to Chapter 48, HTSUS; EN 48.23. Lastly, the subject merchandise is in the form of alphabetical letters and is used as such. Thus, although the letters are printed with patterns, these patterns are merely incidental to the shape of the letters. As such, Note 12 to Chapter 48, HTSUS, which requestor cites, is not applicable here. NY N056181 classified the subject merchandise in heading 4823, 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.” We agree with this classification and therefore see no reason to revoke NY N056181. As a result, we find that the chipboard letters of Item #866970 are classified under subheading 4823.90.86, 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.” HOLDING: Under the authority of GRI 1, the clipboard letters from China are classified in heading 4823, HTSUS. They are specifically provided for in subheading 4823.90.86, 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 applicable duty rate is free. 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 internet at www.usitc.gov/tata/hts/. EFFECT ON OTHER RULINGS: NY N056181, dated April 29, 2009, is AFFIRMED. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division