The tariff classification of a thermal transfer ink roll paired with a narrow woven polyester fabric or printed paper roll and used to produce labels or tags, from various countries

N274434 May 5, 2016 CLA-2-58:OT:RR:NC:N3:350 Ms. Sandra Tovar CST, Inc. 500 Lanier Avenue, W. Suite 901 Fayetteville, GA 30214 Dear Ms. Tovar: RE: The tariff classification of a thermal transfer ink roll paired with a narrow woven polyester fabric or printed paper roll and used to produce labels or tags, from various countries Dear Ms. Tovar, In your letter dated March 23, 2016, you requested a tariff classification ruling on behalf of your client, Avery Dennison Corporation. Samples of two “kits” were provided. All of the components, with the exception of the printed paper roll, have been the subject of previous classification rulings issued by U.S. Customs and Border Protection (CBP): N255421 (dated 8/14/14) and N232110 (dated 9/5/12). You state that the components have not changed since those rulings were issued. The country of origin of the components may vary; however you state that Avery Dennison assigns different part numbers to each of the items in order to correctly declare origin. In this request, you ask whether the kits would be considered to be sets for customs purposes. You state that the kits are sold to various manufacturers, contractors or other producers who use them to produce labels for their products. The labels are produced witin a manufacturer’s facility and the finished labels are sewn or attached to a final product. Kit #1 contains a thermal transfer ink roll and a narrow woven polyester fabric ribbon that are used to produce a finished label. The thermal transfer inked roll from France and the narrow woven fabric from Vietnam are sent to Mexico to be packaged together and then imported into the United States. Kit #2 contains a thermal transfer ink roll and a printed paper roll used to produce a finished label or tag. The US-origin thermal roll and the Mexico-origin paper roll are packaged together in Mexico and then imported into the United States. You ask whether the packaging together of U.S.-origin thermal ink rolls and Mexico-origin printed paper label rolls, or of French-origin thermal ink rolls and Vietnam-origin fabric rolls, constitutes a set for classification purposes. You note that the Explanatory Notes for General Rule of Interpretation 3(b) require that a set must consist of at least two articles that are classified in different headings, are put up together to carry out a specific activity, and are suitable for sale directly to users without repacking. You state that the two rolls, when packaged together, meet these requirements. We disagree. While we do not dispute that the various rolls are classified in different headings, can be utilized together, and may at some point be packaged together, we find that to suggest that the two items constitute a set ignores the controlling language of “goods put up in sets for retail sale”. First, the paper or fabric label and ink rolls are not intended for sale to a retail user. Merriam-Webster defines “retail” as “to sell in small quantities directly to the ultimate consumer.” The instant labels and ink rolls are not sold to a retail or ultimate consumer; instead, you note in your letter that the rolls are purchased by manufacturers, contractors, or producers to be further manufactured. This further manufacturing, as well as the eventual attachment of the completed labels to retail items, disqualifies the rolls themselves as being for retail sale. Additionally, although the “kits” provided are said to be packaged as they will be imported and sold in the United States, we note that the rolls as submitted are without any apparent retail packaging. The rolls are not fitted in any way into the box in which they were presented, which was much larger than the two rolls. There is no retail marking on the box. We find that the coupling of articles of different headings into a large, plain, box with no retail marketing nor indication of the box’s contents does not meet the intended meaning of “suitable for sale directly to users without repacking”. For example, thousands of screws shipped in a paperboard box to a manufacturer may constitute “suitable for sale directly to the manufacturer without repacking,” yet does not constitute retail packaging, as the manufacturer is not a retail consumer and the screws are not packaged for, nor sold in, a retail environment. Neither the thermal ink rolls boxed together with the printed paper label rolls nor with the narrow woven textile rolls constitutes a set for classification purposes. The individual items must be classified separately upon importation, and since none of the components within each kit are transformed by being packaged, the countries of origin do not change. This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of Customs and you should resubmit for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic Customs laboratory analysis at the time of importation and to verification by Customs, and the fabric may be reclassified at that time. 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 Maribeth Dunajski at maribeth.dunajski@cbp.dhs.gov. Sincerely, Deborah C. Marinucci Acting Director National Commodity Specialist Division