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HQ 950605

April 17, 1992

CLA-2 CO:R:C:T 950605 HP


TARIFF NO.: 4804.39.6040

Mr. Yves Bedard
CDM Lamines, Inc.
3075 Rue Bernier
Drummondville, Quebec J2C 6Y4

RE: PC 866940 modified. Kraft paper.

Dear Mr. Bedard:

This is in reference to PC 866940 of September 23, 1991, a pre-entry classification of decorative papers.


On July 24, 1991, Customs Import Specialist Mary Patric conducted a pre-entry classification determination at your premises. The pre-entry classification for items that you assembled into particular categories or groups was based in part on the group characteristics you provided. Certain representa tive samples were chosen for physical examination.

In your pre-entry classification listing, the merchandise at issue in this modification was described as:

I. BASE PAPERS shipped in rolls of a width exceeding 15 cm. or in rectangular sheets with one side exceeding 36 cm, in the unfolded state. Papers in this group can be manufactured in Canada, Germany, or France.

4. LPW-0001-115 uncoated paper weighing approximately 115 g/m squared not sub jected to any processing not premitted
[sic.] by Chapter 48 note 2. It is considered as absorbent paper.

5. LPW-0001-095

6. LPW-0002-095

7. LPW-0003-077

8. LPW-0004-070

Based in part upon Laboratory Report #3-91-20953-001 dated August 8, 1991, finding that these styles were not kraft paper, Customs pre-entry classified these papers under subheading 4805.60.30, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as other uncoated paperboard, in rolls or sheets, other paper or paperboard, weighing 150 g/m squared or less, bibulous paper. The applicable rate of duty was Free.

On October 3, 1991, Customs issued an amended Laboratory Report on this merchandise, #3-92-20002-001, in which LPW-001-115 was described as kraft paper.


Whether PC 866940 must be modified based upon the amended Laboratory Report?


Heading 4805, HTSUSA, provides for papers other than, inter alia, uncoated kraft paper and paperboard of heading 4804. The General Rules of Interpretation (GRIs) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part, that "... classification shall be determined according to the terms of the headings and any relative section or chapter notes...." Note 5 to Chapter 48, HTSUSA, defines "kraft paper and paperboard" as:
paper and paperboard of which not less than 80 percent by weight of the total fiber content consists of fibers obtained by the chemical sulfate or soda processes.

Based on findings in the amended Laboratory Report, classi fication of the instant kraft paper as "other than kraft paper" was incorrect. PC 866940 is therefore modified accordingly.


As a result of the foregoing, the instant merchandise is classified under subheading 4804.39.6040, HTSUSA, as uncoated kraft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 4803, other kraft paper and paperboard weigh ing 150 g/m squared or less, other, other, other. Articles which meet the definition of "goods originating in the territory of Canada" (see General Note 3(c)(vii)(B), HTSUSA) are subject to reduced rates of duty under the United States-Canada Free Trade Agreement Implementation Act of 1988. If the merchandise consti tutes "goods originating in the territory of Canada," the appli cable rate of duty is 0.8 percent ad valorem; otherwise the General rate of duty is 4 percent ad valorem.

In order to insure uniformity in Customs classification of this merchandise and eliminate uncertainty, we are modifying PC 866940 to reflect the above classification effective with the date of this letter. However, if you disagree with the legal basis for our decision, we invite you to submit, either for yourself or on behalf of your client, any arguments you might have with respect to this matter for our review. Any submission you wish to make should be received within 30 days of the date of this letter.

This notice to you should therefore be considered a modifi cation of PC 866940 of September 23, 1991, under 19 C.F.R. 177.9(d)(1) (1989). It is not to be applied retroactively to PC 866940 (19 C.F.R. 177.9(d)(2) (1989)) and will not, therefore, affect the transaction for the importation of your merchandise under that ruling. However, for the purposes of future transac tions in merchandise of this type, including that for which the present classification is requested, PC 866940 will not be valid precedent. We recognize that pending transactions may be ad versely affected by this modification, in that current contracts for importations arriving at a port subsequent to the release of HRL 950605 will be classified under the new ruling. If such a situation arises, you may, at your discretion, notify this office and apply for relief from the binding effects of the new ruling as may be dictated by the circumstances. However, please be advised that in some instances involving import restraints, such relief may require separate approvals from other government agencies.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


John Durant, Director
Commercial Rulings Division

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