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NY F84553

March 31, 2000

CLA-2-98:RR:NC:SP:234 F84553


TARIFF NO.: 9802.00.8066; 4811.21.0000

Mr. Alan M. Campbell
Avery Dennison – Fasson Roll North America 7590 Auburn Road
Painesville, Ohio 44077

RE: The tariff classification of adhesive paper from an unspecified European country.

Dear Mr. Campbell:

This is in response to your letter dated March 10, 2000 concerning the eligibility for a partial duty exemption under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTS), of two grades of paper that will be used to make pressure-sensitive label material in Europe.

The finished label material, known as Fasson 50#DSX/S2501/50#SCK, consists of a pressure-sensitive (self-adhesive) paper “face stock” mounted on a paper “release liner.” When used, the face stock is the primary component of the product, while the release liner is discarded.

You state that Fasson 50#DSX/S2501/50#SCK is currently made in the United States from U.S. materials. However, due to a surge in demand and a temporary plant closure (for modernization and retooling), you plan to send both paper grades (release-liner stock and face stock) to an affiliate in Europe for assembly into 80-inch by 15,000-foot bulk master rolls of label material. For the purposes of this ruling, it is presumed that both of the papers sent to Europe for this operation will be of U.S. origin. You have provided the following description of what will take place at the European facility:

The production process consists of placing the release liner paper on the machine where it is unwound and coated with a liquid silicone coating after which it continues through an oven for a curing process. A thin layer of adhesive is then coated on top of the release liner and the paper under- goes another curing process to remove water and cure the adhesive. The roll of facestock is then laminated to the release liner and continues through the process until the end product is rewound at the end of the coating line. Subheading 9802.00.80, HTS, provides for a partial duty exemption for: Articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting. All three requirements of subheading 9802.00.80, HTS, must be satisfied before a component may receive a duty allowance.

In this case, we find that while the face-sheet stock meets the above requirements, the release-liner stock does not. Considering that the latter must be coated with liquid silicone (a release agent) and cured before it is ready to be laminated to the former, it is evident that it is not exported to Europe in condition ready for assembly without further fabrication. On the contrary, it appears that the release-liner stock, as received in Europe, is an incomplete or unfinished component, i.e., merely a base paper that must be manufactured into finished, functional “release paper” before it is suitable either for the assembly operation or for serving its ultimate purpose.

Accordingly, the applicable subheading for the Fasson 50#DSX/S2501/50#SCK label material will be 9802.00.8066, HTS, which provides for: “Articlesassembled abroad in whole or in part of fabricated components, the product of the United States” The duty will be at the rate which would apply to the imported article itself, as an entirety without constructive separation of its components, in its condition as imported if it were not within the purview of subchapter II, Chapter 98, upon the full value of the imported article, less the cost or value of the face-sheet stock only.

The applicable general rate in this case is 2.3%, derived from subheading 4811.21.0000, HTS, which provides for gummed or adhesive paper and paperboard: pressure-sensitive.

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 Carl Abramowitz at 212-637-7060.


Robert B. Swierupski

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