HQ 087857: Polycoated sugar pouch kraft; Printed matter; Coated paper; Plastics.

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                             HQ 087857

                         December 18, 1990

   CLA-1 CO:R:C:G 087857 KWM

   CATEGORY: Classification

   TARIFF NO.: 4811.39.4040

   Mr. F.R. Brown
   Bonar Packaging Ltd.
   P.O. Box 1050, Station T
   Calgary, Alberta T2H 2J1

   RE:  Polycoated sugar pouch kraft; Printed matter; Coated
        paper; Plastics.

   Dear Mr. Brown:

        This is response to your inquiry dated August 15, 1990,
   requesting a tariff classification for "polycoated sugar pouch
   kraft."  Your letter and samples of the product have been
   forwarded to this office for a response.

   FACTS:

        The subject goods are described as "polycoated sugar
   pouch kraft."  They consist of rolls of paper used to
   manufacture sugar pouches.  Your letter indicates that the
   paper may be imported plain, or may be printed and "slit to
   narrow widths as required by the customer."  Roll lengths
   would be approximately 24,000 lineal feet.

        The paper used here is kraft (see, Chapter Note 48-5,
   HTSUSA) which has been extrusion coated with a plastic,
   polyethylene.  the polyethylene may be either clear or opaque.

   Your letter describes the process as resin extruded as a
   "semi-molten film" from a slit die and bonded under pressure
   to a continuous moving sheet of kraft paper.  Some of the
   product may be printed on one side with text and pictorial
   matter.

   ISSUE:

        What is the classification of the goods under the
   Harmonized Tariff Schedule of the United States Annotated?
   LAW AND ANALYSIS:

        Classification under the Harmonized Tariff Schedule of
   the United States Annotated (HTSUSA) is made in accordance
   with the General Rules of Interpretation (GRI's).  The
   systematic detail of the harmonized system is such that
   virtually all goods are classified by application of GRI 1,
   that is, according to the terms of the headings of the tariff
   schedule and any relevant 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's may be applied, taken in order.

        Imported without having been printed, the rolls of
   plastic coated paper clearly fall within the terms of
   subheading 4811.39, HTSUSA. which provides for:

        4811      Paper, paperboard, cellulose wadding and webs
                  of cellulose fibers, coated, impregnated,
                  covered, surface-colored, surface-decorated or
                  printed, in rolls or sheets, other than goods
                  of heading 4803, 4809, 4810 or 4818:

                            Paper and paperboard, coated,
                            impregnated or covered with plastics
                            (excluding adhesives):

        4811.39             Other:

   However, once the paper has been printed, it may fall within
   another of the tariff headings.  Two issues are presented in
   deciding which heading properly provides for the goods: First,
   is the printing here "more than merely incidental to the
   primary use of the goods" as provided in Chapter Note 48-11,
   HTSUSA?  Second, are the unfinished sugar pouches considered
   to be "containers" as provided for in the tariff schedule?  We
   believe that the answer to both question is "no."

        Chapter Note 48-11, HTSUSA, provides that articles
   printed with characters or pictorial representations which are
   not merely incidental to the primary use of the goods are
   classified as printed matter of Chapter 49, HTSUSA.  The
   Explanatory Notes, which are the official interpretation of
   the tariff at the international level, indicate that an
   articles whose "essential nature and use" is determined by
   that fact of their having been printed are considered to be
   printed matter.  In this case, the printing is not necessary
   to the goods primary use as sugar pouches.  The fact that some
   rolls are imported blank substantiates that belief.

        Having determined that the printed goods are not
   classified in Chapter 49, HTSUSA, we must determine whether or
   not they are "containers".  We note first that the rolls of
   paper, in the form imported are incapable of containing
   anything.  If they are classified in heading 4918, HTSUSA, it
   must be as an unassembled article.  GRI 2(a) provides:

        2.   (a)  Any reference in a heading to an article shall
                  be taken to include a reference to that article
                  incomplete or unfinished, provided that, as
                  entered, the incomplete or unfinished article
                  has the essential character of the complete or
                  finished article.  It shall also include a
                  reference to that article complete or finished
                  (or failing to be classified as complete or
                  finished by virtue of this rule), entered
                  unassembled or disassembled.

   (Emphasis added).  We do not believe that the instant rolls of
   paper, including those that have been printed, have the
   essential character of sugar pouches.  We do not consider the
   printing to establish essential character by dedication of the

   goods to the manufacture of sugar pouches.  Nor do we consider
   the goods simply "unassembled."  They must be further cut and
   processed before they can be considered dedicated to use as
   sugar pouches.  The imported rolls of paper, either printed or
   plain, are simply raw material used in the manufacture of a
   final product after importation.  They are classified the same
   with or without printing.

   HOLDING:

        The instant goods, plastic coated kraft paper, imported
   in rolls either printed or plain, and used in the manufacture
   of sugar pouches, are classified in subheading 4811.39.4040,
   HTSUSA.  Merchandise of this heading may be imported free of
   duty.



                                      Sincerely,


                                      John A. Durant
                                      Director
                                      Commercial Rulings Division