September 4, 2008 CBP Bulletin Notice on Classification of Certain Ice Cream Wrapping Material

Proposed revocation of ruling; proposed revocation of treatment. CBP is proposing to revoke one ruling on the classification of certain ice cream wrapping material. Additionally, CBP proposes that this notice covers any rulings on this merchandise which may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.

CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed modification and revocation, or any party involved with a substantially identical transaction, should advise CBP by October 4, 2008, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.

Ice cream wrapping material. The merchandise consists of ice cream wrapping material. The top layer of the wrapping is a clear sheet of polypropylene with reverse printing on one side. The printed polypropylene layer is then laminated to aluminum foil, which is laminated to paper through the use of an intermediate layer of wet polyethylene. The back of the paper is then coated with a hot melt. The paper and plastic backing adds strength to the aluminum foil facilitating its use as wrapping for ice cream. The finished material has a thickness of 0.075mm. The cost breakdown of raw materials, as percentages of total expenses (approximate figures used) is the following:

Oriented polypropylene - $3/roll (4%)

1. micron aluminum foil - $13/roll (18%)
2. micron wet lamination (polyethylene) - $1.50/roll (2%)
3. /sq. meter paper - $6/roll (8.5%)
4. /sq. meter hot melt - $8/roll (11.5%)

CBP is proposing to issue HQ H034938 in order to revoke HQ 954591 and reclassify the ice cream wrapping material under HTS 7607.19.60 as "Aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm: Not backed: Other: Other: Other", rather than under HTS 7607.20.10 as "Aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm: Backed: Other."

CBP proposes this change as a correction because as a composite good, the product should have been classified based on GRI 3, not GRI 1. The wrapping at issue is a composite good consisting of layers of coated paper, classified under heading 4811, aluminum foil, classified under heading 7607, and plastic, classified under heading 3921, HTSUS, adhered together.

There is no heading that describes this good in its entirety. Therefore, it cannot be classified according to GRI 1. GRI 3(b) directs that composite goods consisting of different materials shall be classified as if they consisted of the material or component which gives them their essential character.

After examining the wrapping, CBP proposes that its essential character is imparted by the aluminum layer, by virtue of its cost and its use in relation to preserving the qualities of the ice cream it is used to wrap. CBP notes that aluminum foil which is combined with another material but that is not backed or coated can only be classified in heading 7607, on the basis of GRI 3 as a composite good.

Proposed: 7607.19.60, 3%; Current: 7607.20.10, 3.7%

September 4, 2008 CBP Bulletin (Vol. 42, No. 37) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2008/