January 8, 2009 CBP Bulletin Notice on Classification of Certain Ice Cream Wrapping Material
In the January 8, 2009 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 43, No. 3), CBP published a notice revoking one ruling and a treatment as follows:
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Revocation of ruling, revocation of treatment.CBP is revoking one ruling on the classification of certain ice cream wrapping material; in addition, this notice covers any rulings on this merchandise which may exist but have not been specifically identified. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, these actions are effective for merchandise entered or withdrawn from warehouse for consumption on or after March 9, 2009.
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%)
- micron aluminum foil - $13/roll (18%)
- micron wet lamination (polyethylene) - $1.50/roll (2%)
- /sq. meter paper - $6/roll (8.5%)
- /sq. meter hot melt - $8/roll (11.5%)
CBP is issuing 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 makes 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 determines 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.
New: 7607.19.60, 3%; Previous: 7607.20.10, 3.7%
(See ITT's Online Archives or 09/10/2008 news, 08091035, for BP summary of proposed HQ H034938.)
January 8, 2009 CBP Bulletin (Vol. 43, No. 3) available at http://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/