United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1991 HQ Rulings > HQ 0087620 - HQ 0087694 > HQ 0087649

Previous Ruling Next Ruling


HQ 087649


October 26, 1990

CLA-2 CO:R:C:G 087649 CMR 854047

CATEGORY: CLASSIFICATION

TARIFF NO.: 3921.13.5000

Ms. Mary Beth Moran
The Buffalo Customhouse
Brokerage Co., Inc.
Peace Bridge Plaza Warehouse
Suite 211
Buffalo, New York 14213

RE: Classification of rolls of polyurethane foam

Dear Ms. Moran:

This ruling is in response to your letter of June 28, 1990, on behalf of Apple Athletic Products, Inc., requesting classifi- cation advice regarding rolls of polyurethane foam. This office received a sample piece of foam with your letter.

FACTS:

The submitted sample is a swatch of foamed, or cellular, polyurethane foam plastic with one smooth, flat surface and one bubbled surface. The plastic sheet is made in the United States by Centaur in Chicago, Illinois. It is exported to Canada in rolls of 150 feet. When exported to Canada, both sides of the rolls are smooth and flat. In Canada, Apple Athletic runs the rolls through a laminator or embossing machine to create a bubbled surface on one side. [You state it is an laminator machine; however, the National Import Specialist for this merchandise has indicated that the processing is more likely performed on an embossing machine.] The rolls are then sent back to the United States and sold as an underlay for carpeting.

ISSUE:

Is the polyurethane foam imported in rolls classified under heading 3918, HTSUSA, which provides for, among other things, floor coverings of plastics, whether or not self-adhesive, in rolls or in the form of tiles, or heading 3921, HTSUSA, which provides for other plates, sheets, film, foil and strip, of plastics?

Does the polyurethane foam qualify as a "good originating in the territory of Canada" under the United States-Canada Free- Trade Agreement (CFTA)?

LAW AND ANALYSIS:

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes, provided such headings or notes do not otherwise require, according to [the remaining GRIs taken in order]."

The Explanatory Notes, which are the official interpretation of the HTS at the international level, provide some guidance in deciding under which heading the subject polyurethane foam should be classified.

Heading 3918 provides for, among other things, floor coverings of plastics, whether or not self-adhesive, in rolls or in the form of tiles. The Explanatory Notes for the heading state in pertinent part:

The first part of the heading covers plastics of the types normally used as floor coverings, in rolls or in the form of tiles. It should be noted that self-adhesive floor coverings are classified in this heading.

It should be noted that this heading includes articles printed with motifs, characters or pictorial representa- tions, which are not merely incidental to the primary use of the goods * * *.

Heading 3921 provides for other plates, sheets, film, foil and strip, of plastics. The Explanatory Notes for the heading state in pertinent part:

This heading covers plates, sheets, film, foil and strip, of plastics, other than those of heading 39.18, 39.19 or 39.20 or of Chapter 54. It therefore covers only cellular products or those which have been reinforced, laminated, supported or similarly combined with other materials. * * *

In order to determine which heading most specifically describes the polyurethane foam underlay, we must decide if the underlay may be considered a floor covering.

Although the polyurethane foam underlay material covers flooring when used as carpet underlay, we do not believe it falls within the common meaning of floor coverings. Floor coverings are commonly thought to be articles such as carpets, rugs, mats, etc. These are articles which cover a floor area and which are open to view. Carpet underlay, on the other hand, is not seen, but is under the perceived floor covering, i.e. the carpet. Therefore, we do not believe carpet underlay is encompassed within the common meaning of floor covering.

We believe the polyurethane foam is eligible for treatment as a "good originating in the territory of Canada" under the CFTA. General Note 3(c)(vii)(B)(2)(I) of the Harmonized Tariff Schedule of the United States provides in pertinent part:
goods imported into the customs territory of the United States are eligible for treatment as "goods originating in the territory of Canada" only if--

(2) they have been transformed in the territory of Canada and/or the United States, so as to be subject--

(I) to a change in tariff classification as described in the rules of subdivision (c)(vii)(R) of this note...

Since the polyurethane foam sheets exported to Canada are manufactured in the United States, we believe they are trans- formed in the United States, so as to be subject to a change in tariff classification as described in the rules of subdivision

Your letter is being forwarded to the Value and Special Admissibility Branch so that that office may address your questions regarding country of origin and marking. They will respond separately at a later date.

HOLDING:

The rolls of polyurethane foam are classified in subheading 3921.13.5000, HTSUSA, which provides for other plates, sheets, film, foil and strip, of plastics, cellular, other. As a good "originating" in Canada, the polyurethane foam is dutiable at a rate of 3.3 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling

See also: