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HQ 087764


December 11, 1990

CLA-2 CO:R:C:G 087764 jlj

CATEGORY: CLASSIFICATION

TARIFF NO.: 4802.52.10

Mr. George M. Keller
Customs Advisory Services Inc.
1001 Virginia Avenue
Suite 211
Atlanta, Georgia 30354

RE: Classification of cylinder mould paper (security paper)

Dear Mr. Keller:

On behalf of your client, Portals Inc., you requested a tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) for cylinder mould paper (security paper) imported from England. Several small samples of the cylinder mould paper were submitted along with your request.

FACTS:

The submitted samples of white paper measure approximately 5-1/4 inches by 4-1/2 inches. The samples do not contain any noticeable water marks, although they do feature a textured surface. The paper does not appear to be coated or impregnated.

You did not provide information regarding basis weight, mechanical pulp percentages (requirements for Heading 4802 are set forth in Chapter Note 4 of Chapter 48) nor technical processes (specified in Chapter Note 2 of Chapter 48). However, based on your comments and the information available to us, it appears that the instant paper meets the requirements of Chapter Notes 2 and 4 of Chapter 48 for Heading 4802 (copies of these notes enclosed for your information) and that it also meets the basis weight requirements of subheading 4802.52, HTSUSA.

ISSUE:

What is the correct tariff classification of the instant paper?

LAW ANALYSIS:

Security paper is defined in the Dictionary of Paper, Fourth Edition, as:

Security Paper. (1) A paper with bond characteristics similar to currency paper. It is used for stocks, bonds and other securities, and it is usually made for engraving by the wet intaglio process. It may contain distinctive features against counterfeiting. (2) S

Safety paper is defined, in part, in the Dictionary of Paper, supra, as:

Safety paper. A special grade of paper having a surface design or hidden warning indicia or both of such chemical composition as to make obvious any attempt at fraudulent alteration of the writing thereon by ink eradicators, mechanical erasure, etc. It is used for bank checks, coupons, money orders, lottery tickets, trading stamps, transportation tickets, and other paper items having a negotiable value.

You propose classifying the paper in subheading 4802.52.9000, HTSUSA, which covers uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes...: other paper and paperboard, not containing fibers obtained by a mechanical process or of which not more than 10 percent by weight of the total fiber content consists of such fibers: weighing 40 grams per square meter or more but not more than 150 grams per square meter: other.

The Explanatory Notes, the official interpretation of the Harmonized Tariff Schedule at the international level, state that Heading 4802 includes:

(B) Other paper and paperboard, of a kind used for writing, printing or other graphic purposes, for example:

(9) Security paper used for cheques, stamps, banknotes or the like.

We note that, as a class or kind, security paper meets the principal use criteria of the following "Description of Uncoated Writing and Related Papers" set forth in the May 1984, Supplement to the Dictionary of Paper, Fourth Edition:

For some purposes horizontal lines, vertical lines, and/or words may be printed on the form to facilitate its ultimate use, e.g., preprinted business forms. This printing generally does not impart complete formation relative to the end use of the form. Rather it can be considered to be only a guideline, framework or format for the specific data which is added later by pen, pencil, typewriter, automatic accounting equipment, copiers, computers, etc.

We further note that this same section of the Supplement mentions "currency" as one of the end products of uncoated writing paper and that the American Paper Institute informs us that it considers security paper to be writing paper for purposes of their statistics. Finally, we observe that the purpose of security paper is to prevent the forging or counterfeiting of what was written upon it. We therefore find that the principal use of the class or kind of security paper is writing.

HOLDING:

Based on the information stated above in the "FACTS" section, the instant security paper is classified in subheading 4802.52.1000, HTSUSA, which provides for uncoated paper and paperboard of a kind used for writing, printing or other graphic purposes...: other paper and paperboard, not containing fibers obtained by a mechanical process or of which not more than 10 percent by weight of the total fiber content consists of such fibers: weighing 40 grams or more per square meter but not more than 150 grams per square meter: writing paper, which is dutiable at the rate of 2.4 percent ad valorem.

Sincerely,


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