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HQ 964474




August 1, 2001

CLA-2 RR:CR:GC 964474 GOB

CATEGORY: CLASSIFICATION

TARIFF NO.: 8505.19.00

Sandra Liss Friedman
Barnes, Richardson & Colburn
475 Park Avenue South
New York, NY 10016

RE: Magnetic laminate refill

Dear Ms. Friedman:

This is in reply to your submission of August 1, 2000, on behalf of Brother International Corporation, requesting a ruling with respect to the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of a magnetic laminate refill (Brother Model-M5R) that is used with a laminating machine.

FACTS:

You describe the article as follows:

The product is used as a refill for the laminator cartridge that is used with the Brother Cool Laminator, a cold-pressure laminating machine sold by Brother. The Cool Laminator uses various laminator cartridges, one type being the magnetic laminate, which can produce laminated documents that have magnetic backs [footnote omitted] ...

The magnetic laminate refill consists, primarily, of two rolls of film each of which is wound onto a spool: a roll of plastic film and a second roll of magnetic film. The rolls of film are wound on cardboard spools. Plastic gears are added to one end of each spool. One of the plastic gears includes a coded label that is intended to insure that the Cool Laminator will only accept the Brother refill for its operation. The refills are available in different widths to accommodate the different cartridges so that magnetic backed laminated documents of differing widths can be made using the Cool Laminator. The consumer will insert the magnetic laminate refill into the appropriate cartridge, which is, in turn inserted into the Cool Laminator.

The magnetic film of the magnetic laminate refill is magnetic in its condition as imported, which can be verified by pealing off the liner. The magnetic film is composed of a combination of strontium ferrite particle and chlorinated polyethylene. The plastic film [roll] consists of (1) OPP (Biaxial Orientated Polypropylene), and (2) adhesive (acrylic).

On examination, the liner and chlorinated polyethylene both refer to the plastic film of the magnetic film roll. The plastic film noted above refers to the plastic film roll. The plastic film on both rolls is self-adhesive.

You state that: the magnetic film roll has a cost of $26.80 and weighs 800 grams; the plastic film roll has a cost of $2.20 and weighs 150 grams; and the liner and packing material has a cost of $4.00 and weighs 250 grams.

ISSUE:

What is the tariff classification of the magnetic laminate refill?

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative 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 then be applied.

The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.

The HTSUS provisions under consideration are as follows:

3919 Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls:

3919.10 In rolls of a width not exceeding 20cm:

3919.10.20 Other.

8505 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization ... :

Permanent magnets and articles intended to become permanent magnets after magnetization:

8505.11.00 Of metal

8505.19.00 Other.

We are unable to resolve the classification of the magnetic laminate refill at GRI 1 because it is a composite good consisting of two rolls, one of plastic classifiable under heading 3919 and the second of strontium ferrite (with plastic) classifiable under heading 8505. GRI 2 is not applicable here.

GRI 3 provides as follows:

When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:

The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

GRI 3(a) is pertinent to the classification of the magnetic laminate refill as it is a composite good within the scope of GRI 3(a) and EN (IX) to GRI 3(b).

EN (IX) to GRI 3(b) provides:

For purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts. [Emphasis in original.]

EN (VIII) to GRI 3(b) provides:

The factor which determines the essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

Essential character has frequently been construed to mean the attribute which strongly marks or serves to distinguish what an article is.

We are not able to classify the magnetic laminate refill at GRI 3(a) because headings 3919 and 8505 each describe the good in part and are, pursuant to GRI 3(a), regarded as equally specific in relation to the good.

Pursuant to GRI 3(b), we find that the essential character of the magnetic laminate refill is imparted by the magnetic material. As indicated above, the cost and the weight of the strontium ferrite and chlorinated polyethylene film far exceed the cost and weight of the plastic film constituting the other roll. Further, and perhaps more importantly, the magnetic material is the component which plays the predominant and indispensable role in the use of the good, i.e., the use of the magnetic material in the laminate refill permits the Cool Laminator to produce a laminated document with a magnetic back. Such a document may be placed on a metal surface without fasteners. The magnetic material is clearly the distinguishing feature of the good. As you point out in your submission: “...the magnetic component of the M5R refill imparts the magnetic laminate’s essential character because it is the component that distinguishes the resulting product from other laminates produced by the Cool Laminator.”

Based upon our essential character determination, we find that the magnetic material is provided for in heading 8505, HTSUS, and is classified in subheading 8505.19.00, HTSUS, as: “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization ... : Permanent magnets and articles intended to become permanent magnets after magnetization: ... Other.”

Subheading 8505.11.00, HTSUS, is not applicable as claimed because the magnetic component is not a metal.

Our determination here is consistent with certain previous rulings where we found that the essential character of the good was imparted by magnetic components. In HQ 962953 dated April 5, 2000, we classified a magnetic therapy system in subheading 8505.19.00, HTSUS. We found that the magnetic components made that good distinguishable from other products and were “the reason why consumers will purchase the product.” In HQ 953264 dated March 30, 1994, we classified a memo magnet and hook magnet under subheading 8505.19.00, HTSUS. Our finding that the essential character is imparted by the permanent magnet was based upon the fact that “[r]emoval of the magnet from the article would leave the product totally incapable of functioning as a magnetic memo holder for metallic surfaces.”

HOLDING:

Pursuant to GRI 3(b), the magnetic laminate refill is provided for in heading 8505, HTSUS, and is classified in subheading 8505.19.00, HTSUS, as: “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization ... : Permanent magnets and articles intended to become permanent magnets after magnetization: ... Other.”

Sincerely,

John Durant, Director
Commercial Rulings Division


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