HQ 087764: Classification of cylinder mould paper (security paper)

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            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:

                              - 2 -


          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:

                              - 3 -


          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,





                              John Durant, Director
                              Commercial Rulings Division

Enclosure
6cc:  A.D., NY Seaport (NIS-Carl Abramowitz)
2cc:  C.I.E.
1cc:  O.T.O.
lw:12/4/90