HQ 950605: PC 866940 modified. Kraft 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 950605

                         April 17, 1992


CLA-2 CO:R:C:T  950605  HP

CATEGORY:  Classification

TARIFF NO.:  4804.39.6040

Mr. Yves Bedard
CDM Lamines, Inc.
3075 Rue Bernier
Drummondville, Quebec J2C 6Y4
CANADA

RE:  PC 866940 modified.  Kraft paper.

Dear Mr. Bedard:

     This is in reference to PC 866940 of September 23, 1991, a
pre-entry classification of decorative papers.

FACTS:

     On July 24, 1991, Customs Import Specialist Mary Patric
conducted a pre-entry classification determination at your
premises.  The pre-entry classification for items that you
assembled into particular categories or groups was based in part
on the group characteristics you provided.  Certain representa
tive samples were chosen for physical examination.

     In your pre-entry classification listing, the merchandise at
issue in this modification was described as:

     I.   BASE PAPERS shipped in rolls of a width exceeding
          15 cm. or in rectangular sheets with one side
          exceeding 36 cm, in the unfolded state.  Papers in
          this group can be manufactured in Canada, Germany,
          or France.

                              * * *
          4.   LPW-0001-115 uncoated paper weighing
               approximately 115 g/m squared not sub
               jected to any processing not premitted
               [sic.] by Chapter 48 note 2.  It is
               considered as absorbent paper.

          5.   LPW-0001-095

          6.   LPW-0002-095

          7.   LPW-0003-077

          8.   LPW-0004-070

     Based in part upon Laboratory Report #3-91-20953-001 dated
August 8, 1991,  finding that these styles were not kraft paper,
Customs pre-entry classified these papers under subheading
4805.60.30, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), as other uncoated paperboard, in rolls or
sheets, other paper or paperboard, weighing 150 g/m squared or
less, bibulous paper.  The applicable rate of duty was Free.

     On October 3, 1991, Customs issued an amended Laboratory
Report on this merchandise, #3-92-20002-001, in which LPW-001-115
was described as kraft paper.

ISSUE:

     Whether PC 866940 must be modified based upon the amended
Laboratory Report?

LAW AND ANALYSIS:

     Heading 4805, HTSUSA, provides for papers other than, inter
alia, uncoated kraft paper and paperboard of heading 4804.  The
General Rules of Interpretation (GRIs) to the HTSUSA govern the
classification of goods in the tariff schedule.  GRI 1 states, in
pertinent part, that "... classification shall be determined
according to the terms of the headings and any relative section
or chapter notes...."  Note 5 to Chapter 48, HTSUSA, defines
"kraft paper and paperboard" as:

          paper and paperboard of which not less than
          80 percent by weight of the total fiber
          content consists of fibers obtained by the
          chemical sulfate or soda processes.

     Based on findings in the amended Laboratory Report, classi
fication of the instant kraft paper as "other than kraft paper"
was incorrect.  PC 866940 is therefore modified accordingly.

HOLDING:

     As a result of the foregoing, the instant merchandise is
classified under subheading 4804.39.6040, HTSUSA, as uncoated
kraft paper and paperboard, in rolls or sheets, other than that
of heading 4802 or 4803, other kraft paper and paperboard weigh
ing 150 g/m squared or less, other, other, other.  Articles which
meet the definition of "goods originating in the territory of
Canada" (see General Note 3(c)(vii)(B), HTSUSA) are subject to
reduced rates of duty under the United States-Canada Free Trade
Agreement Implementation Act of 1988.  If the merchandise consti
tutes "goods originating in the territory of Canada," the appli
cable rate of duty is 0.8 percent ad valorem; otherwise the
General rate of duty is 4 percent ad valorem.

     In order to insure uniformity in Customs classification of
this merchandise and eliminate uncertainty, we are modifying PC
866940 to reflect the above classification effective with the
date of this letter.  However, if you disagree with the legal
basis for our decision, we invite you to submit, either for
yourself or on behalf of your client, any arguments you might
have with respect to this matter for our review.  Any submission
you wish to make should be received within 30 days of the date of
this letter.

     This notice to you should therefore be considered a modifi
cation of PC 866940 of September 23, 1991, under 19 C.F.R.
177.9(d)(1) (1989).  It is not to be applied retroactively to PC
866940 (19 C.F.R.  177.9(d)(2) (1989)) and will not, therefore,
affect the transaction for the importation of your merchandise
under that ruling.  However, for the purposes of future transac
tions in merchandise of this type, including that for which the
present classification is requested, PC 866940 will not be valid
precedent.  We recognize that pending transactions may be ad
versely affected by this modification, in that current contracts
for importations arriving at a port subsequent to the release of
HRL 950605 will be classified under the new ruling.  If such a
situation arises, you may, at your discretion, notify this office
and apply for relief from the binding effects of the new ruling
as may be dictated by the circumstances.  However, please be
advised that in some instances involving import restraints, such
relief may require separate approvals from other government
agencies.

     A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported.  If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.


                           Sincerely,



                      John Durant, Director
                   Commercial Rulings Division