Mr. Kevin Cote
Jakeco Holdings Inc.
418 Chitek Cres.
Saskatoon, SK S7K 5C2
Date of issuance of ruling:
This is in response to a request submitted on your behalf by Trillium Customs Brokers Inc. for an advance ruling on the tariff classification of a paper and polypropylene bag. This product is manufactured by Zibo Aifudi Plastic Packaging Co., Ltd., Chunguang Road, Huantai Development, Zibo City, Shangdong, China. It is exported by Sonvigo SA, 4B Chemin du Reservoir, Lausanne, Switzerland.
The good in issue is commonly referred to as a “paper-poly” bag. It is composed of an outside layer of paper bonded to a fabric layer of woven polypropylene strips. The bag or sack has been sealed at the bottom with a strip of the material which has been folded over and joined to the edge of the side by sewing. The paper on the outside of the bag typically has printed text and images such as company names or logos.
Analysis and Justification
The good in issue is composed of two distinct materials; thus, the relevant headings based on the materials involved must first be determined.
Consideration was first given to heading 39.23 which covers “Articles for the conveyance or packing of goods, of plastics”. However, Note 1(p) to Chapter 39 excludes textiles and textile articles of Section XI.
Heading 63.05 provides for “Sacks and bags, of a kind used in the packing of goods”, more specifically, subheading 6305.33 “--Other, of polyethylene or polypropylene strip or the like”. As the good is made of woven polypropylene strips, it appears to be specifically named under this subheading.
Consideration was also given to heading 48.19 which covers “Cartons, boxes, bags and other packing containers, of paper, paperboard…”. The good in issue has a paper component.
General Rule for the Interpretation of the Harmonized System (GIR) 1 directs that titles of Sections, Chapter and sub-Chapters are provided for ease of reference only. For legal purposes, classification shall be determined according to the terms of the heading and any relative Section and Chapter Notes. Similarly, GIR 6 directs that classification shall be determined according to the terms of those subheadings and any related Subheading Notes.
As the good in issue consists of a combination of materials that are classifiable, in part only, under the terms of headings 48.19 and 63.05, it cannot be classified according to GIR 1. Thus, for classification purposes, regard must be had to the other GIRs.
GIR 2(a) is not applicable to the good as it is imported in a complete or finished form. Neither does GIR 2(b) resolve the classification as the good consists of more than one material and is prima facie classifiable under two headings.
Thus, classification is to be determined according to GIR 3. As each of these headings refers to part only of the materials contained in the goods, these headings are regarded as equally specific and GIR 3(a) is not applicable.
GIR 3(b) directs that composite goods consisting of different materials shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
The primary function of this bag is the conveyance or packing of goods such as grains, seeds and animal feeds, flour, etc. The outside layer of paper serves merely for secondary functions such as the absorption of excess moisture, enhanced sealing and providing printed information. The inner textile component of woven polypropylene strips functions to provide the strength and containment aspect of the good. In addition, both thickness and percent by weight of the polypropylene material is greater than the paper component. As such, the polypropylene component provides the essential character for the bag or sack and thus, classified in heading 63.05, specifically subheading 6305.33, as other sacks and bags, of a kind used for the packing of goods, of polypropylene strip.
Section 10 of the Customs Tariff directs that classification of imported goods shall be determined in accordance with the General Rules for the Interpretation of the Harmonized System. Section 11 of the Customs Tariff states that in interpreting the headings and subheadings, regard shall be had to the World Customs Organization's (WCO) Explanatory Notes to the Harmonized Commodity Description and Coding System.
The paper-poly sack or bag is classified under tariff classification 6305.33.00.90 in accordance with GIRs 1, 3(b) and 6.
This ruling has been issued under paragraph 43.1(1)(c) of the Customs Act and will be honoured by the CBSA for future importations of the goods specified, provided the material facts and circumstances remain as originally presented; all conditions in the ruling have been met; the ruling has not been modified, revoked, revised, or cancelled; and the Customs Tariff legislation has not changed. Should there be a change in the material facts or circumstances pertaining to the goods, you must notify the CBSA as soon as possible. You may request that the advance ruling be modified or revoked as of the date of the change.
Importers should quote the advance ruling number at the time of importation in either the description field of the B3 entry document or on the Canada Customs Invoice. Exporters or producers should quote the advance ruling number on the Certificate of Origin or commercial invoice accompanying the goods.
Should you disagree with this advance ruling, you may file a dispute notice under subsection 60(2) of the Customs Act within 90 days of the date of issuance. Please see the procedures outlined in Appendix C of the CBSA's Memorandum D11-11-3, Advance Rulings for Tariff Classification.
This advance ruling is considered reason to believe for the purposes of section 32.2 of the Customs Act and as described in Memorandum D22-1-1, Administrative Monetary Penalty System.
All D-Memoranda referenced in this letter may be accessed on the CBSA website.
Consent to the Public Release of the Advance Ruling
As per your consent statement, we will release this advance ruling to the public, in both official languages, in accordance with the procedures described in Memorandum D11-11-3.
Manager, Tariff Policy Unit ‘A’
Trade Policy Division
- Date modified: