Hybrid Packaging Used for Military MRE Meals is Classified as Plastic, Not Aluminum, CIT Says
The Court of International Trade affirmed CBP’s tariff classification of a packaging material used in military “Meals, Ready-to-Eat” (MREs) under a provision for plastics, despite its inclusion of a layer of aluminum foil. Alcan Food Packaging had contended the material should have instead been classified as aluminum foil, but the court said the plastic layers imparted the item’s essential character.
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From World War II until 1980, the U.S. army rations were supplied as shelf-stable processed foods in metal cans, called “C-rations.” But in 1980, the military first deployed MREs, which combine a shelf-life of about three years with flexible, durable packaging. Alcan Food Packaging imports its “Flexalcon” material to package MREs, both for the U.S. military and for foreign armed forces. Flexalcon is made by laminating aluminum foil with multiple layers of different plastic films. The foil serves as a barrier to air, moisture and light, giving the MRE its three-year shelf life. The plastic layers allow for durability, protect the foil, and provide a seal for the package.
Alcan imported the Flexalcon at issue in this case from Germany in 2005 and 2006. CBP liquidated the entries as plastic under Harmonized Tariff Schedule subheading 3921.90.40 (“Other plates, sheets, foil and strip, of plastics: Other: Flexible”), dutiable at 4.2%. Alcan protested, arguing the packaging should have instead been classified as aluminum foil under subheading 7607.20.50 (“Aluminum foil … of a thickness (excluding any backing) not exceeding 0.22mm: Backed: Other”), which enters duty free. CBP denied the protest, and issued ruling HQ H008142 (here).
CIT noted that the Explanatory Notes to Chapter 39 provide for plastic sheets “separated by a layer of another material such as metal foil” -- provided they retain the essential character of plastics. Similarly, the explanatory notes to Chapter 72 provide for aluminum foil with surface finishing treatments such as plastic coatings. But according to Note 1(d) to Chapter 76, coated foil is only classifiable as aluminum if it doesn’t assume the character of items classifiable elsewhere in the tariff schedule.
Clearly required to perform an essential character analysis, the court first explained that the plastics predominate in terms of bulk, quantity, weight, and value. Turning next to the role of the constituent materials in relation to the good, the court said both the aluminum foil and the plastic are indispensable to the packaging. The Flexalcon wouldn’t have the required three-year shelf life without the aluminum foil. But it wouldn’t have the required durability without the plastic, the court said. “Flexalcon packages have very different and advanced characteristics from the old C-rations -- they are light, flexible, easier to transport -- and this advancement is made possible by the properties imparted by the plastic film,” CIT said.
Because Flexalcon retains the essential character of plastics, and doesn’t assume the character of aluminum foil, it is classifiable under heading 3921, CIT said. On the other hand, the packaging can’t be classified as aluminum, the court said. While the Explanatory Notes to Chapter 72 allow for surface finishing treatments like plastic coatings, the plastic layers in Flexalcon can’t be described as a surface treatment of aluminum foil. Plastic is the dominant input, and provides for essential features of the packaging, so CBP correctly classified the Flexalcon as an article of plastic under subheading 3921.90.40, CIT said.
(Alcan Food Packaging (Shelbyville) v. U.S., Slip Op 13-94, dated 07/25/13, public version 08/06/13, Judge Barzilay)
(Attorneys: William Randolph Rucker of Drinker Biddle & Reath for plaintiff Alcan Food Packaging (Shelbyville); Aimee Lee for defendant U.S. government)