NY 862375

MAY 14 1991

CLA-2-39:S:N:N1:238 862375

Mr. Bart Broome
Kingman Products, Inc.
875A Island Drive, Suite 288
Alameda, CA 94501

RE: The tariff classification of recycled polyethylene terephthalate, high and low density polyethylene in flake and pellet forms from China, Hong Kong, Indonesia and Singapore.

Dear Mr. Broome:

In your letter dated April 11, 1991 you requested a tariff classification ruling.

In your letter you state that your company purchases post- industrial and post-consumer products and exports it to several Asian countries for reprocessing into flake and pellet forms. The scrap materials described as polyethylene terephthalate (PET) in the form of crushed two liter soda bottles, high density polyethylene in the form of plastic bags and low density polyethylene in the form of crushed milk containers are shipped to various Asian countries for reprocessing into flakes and pellets. The scrap material may also originate from other articles such as molded products, food packaging, toys, etcetera. The scrap material will originate from products originating from the United States or various Asian countries.

Headnote 6 to Chapter 39 states that: In headings 3901 to 3914, the expression "primary forms" applies only to the following forms:

(a) Liquids and pastes, including dispersions (emulsions and suspensions) and solutions; (b) Blocks of irregular shape, lumps, powders (including molding powders), granules, flakes and similar bulk forms.

Headnote 7 to Chapter 39 states that: Heading 3915 does not apply to waste, parings and scrap if of a single thermoplastic material, transformed into primary forms (headings 3901 to 3914). As described, the polyethylene terephthalate (PET) and high and low density polyethylene scrap products are single thermoplastic materials that have been transformed into primary forms (flakes and pellets). Since the scrap products have been transformed into primary forms (flakes and pellets) and are single thermoplastic materials, they have been advanced in condition and value that would preclude its eligibility as American Goods Returned within heading 9801. For your information duty would be based upon the cost of the American scrap materials including the transportation costs to the site of recycling plus the cost of recycling, et cetera The applicable subheading for the recycled polyethylene terephthalate flakes and pellets (PET) will be 3907.60.0050, Harmonized Tariff Schedule of the United States (HTS), which provides for polyethylene terephthalate. The duty rate will be 3.1 cents per kilo plus 9 percent ad valorem.. The applicable subheading for the recycled low density polyethylene flakes and pellets will be 3901.10.0020, HTS, which provides for low density polyethylene except linear low density polyethylene. The applicable subheading for the recycled high density polyethylene flakes and pellets will be 3901.20.0000, HTS, which provides for polyethylene having a specific gravity over 0.94 or more. The rate of duty for both provisions is 12.5 percent ad valorem.

Articles classifiable under subheading 3907.60.0050,3901.10.0020 and 3901.20.0000 HTS, which are products of Indonesia are entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations.

This merchandise may be subject to the regulations of the Environmental Protection Agency, Office of Pesticides and Toxic Substances. You may contact them at 402 M Street, S.W., Washington, D.C. 20460, telephone number (800) 424-9086.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

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,

Jean F. Maguire
Area Director
New York Seaport