OT:RR:CTF:VS H346928 AP
Christian Maldonado
Julio Rodriguez U.S. Customs Broker
1055 Marginal JF Kennedy
San Juan, Puerto Rico 00920
RE: Plastic Bottle Caps; U.S. Content; 9903.01.34, HTSUS
Dear Mr. Maldonado:
This is in response to your April 8, 2025 ruling request, which you submitted on behalf of
Poly-Chem International (the “U.S. exporter”), whether U.S.-origin [X] high density
polyethylene/synthetic resin (“HDPE resin”) used to make plastic bottle caps in the Dominican
Republic, qualifies for the exemption under subheading 9903.01.34, Harmonized Tariff Schedule
of the United States (“HTSUS”) and Chapter 99, Subchapter III, U.S. Note 2(v)(xiii), HTSUS.
Although the U.S. exporter has not requested confidential treatment, the business confidential
information contained within brackets will not be released to the public and will be withheld
from the published version of this ruling.
FACTS:
The U.S. exporter located in Miami, Florida purchases HDPE resin through a U.S.
middleman from a manufacturer in the United States and sells it to another manufacturer in the
Dominican Republic. The U.S. exporter has provided sample invoices, bill of lading, certificate
of analysis provided by the U.S. manufacturer of the HDPE resin, United States-Mexico-Canada
Agreement (“USMCA”) Certificate of Origin for the blanket period from November 17, 2024 to
November 16, 2025, packing list, proof of payment, customs declaration, and bill of materials to
demonstrate that the HDPE resin was produced in the United States and exported to the
Dominican Republic from the United States on February 22, 2025. The certificate of analysis
dated January 14, 2025 indicates that the U.S. manufacturer [X] in [X, X] sold the HDPE resin in
bulk to the U.S. exporter. The certificate includes the specifications, batch number for tracking
purposes, net weight, purchase order number, and sales order number. The USMCA Certificate
of Origin from the U.S. exporter lists the producer’s name and certifies that the HDPE resin was
produced in the United States exclusively from originating materials. The free on board
(“FOB”) value of the HDPE resin per kilogram is $[X]. The total quantity is [X] lbs./[X] bags of
resin and the total FOB value is $[X].
The U.S. exporter has provided a breakdown of the input materials and production costs
needed to produce each plastic bottle cap. According to the bill of materials, the value of the
U.S.-origin HDPE resin is $[X] and the value of the non-U.S. content is $[X] per batch of 1,000
bottle caps. The total value of the input materials is $[X] per batch of 1,000 bottle caps. The
manufacturing process in Dominican Republic involves injection molding. The plastic materials
will be liquified by heat, injected into a mold, and then cooled and solidified. The production
costs in Dominican Republic will amount to $[X], which will bring the price per batch of 1,000
caps to $[X] or $[X] per bottle cap. The manufacturer in the Dominican Republic will sell the
bottle caps to customers in the United States (including Puerto Rico). The Incoterms will be
“FOB Shipment Port Santo Domingo.” The FOB price on the invoice from the manufacturer to
a customer in Puerto Rico is $[X] or $[X] per bottle cap.
ISSUE:
Whether the U.S.-origin HDPE resin qualifies for the U.S. content exemption under
subheading 9903.01.34, HTSUS.
LAW AND ANALYSIS:
Effective April 5, 2025, Presidential Executive Orders implemented “Reciprocal Tariffs.”
See Exec. Order No. 14257, 90 Fed. Reg. 15041 (Apr. 2, 2025); Exec. Order No. 14266, 90 Fed.
Reg. 15509 (Apr. 9, 2025); Exec. Order No. 14316, 90 Fed. Reg. 30823 (July 7, 2025); and
Exec. Order No. 14326, 90 Fed. Reg. 37963 (July 31, 2025). These additional tariffs apply to
imported goods of most countries. All imported merchandise subject to these Executive Orders
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or
one of the Chapter 99 provisions covering exemptions to the reciprocal tariffs. Imports from the
Dominican Republic are subject to additional duties under subheading 9903.01.25, HTSUS,
regardless of the Dominican Republic Central America United States Free Trade Agreement.
As of the date of this ruling, imports from the Dominican Republic are subject to
additional duties under subheading 9903.01.25, HTSUS, which states:
Articles the product of any country, except for products described in headings
9903.01.26–9903.01.33, 9903.02.02–9903.02.71, and 9903.96.01, and except as
provided for in headings 9903.01.34 and 9903.02.01, as provided for in subdivision
(v) of U.S. note 2 to this subchapter.
Subheading 9903.01.34, HTSUS, which is an exemption from the additional duties,
states:
The U.S. content of articles the product of any country, in which the U.S. content
of the article provides at least 20 percent of the Customs value of the imported
article, as provided for in subdivision (v)(xiii) of U.S. note 2 to this subchapter.
Chapter 99, Subchapter III, U.S. Note 2(v)(xiii), HTSUS, states:
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The additional duties imposed by headings 9903.01.25, 9903.01.35, 9903.01.39,
9903.01.63, and 9903.02.01-9903.02.71 shall not apply to the U.S. content of an
article, provided at least 20% of the customs value, as determined under 19 U.S.C.
1401a, of the product is U.S. originating, consistent with heading 9903.01.34. For
greater certainty, with respect to an article for which at least 20% of the customs
value is U.S. originating, consistent with 9903.01.34, the additional duties imposed
by headings 9903.01.25, 9903.01.35, 9903.01.39, 9903.01.63, and 9903.02.01-
9903.02.71, shall apply only to the non-U.S. content of such article. Heading
9903.01.34 covers only the U.S. content portion of articles described by that
heading. The term “U.S. content” refers to the value of an article attributable to the
components wholly obtained, produced entirely, or substantially transformed in the
United States.
Thus, “U.S. content” refers to the portion of an article’s customs value, determined under
19 U.S.C. § 1401a, attributable to components that are wholly obtained, entirely produced, or
substantially transformed in the United States. At least 20 percent of the total customs value
must be of U.S.-origin for the content to qualify under subheading 9903.01.34, HTSUS. This
exemption applies only to the U.S. portion. The remaining non-U.S. content remains subject to
duties under subheadings 9903.01.25, 9903.01.35, 9903.01.39, 9903.01.63, and 9903.02.01-
9903.02.71. See Chapter 99, Subchapter III, U.S. Note 2(v)(xiii), HTSUS.
Here, the USMCA Certificate of Origin certified by the U.S. exporter and the certificate
of analysis provided by the U.S. manufacturer of the HDPE resin indicate that the HDPE resin is
produced in the United States. Based on the bill of materials, the U.S. content represents
66 percent of the price paid or payable for a plastic bottle cap, the non-U.S. content represents
4 percent, and the total production costs represent 30 percent. The U.S. content value ($[X])
exceeds 20 percent of the customs value and may be subtracted from the total price paid or
payable for the plastic caps listed on the sample invoice ($[X]). Only the remaining non-U.S.
content value ($[X]) will be subject to additional duties pursuant to subheading 9903.01.34,
HTSUS and Chapter 99, Subchapter III, U.S. Note 2(v)(xiii), HTSUS.
HOLDING:
Based on the provided information, the U.S.-origin HDPE resin represents 66 percent of
the customs value of the plastic bottle caps, which will be imported from the Dominican
Republic. Therefore, the additional duties imposed by subheading 9903.01.25, HTSUS will not
apply to the U.S. HDPE resin portion consistent with subheading 9903.01.34 and Chapter 99,
Subchapter III, U.S. Note 2(v)(xiii), HTSUS, provided the value-content will be satisfied at the
time of entry.
This holding only applies to the specific facts presented. 19 C.F.R. § 177.9(b)(1)
provides that “[e]ach ruling letter is issued on the assumption that all of the information
furnished in connection with the ruling request and incorporated in the ruling letter, either
directly, by reference, or by implication, is accurate and complete in every material respect. The
application of a ruling letter by [U.S. Customs and Border Protection (“CBP”)] field office to the
transaction to which it is purported to relate is subject to the verification of the facts incorporated
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in the ruling letter, a comparison of the transaction described therein to the actual transaction,
and the satisfaction of any conditions on which the ruling was based.”
If it is subsequently determined that the information furnished is not complete and does
not comply with 19 C.F.R. § 177.9(b)(1), the ruling will be subject to modification or revocation.
If there is any change in the facts submitted to CBP, it is recommended that a new ruling request
be submitted in accordance with 19 C.F.R. § 177.2.
A copy of this ruling letter should be attached to the entry documents filed at the time this
merchandise is entered. If the documents have been filed without a copy, this ruling should be
brought to the attention of the CBP officer handling the transaction.
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch
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