OT:RR:CTF:VS H350733 AP
Julio Rodriguez, LCB/CCS
Julio Rodriguez U.S. Customs Broker
P.O. Box 10144
San Juan, Puerto Rico 00908
RE: Printed Shrink Film; U.S. Content; 9903.01.34, HTSUS
Dear Mr. Rodriguez:
This is in response to your July 22, 2025 ruling request, which you submitted on behalf of
Pac-Tech International, Inc. in Puerto Rico (“Pac-Tech” or “importer”), whether U.S.-origin [X]
low-density polyethylene (“PE”) resin (“low-density PE resin”), [X] PE resin (“thermoplastic PE
resin”), and [X] (“linear low-density PE resin”) used to make plastic shrink packaging material
(“printed shrink film”) in the Dominican Republic for plastic water bottles, qualify 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
importer has not requested confidential treatment, the business confidential information
contained within brackets in italics will not be released to the public and will be withheld from
the published version of this ruling.
FACTS:
Pac-Tech will import printed shrink film (Printed Shrink 20” C-250 and Printed Shrink
26” C-275) produced in the Dominican Republic into Puerto Rico. The foreign manufacturer [X]
in the Dominican Republic purchases low-density, thermoplastic, and linear low-density PE resin
from U.S. manufacturer [X] to produce printed shrink film. Demonstrating a sample transaction,
Pac-Tech has provided invoices, bills of lading, Dominican Republic Central America United
States Free Trade Agreement (“DR-CAFTA”) certificates of origin, packing lists, proof of
payment, and customs declarations to demonstrate that PE resin was produced in the United
States and exported to the Dominican Republic from the United States on March 12, 2025,
April 30, 2025, and May 6, 2025. The DR-CAFTA certificates of origin from the U.S.
manufacturer certify that the low-density PE resin, the thermoplastic PE resin, and the linear low
density PE resin were produced in the United States from non-originating materials, which
underwent the prescribed tariff shift and/or met the prerequisite regional value content (“RVC”)
requirements. The unit price of the low-density PE resin per metric ton (“MT”) is $[X], $[X] per
kilogram for the thermoplastic PE resin, and $[X] per MT for the linear low-density PE resin.
The total free on board (“FOB”) value of the low-density PE resin is $[X], $[X] for the
thermoplastic PE resin, and $[X] for the linear low-density PE resin.
The U.S. exporter has provided a breakdown of the input materials and production costs
needed to produce Printed Shrink 20” C-250 and Printed Shrink 26” C-275. According to the
invoices from the foreign manufacturer, the total invoice price of $[X] for Printed Shrink 20” C-
250 includes $[X] for the PE resin and $[X] for all other costs. The U.S. origin raw material
content is calculated to be 60 percent of the total cost. The total invoice price of $[X] for Printed
Shrink 26” C-275 consists of $[X] for the PE resin and $[X] for all other costs. The U.S. origin
raw material content is also calculated to be 60 percent of the total cost.
ISSUE:
Whether the low-density, thermoplastic, and linear low-density PE resin manufactured in
the United States 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. As of the date of
this ruling, imports from the Dominican Republic are subject to additional duties under
subheading 9903.01.25, HTSUS, regardless of DR-CAFTA eligibility, 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:
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
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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 DR-CAFTA certificates of origin certified by the U.S. manufacturer indicate
that the PE resin is produced in the United States and the non-originating raw materials undergo
the prerequisite tariff shift or meet the RVC requirements. Based on the invoices, the U.S.
content represents 60 percent of the total price paid or payable for the printed shrink film. The
U.S. content values of Printed Shrink 20” C-250 ($[X]) and Printed Shrink 26” C-275 ($[X])
exceed 20 percent of the customs value of the printed shrink film and may be subtracted from the
total price paid or payable for Printed Shrink 20” C-250 ($[X]) and Printed Shrink 26” C-275
($[X]), respectively. Only the remaining non-U.S. content values ($[X]) for Printed Shrink 20”
C-250 and $[X]) for the Printed Shrink 26” C-275 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 PE resin represents 60 percent of the
customs value of Printed Shrink 20” C-250 and Printed Shrink 26” C-275, which will be
imported into Puerto Rico from the Dominican Republic, and the additional duties imposed by
subheading 9903.01.25, HTSUS will not apply to the U.S. low-density PE resin, thermoplastic
PE resin, and linear low density PE resin consistent with subheading 9903.01.34 and Chapter 99,
Subchapter III, U.S. Note 2(v)(xiii), HTSUS.
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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