CLA-2-55:OT:RR:NC:N3:351
Monika Munro
Profreight Brokers, Inc.
145-47 155th Street
Jamaica, NY 11434
RE: The tariff classification of polyester fibers from China
Dear Ms. Munro:
In your letter dated June 2, 2008, you requested a tariff classification ruling on behalf of your client, Atlantic Textile Group LLC, of Hollywood, Florida.
The three submitted samples are bags of 100% polyester staple fiber.
You state that your client ships a raw material called bottle flake to the factory in China. Bottle flake is processed plastic (polyester) from recycled plastic bottles, cut into small pieces. At the factory in China, the bottle flake is melted and extruded into filaments that are chopped into staple fibers.
The first two bags are identified as solid polyester staple fiber: the one is labeled “3D x 51mm PSF, 6.c [black]” and the other one is labeled “D3 x 64-66 [white].” In a telephone conversation with this office you confirmed that 3D and D3 mean 3 denier. This converts, for tariff purposes, to 3.3333 decitex. The staple lengths are 51 and 64-66 millimeters, respectively.
The third bag is identified as “hollow conj. sil polyester staple fiber HCS” and is labeled “HCS, D7 x 66.” This indicates 7 denier with a staple length of 66mm. The decitex equivalent is 7.7777.
The applicable subheading for the three samples of polyester staple fiber will be 5503.20.0045, Harmonized Tariff Schedule of the United States (HTSUS), which provides for synthetic staple fibers, not carded, combed, or otherwise processed for spinning: of polyesters:…Other:…Measuring 3.3 decitex or more but less than 13.2 decitex. The rate of duty will be 4.3% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
You state that because your client supplies the raw material (bottle flake) they are charged only for labor costs. Please note that the cost or value of the bottle flake that your client supplies may be considered a dutiable assist under Section 402 of the Tariff Act (TA). The term “assist” is defined as that which is supplied directly or indirectly by the buyer of imported merchandise, free of charge or at reduced cost, for use in connection with the sale of the merchandise for export to the U.S., under 19 U.S.C. 1401a(h)(1)(A). There are four categories of assists, but only the first, encompassing “materials, components, parts and similar items incorporated in the imported merchandise,” is potentially relevant to the instant situation. As an assist, the value of the bottle flake would have to be added to the processing costs of the fiber before the ad valorem rate of duty is applied, pursuant to Section 402, TA. Additionally, please note that the value of any assist will include transportation costs to the place of production. See Section 152.103(d), Customs Regulations (19 C.F.R. §152.103(d)).
You have also asked whether this product is subject to antidumping duties or countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Import Administration in the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection. You can contact them at http://www.trade.gov/ia/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and countervailing duty investigations”), and you can search AD/CVD deposit and liquidation messages using the AD/CVD Search tool at http://www.cbp.gov (click on “Import” and “AD/CVD”).
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Mitchel Bayer at 646-733-3102.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division