CLA-2-39:OT:RR:NC:N1:119
Susan M. Miller
Poly-Wood
1001 W Brooklyn Street
Syracuse, IN 46567
RE: The tariff classification of crushed milk jugs from the United Kingdom.
Dear Ms. Miller:
In your letter dated November 17, 2017 you requested a tariff classification ruling. Representative photographs were included in your submission.
The products to be imported are bales of crushed high density polyethylene (HDPE) plastic milk jugs which are purchased from a recycler overseas. In an email to this office, you have confirmed that to the best of your knowledge, these jugs are gathered/collected from the United Kingdom. Prior to importation, these jugs are washed and crushed, but undergo no further processing before being baled and bound with wire banding. After importation, at Poly-Wood LLC facilities, the HDPE jugs are rewashed and converted into pellets. Next, the pellets are manufactured into extruded lumber which is then used to produce casual outdoor furniture.
Although the jugs were once used to hold milk, they are no longer suitable for this purpose. There is no definition of "waste" and "scrap" provided in the text of Chapter 39. However, Explanatory Note 39.15 explains that waste and scrap are "clearly not usable for their original purposes". CBP has previously considered the courts’ definitions of "waste" and has noted that though these definitions vary, they "center on the inability of the waste or scrap to retain any of its original purpose." As such, the crushed plastic milk jugs should be regarded as scrap of heading 3915, Harmonized Tariff Schedule of the United States (HTSUS). Based on the information provided to this office, we find the country of origin of this scrap material to be the United Kingdom. The instant case is similar to that which was ruled upon in N225395 dated July 10, 2012.
The applicable subheading for the crushed plastic milk jugs will be 3915.10.0000, HTSUS, which provides for Waste, parings and scrap, of plastics: Of polymers of ethylene. The rate of duty will be free.
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 https://hts.usitc.gov/current.
You have also inquired as to the proper country of origin marking for the subject merchandise. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported.
Section 134.33, Customs Regulations (19 CFR 134.33), excepts certain "J-list" articles from individual country of origin marking in accordance with 19 U.S.C. 1304(a)(3)(J) and only requires that the outermost container in which the article is imported to be marked with the country of origin. Among the J-list items is scrap and waste. While the crushed containers need not be individually marked, the regulations require that for any J-list item, the outermost container in which the article normally reaches the ultimate purchaser is required to be marked to indicate the origin of its contents. For the instant shipment, the wire strapping which secure the scrap bales is to be considered a “container”, subject to 19 CFR 134.22, and must meet the aforementioned country of origin marking requirements. However, the “container” would still be excepted from marking under 134.22(e)(1) in accordance with 134.32(f) because the scrap plastic jugs are imported for use by the importer, Poly-Wood LLC, and are not intended for sale in their imported or any other form.
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 April Cutuli at april.a.cutuli @.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division