CLA-2-39:OT:RR:NC:N1:137
Peter Quinter
Gray Robinson P.A.
401 East Las Olas Blvd., Suite 1000
Fort Lauderdale, FL 33301
RE: The tariff classification of polylactic acid (PLA) plastic drinking straws from China
Dear Mr. Quinter:
In your letter dated June 27, 2019 you requested a tariff classification ruling, on behalf of your client, Tiger Packaging Corporation. Two sample straws were submitted with this request and will be retained by this office.
The straws are composed of Polylactic acid (PLA) plastic, a saturated polyester derived from cornstarch that is compostable and biodegradable.
In your letter, you suggest classification of the straws in subheading 4823.69.0040, Harmonized Tariff Schedule of the United States (HTSUS), as Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers: Trays, dishes, plates, cups and the like, of paper or paperboard: Other: Other. We disagree. In support of this classification, you cite New York Ruling N049499, which classifies paper cups lined with PLA. This ruling is inapplicable, as the instant straws are not constructed of paper. Classification in heading 4823 is precluded, as the heading provides for articles of paper.
In your letter you alternately suggest classification in 1108.12.0090, HTSUS as starches, inulin: Corn (maize) starch: other. We disagree. Chapter 11 covers products from the milling of cereals, and heading 1108 covers starches derived from those cereals. Starches in this heading remain in their natural state. The starch in this instance has been modified by polymerization to create the Polylactic acid. Classification in heading 1108 is therefore precluded.
Chapter 39 Note 1 defines “plastic” for tariff schedule purposes: “Throughout the tariff schedule the expression “plastics” means those materials of headings 3901 to 3914 which are or have been capable, either at the moment of polymerization or at some subsequent stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticizer) by molding, casting, extruding, rolling or other process into shapes that are retained on the removal of the external influence.”
Polylactic acid is provided for in heading 3907, HTSUS. As you state in your request, it is molded in the same way conventional plastic is; i.e. molded, extruded or shaped by heating and cooling. Therefore this product meets the definition of “plastics” as outlined by Chapter 39 Note 1.
The applicable subheading for the PLA straws will be 3917.32.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for tubes, pipes, and hoses and fittings therefor (for example, joints, elbows, flanges) of plastics: other tubes, pipes and hoses: other, not reinforced or otherwise combined with other materials, without fittings: other. The rate of duty will be 3.1 percent 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 the World Wide Web at https://hts.usitc.gov/current.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 3917.32.0050, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 3917.32.0050, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division