CLA-2-39:OT:RR:NC:N4:415
Ms. Amanda Levitt
Sandler, Travis & Rosenberg, P.A.
675 Third Avenue, Suite 1805-06
New York, NY 10017
RE: The eligibility of plastic dunnage bags for preferential treatment under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA).
Dear Ms. Levitt:
In your letter dated March 2, 2021, you requested a DR-CAFTA eligibility ruling on behalf of your client, International Dunnage, LLC.
Images were submitted in lieu of a sample.
The product under consideration is described as bladder bags, style number BLCV, made of plastic sheeting that feature a molded plastic valve designed for inflating and deflating the bladder bag as needed. The bladder bags are used to cushion merchandise while in transit to prevent damage to the products. Similar inflatable dunnage bags have been previously ruled upon in New York (NY) rulings C80550, dated October 24, 1997, and G82058, dated September 21, 2000. As such, for the eligibility determination, these plastic inflatable bladder bags are appropriately classified within subheading 3926.90.7500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [p]neumatic mattresses and other inflatable articles, not elsewhere specified or included.”
Per your submission, the bladder bags will be manufactured from 100 percent polyethylene film of Dominican Republic origin and a plastic valve of Turkish origin. The plastic valve is shipped from Turkey to the Dominican Republic where it is assembled with the polyethylene plastic in the Dominican Republic through the following assembly operations: rolls of various widths of polyethylene tubes are cut to desired length after which a round hole is punched into the polyethylene for the valve to be inserted and heat sealed to the polyethylene tube. Next, the two ends of the polyethylene tube are heat sealed to create the finished bladder bag. The bladder bag is then exported directly to the United States.
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. GN 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that: For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if--
the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;
the good was produced entirely in the territory of one or more of the parties to the Agreement, and--
each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or
the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
As these dunnage bags contain non-originating materials, they would have to undergo an applicable change in tariff classification to meet the requirements of GN 29(b)(ii)(A).
The specific rule for GN 29(n), chapter 39, rule 6 states, “[a] change to headings 3922 through 3926 from any other heading.” This office notes the non-originating valve would be classified within heading 8481, see NY F83626, dated April 4, 2000.
Based on the facts provided, these plastic dunnage bags would meet the terms of the tariff shift rule. As the requirements of General Note 29(b)(ii)(A), HTSUS, are met, they are entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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 at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division