MAY 14 1991
Mr. Bart Broome
Kingman Products, Inc.
875A Island Drive, Suite 288
Alameda, CA 94501
RE: The tariff classification of recycled polyethylene
terephthalate, high and low density polyethylene in flake and
pellet forms from China, Hong Kong, Indonesia and Singapore.
Dear Mr. Broome:
In your letter dated April 11, 1991 you requested a tariff
In your letter you state that your company purchases post-
industrial and post-consumer products and exports it to several
Asian countries for reprocessing into flake and pellet forms. The
scrap materials described as polyethylene terephthalate (PET) in
the form of crushed two liter soda bottles, high density
polyethylene in the form of plastic bags and low density
polyethylene in the form of crushed milk containers are shipped
to various Asian countries for reprocessing into flakes and
pellets. The scrap material may also originate from other
articles such as molded products, food packaging, toys, etcetera.
The scrap material will originate from products originating from
the United States or various Asian countries.
Headnote 6 to Chapter 39 states that: In headings 3901 to
3914, the expression "primary forms" applies only to the
(a) Liquids and pastes, including dispersions (emulsions and
suspensions) and solutions;
(b) Blocks of irregular shape, lumps, powders (including
molding powders), granules, flakes and similar bulk forms.
Headnote 7 to Chapter 39 states that: Heading 3915 does not
apply to waste, parings and scrap if of a single thermoplastic
material, transformed into primary forms (headings 3901 to 3914).
As described, the polyethylene terephthalate (PET) and high
and low density polyethylene scrap products are single
thermoplastic materials that have been transformed into primary
forms (flakes and pellets). Since the scrap products have been
transformed into primary forms (flakes and pellets) and are
single thermoplastic materials, they have been advanced in
condition and value that would preclude its eligibility as
American Goods Returned within heading 9801. For your information
duty would be based upon the cost of the American scrap materials
including the transportation costs to the site of recycling plus
the cost of recycling, et cetera
The applicable subheading for the recycled polyethylene
terephthalate flakes and pellets (PET) will be 3907.60.0050,
Harmonized Tariff Schedule of the United States (HTS), which
provides for polyethylene terephthalate. The duty rate will be
3.1 cents per kilo plus 9 percent ad valorem..
The applicable subheading for the recycled low density
polyethylene flakes and pellets will be 3901.10.0020, HTS, which
provides for low density polyethylene except linear low density
polyethylene. The applicable subheading for the recycled high
density polyethylene flakes and pellets will be 3901.20.0000,
HTS, which provides for polyethylene having a specific gravity
over 0.94 or more. The rate of duty for both provisions is 12.5
percent ad valorem.
Articles classifiable under subheading
3907.60.0050,3901.10.0020 and 3901.20.0000 HTS, which are
products of Indonesia are entitled to duty free treatment under
the Generalized System of Preferences (GSP) upon compliance with
all applicable regulations.
This merchandise may be subject to the regulations of the
Environmental Protection Agency, Office of Pesticides and Toxic
Substances. You may contact them at 402 M Street, S.W.,
Washington, D.C. 20460, telephone number (800) 424-9086.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
Jean F. Maguire
New York Seaport