Viking Sea/Air Freight, Inc.
84 Orange Turnpike
Sloatsburg, NY 10974
RE: The tariff classification and status under the United States-Singapore Free Trade Agreement (SFTA) of four types of Xyron™ polyphenylene ether resins from Singapore
Dear Mr. Pascarella:
In your letter dated April 19, 2016, on behalf of Asahi Kasei Plastics North America, you requested a ruling regarding the status of four types of modified polyphenylene ether resins under the United States-Singapore Free Trade Agreement (SFTA).
The merchandise at issue consists of four types of modified polyphenylene ether resins, identified by the product name Xyron™. Xyron™ SX101 and SX102 are composed of poly(dimethyl-1,4-phenylene ether) combined with polystyrene and other additives, and are imported in pellet form. Xyron™ S201A and S202A are composed of poly(dimethyl-1,4-phenylene ether) combined with toluene, and are imported in the form of a powder. In all of the products at issue it is the polyphenylene that predominates by weight over all other components.
The applicable subheading for the Xyron™ SX101, SX102, S201A, and S202A will be 3907.20.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resins, polyallyl esters and other polyesters, in primary forms: Other polyethers. The general rate of duty is 6.5% ad valorem.
In your submission you request a determination on the eligibility of the four types of Xyron™ to qualify for preferential treatment under the United States-Singapore Free Trade Agreement (SFTA).
General Note 25, HTSUS, sets forth the criteria for determining whether a good is originating under the SFTA. General Note 25(b) indicates that, for the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, goods imported into the customs territory of the United States are eligible for treatment as originating goods of a SFTA country under the terms of this note only if they-
were wholly obtained or produced entirely in the territory of Singapore or the United States, or both;
are goods that, in their condition as imported, are enumerated in subdivision (m) of this note and imported from the territory of Singapore; or
have been transformed in the territory of Singapore or of the United States, or both, so that each nonoriginating material:
undergoes an applicable change in tariff classification set out in subdivision (o) of this note as a result of production occurring entirely in the territory of Singapore or of the United States or both; or
if no change in tariff classification is required, the good otherwise satisfies the applicable requirements set forth in such subdivision (o).
Based on the information provided, the four types of Xyron™ are all manufactured in Singapore from originating and nonoriginating components. For goods classified in heading 3907, General Note 25(o) indicates that a change to headings 3901 through 3915 from any other heading, including another heading within that group, is required, provided that the domestic polymer requirement is not less than 40% by weight of the total polymer content. The nonoriginating components of the three types of Xyron™ all meet the requisite tariff shift requirement, and the originating polymer content of the products all exceed 40% by weight of the total polymer content.
Taking the above facts into account, the Xyron™ SX101, SX102, S201A, and S202A qualify for SFTA preferential treatment as the products meet the requirements of HTSUS General Note 25(b)(iii)(a), subdivision (o) 39.1. The goods will therefore be entitled to a free rate of duty under the SFTA 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 on World Wide Web at https://hts.usitc.gov/current.
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 Evan Conceicao at [email protected]
Steven A. Mack
National Commodity Specialist Division