CLA-2-63:OT:RR:NC:N3:351
Carlos Plata
Poliplastics SAS
Cra 44 No 7 – 100
Barranquilla, Colombia
RE: The tariff classification and country of origin of used FIBCs
Dear Sr. Plata:
In your letter dated July 24, 2012, you requested a tariff classification and origin ruling.
You state that your company collects used flexible intermediate bulk containers (FIBCs) throughout the United States after they have been used once or several times. The FIBCs are manufactured in “several countries overseas,” according to your letter. You gather them in your warehouse (location or country unstated) where they are “stored, segregated, baled, and sold as used bags or scrap textile plastic.”
Your electronic submission contained no sample of the product, although we appreciate that used FIBCs can cover a range of sizes and show differing levels of wear and tear. However, you claim that the FIBCs are of the kind classifiable in subheading 6305.32.00, Harmonized Tariff Schedule of the United States (HTSUS), which provides for sacks and bags, of a kind used for the packing of goods: Of man-made textile materials: Flexible intermediate bulk containers. The general rate of duty for this tariff provision is 8.4% ad valorem.
You ask if the country of origin of the used bags as you collect and use them becomes a product of the United States “like clothing and apparel.” You are, we assume, alluding to a longstanding Customs (and subsequently) CBP policy whereby the country of origin of used clothing is considered to be the country where the used clothing has been used (i.e., worn) and collected. Headquarters Ruling Letter 732409, dated September 25, 1989, noted. However, it is always required that the used articles in question show such signs of appreciable wear as to render them incapable of being used for their original purpose (i.e., as clothing).
We are unable to make such a determination in this case. Certainly, the FIBCs that are sold as used bags cannot be classified as anything other than FIBCs; there is no tariff provision for “used FIBCs.” We are unable to issue a classification ruling, however, because we are unable to determine if the bags are constructed of textile or plastics, since you mention both. If imported commingled, that is to say, unsegregated by component (textile versus plastic), they will be classified in the relevant tariff provision for which the highest rate of duty applies.
In either case, whether textile or plastic, each FIBC must be marked with its actual country of origin. There is no provision in the Customs Regulations for an alternative country of origin determination.
Regarding those FIBCs that are used as scrap, our classification would be based on what is actually imported. For instance, if the textile bags are cut into strips of fabric, then we would classify those strips based on the facts that obtain in that case (e.g., fiber content).
Since you have not made clear what countries are actually involved other than the United States, we are unable to determine if the “waste and scrap” provisions of any Free Trade Agreement, such as NAFTA, are relevant to your case.
If you are collecting the FIBCs in the United States and exporting them to other countries, we strongly suggest you contact the relevant authorities in each country.
If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase “Made in the USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S., particularly if you intend to export it.
If you wish to resubmit your request for a classification ruling, we suggest you provide the following information:
What is being imported into the United States?
If FIBCs are being imported, state what they are made from. Please recognize that if they are not segregated by textile versus plastic we will classify them as commingled merchandise, as described above.
If waste or scrap is being imported, please provide a representative sample, noting the remarks above regarding commingled merchandise.
If you decide to resubmit your request, please include all of the material that we have returned to you and mail your request to U.S. Customs and Border Protection, Customs Information Exchange, 10th Floor, One Penn Plaza, New York, NY 10119, attn: Binding Rulings Section.
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 http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division