CLA-2-39:OT:RR:NC:N1:137
Andrew Bowen
3201 1st Avenue South, Suite 101
Seattle, WA 98134
RE: The tariff classification of Abutment Screw Barrier and dispenser from China
Dear Mr. Bowen:
In your letter dated March 3, 2019 you requested a tariff classification ruling, on behalf of your client 35 Newtons. A sample of the product was submitted with your request and will be returned.
The product under consideration consists of a spool of extruded Polytetrafluoroethylene (PTFE) encased in a molded polypropylene dispenser with a stainless steel cutting blade similar to those in dental floss dispensers. The extruded PTFE measures approximately 1.2 mm. Documentation indicates that the product will be used in a dental office setting. The PTFE will be measured, cut and sterilized by dental practitioners for use during dental implant procedures. The dispenser simply facilitates the use of the PTFE by the dental practitioner. For this reason, this office has determined that the PTFE provides the essential character of this product.
You indicate that the PTFE is extruded in the United States from 100% virgin PTFE and spooled onto polypropylene spools. The dispenser will be produced in China by injection molding of polypropylene and the incorporation of the stainless steel blades. The spools of PTFE are shipped from the U.S. to the Chinese manufacturer for incorporation with the dispensers. They will then be packaged and shipped back to the U. S.
You indicate that the spools of U.S. Origin PTFE are provided free of charge to the Chinese manufacturer for inclusion in the dispensers.
Subheading 9802.00.80, Harmonized Tariff Schedule of the United States, (HTSUS), provides a partial duty exemption for: articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape, or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process, such as cleaning, lubricating, and painting. All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full cost or value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24). The PTFE is is extruded in the United States from 100% virgin PTFE and spooled onto polypropylene spools. The PTFE is then exported to China in condition ready for assembly with the molded polypropylene dispensers without further fabrication.
The applicable subheading for the Abutment Screw Barrier and dispenser will be 3916.90.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Monofilament of which any cross-sectional dimension exceeds 1 mm, rods, sticks and profile shapes, whether or not surface-worked but not otherwise worked, of plastics: Of other plastics: Other: Other: Other. The general rate of duty will be 5.8 percent ad valorem.
The U.S. origin spool of PTFE incorporated into the dispenser unit meets all three requirements of subheading 9802.00.80, HTSUS and is entitled to the duty exemption under subheading 9802.00.80, HTSUS. This provision allows for duty free entry of U.S. fabricated components that are returned to the U.S. as part of articles assembled abroad.
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). 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 3916.90.5000, 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 3916.90.5000, HTSUS, listed above.
For heading 9802.00.80, the additional duties, imposed by 9903.88.02, apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80
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 julie.c.allen.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division