CLA-2-39:OT:RR:NC:N:5: 137
Myron Barlow
Barlow & Company LLC
5335 Wisconsin Avenue N.W. Suite 440 Washington, DC 20015
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of woven polypropylene (WPP)/biaxially oriented polypropylene (BOPP) bags from Dominican Republic-Central America.
Dear Mr. Barlow:
In your letter dated September 27, 2024, you requested a ruling, on behalf of Anduro Manufacturing, on the status of WPP/BOPP bags from Dominican Republic-Central America under the DR-CAFTA.
The product under consideration is described as a bag made from woven polypropylene (WPP) that is coated on the exterior with melted polypropylene laminated to biaxially oriented polypropylene (BOPP) and coated on the interior with polypropylene. The bags are used for packaging products including animal feed, cat litter, home and garden products, charcoal and other items. One end of the bag is sewn or heat sealed, depending upon the customer’s requirements.
The manufacturing steps are as follows:
United States, India or El Salvador.
Blank BOPP film, classified in heading 3920, is formed.
Blank BOPP film is exported to Honduras.
In India
WPP is woven into rolls.
WPP is coated with polypropylene resin on one side that will become the interior of the finished bags. This results in a fabric of woven polypropylene strips 2 mm wide and laminated with plastic visible to the naked eye and classified in heading 5903..
WPP rolls are exported to Honduras.
In Honduras
BOPP film is printed with three or more colors
WPP rolls are laminated with polypropylene resin to the BOPP film to form the exterior of the bag.
The bag is formed from the rolls by forming a tube and heat sealing or sewing one end.
The bag is shipped to the United States.
The applicable tariff provision for the WPP/BOPP bags will be 3923.29.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for articles for the conveyance or packing of goods, of plastics: sacks and bags (including cones): of other plastics. The general rate of duty will be 3 percent ad valorem.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 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-
(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and-
(A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
(B) 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
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
As the goods contain non-originating materials, the bags must undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A).
The specific rule for GN 29(n)/39.6 states:
A change to headings 3922 through 3926 from any other heading.
As noted above, the applicable classification for the packaging bags, imported into the United States, will be 3923.29.0000, HTSUS.
The coated woven polypropylene fabric, imported to Honduras from India, is classified in in heading 5903. The BOPP film formed in the United States, India or El Salvador is classified in heading 3920. As such, both components meet the required tariff shift rule.
Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 29(b)(ii)(A) and GN 29(n)/39.6. The goods will therefore be 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division