CLA-2-39:OT:RR:NC:N:5:137
Jim Janakievski
35Newtons LLC
4050 S. 19th St., Ste 100 Tacoma, WA 98405
RE: The tariff classification of polytetrafluoroethylene rods in a polypropylene container from China
Dear Mr. Janakievski:
In your letter dated November 5, 2024, you requested a tariff classification ruling.
The product under consideration consists of 50 rods of extruded Polytetrafluoroethylene (PTFE) in a molded polypropylene container. The extruded PTFE rods measure 2 mm in diameter and are 60 mm in length. 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 container simply holds the PTFE until use 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 from 100% virgin PTFE and cut into rods in the United States. The packaging manufacturer in China fabricates the container from polypropylene. The PTFE rods are shipped from the United States to the Chinese manufacturer for incorporation into the container. The rods are packaged in increments of 50 rods per container and shipped back to the United States.
You indicate that the rods, of U.S. Origin PTFE, are provided free of charge to the Chinese manufacturer for packaging into the containers.
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 extruded and cut into rods in the United States from 100% virgin PTFE. The PTFE is then exported to China in condition ready for packaging into the polypropylene dispensers without further fabrication.
The applicable subheading for the extruded polytetrafluoroethylene rods in a polypropylene container 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: The general rate of duty will be 5.8 percent ad valorem.
The U.S. origin spool rods of PTFE, packaged in the container, meet 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.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3916.90.5000, HTSUS, unless specifically excluded, are subject to an 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.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/programs-administration/trade-remedies, respectively.
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.
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/.
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