CLA-2-39:OT:RR:NC:N5:137
John Jones
Newbridge International Inc.
225 Bedford Street
Stamford, CT 06901
RE: The tariff classification and country of origin for metallized, coated polyethylene terephthalate (PET)
film
Dear Mr. Jones:
In your letter dated August 6, 2025, you requested a tariff classification and country of origin ruling.
GS-1100, Gloss, Matte Gold Transfer Film is a metallized polyethylene terephthalate (PET) sheet with
acrylic release and scuff-resistant coating.
MG-2100, Gloss, Matte Silver Transfer Film is a metallized PET sheet with acrylic release and scuff-resistant
coating.
HF-3100, Holographic Transfer Film is a metallized PET sheet with a holographic pattern and abrasion
resistant coating.
MW-5000, Matte White Transfer film is a white pigmented metallized PET sheet with scuff-resistant coating.
The applicable subheading for the metallized coated PET sheets will be 3920.62.0050, Harmonized Tariff
Schedule of the United States (HTSUS), which provides for other plates, sheets, film, foil and strip, of
plastics, noncellular and not reinforced, laminated, supported or similarly combined with other materials: of
poly(ethylene terephthalate): metallized PET film: other. The general rate of duty will be 4.2 percent ad
valorem.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling
Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will
occur is whether an article emerges from a process with a new name, character, or use different from that
possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778
(C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v.
United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
In China Polyethylene terephthalate (PET) base film is manufactured via extrusion, and an acrylic release
coating is applied.
The coated PET film is shipped to Canada. In Canada the film undergoes metallization with Aluminum by a
vacuum metallization process. This is followed by the application of additional performance enhancing
coatings. The film is then slit into various widths based on customer specifications.
It is the opinion of this office that metallizing and coating the PET film in Canada does not result in a
substantial transformation. Therefore, the country of origin of the metallized, coated PET film will remain
China.
Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of
manufacture, production, or growth of any article of foreign origin entering the United States. Further work
or material added to an article in another country must effect a substantial transformation in order to render
such other country the “country of origin” within the meaning of the marking laws and regulations.
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other
USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in
sections 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect
to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining
the country of origin of a good for marking purposes, with the exception of textile and apparel goods which
are subject to the provisions of 19 CFR 102.21. See 19 CFR 102.11.
Applied in sequential order, 19 CFR 102.11(a) provides that the country of origin of a good is the country in
which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff
classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and
all other applicable requirements of these rules are satisfied.
19 CFR 102.20 (g) states “3920.10-3921.90…A change to any other good of subheading 3920.10 through
3921.90 from any other subheading, including another subheading within that group.”
The Chinese origin PET film does not undergo an applicable change in tariff classification. Therefore, the
country-of-origin for the metallized, coated PET sheet will be China for marking purposes.
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate
of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition
to subheading 3920.62.0050, HTSUS, listed above.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time, products of China, Hong
Kong, and Macau will be subject to an additional 10 percent ad valorem rate of duty of 10 percent. At the
time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e.
9903.01.25, in addition to subheading 3920.62.0050, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 3920.62.0050, 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 3920.62.0050, 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.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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,
(for)
James Forkan
Acting Director
National Commodity Specialist Division