CLA-2-63:OT:RR:NC:N3:351
Ms. Alyson Schroer
Scarbrough International
10841 NW Ambassador Drive
Kansas City, MO 64153
RE: The tariff classification and country of origin determination of a woven polypropylene/biaxially-oriented polypropylene bulk bag
Dear Ms. Schroer:
In your original letter dated April 30, 2018 and your follow up letter dated July 2, 2018, you requested a tariff classification ruling on behalf of your client, Central Bag Company. You submitted a sample and a description of a large woven polypropylene bulk bag, you stated is a biaxially-oriented polypropylene (BOPP) bag. The BOPP bag is made up with woven polypropylene strips that measure approximately 3 mm. The polypropylene strips do not exceed 5mm in width and thus meet the dimensional requirements of textile strips contained in Section XI, Note 1(g) of the Harmonized Tariff Schedule of the United States (HTSUS). This construction is considered a textile fabric for tariff purposes.
FACTS:
Polypropylene strips are woven in Vietnam to make a polypropylene fabric. The polypropylene fabric is woven to the precise thickness, size and color specifications. The BOPP film is purchased in China and it is also made to the specifications supplied. The BOPP film is shipped to a printing company in China for additional processing. At this factory, the rotogravuring printing cylinders print the chosen colors and/or specified image on the film. Both fabric and BOPP film are packed and shipped to Panama.
Once the BOPP film and Polypropylene fabric arrive at the factory in Panama, the BOPP film, a resin mixture (in melted form) and the woven polypropylene fabric are put onto a lamination machine that will apply a layer of the resin mixture between the BOPP film and polypropylene fabric. Pressure is applied to create adhesion of all the materials and then it is re-rolled and sent to another machine where the material is cut to shape, sewn and closure tapes and threads are added to the BOPP bag.
ISSUES: What are the tariff classification, country of origin of the subject merchandise? CLASSIFICATION:
In your letter, you suggest that the BOPP bag maybe classified under heading 6305.32.0010, 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. However the submitted BOPP bag does not meet the definition of a Flexible intermediate bulk container (FIBC). A FIBC is usually made of polypropylene or polyethylene woven fabrics and generally have a capacity ranging from 250 kg to 3,000 kg. Most have lifting straps at the four top corners because of their substantial load capacity and may be fitted with openings at the top and bottom to facilitate loading and unloading. They are generally used for packing, storage, transport and handling of dry, flowable materials.
The applicable subheading for the BOPP bag will be 6305.33.0010 or 6305.33.0040, HTSUS, which provides for sacks and bags of a kind used for the packing of goods: of man-made textile materials: other, of polyethylene strip or the like. If the bag weighs one kilogram or more, 6305.33.0010, HTSUS applies. If the bag weighs less than 1 kg, with an outer laminated ply of plastics sheeting: Printed with three or more colors, 6305.33.0040, HTSUS applies. The rate of duty will be 8.4 percent ad valorem.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:” Paragraph (e) in pertinent part states,
The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:
HTSUS Tariff shift and/or other requirements:
Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
As the polypropylene strips are woven into fabric in Vietnam, the country of origin is conferred in Vietnam.
The merchandise in question may be subject to antidumping duties or countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at http://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/.
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.
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 Adleasia Lonesome via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division