CLA-2-48:OT:RR:NC:1:130
Mr. Francisco Balderrama
Foncier, Inc.
1330 Orange Ave.
Coronado, CA 92118
RE: The tariff classification of biodegradable paper drink cups from China
Dear Mr. Balderrama:
In your letter, dated September 17, 2019, you requested a binding tariff classification ruling. The ruling request concerns disposable, biodegradable paper drink cups. Photos and samples were submitted for our review and will be retained for reference.
The ruling request concerns the classification of cups that are made of paper and coated with polylactic acid (PLA). The PLA coating is a plant starch-based polymer that is biodegradable under certain conditions. The cups are imported in multiple sizes. You have also submitted sample cup sleeves and lids, but, as you have not requested a ruling for those products, we will not address them herein.
The applicable subheading for the biodegradable cups will be 4823.69.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers: Trays, dishes, plates, cups and the like, of paper or paperboard: Other: Cups and round nested food containers. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4823.69.0020, 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., 9903.88.03, in addition to subheading 4823.69.0020, 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, 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/remedies/301-certain-products-china respectively.
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 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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division