CLA-2-39:OT:RR:NC:N:1:137
Mahmood Kahara
Markas Inc.
4935 Sebastian Drive Mississauga, Ontario L5M7N8 Canada
RE: The tariff classification of polyethylene terephthalate glycol (PETG) resin CAS # 25038-91-9 from China
Dear Mr.Kahara:
In your letter dated February 12, 2023, you requested a tariff classification ruling.
The product under consideration is polyethylene terephthalate glycol (PETG) resin, CAS # 25038-91-9. The resin is said to have an intrinsic viscosity ranging from 0.75-0.80 deciliters per gram. After importation the product will be used to manufacture extruded profiles, shrink films and thick wall transparent sheets.
The applicable subheading for the polyethylene terephthalate glycol resin having an intrinsic viscosity of 0.78-0.80 dl/g will be 3907.61.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resins, polyallyl esters and other polyesters, in primary forms: poly(ethylene terephthalate): having a viscosity number of 78 ml/g or higher: having a viscosity number of 78 ml/g or more but not more than 88 ml/g. The general rate of duty will be 6.5 percent ad valorem.
The applicable subheading for the polyethylene terephthalate glycol resin having an intrinsic viscosity of 0.75-0.77 dl/g will be 3907.69.0010, HTSUS, which provides for polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resins, polyallyl esters and other polyesters, in primary forms: poly(ethylene terephthalate): other: having a viscosity number of 70 ml/g or more but less than 78 ml/g. The general rate of duty will be 6.5 percent ad valorem.
You also requested a country of origin determination for the PETG resin.
You indicate that all materials used in the production of the PETG resin are manufactured in China. Further, you note that the entire manufacturing process for the resin takes place in China. Therefore, the country of origin for the PETG resin is China.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3907.61.0010 or 3907.69.0010, 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 3907.61.0010 or 3907.69.0010, 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/remedies/301-certain-products-china, respectively.
The merchandise in question may be subject to antidumping duties and 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 https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the Department of Commerce ITA website at https://www.trade.gov/data-visualization/adcvd-proceedings, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb/.
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
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