CLA-2-39:OT:RR:NC:N:5:137
Evelyn Dominguez
NNR Global Logistics USA, Inc.
10400 NW 21 Street, Suite 115 Miami, FL 33172
RE: The tariff classification of biodegradable polylactic acid (PLA) bags from China
Dear Ms. Dominguez:
In your letter dated September 7, 2023, you requested a tariff classification ruling on behalf of your client Plastique Bags, Inc.
The products under consideration are described as biodegradable and compostable bags. They are composed of polylactic acid (PLA), a saturated polyester formed from cassava starch.
Chapter 39 Note 1 defines “plastic” for tariff schedule purposes: “Throughout the tariff schedule the expression “plastics” means those materials of headings 3901 to 3914 which are or have been capable, either at the moment of polymerization or at some subsequent stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticizer) by molding, casting, extruding, rolling or other process into shapes that are retained on the removal of the external influence.” Polylactic acid is provided for in heading 3907, HTSUS. Your request states that the granules are subjected to heat and pressure and extruded to form the film. The film is then further manufactured into the subject bags. The PLA is molded in the same way conventional plastic is, i.e., molded, extruded or shaped by heating and cooling. Therefore, this product meets the definition of “plastics” as outlined by Chapter 39 Note 1.
The applicable subheading for the biodegradable PLA bags will be 3923.29.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for articles for the conveyance or packing of goods, of plastics: sacks and bags (including cones): of other plastics. The general rate of duty will be 3 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3923.29.0000, 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 3923.29.0000, 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.
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.
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