CLA-2-32:OT:RR:NC:N3:136

John Murphy
e.dye Americas, Inc.
3717 S. Corbett Ave, Unit 4 Portland, OR 97239

RE:  The tariff classification of Polyethylene (PET) Masterbatch Chips from China

Dear Mr. Murphy:

In your letter dated September 26, 2024, you requested a tariff classification ruling on Polyethylene (PET) Masterbatch Chips.

Your submission describes the subject product as Polyethylene (PET) Masterbatch Chips, composed of 5.0% various colored pigments (organic and inorganic) mixed with either 95.0% recycled or virgin polyethylene (rPET or PET) or 95.0% virgin nylon.

You state that this product will be used to create polyester, nylon, or blended yarns spun in the United States and subsequently made into textiles in the United States. The Chemical Abstracts Service (CAS) registry number for the Polyethylene (PET) Masterbatch Chips is identified as 9002-88-4.

The applicable subheading for the Polyethylene (PET) Masterbatch Chips will be 3206.49.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other coloring matter; preparations as specified in note 3 to this chapter, other than those of 3203, 3204 or 3205; Inorganic products of a kind used as luminophores, whether or not chemically defined: Other coloring matter and other preparations: Other: Concentrated dispersions of pigments in plastic materials. The general rate of duty will be 5.9 percent ad valorem.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3206.49.1000, HTSUS, unless specifically excluded, are subject to the 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 3206.49.1000, 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 Notice 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.

This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency. Information on the TSCA can be obtained by contacting the EPA at 1200 Pennsylvania Avenue, N.W., Mail Code 70480, Washington, D.C., by telephone at (202) 554-1404, or by visiting their website at www.epa.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 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 Nuccio Fera at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division