The tariff classification of container liner bags and grain storage bags from the Philippines and Israel

N046579 January 7, 2009 CLA-2-39:OT:RR:E:NC:SP:221 CATEGORY: Classification TARIFF NO.: 3923.21.0095; 3926.90.9980 Mr. Philippe Villers GrainPro, Inc. 200 Baker Avenue Suite 309 Concord, MA 01742 RE: The tariff classification of container liner bags and grain storage bags from the Philippines and Israel Dear Mr. Villers: In your letter dated December 9, 2008, you requested a tariff classification ruling. The GrainPro TranSafeliner™ is a container liner bag used for transport of agricultural commodities. It is made of two layers of transparent polyethylene film with a gas barrier between the layers. This construction provides gas and moisture barrier properties, preventing condensation and moisture ingress, and controlling insect infestation without toxic fumigation in transit. Agricultural commodities such as rice, corn, coffee, cocoa, seeds and other grains and beans produce low oxygen and large amounts of carbon dioxide. The carbon dioxide is generated either by the large population of insects present in the commodity or by the respiration of the commodity itself. Commodities are generally fumigated before shipment, but larvae, pupae and eggs are still present. The low gas permeability of the material maintains the modified atmosphere that is lethal to insects and controls the insect population. Once the containers are sealed, any insects in the grains use up the available oxygen within a few days and die of asphyxiation. The low oxygen atmosphere prevents the growth of fungi and molds as well, thus preventing deterioration of the commodity while in transit. The GrainPro SuperGrainbags™ are used for modified atmosphere storage of dry agricultural commodities such as grains, beans and seeds. The bags are made of the same material comprising the container liner described above, with two layers of transparent polyethylene film separated by a gas barrier. The bags provide the same function of maintaining a modified atmosphere that is lethal to insects and that prevents fungi, molds and deterioration of the commodity during storage. The applicable subheading for the GrainPro TranSafeliner™ container liner will be 3923.21.0095, Harmonized Tariff Schedule of the United States (HTSUS), which provides for articles for the conveyance or packing of goods, of plastics…sacks and bags of polymers of ethylene…other. The general rate of duty will be 3 percent ad valorem. The applicable subheading for the GrainPro SuperGrainbags™ will be 3926.90.9980, HTSUS, which provides for other articles of plastics, other. The general rate of duty will be 3 percent ad valorem. Articles classifiable under subheading 3923.21.0095, HTSUS, or 3926.90.9980, HTSUS, which are products of the Philippines may be entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term “GSP”. You request classification in subheading 9817.00.5000, HTSUS. Subheading 9817.00.5000, HTSUS, is the provision covering machinery, equipment, or implements to be used in agricultural or horticultural pursuits. This is an actual use provision subject to the certification process found in Sections 10.131 – 10.139 of the Customs Regulations. The use of the container liners and storage bags to maintain a modified atmosphere that is lethal to insects and that prevents fungus, mold and deterioration to agricultural commodities is for the process of fumigation and insect control as well as enhanced transportation of the contents. These functions are not directly related to agriculture but to the condition of a product that is contained within the containers. As a result, the GrainPro TranSafeliner™ container liners and the GrainPro SuperGrainbags™ are not directly used in an agricultural pursuit and subheading 9817.00.5000, HSUS, which is an actual use provision, would not apply. 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 http://www.usitc.gov/tata/hts/. 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 applicability of subheading 9817.00.5000, HTSUS, please contact National Import Specialist Mark Palasek at (646) 733-3013. If you have any other questions regarding the ruling, please contact National Import Specialist Joan Mazzola at (646) 733-3023. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division