The tariff classification of polypropylene sheet from various countries

N249499 February 5, 2014 CLA-2-39:OT:RR:NC:N4:421 CATEGORY: Classification TARIFF NO.: 3920.20.0050 Ms. Marion Bradnam Universal Logistics USA Inc. 2205 Kenmore Avenue, Suite 106 Buffalo, NY 14207 RE: The tariff classification of polypropylene sheet from various countries Dear Ms. Bradnam: In your letter dated January 14, 2014, on behalf of Multi-Plastics Canada Co., you requested a tariff classification ruling. Multi-Plastics Canada imports polypropylene film made in various countries from the United States into Canada. The film is in the form of master rolls when imported into Canada. The film is then sold to customers based upon specific sizes/widths on a custom order basis. The master rolls are not exported to the United States. Instead the film is unrolled, slit, rerolled and labeled per the customer’s requirement before it is exported to the United States. The applicable subheading for the polypropylene film will be 3920.20.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other plates, sheets, film, foil and strip, of plastics, noncellular and not reinforced, laminated, supported or similarly combined with other materials: of polymers of propylene, other. The general rate of duty will be 4.2 percent ad valorem. 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/. . You ask whether the merchandise is eligible for treatment in subheading 9802.00.50 of the HTSUS. Subheading 9802.00.50, HTSUS, provides a partial duty exemption for articles returned to the United States after having been exported to be advanced in value or improved in condition by means of repairs or alterations. Such articles are dutiable only upon the cost or value of the foreign repairs or alterations when returned to the U.S., provided the documentary requirements of section 10.8, Customs Regulations (19 CFR 10.8), are satisfied. The application of this tariff provision is precluded in circumstances where the operations performed abroad destroy the identity of the articles or create new or commercially different articles. See A.F. Burstrom v. United States, 44 CCPA 27, C.A.D. 631 (1957) and Guardian Industries Corporation v. United States, 3 CIT 9 (1982). Treatment under subheading 9802.00.50, HTSUS, is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture of the finished article. Alterations are made only to completed articles and do not include intermediate operations which are performed in the manufacture of finished articles. See Dolliff and Company, Inc. v. United States, 66 CCPA 77, C.A.D. 1225, 599 F.2d 1015 (1979). Customs and Border Protection has held that where rolls of material length merchandise are exported and cut to length and width as part of a finishing operation to make the article suitable for its intended use, the cutting operation exceeds the meaning of the term "repairs or alterations" under subheading 9802.00.50, HTSUS. See Headquarters Ruling Letters 555241 of July 3, 1989, and 555343 of May 30, 1989. Accordingly, the imported polypropylene resized film is not eligible for tariff treatment under the provisions of subheading 9802.00.50, HTSUS, and would be subject to duty on the full value. 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 Joan Mazzola at (646) 733-3023. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division