The tariff classification and status under the United States-Panama Trade Promotion Agreement of polyethylene pet waste bags from Panama.

N316328 December 17, 2020 CLA-2-39:OT:RR:NC:1:137 CATEGORY: Classification TARIFF NO.: 3923.21.0095 Jennifer Diaz Diaz Trade Law 12700 Biscayne Boulevard North Miami, Florida 33181 RE: The tariff classification and status under the United States-Panama Trade Promotion Agreement of polyethylene pet waste bags from Panama. Dear Ms. Diaz: In your letter dated December 7, 2020, you requested a ruling, on behalf of your client Dogipot, on the status of polyethylene pet waste bags from Panama under the US-Panama Trade Promotion Agreement. The product under consideration is DOGIPOT®’s Plastic Disposable Pet Waste Bag. The product is a disposable bag composed of polyethylene. The bag will be used to collect and dispose of pet waste. The product is manufactured in Panama from a mixture of originating and non-originating materials. The polyethylene resin and other additives are imported into Panama where they are mixed and extruded into rolls of plastic film. This film is printed and converted into rolls of bags which are packaged and prepared for shipment. The applicable tariff provision for the polyethylene pet waste bags will be 3923.21.0095, Harmonized Tariff Schedule of the United States (HTSUS), which provides for articles for the conveyance or packing or goods, of plastics; sacks and bags (including cones): of polymers of ethylene: other: other. The general rate of duty will be 3 percent ad valorem. General Note 35, HTSUS, sets forth the criteria for determining whether a good is originating under the US-Panama Trade Promotion Agreement. General Note 35(b), HTSUS, states, in pertinent part, that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i)the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; (ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or (iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from materials described in subdivisions (i) or (oo) above. HTSUSA General Note 35 (o) provides the product specific rules for goods to be considered originating, specifically, GN 35(o) 39.6 states: A change to headings 3922 through 3926 from any other heading Each of the non-originating materials used to make the DOGIPOT®’s Plastic Disposable Pet Waste Bag satisfies the changes in tariff classification required under HTSUS General Note 35 (o) 39.6. The goods will therefore be entitled to a FREE rate of duty under the US-Panama Trade Promotion Agreement upon compliance with all applicable laws, regulations, and agreements. In addition to qualification under the US-Panama Trade Promotion agreement, you also inquired as to the country of origin of the bags. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. §1304. Pursuant to 19 CFR 134.1(b), “country of origin” means the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the country of origin. A substantial transformation results when a new and different article emerges from the processing having a distinctive name, character, or use. It is the opinion of this office that a substantial transformation will take place in Panama. Polyethylene resin and other additives will be combined and extruded into polyethylene film. This film is printed, converted to bags, and packaged for export in Panama. The bags are a separate and distinct article of commerce, which possesses a new name, character and use from the starting materials. 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 https://hts.usitc.gov/current. 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 Christina Allen at julie.c.allen@cbp.dhs.gov. Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, U.S. Customs and Border Protection, Regulations & Rulings, 90 K Street N.E. – 10th floor, Washington, DC 20229-1177. Sincerely, Steven A. Mack Director National Commodity Specialist Division