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NY K83792




March 18, 2004

CLA-2-39:RR:NC:SP:221 K83792

CATEGORY: CLASSIFICATION

TARIFF NO.: 3923.21.0090

Mr. Larry Ordet
Sandler, Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, FL 33126-2022

RE: The tariff classification and status under the United States-Singapore Free Trade Agreement (SFTA), of polyethylene merchandise bags from Singapore.

Dear Mr. Ordet:

In your letter dated February 25, 2004, on behalf of Wal*Mart Stores, Inc., you requested a ruling on the status of polyethylene merchandise bags from Singapore under the SFTA.

Polyresin pellets from Singapore will be shipped to Malaysia and extruded into continuous lengths of seamless tubing. The tubing is then printed with, among other information, Wal*Mart’s trademarked name and design. The tubing will not include seams or any marks that identify where cutting will occur. The extruded tubing is shipped to Singapore where it is cut to size and heat sealed at the bottom. Handles are cut into the plastic and sealed at the top. The finished bags are then packed, inspected and shipped directly from Singapore to the United States. The bags are used to pack items purchased at Wal*Mart stores.

The applicable tariff provision for the merchandise bags will be 3923.21.0090, Harmonized Tariff Schedule of the United States (HTS), which provides for articles for the conveyance or packing of 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 25(b), HTSUS, sets forth the criteria for determining whether a good is originating under the SFTA. GN 25(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, goods imported into the customs territory of the United States are eligible for treatment as originating goods of a SFTA country under the terms of this note only if they–

(i) were wholly obtained or produced entirely in the territory of Singapore or of the United States, or both;

(ii) are goods that, in their condition as imported, are enumerated in subdivision (m) of this note and imported from the territory of Singapore; or

(iii) have been transformed in the territory of Singapore or of the United States, or both, so that each nonoriginating material:

(A) undergoes an applicable change in tariff classification set out in subdivision (o) of this note as a result of production occurring entirely in the territory of Singapore or of the United States, or both; or

(B) if no change in tariff classification is required, the good otherwise satisfies the applicable requirements set forth in such subdivision (o).

Based on the facts provided, the goods described above qualify for SFTA preferential treatment, because they will meet the tariff shift requirements of HTSUSA General Note 25(b)(iii)(A), subdivision (o)/39.9. The merchandise bags will therefore be entitled to a free rate of duty under the SFTA upon compliance with all applicable laws, regulations, and agreements.

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,

Robert B. Swierupski
Director,

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