NY R01556 - The status under the United States-Australia Free Trade Agreement (UAFTA) of a sanitary napkin disposal assembly and replacement bags from Australia. - United States International Trade Commision Rulings

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NY R01556

March 31, 2005

CLA-2-39:RR:NC:SP:221 R01556

CATEGORY: CLASSIFICATION

Mr. David Aitken
Intaloc, Inc.
911 Lincoln Blvd. #6
Santa Monica, CA 90403

RE: The status under the United States-Australia Free Trade Agreement (UAFTA) of a sanitary napkin disposal assembly and replacement bags from Australia.

Dear Mr. Aitken:

In your letter dated February 28, 2005, you requested a ruling on the applicability of the United States-Australia Free Trade Act (UAFTA) for a sanitary napkin disposal unit and replacement bags from Australia.

The SDU is a sanitary napkin disposal unit of a type principally used in the home. The product is molded of polypropylene plastic and is roughly cylindrical in shape. The unit consists of two components, a base container and a top "cartridge" with built-in handle. It is designed to be used with lavender scented polyethylene plastic disposal bags. A disposal bag is placed onto the top cartridge, which is then pushed down into the container. Sanitary products are inserted into an opening in the unit. Pressing down on the cartridge compresses the discarded articles. When the unit is full, the cartridge is lifted up, bringing up with it the filled polyethylene bag, which is then disposed of with trash. A new disposal bag is loaded onto the cartridge and inserted into the base. Replacement bags are sold in packages of 10. A tariff classification ruling on this merchandise, R00497, was issued on June 29, 2004.

You are now requesting a ruling on the applicability of the United States-Australia Free Trade Act (UAFTA) to that merchandise. You state that the disposal unit is injected molded in Australia from polypropylene pellets produced in Australia. A PVC part is extruded in Australia from Australian resin. A small amount of sanitizing material from Germany is incorporated into the final product. High-density polyethylene from Thailand is processed into the disposable bags in Australia. Low-density polyethylene from Malaysia is manufactured into the outer bag in Australia. Additives from Australia are included in the masterbatch.

General Note 28(b), HTSUS, sets forth the criteria for determining whether a good is originating under the UAFTA. General Note 28(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), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UAFTA country under the terms of this note only if –

(i) the good is a good wholly obtained or produced entirely in the territory of Australia or of the United States, or both;

(ii) the good was produced entirely in the territory of Australia or of the United States, or both, 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;

(B) the good otherwise satisfies any applicable regional value content requirement referred to in subdivision (n) of this note; or

(C) the good meets any other requirements specified in subdivision (n) of this note;
and such good satisfies all other applicable requirements of this note;

(iii) the good was produced entirely in the territory of Australia or of the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note; or

(iv) the good otherwise qualifies as an originating good under this note,
and is imported directly into the customs territory of the United States from the territory of Australia.

Not all of the materials used to make the sanitary disposal unit and the disposable bags are originating. In such a case, we must refer to GN 28(n), which specifies the required changes in classification. GN 28(n), Chapter 39, rule 5 requires a change to headings 3922 through 3926 from any other heading. Based on the facts provided, the goods described above qualify for UAFTA preferential treatment because they will meet the requirements of General Note 28(b)(ii)(A) and 28(n), Chapter 39, rule (5). The goods will therefore be entitled to a free rate of duty under the UAFTA 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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