The tariff classification of a spunbonded nonwoven fabric produced in Finland, from polypropylene plastic pellets of U.S. origin.

NY 808520 April 3, 1995 CLA-2-56:S:N:N6:350 808520 CATEGORY: Classification TARIFF NO.: 5603.00.9070 Mr. J. Richard Mallon JRM Associates, Inc. 21 Delaware Avenue Claymont, Delaware 19703-1901 RE: The tariff classification of a spunbonded nonwoven fabric produced in Finland, from polypropylene plastic pellets of U.S. origin. Dear Mr. Mallon: In your letter dated March 22, 1995, on behalf of JW Suominen OY of Finland, you requested a tariff classification ruling. No representative sample was submitted. You mention "thermal bonded" polypropylene in your correspondence, however, noting the manufacturing operation described, it is more likely that the pellets of U.S. origin are spunbonded in filament form in Finland. Specifically, your manufacturing operation in Finland consists of transforming the polpyropylene pellets of U.S. origin into the nonwoven cover stock material that is to be later shipped back to the United States. This process would not be considered "thermal bonding", as that would involve the matting together of staple fibers. Your letter indicates that this material will ultimately be transformed into such disposable products as baby diapers and adult products after it's importation back into the United States. The applicable subheading for the material will be 5603.00.9070, Harmonized Tariff Schedule of the United States (HTS), which provides for nonwovens, whether or not impregnated, coated, covered or laminated, ... of filaments. The rate of duty will be 10 percent ad valorem on the full value of the merchandise. You question if an allowance in duty may be made for the cost or value of the components (pellets). Following Section 10.14 of the Customs Regulations (19 CFR 10.14), since a substantial transformation of said pellets takes place in Finland, no allowance can be made. Further, in addition to the value of the pellets, the cost of the Ocean Freight and marine insurance incurred in shipping the pellets to Finland is also part of the dutiable value besides the cost of manufacturing the goods. This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, Jean F. Maguire Area Director New York Seaport