The tariff classification of soiled hotel linens from the U.S. and Pakistan exported to Canada for laundering and returned to the United States

N109015 June 11, 2010 CLA-2-98:OT:RR:E:NC:TA:351 CATEGORY: Classification TARIFF NO.: 9802.00.50 Mary-Anne Hardy Farrow International Trade Consulting 5397 Eglinton Avenue West, Suite 220 Etobicoke, Ontario M9C 5K6 Canada RE: The tariff classification of soiled hotel linens from the U.S. and Pakistan exported to Canada for laundering and returned to the United States Dear Ms. Hardy: In your letter dated June 7, 2010, you requested a tariff classification ruling on behalf of your client, Essex Linen Supply Ltd. of Windsor, Ontario. In your request, you inquire about the applicability of subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS), to soiled hotel linens that will be exported from the U.S. and returned after having been cleaned in Canada. You state that Essex Linen Supply will export soiled hotel linens from the United States to Canada to be laundered and then returned to the U.S. Customs and Border Protection has held that cleaning and sanitizing of soiled hotel linens constitutes an alteration within the meaning of subheading 9802.00.50, HTSUS. Headquarters Ruling 559654 noted. Consequently, the soiled hotel linens will qualify for the special tariff treatment of that provision, provided that the documentary requirements of 19 C.F.R. § 181.64 are met, with duty assessed only upon the value of the foreign repairs or alterations. The linens repaired or altered in Canada are dutiable only upon the value of the foreign alterations. You have not specified what kinds of linens are involved, whether sheets, pillowcases, towels, etc. While most bed linens are classifiable in heading 6302, we would need specific information or (laundered) samples to determine the primary classification of the linens. However, regarding the duty to be assessed on the value of the foreign repairs or alterations, U.S. Note 3(d) to Subchapter II of Chapter 98, HTSUS, is controlling. It states: For the purposes of subheadings 9802.00.40 and 9802.00.50, the rates of duty in the “special” subcolumn of column 1 followed by the symbol “CA” or “MX” in parentheses shall apply to any goods which are returned to the United States after having been repaired or altered in Canada or in Mexico, respectively, whether or not such goods are goods of Canada or goods of Mexico under the terms of general note 12 to the tariff schedule. Duty rates 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/. As noted in 19 C.F.R. § 181.64 (c)(2), the port director may require additional information as is deemed necessary to prove actual exportation of the goods from the United States and subsequent re-importation of the same goods after alteration. The documentation must clearly follow the linens through exportation, alteration, and re-importation. For information as to the documentation that will satisfy Section 181.64, C.R., you should contact the port director at the anticipated U.S. port of entry. Since these items as exported to Canada will contain bodily wastes and fluids, we suggest that you contact the appropriate Canadian authority for information regarding any requirements for the soiled items in terms of hazardous materials. 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 Mitchel Bayer at (646) 733-3102. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division