The tariff classification of polyethylene bubble wrap from China

N320089 June 30, 2021 CLA-2-39:OT:RR:NC:N1:137 CATEGORY: Classification TARIFF NO.: 3923.90.0080, 9903.88.03 Joseph J. Kenny Geodis USA Inc. One CVS Drive Woonsocket, Rhode Island 02895 RE: The tariff classification of polyethylene bubble wrap from China Dear Mr. Kenny: In your letter dated June 18, 2021 you requested a tariff classification ruling on behalf of your client, CVS Pharmacy Inc. Item #258521, Bubble Popping sheets, consists of a package containing 20 sheets of bubble wrap. The sheets measure 9.5 inches by 5 inches and are composed of low density polyethylene (LDPE). You indicate that LDPE resin is formed into sheets which are then sent through a machine that injects air to create the bubbles. You suggested possible classification in 3921.90.4090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other plates, sheets, film, foil and strip, of plastics: other: other: other. We disagree. Chapter 39 Note 10 states that “In headings 3920 and 3921, the expression “plates, sheets, film, foil and strip” applies only to plates, sheets, film, foil and strip (other than those of Chapter 54) and to blocks of regular geometric shape, whether or not printed or otherwise surface-worked, uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use).” The process of injecting air into the sheet constitutes further work and thus excludes the product from classification in 3921 as proposed. You also suggest the bubble wrap sheets may be classified as a toy under subheading 9503.00.0073, HTSUS.  However, for classification purposes, bubble wrap is not considered to be a toy. The useful function of the product as packaging material is greater than any play value.  Therefore, we find the item is more specifically provided for in elsewhere in the HTSUS, and will be classified accordingly. The applicable subheading for the LDPE bubble wrap will be 3923.90.0080, HTSUS, which provides for articles for the conveyance or packing or goods, of plastic: other: other. The general rate of duty will be 3 percent ad valorem Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3923.90.0080, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 3923.90.0080, HTSUS, listed above. The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.  For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. 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 the 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 [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division