HS 390120 Polyethylene having a specific gravity of 0,94 or more

The Most Favored Nation (MFN) duty rate for HS code 390120 is typically 6.50% ad valorem. However, preferential duty rates are available for goods originating from countries with which the importing country has trade agreements. For example, under certain agreements, the duty rate may be Free (0.00%) for imports from Australia (AU), Bahrain (BH), Chile (CL), Colombia (CO), the European Union (E), Israel (IL), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Pakistan (P), Panama (PA), Peru (PE), Singapore (SG), and others. It is crucial to verify the specific origin of the goods and the applicable trade agreement to determine the correct preferential rate. Always consult the latest official tariff schedule, such as the USITC Harmonized Tariff Schedule, the EU's TARIC database, or the UK Trade Tariff, for the most up-to-date rates.

The primary classification criterion for HS code 390120 is the specific gravity of the polyethylene. This code specifically covers polyethylene with a specific gravity of 0.94 or more. Specific gravity is a measure of density relative to water. Importers must ensure that the product's technical specifications, as provided by the manufacturer, confirm this specific gravity threshold. Failure to meet this criterion could lead to misclassification under a different HS code within Chapter 39, potentially resulting in incorrect duty assessments and compliance issues. Documentation such as a Certificate of Analysis (CoA) or manufacturer's technical data sheet is essential to substantiate the specific gravity.

The import duty for HS code 390120 is typically calculated on an ad valorem basis, meaning it is a percentage of the declared customs value of the goods. For instance, if the MFN duty rate is 6.50% and you import 1,000 kilograms of polyethylene with a customs value of $1,500 USD, the duty calculation would be: Duty Amount = Customs Value × Duty Rate. In this example: Duty Amount = $1,500 USD × 6.50% = $97.50 USD. If the duty were based on a specific rate (e.g., per kilogram), the calculation would be Rate per Unit × Quantity. Always confirm the basis of duty calculation (ad valorem, specific, or compound) with the official tariff schedule.

To claim preferential duty rates for HS code 390120 under various trade agreements (e.g., USMCA, EU trade agreements, UK trade agreements), importers and customs brokers must provide proof of origin. This typically involves a 'Certificate of Origin' or a 'Statement of Origin' issued by the exporter or producer in the beneficiary country. The specific format and information required on these documents vary by trade agreement. It is crucial to ensure that the goods meet the rules of origin stipulated in the relevant agreement, which may include criteria on processing, value content, or tariff shift. Consult the specific trade agreement text and relevant customs regulations for precise documentation requirements.

Yes, several trade agreements can significantly impact duty rates for HS code 390120. For example, the United States has agreements like the Free Trade Agreement with South Korea (KORUS FTA), which may offer reduced or zero duties. The European Union has numerous Association Agreements and Free Trade Agreements with countries worldwide, often providing preferential access. The UK, post-Brexit, has established its own set of trade agreements. Importers should investigate agreements between the country of export and the country of import. For instance, if importing into the US from South Korea, the KORUS FTA might apply, potentially reducing the duty from the MFN rate. Similarly, imports from countries like Chile, Singapore, or Australia into the US may benefit from agreements like the CAFTA-DR or other bilateral pacts, often resulting in duty-free entry. Always verify the origin of the goods and the specific provisions of the applicable trade agreement.