June 4, 2008 CBP Bulletin Notice on Classification of Certain Stainless Steel Flatware
In the June 4, 2008 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 42, No. 24), CBP published a notice modifying four classification rulings and revoking a treatment as follows:
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Modification of rulings, revocation of treatment.CBP is modifying four rulings on the classification of certain stainless steel flatware. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, the modifications and revocation are effective for merchandise entered or withdrawn from warehouse for consumption on or after August 3, 2008.
Certain stainless steel flatware. The merchandise is described as stainless steel spoons with handles of precious metals, and stainless steel flatware sets with handles consisting of stainless steel and plastic.
CBP is issuing H004582 and H004585, in order to modify HQ 965032 and HQ 965794, and reclassify spoons with handles of precious metals under HTS 7114 (subheadings 7114.11.30, 7114.11.40, 7114.19.00, and 7114.20.00) as "Articles of goldsmiths' or silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal" rather than under 8215.99.45 as "Other spoons and ladles of base metals."
In HQ 965032 and HQ 965794, CBP incorrectly cited subheading 8215.99.45 as the appropriate classification provision for spoons with handles consisting of precious metal. Based upon analysis of HTS Section XV, Note 1(e), and Chapter 71, CBP now determines that spoons with handles consisting of precious metal are covered under heading 7114, which provides for "Articles of goldsmiths' or silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal:. . ."
CBP is also issuing H004587 and H004589 in order to modify NY A86065 and NY B87880 to reflect the proper classification of stainless steel flatware sets with handles consisting of stainless steel and plastic according to new analysis.
In NY A86065 and NY B87880, CBP incorrectly classified stainless steel flatware pieces with handles of stainless steel and plastic, under HTS subheadings 8211.91.8060 (knives), 8215.99.2600 (forks), and 8215.99.4500 (spoons), if imported separately. These are the provisions for "other." Neither of the competing provisions for "with handles of stainless steel" or "with handles of rubber or plastic" was selected. At the time of the original rulings, because neither one was considered determinative of essential character, the classification for "other" was selected. CBP now determines that because neither the stainless steel nor the plastic imparts the essential character, GRI 3(c) should be followed and the items should be classified in the heading which appears last in numerical order. CBP now states that the correct classification provisions are HTS subheadings 8211.91.5060 (as knives with handles of rubber or plastic), 8215.99.2000 (as forks with handles of rubber or plastic), and 8215.99.4060 (as spoons with nonmetal handles). The set was properly classified at 8215.20.0000; however because the duty rate is dependent on the highest rate applicable to an article in the set, the duty rates quoted for the sets were incorrect. CBP now determines the duty rate for the articles if imported in sets should be 5% based on the spoons.
New: 7114.11.30, 3.3%; 7114.11.40, 3.5%; 7114.19.00, 7.9% or 7114.20.00, 3%; previous: 8215.99.45, duty-free
New: 8211.91.5060 (knives), 0.7 cent each 3.7%; 8215.99.2000 (forks) 0.5 cent each 3.2%; and 8215.99.4060 (spoons), 5%; previous: 8211.91.8060 (knives) 0.3 cent each 4.9%; 8215.99.2600 (forks), 0.2 cent each 3.1%, and 8215.99.4500 (spoons), duty-free
(See ITT's Online Archives or 04/03/08 news, 08040345, for BP summary of proposed H004582, H004585, H004587 and H004589.)
June 4, 2008 CBP Bulletin (Vol. 42, No. 24) available at http://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2008/