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July 27 CBP Bulletin Ruling Actions on Leather Bags, Fasteners, Antibiotics

In the July 27, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 31), CBP published three notices on its revocation of four rulings regarding certain leather coach bags, threaded fasteners, and antibiotic drugs.

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Actions Are Effective September 26

These Customs Bulletin actions are effective for merchandise entered or withdrawn from warehouse for consumption on or after September 26, 2011, and cover any rulings on this merchandise which may exist but have not been specifically identified. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.

Revocations

Leather Coach Bags

Item: Three styles of coach bags. The bags have an outer surfaces of leather and feature an inside zip pocket, cellular phone/multifunction pockets, a ring to clip an accessory or key fob, two side pockets with turn lock closures, a partial zippered closure, interior lining and handles.
New Ruling: HQ H133616 (dated 07/07/11, revoked HQ H061115)
New HTS/Rate: 4202.91.00, 4.5% (leather travel, sports, or similar bags)
Old HTS/Rate: 4202.21.90, 9% (handbags)
Reason: CBP has previously distinguished handbags from tote bags in stating that handbags are typically smaller, designed to carry personal items, etc., and tote bags generally have at least one side that exceeds 12 inches in length and can carry many different items. CBP found that the two bigger Coach bags are larger than a typical handbag because they each have one or more sides that slightly exceed 12 inches in length. The third bag does not have a side which exceeds 12 inches, but also has a large carrying capacity and can hold the same variety of items as the two other bags. CBP states that having one side which exceeds 12 inches is just one factor in distinguishing a handbag from a tote bag.

Certain Threaded Fastener

Item: Double Hexagon head extended washer fastener (hex head fastener). The fastener is a stainless steel bolt with a wrench configuration on top for torquing, underneath which is a flange, or extended washer head. The fastener's shank attaches to the flange at a curved fillet and is fully threaded with a chamfered point at the end.
New Ruling: HQ H110418 (dated, 07/11/11, revoked NY N004775)
New HTS/Rate: 7318.15.80, 8.5% (other screws and bolts, whether or not with their nuts or washers)
Old HTS/Rate: 7318.15.20, free (bolts and their nuts or washers)
Reason: In consulting the American National Standards Institute (ANSI)/American Society of Mechanical Engineers (ASME) B18.2.11 specification for identification of bolts and screws, CBP finds the fastener is classifiable as a screw and not as a bolt. The fastener's washer-like flange on the underside of the head is the functional equivalent of a washer face, which CBP has previously treated as a characteristic of screws.

Antibiotic Drug Telithromycin

Item: Antibiotic drug Telithromycin. Telithromycin is a semisynthetic derivative of Erythromycin, a naturally occurring macrolide antibiotic.
New Ruling: HQ H128138 (dated 06/29/11, revoked NY J80608, NY M84902)
New HTS/Rate: 2941.90.30, free (other antibiotic)
Old HTS/Rate: 2941.50.00, free (Erythromycin derivative)
Reason: The Explanatory Note (EN) to subheading 2941.50 does not specifically exclude Telithromycin from classification as an Erythromycin derivative, but does state that Picromycin is not a derivative of Erythromycin for tariff purposes because it contains no cladinose or mycarose. Telithromycin and Picromycin also do not contain cladinose or mycarose. Therefore, CBP states Telithromycin is likewise not a derivative of Erythromycin for tariff purposes.

1ANSI/ASME B18.2.1 provides four Primary Criteria and nine Supplementary Criteria for consideration in distinguishing bolts from screws.

(See ITT's Online Archives or 05/17/11 news, 11051723, for BP summary of the proposed modifications and revocations of these rulings.)