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Newly Released CBP HQ Rulings for July 8

The Customs Rulings Online Search System (CROSS) was updated July 8 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):

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Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.

H316586: Internal Advice Request; Country of Origin Marking of Condensed Milk

Ruling: The canned sweetened condensed milk under consideration is not marked in compliance with the requirements set forth in 19 USC 1304 and 19 CFR 134.
Issue: Whether the country of origin marking on the canned sweetened condensed milk under consideration is in compliance with the requirements set forth in 19 USC 1304 and 19 CFR 134.
Item: Sweetened condensed milk manufactured in Ukraine and imported into the United States. The condensed milk cans at issue are marked as follows: (1) the top/front section of each can contains the words “Indulac Industria Lechera de Puerto Rico, Inc”; and (2) the bottom/side section of each can contains the words “Distribuido por y Manufacturado para/Distributed by and Manufactured for: Plaza Provision Comp. Lic. ORIL #7 San Juan, Puerto Rico 00936 Manufacturado por/Manufactured by: 4 Vishnevaya St, Ichnya City Chernigiv Region, Ukraine 16703.”
Reason: The two non-origin references to Puerto Rico (one at the top/front and the other one on the bottom/side), and the name of the country of origin, which is Ukraine, can all be seen in the same viewing without having to turn the can. The country of origin marking and non-origin markings are displayed in close proximity. However, the country of origin marking is not preceded by “Made in,” “Product of,” or other words of similar meaning. While the marking “Ukraine” is present on the side/bottom of the can, it is only featured as part of the mailing address. Moreover, while the mailing address is preceded by the words “Manufactured by,” this language does not satisfy the “other words of similar meaning” requirement. In fact, the words “Manufactured by” do not immediately precede “Ukraine,” which may mislead or deceive the ultimate purchaser. Finally, the non-origin marking “Puerto Rico” at the top/front of the condensed milk cans is not comparable in size to the marking “Ukraine,” featured on the bottom/side of the cans. This is because the marking “Puerto Rico” is noticeably bigger in size and also appears in bold typeface, while the marking “Ukraine” does not.
Ruling Date: May 5, 2021

H311223: Application for Further Review Protest No. 4503-19-100269; Tariff classification of a Selective Catalytic Reduction (“SCR”) catalyst block

HTS: 8421.39.40, free, “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for gases: Other: Catalytic converters… ." Secondary classification: 9903.88.01, 25%.
Issue: Is the Selective Catalytic Reduction catalyst block properly classified under heading 3815, which provides for “Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified or included”, or heading 8421, which provides for “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof"?
Item: A Selective Catalytic Reduction (“SCR”) catalyst block. The basic elements of the SCR catalyst unit consist of a stainless steel mesh support plate integrally coated on both sides with catalyst material, through the mesh for added adhesion. The active catalyst ingredients, which include active compounds of molybdenum trioxide, tungsten trioxide, vanadium dioxide, are included within a titanium dioxide base material. Upon heat-treating the base, it hardens and forms a solid bond to the mesh. SCR Catalyst blocks consist of catalyst elements and a steel frame, and the cross-section area for the unit is about one-half meter by one-half meter with a length depending upon the final customer specifications. The units are arrayed in blocks and imported as such. A typical block contains sixteen units of the catalyst unit. The SCR catalyst block is installed in large stationary catalytic systems processing fossil fuel combustion gases, such as those used in the steam generating and electrical power industry, petrochemical industry and large industrial heating devices, or more specifically a plate-type supported SCR catalyst block.
Reason: Heading 8421 provides for, inter alia, filtering apparatus. There is no dispute that the catalyst function of the SCR block filters fossil fuel combustion gases of the machines in which it is installed. The ENs for heading 8421 state that heading 8421 includes “chemical filters and purifiers for air or other gases (including catalytic converters which change carbon monoxide in the exhaust gases of motor vehicles).” While heading 3815 specifically provides for catalytic preparations, that heading also specifies that it is applicable when “not elsewhere specified or included.”
Ruling Date: April 19, 2021