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Newly Released CBP HQ Rulings for Nov. 18

The Customs Rulings Online Search System (CROSS) was updated Nov. 18 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.

H318255: Country of origin of a fan blower

Ruling: The country of origin of the fan blower for marking purposes is Mexico. The fan blower must be marked “Made in Mexico” under 19 USC 1304. The country of origin of the fan blower for the purposes of the application of subheading 9903.88.03 is Mexico. As the merchandise will be a product of Mexico, Section 301 measures will not apply.
Issue: What is the country of origin of the fan blower assembly for marking purposes? What is the country of origin of the fan blower assembly for the purposes of Section 301 remedies?
Item: Fan blower assemblies for use in a continuous positive air pressure (CPAP) machine, consisting of a centrifugal impeller, a housing, an inlet and outlet, a printed circuit board assembly (PCBA), a lead wire assembly, anti-friction bearings, and a motor. The fan blower is assembled in Mexico from subassemblies that are also assembled in Mexico. The subassemblies include the rotor assembly, the stator assembly, a fan assembly, and a magnet yoke assembly. The components of the fan blower assembly are sourced from various countries, including China, Japan, Mexico, and the United States.
Reason: For Section 301 country of origin: the stator core, rotor yoke and the impeller, while important components, are first assembled into four subassemblies (the rotor assembly, the stator assembly, a fan assembly, and a magnet yoke assembly) in Mexico using a variety of processes including bonding and curing, soldering, winding, screwing, press-fitting and magnetization. The subassemblies are then assembled together to form the fan blower. The various components of the fan blower assembly are substantially transformed in Mexico as a result of these processes. For marking purposes: The applicable tariff shift rule requires a shift to subheading 8414.59, from any other subheading. All of the foreign materials are classified in subheadings other than 8414.59. Therefore, the foreign materials undergo the requisite tariff shift.
Ruling Date: Nov. 3, 2021

H298167: Application for Further Review of Protest Number 3901-2018-100274; Concerning Circular Welded Carbon Quality Steel Pipes from the People’s Republic of China subject to Antidumping Order 570-910 and Countervailing Order 570-911; timeliness of protest

Ruling: The supplement was invalid as a supplement to the original protest, but can be considered by CBP as a separate protest. CBP properly liquidated the entry as subject to AD/CV duties.
Issue: Whether the protest and “supplement” filed thereto, is sufficient under the regulations. Whether CBP properly liquidated the entry of circular welded pipes from China.
Item: An entry of ASTM A-513 mechanical pipe, initially declared type 01 and free of AD/CV duties. Commerce subsequently found the entry subject to AD duties and liquidated it as type 03. The importer protested the assessment of AD duties, and the protest was denied. In the meantime, CBP subsequently found the entry subject to CV duties. The importer submitted a supplement to its protest after it was already denied to contest the CV duties.
Reason: A protest cannot be supplemented to contest a separate issue, and the assessment of CV duties is a separate issue. However, the supplement otherwise met the requirements of a protest, including being marked "protest." While the importer relied on a scope ruling on circular welded pipe from Mexico, that scope ruling did not exempt all mechanical pipe from the Mexico order, just those meeting certain characteristics. Also, the International Trade Commission treated mechanical pipe differently in its AD/CVD investigations on circular welded pipe from Mexico and China. As the issue is unclear, CBP cannot determine the pipe is out of scope based on its purely ministerial role.
Ruling Date: Sept. 16, 2021

H312071: Tariff classification of sushi ginger

Ruling: 2001.90.6000, 14%, “Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid: Other: Other: Other.”
Issue: Whether sushi ginger is properly classified under heading 0910 as a spice or condiment, or whether it is classified under heading 2001 as a vegetable or other edible parts of plants, prepared or preserved by vinegar or acetic acid, or whether it is classified under heading 2008 as an edible part of plants otherwise prepared or preserved by a process not elsewhere specified.
Item: Sushi ginger products, composed of ginger, water and salt along with relatively small amounts of acetic acid, citric acid, aspartame and potassium sorbate. The ginger is not crushed or ground and is not certified as organic. Before serving, the sushi ginger must be removed from the bag and drained of the thick preserving liquid. The ginger must also be washed and de-salted to ensure that the liquid’s flavor does not interfere with the ginger’s own taste.
Reason: Technically, sushi ginger is neither a spice nor condiment as these terms are considered in their traditional sense. A condiment is something used to enhance the flavor of food especially, and a spice is defined as any of various aromatic vegetable products (such as pepper or nutmeg) used to season or flavor foods. By contrast, sushi ginger is a palate cleanser which used to refresh the palate. The vinegar-like solution in which the subject product is immersed and packaged does not render the sushi ginger inedible. Instead, the subject sushi ginger product is both edible and ready for immediate consumption in its condition as imported. Laboratory testing shows the sushi ginger exceeds the minimum 0.5% acetic acid content required for classification in heading 2001.
Ruling Date: Sept. 16, 2021