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Recent CBP NY Rulings

The following are short summaries of recent CBP NY rulings issued by the agency's National Commodity Specialist Division in New York:

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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.

N322385: The country of origin of a ball bearing for the purpose of 301 Trade Remedies

Origin: China
Item: A single row deep groove ball bearing. The bearing supports radial and axial loads, and can be used in various applications, to include automotive products, air compressor pumps, electric motors, power tools, gearboxes, etc. The radial bearing consists of inner and outer races, two seals, two retainer cages, and a single row of steel balls. Prior to the assembly process, the rings that are intended to become the inner and outer races are purchased in China. In China, the rings are subjected to cleaning, heat-treating/quenching, tempering, polishing, final grinding and honing processes to become the inner and outer races of the bearing. In Mexico, balls from either Mexico or the U.S. are paired to the Chinese inner and outer races. Afterwards, the Chinese inner and outer races, balls, and the Chinese retaining cages are positioned and pressed into place.
Reason: The assembly of the inner and outer races, the retaining cages, and balls in Mexico would not entail the type of processing required to meet the substantial transformation test. The assembly of the ball bearings is considered simple assembly, and the Chinese components are not “substantially transformed” by the assembly operations that occur in Mexico. Instead, the country of origin of the races, which are the essence of a ball bearing, are considered when determining the country of origin of the ball bearing for the purpose of applying 301 trade remedies. In this instance, the inner and outer races are formed by subjecting rings to surface grinding and honing processes in China.
Ruling Date: Nov. 19, 2021

N322517: The tariff classification of cartridge filters and pleat packs from Canada

HTS: (1) 8421.39.8015, 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: Other: Dust Collection and air purification equipment: Other.” (2) 4823.20.9000, free, “Other paper, paperboard, cellulose wadding, and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding, or webs of cellulose fibers: Filter paper and paperboard: Other.”
Item: (1) A cartridge filter comprised of an 85% paper and 15% polyester filter material combined with galvanized metal screens and caps, sponge gaskets, polyester woven bands, self-adhering plastisol potting compound, thermobond hot melt adhesive, and a cyanoacrylate adhesive, designed for industrial air filtration and dust collection purposes. (2) The 85% paper and 15% polyester pleat packs, which consists of filter paper that has been pleated in a manner permitting it to function as filter media in a filter cartridge.
Reason: The Explanatory Notes to Chapter 48 provide that where cellulose predominates by weight over textile content, the material will be classified as paper. As the instant product consists of only 15 percent polyester fiber, the pleated material is accurately classified as paper.
Ruling Date: Nov. 19, 2021

N322591: The tariff classification of an insulated cooler bag with a detachable compartment from China

HTS: 4202.92.0807, 7%, "Iinsulated food and beverage bags, with outer surface of sheeting of plastic or of textile materials, with outer surface of textile materials, other, of man-made textiles."
Item: An insulated cooler bag with a detachable mesh compartment. The cooler bag is constructed with an outer surface of polyester textile material. It provides storage, protection, organization and portability to food or beverage during travel. It is also designed to maintain the temperature of food or beverages. The article has a main compartment that is lined with plastic sheeting. There is a layer of foam plastic between the lining and the textile outer layer. The cooler bag features a zippered closure and two handles. The detachable compartment is constructed of mesh textile. The bottom of the mesh compartment features a zipper that can be attached on top of the cooler bag. It does not have handles and is not functional on its own.
Reason: The essential character of the composite good is imparted by the cooler bag as it is the primary component. It is the component that prompts the consumer to purchase the article. The mesh compartment is an optional component and will only be used as needed.
Ruling Date: Nov. 19, 2021

N322633: The tariff classification of a wall decoration from China

HTS: 5609.00.1000, 2.9%, “Articles of yarn, strip or the like of heading 5404 or 5405, twine, cordage, rope or cables, not elsewhere specified or included: Of cotton.”
Item: A wall decoration consisting of seven concentric arches of various pastel colors that depict a rainbow. Each arch is comprised of a core of seven-ply twisted 100 percent cotton rope with a decitex of 200,000 gimped with two five-ply 100 percent polyester yarns. The ends of each rope are left ungimped and untwisted and are pulled apart to create a cloud effect. The wall hanging measures includes a looped 100 percent polyester yarn attached to a monofilament yarn in the center between the top two arches for hanging.
Reason: N/A
Ruling Date: Nov. 19, 2021

N322773: The tariff classification of plastic trays with lids from China

HTS: 3923.90.0080, 3%, "Articles for the conveyance or packing of goods, of plastics: other: other."
Item: Polypropylene food containers. There are 4 single compartment trays with lid in sizes of 38 ounce, 28 ounce, 24 ounce and 16 ounce. There is also a 16 ounce round soup bowl with lid. The items are reusable, dishwasher and microwave safe. 90 percent of sales are to establishments that make pre-cooked meals in single person servings for home consumption.
Reason: This product is used explicitly by foodservice establishments to prep, store, protect, and transport food from the establishment to the home. The food storage containers classified in heading 3924 are for the preparation or storage of food principally used in or around the home. It is not of the same class or kind as the exemplars of household articles listed in the Explanatory Notes for heading 3924.
Ruling Date: Nov. 19, 2021

N322779: The tariff classification of a plastic dishpan from China

HTS: 3924.10.4000, 3.4%, “Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: Tableware and kitchenware: Other.”
Item: A plastic dishpan made of polypropylene plastic. The dishpan has a horizontal indentation on each side which provides grip, thereby acting as a handle. It has an 18-quart capacity and fits inside a standard single or double kitchen sink. It is designed for home use and is intended for dishwashing.
Reason: N/A
Ruling Date: Nov. 19 2021

N322364: The country of origin of air purifiers

Origin: Vietnam
Item: An air purifier, roughly cylindrical in shape with a control panel on top, which uses a fan, a carbon filter, HEPA filtration and UV-C Light Technology to trap allergens, fight germs and reduce unpleasant odors. The air purifier removes dust, pet dander and pollen. The product’s components and parts are produced in Vietnam and sourced from China. The final processing occurs in Vietnam. The UV lamp, UV lamp holder and protection board, PCBA assembly, fan switch, motor switch assembly, HEPA filter, air outlet iron net, and power cord, etc. are imported from China. All other components and parts are manufactured in Vietnam, except the motor, which may be sourced from either China or Vietnam. If sourced from Vietnam, 56% of inputs by value are from Vietnam. If from China, 35% are from Vietnam.
Reason: The components and parts are imported into Vietnam where they are manufactured into different subassemblies, which are ultimately assembled into the subject Air Purifiers. The processing in Vietnam with respect to the Air Purifiers in the first scenario does constitute a substantial transformation of the imported components and parts into "products of" Vietnam. It creates a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Vietnam.
Ruling Date: Nov. 18, 2021

N322405: The tariff classification of multilayer wood flooring imported from Portugal

HTS: (1) 4412.33.3225, 8%, "Plywood, veneered panels and similar laminated wood: Other plywood consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm in thickness: Other, with at least one outer ply of nonconiferous wood ... : Not surface covered, or surface covered with a clear or transparent material which does not obscure the grain, texture or markings of the face ply: Other: Wood flooring." (2), (3) and (4) 4418.75.7000, 5%, "Builders' joinery and carpentry of wood, including cellular wood panels and assembled flooring panels; shingles and shakes: Assembled flooring panels: Other, multilayer: Other."
Item: Multilayered wood flooring panels consisting of a face ply of oak wood veneer, a panel substrate of birch wood veneers not exceeding 6 mm in thickness, and the grain of each veneer oriented at a 90-degree angle to those of the successive plies. The panels are tongued and grooved on all edges and ends and coated with a clear polyurethane finish. (1) Item 1 is constructed of 8 plies and has a face ply consisting of an oak wood veneer measuring approximately 3mm in thickness. (2) Item 2 is constructed of 10 plies with a face ply consisting of an oak wood veneer measuring approximately 4mm in thickness. (3) Item 3 is constructed of 12 with the face ply consisting of an oak wood veneer measuring approximately 4mm in thickness. (4) Item 4 is constructed of 12 plies with a face ply consisting of an oak wood veneer measuring approximately 6mm in thickness.
Item: Item 1 is flooring panel that meet the definition of “plywood”, which is specifically provided for under heading 4412. The instant panel consist of 8 layers (plies) and the grain of each layer is oriented at a 90-degree angle to those of the successive layers. Therefore, the panels are of a plywood construction and are classifiable in heading 4412. While items 2, 3 and 4 meet the definition of the term “plywood” in heading 4412, Additional U.S. Note 5(b) to Chapter 44 governs classification. The note states that “Heading 4418 includes multi-layer assembled flooring panels having a face ply 4 mm or more in thickness.” Since items 2, 3 and 4 are flooring panels that consist of an assembly of multiple layers and have face plies measuring 4mm or more in thickness, they are classifiable in Heading 4418
Ruling Date: Nov. 18, 2021

N322422: The tariff classification of hoverboard accessories from China

HTS: 8714.10.0050, free, “Parts and accessories of vehicles of headings 8711 to 8713: Of motorcycles…: Other."
Item: Accessories used with the Segway Ninebot S and Ninebot S-PRO electric hoverboard that transform the hoverboards into go-karts.
Reason; N/A
Ruling Date: Nov. 18, 2021

N322447: The country of origin of a digital food thermometer

Origin: China
Item: A digital food thermometer. The production of the thermometer begins with the manufacture of the Taiwanese integrated circuit (IC). In Taiwan, the IC is programmed, with Taiwanese produced software, to give it the ability to receive, interpret, and measure the signal from the later incorporated negative temperature coefficient (NTC) sensor. The NTC sensor, which is produced in Japan, is a resistor with a negative temperature coefficient (or “thermistor”), such that the resistance decreases with increasing temperature and voltage increases as temperature increases. Once the Taiwanese IC and Japanese NTC are constructed, they are shipped to China for further processing. The operations performed in China include inspecting the raw materials; bonding the IC, NTC sensor, and other components onto the printed circuit board (PCB); inserting the NTC sensor into the probe; integrating the probe with the PCB and plastic housing; and installing the LCD readout display and battery.
Reason: The Taiwanese produced integrated circuit (with Taiwanese software) cannot perform the essential functions of the thermometer without the addition of the Japanese negative temperature coefficient sensor. Essentially, the IC does not have the ability to perform any measurement calculations without the sensor’s ability to obtain the readings. Therefore, the thermometer is not a functional unit until the parts are combined in China and hence a new article is created that has the ability to measure.
Ruling Date: Nov. 18, 2021