Export Compliance Daily is a Warren News publication.

Newly Released CBP HQ Rulings for Feb. 10

The Customs Rulings Online Search System (CROSS) was updated Feb. 10 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.

H323273: 46 U.S.C. § 55102; 19 C.F.R. §4.80b; Coastwise Transportation; Continuity of Transportation

Ruling: Unlading the subject ethanol at a coastwise point in New Jersey would not constitute a violation of 46 U.S.C. § 55102.
Issue: whether the transportation of commingled, contaminated ethanol from either a terminal in New Jersey, or Upper New York Harbor in the state of New York, to a terminal in New Jersey, constitutes a violation of 46 U.S.C. § 55102
Items: 30,000 metric tons of ethanol. The contract between the parties indicated that the subject ethanol was to be transported from the U.S. and was to be unladen at the ports of Dubai and Oman. However, at an intermediary stop at Stapleton Anchorage, New York, the cargo was found to be contaminated. The buyer rejected the cargo because the ethanol was “off spec.”
Reason: [E]ven the landing of goods and payment of duties does not interrupt the continuity of the voyage of the cargo, unless there be an honest intention to bring them into the common stock of the country. ... CBP has consistently held that a break in the continuity of transportation occurs if there is honest intent to introduce merchandise into the common stock of another country. In this case, an effort to enter merchandise into the common stock of another country was thwarted by contamination of the merchandise and a refusal by the intended foreign recipient to accept the goods.
Ruling Date: Feb. 8, 2022

H294502: Affirmation of NY N291905; classification of malt beverage base

Ruling: Malt Beverage Bases 1 and 2 ingredients are classified in heading 2206.
Issue: whether the instant malt beverage base products are classified under heading 2203, HTSUS, as beer made from malt, or under heading 2206, HTSUS, as other fermented beverages -- reconsideration of CBP’s decision in NY N291905
Items: Two types of Bulk Malt Beverage products to be used as an ingredient to make ready-to-drink malt beverage based products. (1) One contains 52.8 percent brewing water, 45 percent dextrose syrup (wheat derived), 2 percent malted barley and less than 1 percent hops and yeast. (2) The other contains 52.8 percent brewing water, 45 percent gluten free malted grain, 2 percent glucose syrup (maize-derived), and less than 1 percent hops and yeast. Both Malt Beverages are said to have an alcoholic strength by volume of 21.9 percent. The products will be imported into the United States in flexitank bottles of 20,000 liters. The final post-importation products will be marketed and sold as malt-based ready-to-drink products that will contain additional flavors. The final alcohol content will be approximately 5% abv. Mash is created from malted barley, glucose syrup, potable water and hops. The substance is then cooled to 32°C, where yeast is added which begins the next stage of the process, fermentation, followed by clarification and filtration. The final process stage is quality check. Post-importation production is unknown with the exception of the addition of additional flavors and the reduction of alcohol content from 21.9% abv to 5% abv.
Reason: The explanatory note to heading 2206 provides, "This heading covers all fermented beverages other than those in headings 22.03 to 22.05." A product which is described as an “ingredient” to make ready-to-drink malt beverages is not commonly or commercially recognized as beer. The addition of wine, juice or other flavoring is neither determinative nor required for classification under heading 2206.
Ruling Date: Nov. 29, 2021

H309484: Application for Further Review of Protest No. 5309-20-100222; Automobile Safety (Vest) Device for Children

Ruling: The safety device is classified in heading 8708.29.5060, which provides for: “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories of bodies (including cabs): Other: Other, Other.”
Issue: whether a portable automobile safety (vest/harness) device is classified under heading 8708, HTSUS, as parts and accessories of vehicles, or under heading 6307, HTSUS, as other made up articles
Item: The WhizRider, a portable automobile safety device designed for use by children, ages three to eleven years old. It has the design of a vest or harness and is designed to function as a safety device to be affixed to the seat belt of an automobile like a car seat or harness. According to the 2019 Product Manual, the WhizRider is an adjustable vest-like harness featuring safety webbing, metal clip webbing, elastic loop webbing and release buckles which are made of polyoxymethylene. The safety belt webbings are said to have the same strength of those used in race cars. The safety vest/harness is flame retardant, water repellant and fits with cross routing safety belts to guide impact forces. The WhizRider Product Manual indicates that the WhizRider has been subjected to collision tests and other safety tests. It comes in two sizes: Small: ages 3 to 8, weight: 30 to 55 lbs and Large: ages 6 to 11, weight: 47 to 80 lbs.
Reason: CBP has previously classified substantially similar merchandise as a part and accessory to motor vehicles under heading 8708.
Ruling Date: Nov. 29, 2021

H320527: Modification of NY N280540; Tariff Classification of from South Africa

Ruling: In NY N280540, the “Rooibos Tea” from South Africa was incorrectly classified in subheading 1211.90.4020. Rooibos Tea is correctly classified under 1211.90.9280, which provides for “Plants and parts of plants (including seeds and fruits), of a kind used primarily for perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh, chilled, frozen or dried, whether or not cut, crushed or powdered: Other: Other: Fresh or dried: Other: Herbal teas and herbal infusions (single species, unmixed).”
Issue: What is the tariff classification of the “Rooibos Tea” from South Africa?
Item: “Rooibos Tea” from South Africa bearing the product name “Royal T-Stick.”
Reason: The “Rooibos Tea” from South Africa is understood to consist of “100 percent rooibos tea." Although the preparation of the “Rooibos Tea” may mirror that of traditionally prepared teas, its composition not within the Thea genus and precludes classification therein. The exclusion of the “Rooibos Tea” from heading 0902 is proper.
Ruling Date: Nov. 12, 2021