Newly Released CBP HQ Rulings for June 14
The Customs Rulings Online Search System (CROSS) was updated June 14 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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H323382: Coastwise Transportation; Oceanographic Research; 46 U.S.C. §§ 55102 and 55103
| Ruling: (1) The transportation of a research team would not violate the Passenger Vessel Services Act as it is not to be engaged in trade or commerce. Transportation of any passengers not actively involved in the research, or connected with the vessel's ownership, would violate the Passenger Vessel Services Act. (2) If there is no intent to import, sell, or charter the proposed vessel, and its activity is of temporary research use in the U.S. territorial waters, equipment will not be deemed imported, and is not subject to duties. |
| Issues: (1) Whether the proposed operation constitutes an engagement in coastwise trade. (2) Whether the proposed use of the vessel in U.S. coastal waters for oceanographic research may be afforded duty-free treatment. |
| Item: N/A |
| Reason: CBP has held that the use of a vessel to engage in oceanographic research is not a use in the coastwise trade. Transportation of supplies and equipment necessary for such research would not violate coastwise laws. |
| Ruling Date: June 10, 2022 |
H323601: Country of Origin; Spent Catalysts; Subheading 9903.88.03; Section 301 Remedy
| Ruling: The country of origin of the spent catalysts, returned to the U.S. from China, is the United States. Section 301 measures will not apply. |
| Issue: What is the country of origin of the chemical catalysts manufactured in the U.S., shipped to and used in China, and subsequently returned to the United States as spent catalysts for refining for the purposes of applying Section 301 trade remedies? |
| Item: Chemical catalysts manufactured in South Carolina. The catalysts will contain a platinum group metal in the form of a solution that will be sprayed onto an aluminum oxide substrate also known as an aluminum oxide sphere or substrate. The catalysts will be packaged for sale and exported to China where they will be added to BASF’s customers’ reactors to produce fine chemicals, oleochemicals and petrochemicals. Once the catalysts’ effectiveness falls below their tolerance level, the spent catalysts will be removed from the reactor in China, packaged, and returned to the U.S. for refining. When entered into the U.S., the spent catalysts will be classifiable under subheading 7112.92.01 as “Waste and scrap of precious metal ...” During the refining process in the U.S., the active palladium will be removed from the substrate, put into a solution, and sprayed onto a new substrate for use as a new catalyst. |
| Reason: The catalyst is used in a reactor in China without being further worked. It gradually loses its catalytic activity but it remains a catalyst. No substantial change in name, character or use occurs when the catalyst falls below the designated tolerance levels in China. |
| Ruling Date: June 7, 2022 |
H324385: Powdered Yogurt Products; Valuation under 19 U.S.C. § 1401a; Computed Value
| Ruling: The subject powdered yogurt products should be appraised under computed value |
| Issue: What is the proper method of appraisement for the subject powdered yogurt products imported with or without the non-electric yogurt makers and plastic jars as described? |
| Item: make-at-home powdered yogurt products and non-electric yogurt makers |
| Reason: The subject merchandise will not be sold on entry and will be stored in a warehouse. No transaction values of identical or similar merchandise are available. The importer has elected the application of the computed value before the deductive value. |
| Ruling Date: June 7, 2022 |
H323185: Request for Internal Advice; Classification of automotive telematics device with cellular modem, GPS, code reader, accelerometer/gyroscope
| Ruling: The datalogger is classified in subheading 9031.80.80 as “[M]easuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: other instruments, appliances and machines: other.” |
| Issue: What is the proper classification of the subject automotive telemetrics device? |
| Item: A datalogger designed to be installed in a vehicle’s engine diagnostics port. It is used to collect, analyze, and transmit data about the vehicle to a server via the global cellular network. The key components include an accelerometer/gyroscope, GPS, OBD-II code reader , and cellular modem/transceiver. The accelerometer/gyroscope detects gravitational force to collect data on braking, acceleration, and cornering. The GPS collects vehicle location data. The reader function is used to pull data from the car’s computer and sensors. The cellular modem/transceiver processes, converts, and transmits to servers the data collected by other components. |
| Reason: It is not possible to determine which component performs the device’s principal function. GRI 3(c) applies to require the good to be classified in the heading that occurs last in numerical order among the competing headings that equally merit consideration. |
| Ruling Date: April 4, 2022 |
H318979: Revocation of NY N253902; Classification of Unframed Automotive Side Mirrors
| Ruling: The mirrors are classifiable under subheading 7009.10.00 as “Glass mirrors, whether or not framed, including rear-view mirrors: Rear-view mirrors for vehicles.” |
| Issue: whether the unframed automotive side mirrors are classified in subheading 7009.10.00 as rearview mirrors, or subheading 7009.91.10 as unframed glass mirrors |
| Item: A glass mirror, unframed and the reflecting surface measures less than 929 cm². The item will be used as an exterior side view mirror. The vast majority of these products will be used in trucks. |
| Reason: Although the subject unframed automotive side mirrors are placed on the exterior of passenger vehicles, these mirrors reflect the area behind the vehicles. |
| Ruling Date: March 30, 2022 |
H304671: Revocation of NY N245655 and NY N100856; tariff classification of babies’ swimwear
| Ruling: The suits are classifiable under subheading 9619.00, HTSUS, as “Sanitary towels (pads) and tampons, diapers and diaper liners for babies and similar articles, of any material: Other, of textile materials.” NY N245655, dated Sep. 12, 2013 and NY N100856, dated April 15, 2010 are revoked. |
| Issue: Whether the subject babies’ swimsuits are classifiable in heading 6111, HTSUS, which provides for “Babies’ garments and clothing accessories, knitted or crocheted,” or in heading 9619.00, HTSUS, which provides for “Sanitary towels (pads) and tampons, diapers and diaper liners for babies and similar articles, of any material.” |
| Item: Babies’ swimwear with an interior diaper component. The outer shells and interior linings of both garments are constructed of polyester knit fabric. Between the outer shells and the interior linings is an interior layer of thin nylon woven fabric that has a polyurethane coating. The lining assists in preventing waste and bacteria from getting into the water. Style 7570512 is for boys. It has swim trunk styling and a fully elasticized waistband. The interior panty section is sewn into the interior waistband and has elasticized fabric at the leg openings. Style 7570513 is for girls. It has panty styling, a fully elasticized waistband with fabric bow and elasticized fabric at the leg openings. |
| Reason: In general, the articles heading 9619 are disposable. In HQ H271286, dated April 4, 2017, CBP stated that the absorbent component imparts the essential character to articles of heading 9619. |
| Ruling Date: March 28, 2022 |
H313493: Protest and Application for Further Review No 5501-20-102468; Classification of day planners
| Ruling: The planners are classified in subheading 4820.10.40, as “Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, exercise books, blotting pads, binders (looseleaf or other), folders, file covers, manifold business forms, interleaved carbon sets and other articles of stationery, of paper or paperboard; albums for samples or for collections and book covers (including cover boards and book jackets) of paper or paperboard: Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles: Other." |
| Issue: whether the planner is properly classified in heading 4820, HTSUS, as an engagement book or in heading 4910, HTSUS, as a calendar |
| Item: Three sample planners: a daily planner; a weekly planner; and a "today and to do" planner. They all contain basic, grid calendar pages by date and month, as well as lines in the date grids, which are sized larger than 1 inch x 1 inch, to provide space to write in appointments, engagements, pages for jotting notes, thoughts and the like. The weekly planner includes pages for listing favorite movies, expenses, a packing checklist and entertaining checklist etc. The “Today & To-Do” planner contains daily to-do list sections, a goal description page and “making it happen” pages, as well as many lined note pages. The paper is under 0.51 mm in thickness. |
| Reason: Heading 4910 does not cover articles whose essential character is not determined by the presence of a calendar. The articles provided boxes greater than 1 inch square for the dates and additional pages and space to list values, priorities, items of importance etc. as shown in the representative images. Both of these factors support CBP's conclusion that the planners are engagement books and therefore, are excluded from classification in Heading 4910. |
| Ruling Date: March 29, 2021 |