Newly Released CBP HQ Rulings on Sept. 12
The Customs Rulings Online Search System (CROSS) was updated Sept. 12 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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H322233: Coastwise Transportation; Offshore Cable; Cable Protection Materials; 46 U.S.C. § 55102; 46 U.S.C. § 55103; 46 U.S.C. § 55109; 19 C.F.R. § 4.80a; 19 C.F.R. § 4.80b
| Ruling: (1) The use of the trenching machine does not constitute “dredging." (2) The laying of electric transmission cable along the seabed does not constitute coastwise trade. (3) The return of unused electric transmission cable to the same U.S. point at which it was originally laden does not constitute coastwise trade. (4) The transportation of concrete mats and other material from one U.S. point to the subject electric cable constitutes coastwise trade under the Jones Act. The use of a non-coastwise-qualified vessel to transport this material violates the Jones Act. (5) The transportation of the project crew on board the CIV would not be in violation of the PVSA |
| Issue: (1) Whether the use of the trenching machine to create a seabed cable trench violates the coastwise dredging statute? (2) Whether the subject cable placement and movement by a non-coastwise-qualified vessel violates the Jones Act? (3) Whether the return of excess cable to a U.S. port by a non-coastwise-qualified vessel violates the Jones Act? (4) Whether the transportation of concrete mats and other material on board a non-coastwise-qualified vessel to be placed over the subject cable violates the Jones Act? (5) Whether the transportation of the marine and project crew on board a non-coastwise-qualified vessel violates the Passenger Vessel Services Act? |
| Item: N/A |
| Reason: The concrete mats are “merchandise” as contemplated by the Jones Act. The crew are performing tasks on board the vessel that are directly and substantially related to the operation of the vessel and are not "passengers." |
| Ruling Date: Sept. 2, 2022 |
H326671: Preferential Tariff Treatment of Jet Fuel Under the U.S.-Korea Free Trade Agreement
| Ruling: The jet fuels qualify as originating goods under the UKFTA, are fungible goods with respect to the non-originating jet fuels, and may be accounted for using first-in, first-out inventory management. |
| Issues: (1) Whether the finished jet fuels are originating goods under the UKFTA. (2) Whether the goods qualify as “fungible goods” under the UKFTA. (3) Whether “first-in, first-out” inventory management may be employed to conserve the originating status of the fuels when they are comingled with non-originating Jet A-1 fuels. |
| Item: Jet fuels produced in Korea by Hyundai Oilbank and its subsidiary Hyundai Chemical. First, the crude oil undergoes an atmospheric distillation process in crude distillation units, which separates kerosene from the crude oil or liquid condensates. Crude oil is heated to approximately 700-750 degrees Fahrenheit and injected into the lower part of the CDU, where much of it vaporizes. As the vapors rise through the CDU and cool, their components condense back into liquid at different levels in the CDU based on their boiling point. These different streams are called distillation cuts or fractions, and include a distillation cut comprised of “straight-run kerosene.” Second, the “straight-run kerosene” goes through a sweetening stage to remove sulfide compounds and make the kerosene suitable for use as jet fuel. Finally, the finished product is moved into storage tanks. It is common practice in the jet fuel industry to comingle jet fuels from various suppliers in joint storage tanks so long as the comingled jet fuels satisfy the same industry requirements. As a result, the Jet A-1 fuel produced by HDO and HDC may be mixed with other Jet A-1 fuel, possibly of other origins, before exportation to the U.S. |
| Reason: The distillation process comports with the description of “atmospheric distillation” in the heading rule for goods classified in heading 2710. The properties of the commingled fuels are “essentially identical.” The first-in, first-out method is specifically authorized under GN 33(j)(i)(C). Therefore, it is an acceptable method of inventory management under the UKFTA. |
| Ruling Date: Aug. 30, 2022 |
H326621: Coastwise Transportation; 46 U.S.C. §§ 55102, 55103; Merchandise; Passengers; Vessel Equipment; Oil Well Stimulation; 19 C.F.R § 4.50(b); 19 C.F.R. § 4.80; 19 C.F.R. § 4.80a; 19 C.F.R. § 4.80b
| Ruling: (1) The proposed well stimulation operation does not constitute “transportation” within the meaning of the Jones Act and is not in violation. (2) The subject well stimulation crew are not “passengers” within the meaning of the Passenger Vessel Services Act. |
| Issues: (1) Whether the contemplated well stimulation operation by the non-coastwise-qualified vessel violates the Jones Act, 46 U.S.C. § 55102? (2) Whether the contemplated transportation of individuals onboard the non-coastwise-qualified vessel violates the Passenger Vessel Services Act, 46 U.S.C. § 55103? |
| Item: N/A |
| Reason: Because the WSV would perform the well stimulation operation, it is “necessary and appropriate for the operation” of the WSV. Though the drillship provides the marine riser and thus access to the well and reservoir, the WSV performs the entirety of the well stimulation operation. The drillship is not involved in mixing, pumping, or disposing of the WSF. This operation is analogous to the well stimulation operation on a fixed platform or tension leg platform piping which was found permissible in HQ H321240. The WSF constitutes vessel equipment in this scenario, and there is no transportation of merchandise between coastwise points. The well stimulation technicians will perform a variety of activities. The proposed activities would be directly and substantially connected with the operation of the WSV or navigation of the vessel during the voyage. Therefore, the well stimulation technicians are not “passengers.” |
| Ruling Date: Aug. 29, 2022 |
H312791: Protest and Application for Further Review 1704-16-100841; Tariff Classification of Pop-Up Sprinklers
| Ruling: The pop-up Series 1800 and B45194 MiniPaw sprinklers are eligible for classification under subheading 9817.00.50, which provides for duty free benefits for “Machinery, equipment and implements to be used for agricultural or horticultural purposes,” if the actual use conditions are met. |
| Issue: whether the pop-up sprinklers are eligible for duty-free benefits under subheading 9817.00.50 |
| Items: (1) The 1800 series pop-up sprinkler spray heads. The stems of the sprinklers may have different lengths and have the ability to seal at the bottom when water is turned off to avoid leaking. The sprinklers are used to spray water on plants, turf, gardens and crops. When the water valve opens, the water pressure forces the stem in the sprinkler to pop up and spray water. A nozzle attached to the top of the stem adjusts the distance, pattern and amount of water applied. When the water valve closes, the spring in the body of the sprinkler retracts the stem into the body of the sprinkler. Other than the internal spring, which is made of metal, the sprinkler is made of plastic. (2) A pop-up impact sprinkler. The MiniPaw is a rotary sprinkler with a pressure-activated wiper seal that assures reliable pop-up and retraction. The sprinkler has a diffuser that breaks water into smaller droplets for uniform watering, and a spray guide arm that controls the water stream to prevent side splash onto buildings and walkways. The MiniPaw is also used to spray water on plants, turf, gardens, and crops. |
| Reason: The importer entered the merchandise under subheading 9817.00.50 at the time of importation. 9817.00.50 is an actual use provision. CBP may construe the entry under an actual use provision as a declaration of intent as to the actual use of the imported merchandise. The requirement that actual use is intended at the time of importation has been satisfied in the instant matter. |
| Ruling Date: July 6, 2022 |