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Newly Released CBP HQ Rulings on Nov. 10

The Customs Rulings Online Search System (CROSS) was updated Nov. 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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H326395: 19 U.S.C. § 1466; Vessel Repair; Installation of Liquified Natural Gas fuel system; M/V DANIEL K INOUYE, M/V KIAMANA HILA; Matson Navigation Company.

Ruling: The proposed shipyard work constitutes non-dutiable modifications to the vessels.
Issue: Whether proposed modifications to add LNG-burning capability to the engines of two U.S.-flagged vessels constitutes modifications to the subject Vessels under 19 U.S.C. § 1466?
Item: N/A
Reason: CBP has consistently ruled that newly designed systems and components permanently installed on a vessel, which would remain on board the vessel during extended layup, do not replace an item in need of repair, and will improve the operation or efficiency of the vessel are considered modifications. The proposed work is intended to comply with upcoming environmental regulations, which CBP has ruled are non-dutiable modifications.
Ruling Date: Nov. 7, 2022

H314080: Application for Further Review of Protest No. 4601-2012-0178; Section 301 Measures; Subheading 9903.88.03, HTSUS; Tariff classification of certain impregnated, coated, covered, or laminated textile fabrics

Ruling: The fabrics are classified under subheading 5903.20.25 as “Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902: With polyurethane: Of man-made fibers: Fabrics specified in note 9 to section XI: Other: Other.” The are not excluded under U.S. note 20(ll)(18) to Chapter 99, HTSUS, from the additional 10 percent Section 301 duty provided for in subheading 9903.88.03, HTSUS.
Issue: Whether the fabrics are “[f]abrics of man-made micro-denier fibers,” as specified in the Section 301 Exclusion Order granted by USTR and provided for in U.S. note 20(ll)(18) to Chapter 99, HTSUS?
Items: Seventeen styles of textile fabrics Austen; Beckett; Capote; Channel; Clarke; Hemingway; Huxley; Instill; Kipling; Parker; Playmat; Prompt; Salinger; Tolstoy; Twain; Vibe II; and Wilde.
Reason: Based on the CBP laboratory measurements, all the subject samples measured more than 10 microns in diameter or average diameter, therefore, the subject samples do not meet the definition of microfiber provided in the Fairchild Dictionary. Since the term microdenier and microfiber are interchangeable, then the subject samples do not meet the specifications of microdenier fibers either.
Ruling Date: Sept. 8, 2022

H322878: Revocation of NY B88990, NY R00569, and NY N283857; Tariff classification of hot and cold water dispensers

Ruling: The water dispensers at issue are correctly classified in subheading 8516.79.00, which provides for “Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electrothermic hairdressing apparatus (for example, hair dryers, hair curlers, curling tong heaters) and hand dryers; electric flatirons; other electrothermic appliances of a kind used for domestic purposes; electric heating resistors, other than those of heading 8545; parts thereof: Other electrothermic appliances: Other.”
Issue: Whether water dispensers that both chill and heat water are properly classified in heading 8418 as “Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps, other than the air conditioning machines of heading 8415; parts thereof” or in heading 8516 as "Electric instantaneous or storage water heaters and immersion heaters...”?
Items: (1) A thermoelectric desktop water dispenser, featuring a stainless-steel hot water tank, and a separate thermoelectric chamber for cold water. The unit is further described as having hot and cold switches, a removable drip tray, and a light-emitting diode (LED) indicator light. The water dispenser is compatible with a three or five gallon water bottle, which fits into the top of the unit. (2) A drinking water dispenser, providing cold water or hot water for coffee, tea or soup. The unit is further described as having a compression type refrigeration system and a band heater for hot water. (3) water coolers, dispensing hot and cold water. Two models are designed to connect directly to a water supply, while four additional models rely on a water bottle. Cold water is produced by a reciprocating compressor, with coils mounted on the back of the unit to receive refrigerant circulated by the compressor.
Reason: All three of the water dispensers under consideration are designed to dispense hot and cold water, which makes them composite machines. Neither heading provides a more specific description of the merchandise. The water dispensers are therefore classified in the heading occurring last in numerical order.
Ruling Date: Aug. 23, 2022