Export Compliance Daily is a Warren News publication.

Newly Released CBP HQ Rulings March 28 - April 3

The Customs Rulings Online Search System (CROSS) was updated over the past week 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.

H322967: Affirmation of NY N319278; Country of Origin of Hypodermic Safety Needles; Substantial Transformation

Ruling: The pre-cut, stainless steel needles/cannulae are not substantially transformed as a result of assembly and processing operations in the U.S. Therefore, the country of origin of the hypodermic safety needles is China, Japan, France, or South Korea, depending on where they are manufactured.
Issue: What is the country of origin of the needles/cannulae?
Items: Hypodermic safety needles individually packaged in a preformed sterile barrel film pocket, sealed closed with a sterile barrier paper lidding. Each hypodermic safety needle consists of a stainless steel needle, a plastic hub adapter, a plastic needle safety shield, and a plastic needle sheath.
Reason: The assembly and processing that occurs in the U.S. are simple and minor processes which leave the identity of the pre-cut, stainless steel needle/cannulae intact. Substantial processing operations go into the production of the hypodermic safety needles in their respective countries.
Ruling Date: March 30, 2023

H325872: Ruling request concerning the tariff classification of an LCD module for motor vehicle applications; Decoder IC

Ruling: The subject LCD display module is classified under subheading 8528.59.25 as “Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus: Other monitors: Other: Color: With a flat panel screen: Other.”
Issue: What is the proper tariff classification of the LCD modules under the HTSUS?
Item: A liquid-crystal display module. It does not incorporate a touchscreen. It does not contain video recording or reproducing apparatus or provide for television reception. The display module’s printed circuit board subassembly contains a micro-controller unit, high-speed low voltage differential signaling deserializer integrated circuit, decoder IC, LED driver, voltage generators, and various resistors and capacitors that adhere to the bare board via surface-mount technology. The module is intended for automotive use as a driver or passenger display screen.
Reason: The Court of International Trade defined a monitor of heading 8528 as "a machine that receives data from an external source, and then processes and converts that data into physical output commands to display an image." In their condition as imported, the subject display modules receive video data values from the OEM through a high-speed serialized interface over coaxial cables/vehicle harness connected to the LVDS deserializer IC, which contains a decoder IC that processes and converts the video data for display.
Ruling Date: March 27, 2023

H327157: Protest and Application for Further Review No. 4601-21-125230; Tariff classification of certain footwear

Ruling: The footwear is correctly classified under subheading 6402.99.90 as “Other footwear with outer soles and uppers of rubber or plastics: Other footwear: Other: Other: Other: Other: Valued over $12/pair.”
Issue: What is the tariff classification of the footwear?
Item: A below-the-ankle, lace-up sneaker, featuring uppers made of a combination of rubber/plastics, leather (suede), and textile mesh, decorated with the brand name embroidered under the ankle, and rubber/plastic dots (Braille lettering) on the lateral side of the toes. The outer soles consist of rubber/plastics molded into the signature thick chain-link design. The outer soles are extremely heavy and rigid, and feature no underfoot cushioning.
Reason: According to CBP laboratory report, the external surface area of the upper of footwear, excluding reinforcements or accessories, is predominantly rubber/plastic. Despite a general athletic appearance and other construction features associated with athletic footwear, such as a lace closure, this footwear style features outer soles that are so thick, heavy, and rigid, that it cannot be used for any athletic purpose or sporting activity.
Ruling Date: Jan. 23, 2023

H306282: Application for Further Review of Protest No. 2704-19-104352; Classification of a Push-Pull Transformer

Ruling: The push-pull transformer is classified under subheading 8504.31.40 which provides for, “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Other transformers: Having a power handling capacity not exceeding 1kVA: Other: Having a power handling capacity less than 1kVA.”
Issue: whether the transformer is classified under subheading 8504.31.20 as an unrated transformer or under subheading 8504.31.40 as a transformer having a power handling capacity less than 1 kVA
Item: A push-pull transformer used in circuits to convert DC voltage into another value of DC voltage, as well as in circuits that convert the input voltage from DC electricity into AC. The transformer in this case was designed for assembly onto a power circuit board in a DC/AC inverter for automobiles. The material fabrication of the transformer restricts its power handling capacity to 1kVA or less.
Reason: It is well established that transformers may not be classified as unrated if they are of a class or kind which are rated or are for use in power circuits where the capacity of a transformer must be known, even if it is not included on any commercial labels. The only transformers that fall under the scope of the term “unrated” for classification purposes are signal transformers and current transformers. The transformer at issue is not a signal transformer, nor is it a current transformer that works as a circuit breaker or a large power transformer.
Ruling Date: Jan. 23, 2023