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Recent CBP NY Rulings

The following are short summaries of recent CBP NY rulings issued by the agency's National Commodity Specialist Division in New York:

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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.

N332332: The country of origin of a keyboard, video, and mouse (KVM) receiver

Country of Origin: China
Item: A plastic enclosure containing a motherboard printed circuit board assembly, a memory PCBA, a solid-state storage drive, and a cooling fan. On the side of the KVM Switch are numerous USB ports, and on the rear of the enclosure are two RJ-45 Ethernet ports, three HDMI ports, and two coaxial connectors. The KVM Switch functions to interconnect peripherals, such as a keyboard, display, mouse, and more, to an automatic data processing machine.
Reason: The dominant component of the KVM Switch is the motherboard printed circuit board assembly, which is where the processing takes place and also where all the peripheral connections are made. Furthermore, the assembly work that takes place in Ireland is not complex, where inserting a circuit board into a plastic housing and/or attaching system memory and storage by inserting into a socket, does not affect a substantial transformation of the articles being assembled.
Ruling Date: May 8, 2023

N332381: The tariff classification of Heat Pump and Air Handler units from China

HTS: (1) 8415.90.8065, 9903.88.15, 1.4% + 7.5%, "Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof: Parts: Other: Other: Of heat pumps."
(2) More information needed for classification
(imported together): 8415.10.6000, 9903.88.03, 1% + 25%, "Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof: Of a kind designed to be fixed to a window, wall, ceiling, or floor, self-contained or “split-system”: Other: Incorporating a refrigerating unit and a valve for reversal of the cooling/heat cycle (reversible heat pumps)."
Items: (1) The Vertical Discharge Outdoor Unit, referred to as a heat pump, and (2) the Indoor Unit, which is referred to as the air handler unit. Both, the heat pump and the air handler unit will be imported and distributed together as an air conditioning system. The heat pump is comprised of a compressor, heat exchanger, expansion valve, and 4-way valve intended for both cooling and heating air. The air handler unit is compromised of a heat exchanger, expansion valve, a blower with a drain connection. The Air Handler unit is designed to dispense temperature-controlled air.
Reason: It is unclear whether the air handler unit can be used with other types of outdoor units or exclusively with the subject heat pumps.
Ruling Date: May 8, 2023

N332440: The tariff classification of Evening Primrose and Grapeseed Oils from China

HTS: 1517.90.2080, 9903.88.15, 8% + 7.5%, “Edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, other than edible fats or oils or their fractions of heading 1516: Other: Artificial mixtures of two or more of the products provided for in headings 1501 to 1515, inclusive: Other: Other.”
Item: Encapsulated Evening Primrose and Grapeseed Oils. The product which consists of an encapsulated blend of the two types of oils will be packed and shipped in bulk quantities and sold for use as a dietary supplement.
Reason: N/A
Ruling Date: May 8, 2023

N332515: The country of origin of pipe wrenches

Country of Origin: South Korea
Items: Three types of pipe wrenches commonly used to turn threaded pipe and pipe fittings for assembly or disassembly. While the wrenches differ in the angle of their jaws and handles, each wrench incorporates four main parts: a handle, adjustable top jaw, fixed bottom jaw and an adjusting nut. You have stated that the manufacturing process is identical for the three wrenches.
Reason: The processes and assembly operations performed in China do not constitute a substantial transformation of the handle, adjustable top jaw, fixed bottom jaw and the adjusting nut that were manufactured in South Korea. These articles provide the essential characteristics of the finished wrench, are dedicated for use as such and cannot be used for any other purpose.
Ruling Date: May 8, 2023

N332582: The tariff classification of a Christmas decoration from China

HTS: 9505.10.1500, free, "Articles for Christmas festivities and parts and accessories thereof: Christmas ornaments: Of wood.”
Item: A rectangular freestanding tabletop decoration prominently featuring the word “Noel.” The item is primarily composed of medium density fiberboard wood. The item is decorated with a jute string of wooden beads and a sand dollar shell made of resin.
Reason: The word “Noel” is an alternate word for Christmas derived from the French word “Noël,” and CBP has consistently determined that articles bearing the word "Noel" in a prominent manner are festive. The item is marketed and sold exclusively as a Christmas decoration for the home.
Ruling Date: May 8, 2023

N332587: The tariff classification of yard stake decorations from China

HTS: (1) 9505.10.3000, free, “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Articles for Christmas festivities and parts and accessories thereof: Nativity scenes and figures thereof."
(2), (3) 9505.10.1500, free, "Articles for Christmas festivities and parts and accessories thereof: Christmas ornaments: Of wood.”
Items: Christmas Decoration Yard Stakes. All are predominantly made of medium density fiberboard veneer wood. The decorative items are attached at the lower middle area to an MDF pointed stake that can be driven into the ground to keep it upright for outdoor display. Each item is sold individually, and is marketed, and sold exclusively as a Christmas decoration for the home. (1) The first item is a depiction of the nativity scene with silhouetted figures of Mary, Joseph, and baby Jesus in the stable under the Star of Bethlehem. (2) The second item depicts a signpost with printed arrows pointing directions to the “North Pole,” ”Reindeer Games,” “Santa’s Workshop,” and “Candy Cane Lane.” (3) The last item features a cut-out star shape with the phrase “Sandy & Bright,” depicting a star-shaped tree topper. Additionally, the stake is trimmed below the star with a burlap bow and two non-functional bells.
Reason: N/A
Ruling Date: May 8, 2023

N330175: The country of origin ferrotitanium powder

Country of Origin: Russia and Estonia
Item: Ferrotitanium powder used in the production of cored wire. Lump ferrotitanium is purchased in 20 ton lots from Russia, measuring 10-50 mm, and 25 ton lots from Estonia, measuring 0-10 mm. The lots are sent to the Netherlands for further processing. In the Netherlands, a blending and crushing operation occurs. According to your submission, the blending size is 40% Russian origin and 60% Estonian origin. The lump form is crushed and blended to a size range of 0-10 mm. Then the product is further crushed to a 0-2 mm powder and packaged for export.
Reason: The crushing and blending of the lump ferrotitanium into a powder does not constitute a substantial transformation. Moreover, based on the information provided, the basic underlying chemical properties of each product from Russia and Estonia remain essentially unchanged and the processing in the Netherlands does not create a different product but merely another unwrought product with particles of a different size
Ruling Date: May 5, 2023

N332171: The tariff classification of pHelper-Kan-OTS DNA Plasmid from the United Kingdom

HTS: 2934.99.9001, 6.5% “Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds: Other: Other: Other: Other: Other.”
Item: pHelper-Kan-OTS DNA Plasmid, used in combination with separate Rep/Cap and gene of Interest plasmids, as a biological reagent for triple transfection of mammalian host cell lines to generate Adeno-Associated Virus viral vectors for gene therapy applications.
Reason: N/A
Ruling Date: May 5, 2023

N332268: The tariff classification of a pet carrier backpack from China

HTS: 3926.90.9985, 9903.88.15, 5.3% + 7.5%, “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other: Other.”
Item: A hybrid pet carrier that can be worn as a backpack with the adjustable padded shoulder straps. The front side is made of a hard, molded plastic polycarbonate. Atop the plastic side are cat-shaped ears and in the middle is a clear viewing window. The back side is made of a polyester woven textile fabric. There is a removable interior pad of polyvinyl chloride which, when in place, holds the soft back side shape open. The double pull zipper opens the sides and top of the carrier, with the back panel dropping down for a pet to exit.
Reason: N/A
Ruling Date: May 5, 2023