Export Compliance Daily is a Warren News publication.

Newly Released CBP HQ Rulings June 15

The Customs Rulings Online Search System (CROSS) was updated June 15 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):

Sign up for a free preview to unlock the rest of this article

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.

H330139: Affirmation of NY N329700; Tariff Classification of Coated Polyester Stitch-Bonded Fabric from Vietnam

Ruling: Style 20336 is correctly classified under subheading 6005.36.00 as “Warp knit fabrics (including those made on galloon knitting machines), other than those of headings 6001 to 6004: Of synthetic fibers: Other, unbleached or bleached: Other: Stitch-bonded goods.” NY N329700 is affirmed.
Issue: Whether the gray-color, acrylic coated fabric of Style 20336 a “coated fabric,” which has a coating that is “visible to the naked eye,” as provided for under heading 5903.
Item: A coated, stitch-bonded fabric composed of 100% polyester staple fibers and chain stitched with 100% polyester yarn made of unbleached fibers. The stitch-bonded fabric is coated with an acrylic based, gray colored coating. Upon visual review of the sample, the coating is not visible to the naked eye. According to the information provided, the coated fabric weighs 90 g/m2. The fabric will be used on the bottom of a mattress or on the top of a box spring or other foundation. It will be imported in industrial sized roll form, typically 82 inches in width.The coating is comprised of an acrylic latex polymer, kaolin clay, and carbon black. The coating is applied using a foam coating process, whereby the coating compound is first foamed using air. A layer of the foam compound is applied to the surface of the uncoated fabric, and the fabric is then passed through rollers and cut to control the thickness of the foam layer. The fabric is then dried in ovens. You stated that the coating is used to provide additional strength to the fabric, provide opacity to the fabric, and to increase the coefficient of friction of the fabric, which are important for fabrics used on the bottom of mattresses and on top of box springs.
Reason: The fabric sample provided reflects a gray-colored coating applied to the stitch-bonded polyester fabric. The gray-colored, acrylic coating is not visible to the naked eye upon visual inspection. Note 2 to Chapter 59 and EN 59.03 precludes classification of a textile fabric under heading 5903 if the coating is not visible to the naked eye. For purposes of classification of the stitch-bonded polyester fabric, the gray-colored, acrylic coating is not visible to the naked eye.
Ruling Date: June 13, 2023

H331671: Modification of HQ H329396; Tariff Classification of Paddling Apparel from Thailand

Ruling: The four styles of paddling apparel at issue are classified under subheading 6113.00.90 as “Garments, made up of knitted or crocheted fabrics of heading 5903, 5906, or 5907: Other.” The 2023 column one general rate of duty is 7.1% ad valorem.
Issue: Tariff classification of the four styles of paddling apparel from Thailand.
Items: Four styles of paddling apparel for use in kayaking and canoeing. They are all constructed from neoprene laminated fabrics.
Reason: In instances where a garment is classifiable under heading 6113, but does not have an outer surface coated with rubber or plastic material that completely obscures the underlying fabric, CBP has classified the garment under subheading 6113.00.90. None of the four styles have an outer surface coated with rubber that completely obscures the underlying knit fabric, and as such, these styles cannot be classified under subheading 6113.00.10.
Ruling Date: June 15, 2023

H328731: Tariff classification and Country of Origin of Monolith Station

Ruling: The subject Monolith is classified under subheading 8476.89.00 as “Automatic goods-vending machines (for example, postage stamp, cigarette, food or beverage machines), including money-changing machines; parts thereof: Other machines: Other.”
Issues: Whether the Monolith is classified in heading 8476 as an automatic goods-vending machine, heading 8479 as a machine having an individual function not specified or included elsewhere, or in heading 8517 as other apparatus for the transmission or reception of data.
Item: The Monolith Docking station is a street mounted locking platform for the securing and dispensing of E-bikes or E-scooters. This rack system is used mainly for the locking/securing, docking and rental of compatible vehicles. The docking station functions as a type of vending machine in that it allows riders to rent shared bikes and scooters. It has the ability to electronically transmit operational information such as bike availability information at a particular station to remote cloud-based servers running service operator programs.
Reason: As determined in HQ H269223, an apparatus that incorporates a payment mechanism qualifies as a vending machine within the meaning of heading 8476, even if the temporal nexus between delivery and payment is not necessarily direct. The Monolith allows for the rental of an E-bike or E-scooter, incorporates a payment mechanism, and charges a user after returning the e-bike or e-scooter.
Ruling Date: June 6, 2023