Newly Released CBP HQ Rulings Aug. 21
The Customs Rulings Online Search System (CROSS) was updated Aug. 21 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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H326829: Application of liquid preservative to plywood; “manufacturing,” “use,” or “unused;” drawback under 19 U.S.C. § 1313(j)(1) and 19 CFR § 190.31(c).
| Ruling: The imported plywood that is pressure treated to render the plywood suitable for outdoor use is ineligible for unused merchandise drawback. |
| Issue: Does imported plywood that is pressure treated prior to exportation constitute unused merchandise for purposes of claiming drawback under 19 U.S.C. § 1313(j)(1)? |
| Items: Plywood imported from Uruguay that is later subjected to pressure treatment with Copper Azole to .06 pounds per cubic feet using a vacuum and pressure process. The treated plywood is then exported back to Uruguay. The treated plywood is intended for outdoor applications and general construction, including for agricultural, commercial, and residential uses. The purpose of the treatment is to improve the plywood’s resistance to moisture and insects; the liquid preservative reacts with the wood to make the wood less attractive to wood-destroying organisms. |
| Reason: The pressure treatment is an operation amounting to a manufacture or production. |
| Ruling Date: Aug. 21, 2023 |
H329175: Country of Origin; USMCA; Section 301
| Ruling: The tires may be considered a product of Mexico for purposes of marking and exempt from Section 301 duties. |
| Issue: Are the passenger vehicle, light truck, heavy truck, and industrial tires eligible for USMCA preferential tariff treatment and what is the country of origin for purposes of marking and Section 301 duties? |
| Items: Various models of passenger, light truck, heavy truck, and industrial tires. The importer states that the sizes will vary at the time of production from 12 inches and higher, but all are of radial construction. |
| Reason: The foreign parts do not have a pre-determined end-use before importation, but rather undergo a change in use due to the assembly process performed in Mexico. The production process performed in Mexico involves multiple steps to turn raw materials into components which are used to produce the completed tire -- from processing the natural rubber, steel, and fiber reels, creating the casing plies, forming the tires, and finally molding the tire to specific tread and measurements using the curing mold. The foreign materials are substantially transformed in Mexico. |
| Ruling Date: Aug. 15, 2023 |