July 3 CBP Bulletin Proposes to Revoke, Modify Ruling on Certain Composite Goods with Character of Permanent Magnets
In the July 3 Customs Bulletin (Vol. 58, No. 26), CBP published a proposal to revoke or modify eight ruling letters, all of which concern the tariff classification of composite goods with the essential character of permanent magnets under the Harmonized Tariff Schedule of the United States.
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Comments on Proposals Due Aug. 2
CBP said consideration will be given to any written comments received by Aug. 2 before taking these actions. In addition, any party that has received a ruling or decision on the merchandise that is subject to the proposed revocations or modifications, or any party involved with a substantially identical transaction, should advise CBP by the date that written comments on the proposed ruling are due. (An importer's failure to advise CBP of such rulings, decisions or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agents for importations after the effective date of the final decision in this notice.)
Proposals
CBP is proposing to revoke or modify the rulings below, and any rulings on these products that may exist but have not been specifically identified. CBP also is proposing to revoke any treatment it has previously accorded to substantially identical transactions.
Certain Composite Goods with the Essential Character of Permanent Magnets
| Item: Permanent magnets each composed, at least in part, of non-metal material |
| Current: 8505.19, “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Other.”; 8505.11, “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Of metal.” |
| Proposed: 8505.19.30, “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization: Other: Other.” |
| Reason: The magnets identified in the rulings impart the essential character of the composite goods, and likewise by application of GRI 3(b), are classified as “permanent magnets” of heading 8505. CBP has previously held that the magnet’s composition is the main determinant, and that permanent magnets of ferrite must be classified differently from permanent magnets of metal. |
| Proposed for revocation: NY B84458, dated May 15, 1997; NY R03088, dated Feb. 10, 2006; NY N289369, dated Sept. 13, 2017; and NY N290319, dated Oct. 18, 2017 |
| Proposed for modification: NY J85077, dated June 19, 2003; NY N302039, dated Feb. 5, 2019; NY N302895, dated April 3, 2019; and NY N314064, dated Sept. 14, 2020 |
| Proposed new ruling: HQ H328977 |