CBP Bulletin Proposes to Revoke Ruling on DVD and Blu-ray Classification
In the Jan. 1 issue of the CBP Customs Bulletin (Vol. 49, No. 1), CBP published a notice that proposes to modify or revoke rulings and similar treatment for the tariff classification of DVDs and Blu-ray discs (here). The agency proposed to revoke a previous ruling on the merchandise because the discs require the media player to have a decryption algorithm to watch the content.
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Comments on Proposals Due Feb. 2
CBP said consideration will be given to any written comments received by Feb. 2 before taking this action. In addition, any party who has received a ruling or decision on the merchandise that is subject to the proposed revocations, 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 importation subsequent to 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 is also proposing to revoke or modify any treatment it has previously accorded to substantially identical transactions.
Blu-ray Discs and DVDs
Item: Blu-ray discs that were prerecorded with movies on them in digital form. A Blu-ray disc is an optical disc storage medium and are 120 mm in diameter and 1.2 mm thick, the same size as DVDs.
Current: 8523.40.5000, 2.7%, (Discs, tapes, solid-state non-volatile storage devices, “smart cards” and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37: Optical media: Recorded optical media: Other: Other.)
Proposed: 8523.49.40, Free, (Discs, tapes, solid-state non-volatile storage devices, “smart cards” and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37: Optical media: Recorded optical media: Other: ... proprietary format recorded discs)
Reason: The subject DVDs and Blu-ray discs contain data in the form of full-length feature films, which is encrypted in such a manner that they can only be played by a DVD player, computer, or Blu-ray player that contains the decryption algorithm to decode the data. The encryption system is region-specific and DVDs and Blu-ray discs that are formatted for use in North America can't be played in other parts of the world, as the encryption system differs abroad, said CBP. "As a result, we find that the subject DVDs and Blu-ray discs are 'proprietary format recorded discs' within the meaning of subheading 8523.49.40," said CBP.
Proposed for modification: HQ H083275 (2010)
Proposed for revocation: NY N058455 (2009)
Proposed new ruling: HQ H236026