March 9 CBP Bulletin Proposes to Modify Rulings on Cereal Bars, Car Parts
In the March 9 issue of the CBP Customs Bulletin (Vol. 50, No. 10) (here), CBP published notices that propose to revoke or modify rulings and similar treatment for cereal bars and car parts.
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Comments on Proposals Due April 8
CBP said consideration will be given to any written comments received by April 8 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 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 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 any treatment it has previously accorded to substantially identical transactions.
Cereal Bars
| Item: Kellogg's Frosted Flakes cereal bars sold to consumers in multi-pack boxes and as individual bars through various retail outlets such as grocery stores and drug stores. |
| Current: 1704.90.3550, 5.6%, (Sugar confectionery (including white chocolate), not containing cocoa: other: confections or sweetmeats ready for consumption: other: other: put up for retail sale: other.) |
| Proposed: 1806.32.90, 6%, (Chocolate and other food preparations containing cocoa: Other, in blocks, slabs or bars: Not filled: Other: Other.) |
| Reason: The bar contains 1.5 percent of cocoa and any amount of cocoa is sufficient to exclude a product of sugar confectionery from heading 1704, said CBP. The Frosted Flakes Bar is specifically provided for in heading 1806, said CBP.. |
| Proposed for modification: NY N211715 (2012) |
| Proposed new ruling: HQ H269530 |
Car Parts
| Item: Automobile parts, such as tire rods, slip sleeves, oil seals, brake pads and hub assemblies purchased by Federal Mogul Motorparts. The company paid duty thereon, or purchased them from U.S. distributors who had already paid the respective duties, said CBP. FMM then shipped the parts to Mexico and reimported the packaged versions of the parts. |
| Current: Eligible for duty-free treatment under subheading 9801.00.2000, |
| Proposed: Not entitled to duty-free treatment under subheading 9801.00.2000, when acquired from a U.S. distributor. |
| Reason: Subheading 9801.00.20 requires that the re-importation must be by or for the account of the person or entity that imported it into, and exported it from the U.S. There's no indication that a U.S. distributor acted as an agent to FMM. |
| Proposed for modification: NY N263924 (2015), NY N260230 (2014) |
| Proposed new ruling: HQ H270377 |