June 1 CBP Bulletin Proposes To Revoke, Modify Rulings on Spare Parts Kits, Ceramic Dinnerware
In the June 1 issue of the CBP Customs Bulletin (Vol. 50, No. 22) (here), CBP published notices that propose to revoke or modify rulings and similar treatment for the classification of spare parts repair kits and ceramic dinnerware.
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Comments on Proposals Due July 1
CBP said consideration will be given to any written comments received by July 1 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.
Spare Parts Repair Kits
| Item: A spare parts repair kit required to repair a mold or a mold machine. The kit is assembled with the specific components required to repair the mold/machine for which it was designed. A customer orders a spare parts/repair kit from the manufacturer, which then consults with the customer as to which parts in the kit are actually needed -- creating a different and customized Bill of Materials for each kit. |
| Current: 8477.90.85, 3.1%, “Machinery for working rubber or plastics or for the manufacture of products of products from these materials, not elsewhere specified in this chapter; parts thereof.” |
| Proposed: Separately under the subheadings applicable to each component. |
| Reason: The kits are not sets. The Federal Circuit has held that “goods put up for retail sale” for purposes of GRI 3(b) “most naturally refers to goods that are offered to customers as a set for purchase rather than to a collection of goods that are assembled into a set after the customer has purchased them.” |
| Proposed for modification: NY N050746 (2009) |
| Proposed new ruling: HQ H249811 |
Ceramic Dinnerware
| Item: Item RO-5: a plate meeting the definition of earthenware, not porcelain (water absorption >0.5%); Item RO-12: a platter meeting the definition of porcelain; Item VE-9: a plate meeting the definition of earthenware, not porcelain (water absorption >0.5%). |
| Current: Items VE-9 and RO-5: 6911.10.10, 25%, “Tableware, kitchenware, other household articles and toilet articles, of porcelain or china: Tableware and kitchenware: Hotel or restaurant ware and other ware not household ware; Item RO-12: 6912.00.20, 28%, “Ceramic tableware, kitchenware, other household articles and toilet articles, other than of porcelain or china: Tableware and kitchenware: Other: Hotel or restaurant ware and other ware not household ware.” |
| Proposed: Items VE-9 and RO-5: 6912.00.20, HTSUS, which provides for “Ceramic tableware, kitchenware, other household articles and toilet articles, other than of porcelain or china: Tableware and kitchenware: Other: Hotel or restaurant ware and other ware not household ware”; Item RO-12: 6911.10.10, HTSUS, which provides for “Tableware, kitchenware, other household articles and toilet articles, of porcelain or china: Tableware and kitchenware: Hotel or restaurant ware and other ware not household ware.” |
| Reason: The plates are used more in commercial settings than in households. CBP testing confirmed that one of the models met HTS requirements for porcelain, including being translucent and having low water absorption, while two models did not. |
| Proposed for modification: HQ H169055 (2014), HQ H226264 (2014) |
| Proposed new ruling: HQ H252124 |