June 8 CBP Bulletin Proposes To Revoke Rulings on Security Analytics Appliances
In the June 8 issue of the CBP Customs Bulletin (Vol. 50, No. 23) (here), CBP published notices that propose to revoke or modify rulings and similar treatment for the classification of security analytics appliances.
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Comments on Proposals Due July 8
CBP said consideration will be given to any written comments received by July 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 been accorded to substantially identical transactions.
Security Analytics Appliances
| Item: Internet proxy appliance that "enables flexible, granular, policy controls over content, user’s applications, web applications and protocols," CBP said. "It provides the ability to deliver web security and acceleration in one solution to a branch office. This enables branch users to have access directly to the Internet, with the same security coverage as those users in the main office." |
| Current: 8517.62.0050, Free, "Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other." |
| Proposed: 8543.70.9650, 2.6%, “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Other.” |
| Reason: The subject appliances have multiple key functions. The first function is to process incoming transmissions to identify threats. The second function is to communicate those threats to the system or the user. Those two functions work in tandem and "are necessary for the security appliances to work," CBP said. "The appliances must identify incoming threats, and transmit and communicate those threats within the network to the end-user by reproducing the data. One without the others is useless. As such, no single principal function can be identified" and the appliance is best classified in heading 8543 "which is the last in the tariff of the headings under consideration." |
| Proposed for revocation: NY N213277 (2012), NY N247242 (2013), NY N247732 (2013) |
| Proposed new ruling: HQ H271470 |