Newly Released CBP HQ Rulings for July 22
The Customs Rulings Online Search System (CROSS) was updated July 22 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
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H318487: Country of Origin Marking of Amplifiers
| Ruling: The outer cartons must be marked with the country of origin. |
| Issue: The importer requests that the sealed cartons containing the marked amplifiers be excepted from marking requirements. The importer claims that it would be a hardship to mark the cartons with Thailand as the country of origin, because such country of origin marking would be contrary to the determination by Chinese Customs. |
| Item: Amplifiers, typically used with guitars and/or microphones. The country of origin of the amplifiers at issue is Thailand. The amplifiers, marked with their country of origin, will be imported and sold to the ultimate purchaser in the United States in sealed cartons. |
| Reason: The amplifiers at issue would reach the ultimate purchaser in sealed containers without normally being opened prior to purchase. Therefore, the sealed containers must be marked with the country of origin of the amplifiers pursuant to 19 C.F.R. § 134.24(d)(2).. The marking exception of 19 C.F.R. § 134.24(d)(3) is not applicable in this instance. While the referenced exception applies to unsealed containers, the record shows that the amplifiers at issue would reach the ultimate consumer in sealed containers. |
| Ruling Date: July 16, 2021 |
H319601: Country of origin of an Evaporator Assembly for an Automobile Air Conditioner; Section 301 trade remedy; 9903.88.01, HTSUS
| Origin: (1) Vietnam; (2) Japan; (3) South Korea; (4) Thailand; (5) China, subject to Section 301 duties |
| Item: An evaporator brushless motor assembly to be used in passenger vehicles and light trucks, produced under one of five scenarios. Each evaporator assembly consists of a brushless direct current (“DC”) motor stacked together with a coil assembly, an impeller, and other components. After import into the United States, these goods are further assembled into an automobile air conditioning unit (“HVAC”), where it is used for creating air flow through the system. In all five manufacturing scenarios, the production of the evaporator brushless assemblies begins with the production of the stator assembly and the rotor assembly. (1) Stator core and rotor yoke manufactured in Vietnam, then exported to China to create stator and rotor assemblies, which are then sent to Mexico for final assembly into a motor; (2) the rotor yoke and stator core lamination are manufactured in Japan and then imported into China for assembly. Final assembly of the evaporator brushless motor assembly takes place in Mexico; (3) the rotor yoke and stator core are manufactured in South Korea and then imported into China for assembly. Final assembly of the evaporator brushless motor assembly takes place in Mexico; (4) the rotor yoke and stator core are manufactured in Thailand and then imported into China for assembly. Final assembly of the evaporator brushless motor assembly takes place in Mexico; (5) the rotor yoke and stator core are manufactured in Vietnam and then imported into China for assembly. Final assembly of the evaporator brushless motor assembly takes place in China. |
| Reason: In scenarios 1-4, we find that the country of origin of the evaporator brushless assembly is the origin of the stator and rotor assembly, which in turn is the origin of the stator core and rotor core. The origin of these two components is the same in each scenario. In scenario 5, a majority of the production takes place in China with mostly Chinese parts, including the impeller. Additionally, while the stator core and rotor core are major components from Vietnam, they are processed into a stator and rotor subassembly, then into a motor, and finally into a brushless evaporator assembly in China. |
| Ruling Date: July 16, 2021 |
H315665: Tariff Classification and Country of Origin Marking of Frozen Meal Kits; USMCA
| HTS: 1602.32.0030, 6.4%, "Other prepared or preserved meat, meat offal or blood: Of poultry of heading 0105: Of chickens: Prepared meals: Other.” |
| FTA: Does not qualify for USMCA. |
| Marking: U.S. and Canada |
| Item: Frozen mail kits consisting of cooked chicken, basmati rice cauliflower and onions, in a mild creamy coconut curry sauce, served with mini naan bread, prepped and portioned for a simple stovetop finish. The component ingredients arrive at Canadian facilities in sealed plastic bags and are processed as follows. The frozen chicken and vegetables are removed from their individual bags, weighed, blended, and packaged together in new plastic bags. The mini naan bread is removed from its bags and are re-packaged in new plastic bags, with 10 pieces of mini naan bread per bag. These newly packaged bags are placed alongside the received bags of Korma Sauce and Basmati Rice in a “master bag,” which is sealed and placed into the cartons for shipment to the United States. Two component ingredients are non-originating goods. Specifically, the Cooked Basmati Rice is a product of India and/or Pakistan, while the vegetables are a product of China. |
| Reason: The chicken breast fillet, re-packaged with the vegetables, imparts the essential character of both Chicken Korma Meal Kits. Although the curry sauce component of the Chicken Korma Meal Kits constitutes the greatest portion by weight, we note the importance of the chicken component in explicitly distinguishing the products as “Chicken Korma Meal Kits.” Both Chicken Korma Meal Kits possess a total value of non-originating goods which exceeds the 10% threshold for qualifying for USMCA. Every article of foreign origin, unless excepted, must be marked with the name of the country of origin of the article. For marking purposes, the country of origin of the Chicken Korma Meal Kits is the country/countries of the Korma Coconut Curry Sauce and the chicken breast fillet |
| Ruling Date: July 15, 2021 |
H313851: Request for determination of drawback eligibility under 19 U.S.C § 1313(j); and whether the post jet-milled mineral product is in the same condition pursuant to 19 U.S.C. § 4534(a)
| Ruling: The jet-milled product is not eligible for unused merchandise drawback under 19 U.S.C. §1313(j) because jet-milling constitutes a “use.” |
| Issue: Whether post jet-milled product is eligible for unused merchandise drawback per 19 USC 1313(j)(1) |
| Item: A granular mineral product imported into the United States. Once imported into the United States, the product will be placed into a jet mill that will utilize a dry-milling process to break apart larger crystals into smaller size crystals. The jet mill forces compressed air into a milling chamber containing the product causing product particle-to-particle collisions that break down the granular product particles into a smaller size. However, the product’s chemical characteristics and catalytic functionality will remain unchanged. After completion, the jet-milled product will be exported to Mexico. |
| Reason: Previously, CBP has ruled that milling – defined as "reducing the particle size of the active ingredient” – is a “manufacture.” Therefore, since the jet-milling process will reduce particle size, as a specific type of milling, jet-milling is deemed a manufacture. However, jet-milling in the instant matter is also a manufacture because it is a process that makes the product fit for a particular use. Imported merchandise can undergo two kinds of use – 1) use as “intended” and; 2) use because of “manufacture.” |
| Ruling Date: June 30, 2021 |
H304801: Request for Reconsideration of NY N298688; Classification of Applicator
| HTS: 8462.29.0050, 4.4%, "Machine tools (including presses) for working metal by forging, hammering or die-stamping; machine tools (including presses) for working metal by bending, folding, straightening, flattening, shearing, punching or notching; presses for working metal or metal carbides, not specified above: Bending, folding, straightening or flattening machines (including presses): Other: Other: Other." |
| Issue: Whether the applicators are classified in subheading 8207.30.6062, as metal forming dies, or subheading 8462.29.0005, as metal bending machines |
| Item: A universal crimping tool that provides a method of applying a wide range of feed terminals to prestripped discrete wire and cable. The Ocean 2.0 Crimping Applicator works in a universal press and in most industry standard presses. The applicator is available in two versions, i.e., mechanical and pneumatic. In order to handle multiple press styles, it is also available in two formats, i.e., Atlantic (with male adapter) and Pacific (with female adapter). The applicator has been designed for mid- to high volume in semi- or fully automatic operations. |
| Reason: The subject applicator is a universal crimping tool that is inserted into a terminator to press and bend metal terminals around wires. Although the applicator sits on and is powered through the terminator, the applicator is a machine in-and-of itself. As the applicator contains the crimping and cutting attachments, it is capable of performing the actual function of press bending by itself. The fact that the applicator is powered through a terminator does not affect this classification, because EN 84.62 states that machine tools are generally power driven without limiting the source of the power. |
| Ruling Date: June 28, 2021 |
H310654: Application for Further Review of Protest No. 4197-18-100843; Classification of certain biometric devices
| HTS: 8543.70.99, 2.6%, “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other.” |
| Issue: Whether the entries in question are classified under heading 9106, as “Time of day recording apparatus and apparatus for measuring, recording or otherwise indicating intervals of time, with clock or watch movement or with synchronous motor…” ; heading 8471, as “Automatic data processing machines and units thereof…”, or heading 8543, as “Electrical machines and apparatus, having individual functions, not specified or included elsewhere…” |
| Item: Biometric devices forming the interface for systems that capture various types of data from their end-users. The captured data could be whatever clients deem necessary to provide the functionality their system offers, based on the market niche, application, or other parameters determined during product review and deployment. The products are used to verify the identity of a person using biometrics (such as fingerprint or facial recognition); end-user card swipes using a built-in card reader; or capturing data that end-users enter or input into the device. The collected data is sent to the client's host application, which provides integration and communication from the data collection device to their system. Each device has an operating system like Unix, Android, or Windows. |
| Reason: The products do not measure time. Machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. As the products at issue perform a specific function other than data processing, i.e., biometric data collection, it is not covered by heading 8471. The function of biometric data collection, as it is completed without the assistance of any other device, is considered an individual function. |
| Ruling Date: May 18, 2021 |
H287719: Request for a binding ruling on the classification of Biodegradable Paper Cups and Trays
| HTS: Cups: 4823.69.0020, free, “Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers: Trays, dishes, plates, cups and the like, of paper or paperboard: Other: Cups and round nested food containers.” Trays: 4823.69.0040, free, “Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers: Trays, dishes, plates, cups and the like, of paper or paperboard: Other: Other.” |
| Issue: Whether the instant merchandise is classifiable as of paper of subheading 4823.69, or as molded or pressed articles of paper pulp of subheading 4823.70 |
| Item: A biodegradable tray and biodegradable cup. The tray is rectangular in shape and measures approximately 6.5” long by 5” wide by 2” high. The tray is advertised as being able to withstand the high heat for the rapid service of customers. The cup measures approximately 3” high and 4” in diameter at the opening. Both the tray and the cup are manufactured in Thailand or China from bamboo, wheat straw, sugar cane (bagasse) fibers, or a combination of these fibers. An FDA-approved “sizing agent” is added to the fibers to bind it; the agent is also used to coat the tray and cup. |
| Reason: The merchandise is formed from bagasse, bamboo, or wheat straw fibres or a combination of these. Pulp of these materials made into paper trays or cups formed from combinations of bamboo, bagasse or wheat straw fibres are classifiable subheading 4823.69. It does not appear that the instant merchandise is pressed or molded from paper pulp. Rather, the articles appear to have been formed from paper. |
| Ruling Date: April 25, 2019 |