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Recent CBP NY Rulings

The following are short summaries of recent CBP NY rulings issued by the agency's National Commodity Specialist Division in New York:

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Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

N335654: The United States-Mexico-Canada Trade Agreement (USMCA), country of origin marking, and the applicability of Section 301 trade remedy of an automobile seat component

HTS: 9401.99.1085, "Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Parts: Other: Of seats of a kind used for motor vehicles: Other.”
Country of Origin Marking: Mexico
USMCA: eligible for USMCA preferential tariff treatment
Item: An automobile seat lock mechanism constructed of metal and plastic that will be permanently affixed to the metal frames of automobile seats according to Original Equipment Manufacturer (OEM) specifications. 10 metal components (bearing bolt, coupling sheet “A,” comfort cam, safety cam, spring pin driver, latch ASM, torsion spring, tension spring, coupling sheet “B,” assembly bolt) and three plastic components (bushing, casing, striker end stop) are sourced from China. The components are shipped and exported to Mexico for assembly. No additional components are sourced in Mexico.
Reason: A tariff shift occurs with the 13 discrete foreign-origin Chinese material components; they are classified in a subheading other than 9401.99 at the time of importation into Mexico. Therefore the requisite tariff shift rule under GN 11(o), Rule 2 to Chapter 94, is met. For marking purposes, the foreign Chinese components lose their identity in Mexico and undergo a substantial transformation, thereby, taking on a new name, character, and identity.
Ruling Date: Oct. 19, 2023

N335708: The tariff classification and United States-Mexico-Canada Agreement (USMCA) eligibility of a roller and chain

HTS: (1) 8431.39.0010, free, “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8428: Other: Of elevators and conveyors.” (2) 7315.82.3000, 9903.88.03, free + 25%, “Chain and parts thereof, of iron or steel: Other chain: Other welded link: Of alloy steel: Over 10 mm in diameter.” (3) 7315.82.3000, 9903.88.03, free + 25%, “Chain and parts thereof, of iron or steel: Articulated link chain and parts thereof: Other chain: Other: Other.”
USMCA: The roller is eligible, the chains are not.
Item: (1) A roller in a car wash conveying system. The roller is evenly spaced along the length of a chain that is connected to a sprocket within the car wash conveyor system. As the rollers move with the chain, they contact the front and rear wheels of a vehicle, helping it move along in a car wash tunnel. (2) A log chain for use in a car wash conveyor system. The welded log chain is made of grade 80, heat treated alloy steel and has a 5/8" (15.87 mm) diameter. (3) A 458 forged conveyor chain for use in a car wash conveyor system, referred to as a 458 chain. The pitch is 4" (101.6 mm) and the components are held together by pins.
Reason: The roller and chains aren't a kit, but are separate and distinct commercial products and therefore classifiable in their respective headings. The chains are manufactured in China and therefore not eligible for preferential treatment under the USMCA. The non-originating materials of the roller are classified outside of heading 8431, so all foreign materials meet the tariff shift requirement.
Ruling Date: Oct. 19, 2023

N335809: The country of origin of a wireless mouse

Country of Origin: China
Item: A wireless Mouse, which is described as a wireless input device for use with automatic data processing machines. The Mouse is packaged together with a USB wireless receiver, a USB Type-C adapter, and a USB Type-C to USB Type-A Cable, in a retail box. The printed circuit board assembly (PCBA) is manufactured in China by soldering individual components by a surface mount process. The PCBA, along with the plastic shell housings, the scrolling wheel, and the battery, which are all of Chinese origin, are exported to Thailand. In Thailand, the PCBA is inserted into the plastic shell parts, the battery and the scrolling wheel are attached, the Mouse is inspected, tested, and packaged in the retail carton for export to the United States.
Reason: The assembly of the PCBA in China by soldering the individual components onto the bare board results in a substantial transformation of those components to produce a PCBA of Chinese origin. The PCBA establishes the functionality of the mouse because it is the article within the assembly that detects the movement via the optical sensors, performs the scrolling functions, wirelessly transmits the encoder data to the attached ADP machine, and more. The assembly operations performed in Thailand are not complex and do not substantially transform the PCBA by combining with the wheel, the battery, the plastic housings, etc.
Ruling Date: Oct. 19, 2023

N335429: The tariff classification of a valve body from China

HTS: 8481.90.9020, 9903.88.01, free + 25%, "Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Parts: Other: Of valves of subheading 8481.20: Valve bodies."
Item: A valve body featuring precisely machined passages and inserts for valves and other components, e.g., ball valves, check valves, poppets, and spool mechanisms. The valve body, which will be constructed of either aluminum or steel using a die-casting process, is used in a hydraulic system that diverts fluid.
Reason: N/A
Ruling Date: Oct. 18, 2023

N335458: The tariff classification of Timolol Maleate Ophthalmic Gel Forming Solution (Eye Drops) 0.25% and 0.5% in dosage form, from India

HTS: 3004.90.9285, free, "Medicaments … consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses…or in forms or packing for retail sale: Other: Other: Other: Medicaments primarily affecting the eyes, ears or respiratory system: Other: Other.”
Item: Timolol Maleate Ophthalmic Gel Forming Solution 0.25% and 0.5%, imported in 5 mL bottles, is a non-selective beta adrenergic receptor blocking agent. It is indicated for the treatment of elevated intraocular pressure in patients with ocular hypertension or open-angle glaucoma.
Reason: N/A
Ruling Date: Oct. 18, 2023

N335649: The tariff classification of Hyrimoz (adalimumab-adaz) Injection in dosage form, from Austria

HTS: 3002.15.0011, free, “Antisera, other blood fractions and immunological products, whether or not modified or obtained by means of biotechnological processes: Immunological products, put up in measured doses or in forms or packings for retail sale: Containing monoclonal antibodies.”
Items: Hyrimoz (adalimumab-adaz) Injection is a monoclonal anti-tumor necrosis factor alpha antibody. It is used in the treatment of a wide variety of inflammatory conditions such as rheumatoid arthritis, juvenile idiopathic arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease, ulcerative colitis and plaque psoriasis. Hyrimoz® (adalimumab-adaz) Injection will be available in single-dose prefilled pens (40 mg/0.8 mL and 40 mg/0.4 mL) and single-dose prefilled syringes with needle guard (40 mg/0.8 mL and 40 mg/0.4 mL).
Reason: N/A
Ruling Date: Oct. 18, 2023

N335672: The tariff classification of Olanzapine Tablets in dosage form, from India

HTS: 3004.90.9235, free, “Medicaments … consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses … or in forms or packings for retail sale: Other: Other: Other: Medicaments primarily affecting the central nervous system: Antidepressants, tranquilizers, and other psychotherapeutic agents.”
Items: Olanzapine, imported in 2.5 mg, 5 mg, 7.5 mg, 10 mg, 15 mg and 20 mg tablets, is a second-generation (atypical) antipsychotic medication. It is used in the management of schizophrenia, bipolar 1 disorder, and agitation associated with these disorders.
Reason: N/A
Ruling Date: Oct. 18, 2023

N335673: The tariff classification of Olanzapine Injection in dosage form, from India

HTS: 3004.90.9235, free, “Medicaments … consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses … or in forms or packings for retail sale: Other: Other: Other: Medicaments primarily affecting the central nervous system: Antidepressants, tranquilizers, and other psychotherapeutic agents.”
Item: Olanzapine Injection, imported in 10 mg vials, is an atypical antipsychotic that belongs to the thienobenzodiazepine class. It is indicated for the treatment of schizophrenia, bipolar 1 disorder, and agitation associated with these disorders.
Reason: N/A
Ruling Date: Oct. 18, 2023

N335674: The tariff classification of Zoledronic Acid Injection in dosage form, from India

HTS: 3004.90.9291, free, “Medicaments… consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses … or in forms or packings for retail sale: Other: Other: Other: Other.”
Items: Zoledronic Acid Injection, imported in 4 mg/5 mL vials, belongs to a class of drugs known as bisphosphonates. It is indicated for the treatment of hypercalcemia of malignancy, patients with multiple myeloma and documented bone metastases from solid tumors, in conjunction with antineoplastic therapy. The main components of the bolt cutter include two cutter blades (i.e., the head), two aluminum handles, two aluminum handle joints and two blade joints. The blades are made using steel bars sourced from China.
Reason: N/A
Ruling Date: Oct. 18, 2023

N335716: The country of origin of a Foldable Aluminum Bolt Cutter

Country of Origin: South Korea
Items: A foldable aluminum bolt cutter comprised of several components produced in two countries, South Korea and China. The main components of the bolt cutter include two cutter blades (i.e., the head), two aluminum handles, two aluminum handle joints and two blade joints. The blades are made using steel bars sourced from China. The steel bars are shipped to South Korea, where they will be forged into the final shape and form of the cutter blades. Additionally, the handles and handle joints are cast from aluminum in South Korea. The components are then shipped to China where various holes are drilled into them and the blades’ cutting edges are milled. The components are also heat-treated, plated and powder painted. The parts are then assembled with Chinese-origin blade joints, fasteners and PVC grips.
Reason: The machining and assembly processes performed in China do not constitute a substantial transformation of two cutter blades (i.e., the head), two aluminum handles and two aluminum handle joints that were manufactured in South Korea. These articles provide the essential characteristics of the finished bolt cutter, are dedicated for use as such and can't be used for any other purpose.
Ruling Date: Oct. 18, 2023