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CBP Moves to Revoke or Modify Rulings on Classification, Origin Marking, Duty Exemption

Friday, January 22, 2016
Sandler, Travis & Rosenberg Trade Report

The following proposed or final revocations and modifications of U.S. Customs and Border Protection rulings are included in the Jan. 20, 2016, Customs Bulletin and Decisions. Comments on the proposed revocations and modifications are due no later than Feb. 19, and the final revocations and modifications will be effective for goods entered or withdrawn from warehouse for consumption on or after March 21.

Wristwatches. CBP is issuing ruling HQ 234796 to revoke ruling HQ 562543 concerning the country of origin of two styles of dual function analog and digital wristwatches. The quartz analog movements of the watches, which determine the hours and minutes, are made in Japan; the digital movements, which determine the seconds, are made in China; and the component parts are assembled into a watch in China. CBP originally held that the country of origin of the watches is Japan because showing the hours and minutes is the essential function of the watches.

CBP now believes that the countries of origin are both Japan and China; i.e., the countries of manufacture of the watch movement(s). The watches must therefore be marked conspicuously, legibly and permanently with these two countries of origin. Additionally, the quartz analog movement and its case must be marked according to the special requirements in Additional U.S. Note 4 to HTSUS Chapter 91.

Same Condition Drawback. CBP is proposing to revoke ruling HQ H170624 to reflect its determination that a physical vacuum deposition process performed in the U.S. on plumbing fixtures imported already finished, chromed and ready for final assembly or sale does not qualify as a “use” for purposes of same condition drawback under 19 USC 1313(j)(1).

Aluminum Composite Sheets. CBP is proposing to reclassify painted aluminum composite sheets consisting of one polyethylene layer bonded between two aluminum sheets and having peelable plastic protective film on both sides as other backed aluminum foil of a thickness not exceeding 0.2 mm under HTSUS 7607.20.50 (duty-free) rather than as other types of aluminum foil under HTSUS 7606.11.3060 (3.0 percent duty), 7607.19.3000 (5.7 percent duty) or 7607.19.6000 (3.0 percent duty). Ruling NY N230615 would be modified, and ruling NY N200119 would be revoked, to reflect this change.

Restocking Carts. CBP is proposing to reclassify metal backroom restocking carts used for storage or display in retail stores as other metal racks and similar fixtures under HTSUS 9403.20.0026 (duty-free) rather than as other types of non-mechanically propelled vehicles under HTSUS 8716.80.5090 (3.2 percent duty). Ruling NY N019321 would be revoked to reflect this change.

Footwear. CBP is reclassifying a pair of men’s open toe/heel flip-flop thong sandals with rubber or plastic outer soles as men’s footwear with uppers of more than 50 percent leather under HTSUS 6404.19.1520 (10.5 percent duty) rather than as men’s slip-on footwear with open toes or heels under HTSUS 6404.19.3940 (37.5 percent duty). Ruling HQ H219215 will revoke NY N212500 to reflect this change.

Copper Sheets. CBP is reversing its determination that copper or copper alloy sheet produced abroad from scrap generated by the processing of foreign-made metal in the U.S. is not eligible for the partial duty exemption under HTSUS 9802.00.60. Ruling HQ H265781 will revoke HQ 540430 to reflect this change.

Spray Nozzles. CBP is proposing to reclassify nozzles for the dispersing or spraying of high-pressure liquids as other parts of mechanical appliances for projecting, dispersing or spraying liquids under HTSUS 8424.90.90 (duty-free) rather than as other articles of iron or steel under HTSUS 7326.90.8588 (2.9 percent duty) or as other mechanical appliances for projecting, dispersing or spraying liquids under HTSUS 8424.89.7090 (2.2 percent duty). Rulings NY N162918 and NY C87376 would be revoked to reflect this change.

Braking System Parts. CBP is proposing to reclassify various hydraulic braking system parts used in motor vehicles as follows.

- brake master cylinders are classified as other reciprocating positive displacement pumps under HTSUS 8413.50.00 (duty-free) rather than as other parts of brakes for motor vehicles under HTSUS 8708.39.5050 (2.9 percent duty) or other parts of brakes for tractors suitable for agricultural use under HTSUS 8708.39.10 (duty-free)

- brake fluid reservoirs and brake fluid reservoir mounting brackets are classified as other parts of pumps for liquids under HTSUS 8413.91.90 (duty-free) rather as other parts of brakes for tractors suitable for agricultural use under HTSUS 8708.39.10 (duty-free)

- brake wheel cylinders are classified as linear acting cylinders under HTSUS 8412.21.00 (duty-free) rather than as other parts of brakes for motor vehicles under HTSUS 8708.39.5050 (2.9 percent duty)

- caliper pistons are classified as other parts of other engines and motors under HTSUS 8412.90.90 (duty-free) rather than as other parts of brakes for motor vehicles under HTSUS 8708.39.5050 (2.9 percent duty)

Rulings NY A85455 and HQ 952719 would be revoked to reflect this change.

Clutch Cylinders. CBP is proposing to reclassify hydraulic clutch components used in motor vehicles as follows.

- clutch master cylinders are classified as other reciprocating positive displacement pumps under HTSUS 8413.50.00 (duty-free) rather than as other parts of clutches under HTSUS 8708.93.7500 (2.9 percent duty)

- clutch slave cylinders are classified as linear acting cylinders under HTSUS 8412.21.00 (duty-free) rather than as other parts of clutches under HTSUS 8708.93.7500 (2.9 percent duty)

Rulings NY A85456 and NY A86849 would be revoked to reflect this change.

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