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Classification Ruling Changes on Trolleys, Hangers, Gift Bags, Switch Assemblies

Thursday, August 25, 2016
Sandler, Travis & Rosenberg Trade Report

The following proposed revocations and modifications of U.S. Customs and Border Protection classification rulings are included in the Aug. 17, 2016, Customs Bulletin and Decisions. Comments on the proposed revocations and modifications are due no later than Sept. 16 and the final revocations and modifications will be effective for goods entered or withdrawn from warehouse for consumption on or after Oct. 17.

Transfer Trolley. CBP is proposing to reclassify battery-powered transfer trolleys as parts of electrical vehicles under HTSUS 8709.11.00 (duty-free) rather than as other motor vehicles for the transport of goods under HTSUS 8704.90.00 (25 percent duty). CBP explains that these trolleys do not have the ability to carry passengers, a driver or goods by road or other public ways and instead have many of the design features listed in explanatory note 87.09. Ruling NY N247106 would be revoked to reflect this change.

Garment Hangers. In ruling NY N255930 CBP found certain garment hangers imported with garments to be classified with, and dutiable at the same rate of duty as, the garments. CBP is now issuing ruling HQ H258772 to revoke NY N255930 and reclassify the hangers as other plastic articles for the conveyance or packing of goods under HTSUS 3923.90.00 (3 percent duty). CBP explains that the hangers at issue are suitable for repetitive use for the conveyance of goods (and therefore not required to be classified with the goods, pursuant to GRI 5(b)) because they are strong enough to be reused and there exists a commercial viability for that reuse.

Snowman Gift Bag. CBP is reclassifying a novelty gift bag consisting of a paper bag sandwiched between two die-cut paperboard pieces shaped as identical snowmen heads and faces, with hats, as a sack or bag made from paper and paper products under HTSUS 4819.40.00 (duty-free) rather than as a folding carton or box made from paper or paper products under HTSUS 4819.20.0040 (duty-free). CBP notes that although the gift bag contains two paperboard pieces it is the paper bag that provides the gift bag its shape and form. Ruling HQ H058795 will revoke ruling NY N050455 to reflect this change.

Printed Circuit Board Switch Assemblies. CBP is reclassifying printed circuit board switch assemblies that function as analog selection devices for various electric control modules in a motor vehicle as other boards for electric control or the distribution of electricity under HTSUS subheading 8537.10.90 (2.7 percent duty) rather than as electrical apparatus for switching or protecting electrical circuits under HTSUS 8536.50.9031 (2.7 percent duty). CBP explains that it erroneously viewed the exclusion of simple switch assemblies from HTSUS heading 8537 in a way that conflicts with the plain text of that heading. Ruling HQ H250002 will modify ruling NY N202228 to reflect this change.

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