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Classification Changes for Auto Parts, Note Pads, Embroidered Motifs, Soup, Etc.

Thursday, January 09, 2020
Sandler, Travis & Rosenberg Trade Report

The following proposed and final revocations of U.S. Customs and Border Protection rulings are included in the Jan. 2, 2020, Customs Bulletin and Decisions. Comments on the proposed changes are due by Jan. 31 and the final changes will be effective with respect to goods entered or withdrawn from warehouse for consumption on or after March 2.

For more information on how to seek or utilize classification and other rulings, please contact customs attorney Deb Stern at (305) 894-1007.

Automotive Rim Forgings

CBP is proposing to reverse a determination that automotive rim forgings exported to Mexico for various operations, including grinding, polishing, sanding, buffing, and cleaning, and then returned to the U.S. are eligible for duty-free treatment under HTSUS 9802.00.50, which provides for articles returned to the U.S. after exportation for repair or alterations. CBP explains that the operations at issue are necessary to ensure that the rims can withstand rusting and exposure to the outdoor environment and that the rim forgings are therefore not complete for their intended use prior to exportation. Ruling NY M86482 would be revoked to reflect this change.

Document Holder

CBP is proposing to reclassify a document holder with a note pad and accordion-style coupon holder as a notebook under HTSUS 4820.10.2040 (duty-free) rather than as a container under HTSUS 4202.12.8170 (17.6 percent duty). CBP explains that the role of the notepad in relation to the use of the good is paramount in that the pockets, plastic sleeves, and cover facilitate the ability to keep and carry notes written on the pad or in the notebook. Ruling NY N069095 would be modified to reflect this change.

Embroidered Motifs

CBP is proposing to reclassify embroidered motifs used for decorating apparel as embroidery in the piece under HTSUS 5810.92.90 rather than as embroidery in the form of motifs under HTSUS 5810.92.0040 or 5810.92.1000. CBP explains that embroidery is “in the form of motifs” if it is imported as individual pieces and its sole purpose is to be incorporated or appliqued as elements of embroidery. Here, however, the subject items are imported in continuous strips or by the yard. Rulings NY 800463 and NY881559 would be revoked, and rulings NY B85277, NY 801210, and NY 889565 would be modified, to reflect this change.

Instant Noodle Soup

CBP is proposing to reclassify several instant noodle soups consisting of dried noodles and soup base as soups under HTSUS 2104.10.0000 (3.2 percent duty) rather than as pasta under HTSUS 1902.30.0060 (6.4 percent duty) or 1902.19.4000 (6.4 percent duty). CBP explains that the soup base provides the flavor and serves as the foundation of the dish. Rulings NY N125119, HQ 953104, and HQ 086309 would be revoked to reflect this change.

Plastic Stethoscope Covers

CBP is reclassifying plastic stethoscope covers not treated with an antimicrobial agent as other plastic articles under HTSUS 3926.90.99 (5.3 percent duty) rather than as medical instrument accessories under HTSUS 9018.90.80 (duty-free). CBP explains that the covers are not accessories because they do not directly contribute to the effectiveness of the stethoscopes. Ruling HQ H304940 will modify ruling HQ 967233 to reflect this change.

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