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CBP Proposes Ruling Revocations and Modifications on Classification, Preference Eligibility

Tuesday, November 07, 2017
Sandler, Travis & Rosenberg Trade Report

The following proposed revocations and modifications of U.S. Customs and Border Protection rulings are included in the Nov. 1, 2017, Customs Bulletin and Decisions. Comments are due no later than Dec. 1.

Handbags and Tote Bags. CBP is proposing to classify handbags and tote bags with a coin purse, spectacle case, and identification card case as a set pursuant to GRI 3(b) and to classify the handbag sets as handbags under HTSUS 4202.22.8100 (17.6 percent duty) and the tote bag sets as other bags under HTSUS 4202.92.3131 (17.6 percent duty). CBP had previously classified these items separately: the handbags as handbags under HTSUS 4202.22.8050 (17.6 percent duty), the tote bags as other bags under HTSUS 4202.92.3031 (17.6 percent duty), and the other items as articles of a kind normally carried in the pocket or handbag under HTSUS 4202.32.9550 (17.6 percent duty) and 4202.32.1000 (12.1 cents/kg + 4.6 percent duty). Ruling NY N024929 would be revoked to reflect this change.

Surgical Instruments. CBP is proposing to modify ruling NY N284181 regarding the preferential tariff treatment eligibility and country of origin of a steel surgical instrument with the trade name “Acufex Disposable Knife.” In that ruling CBP determined that the knives qualified for preferential NAFTA treatment pursuant to General Note 12(b)(i) and that their origin was the U.S. for marking purposes pursuant to 19 CFR 102.19(a). However, CBP has now determined that the knives qualify for such treatment under GN 12(b)(iii), originate from the U.S. for marking purposes pursuant to 19 CFR 102.11(b)(1), and originate from Mexico for customs duty purposes pursuant to 19 CFR 102.19(b).

Hypertension Drug. CBP is proposing to modify rulings NY N180809 and NY N043304 to specify that aliskiren hemifumarate, a synthetically derived white crystalline powder in bulk form indicated for the treatment of hypertension, is eligible for duty-free treatment under GN 13. CBP explains that both aliskiren (table 1) and fumarate (table 2) are listed in the pharmaceutical appendix to the HTSUS and that any combination of a base product listed in table 1 and a prefix or suffix listed in table 2 is eligible for treatment under GN 13 provided it is classified in the same six-digit provision as the relevant product in table 1.

Bike Parts. CBP is proposing to classify free-wheel bicycle cogs and cassettes as free-wheel sprocket-wheels under HTSUS 8714.93.70 (duty-free) rather than as other bicycle parts and accessories under HTSUS 8714.99.80 (10 percent duty). CBP explains that its previous classification was unnecessarily restrictive and did not adequately take into account that the more technologically advanced or improved articles at issue share the essential characteristics of the older free-wheel cogs and cassettes that have been within the scope of HTSUS 8714.93.70. Rulings HQ H174522 would be modified, and rulings HQ H161003 and NY N116976 would be revoked, to reflect this change.

Piston Pin Bushings. CBP is proposing to classify piston pin bushings designed for installation in automotive diesel engines as plain shaft bearings under HTSUS 8483.30.80 (4.5 percent duty) rather than as other engine parts under HTSUS 8409.99.9190 (3.7 percent duty). CBP explains that the function of this item is akin to that of a plain shaft bearing provided for under heading 8483. Ruling NY 864550 would be revoked to reflect this change.

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