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CBP Rulings on Exports, Classification of Toys and Quinoa

Monday, June 09, 2014
Sandler, Travis & Rosenberg Trade Report

In the June 4, 2014, Customs Bulletin and Decisions, U.S. Customs and Border Protection proposed to revoke or modify rulings on the following products. Comments are due by July 7.

Product: Duty-paid yachts sailed from the U.S. to the Bahamas for transport to a different U.S. port of entry on foreign flagged cargo vessels.
Proposed action: Revocation of HQ H175416.
Current determination: Such sailings are an exportation and both entry and duty payment are required when the yachts re-enter the U.S.
Proposed determination: Such sailings are not an exportation and no entry or duty payment is required when the yachts re-enter the U.S.
Explanation: To unite goods to the mass of things belonging to another country for purposes of establishing an exportation, there must be an intended bona fide purpose to seek a foreign market or an actual diversion of the merchandise into the commerce of an intermediate country. Acts that do not involve introducing the goods into the foreign country for consumption, sale or use do not qualify as either. The engagement of transportation services to carry the yachts at issue from the Bahamas back to the U.S., which was done before the yachts were sailed from the U.S. to the Bahamas, is such an act.

Product: Plastic drumstick-shaped items that produce up to six different drum sounds when played.
Proposed action: Modification of NY R04026, NY M83685 and NY M85350.
Current classification: HTSUS 8522.90.7580, other parts and accessories suitable for use solely or principally with sound or video recording or reproducing apparatus (2% duty).
Proposed classification: HTSUS 9503.00.00, toys (duty-free).
Explanation: The principal use of this item is as a toy musical instrument because it is somewhat flimsy and sold in stores that traditionally sell toys and gifts and has a utility purpose that is incidental to its amusement value.

Also in the June 4, 2014, Customs Bulletin and Decisions, CBP revoked classification rulings on the following products, effective Aug. 4.

Product: Quinoa seeds incapable of germination or being used for sowing.
Action: Revocation of HQ 087765.
New ruling: HQ H223701.
New classification: HTSUS 1008.50.00, quinoa (1.1% duty).
Explanation: To be classified under heading 1008 a product must be a cereal, the common meaning of which includes pseudocereals harvested for their dry grain, and the United Nations Food and Agriculture Organization and the U.S. Department of Agriculture consider quinoa to be a pseudocereal.

Product: Children’s plastic toy building blocks.
Action: Revocation of NY N132564.
New ruling: HQ H147197.
New determination: Containers used to package the toy blocks are properly marked with the country of origin.
Explanation: The address of the manufacturer’s European headquarters and the CE symbol, both of which are printed on the back of the box, would not mislead or deceive a reasonable ultimate purchaser as to where the blocks were actually made, which is clearly indicated on the front of the box.

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