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CBP Ruling Changes on Food Products, Cable Cutters, Bike Parts, Cotton Knit Yarn

Friday, September 30, 2016
Sandler, Travis & Rosenberg Trade Report

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are due no later than Oct. 21 and the final revocations and modifications will be effective for goods entered or withdrawn from warehouse for consumption on or after Nov. 21.

Refinery Modules. CBP is proposing to reclassify three types of prefabricated, interconnecting modules that, following entry, are installed as integrated components in an expansion of a pre-existing oil refinery complex. These modules are currently classified as steel structures under HTSUS 7308.90.9590 (duty-free). CBP states that structures within the meaning of heading 7308 are limited to articles that enclose the persons or objects within them or support the objects or persons atop them, and based on that definition CBP is proposing to determine that one model remains classified in heading 7308. However, the other two models are more than structures and are made up of various components, and CBP states that it is currently unable to determine the full range of headings under which those components may fall. Ruling NY N047164 would be modified to reflect CBP’s reasoning.

Roasted Vegetables. In ruling NY N260916 CBP held that a roasted vegetable product made by mixing imported individually quick frozen vegetables from Mexico and other foreign countries with olive oil and seasoning in the U.S. were products of the U.S. under the NAFTA marking rules and thus exempt from country of origin marking. CBP is proposing to modify that ruling to reflect its determination that the country of origin marking should be applied separately for the vegetables from NAFTA and non-NAFTA countries and that the non-NAFTA vegetables are not substantially transformed by further processing in the U.S. The final product would therefore have to be marked to indicate all of the countries of origin contained therein.

Cable Cutters. CBP is reclassifying cable cutters made of heat-treated drop forged steel as metal cutting shears under HTSUS 8203.30.0000 (duty-free) rather than as pliers under HTSUS 8203.20.6030 (12 cents/dozen + 5.5 percent duty). CBP explains that while both pliers and shears work around a pivot, the cutting blades of shears slide past each other to perform their cutting function, as is the case with the cable cutters at issue. Ruling HQ H270402 will revoke ruling NY N021177 to reflect this change.

Bike Parts. CBP is reclassifying cranks and chain rings that are parts of bicycle cotterless-type crank sets as cotterless-type crank sets and parts thereof under HTSUS 8714.96.50 (duty-free) rather than as other parts and accessories under HTSUS 8714.99.8000 (10 percent duty). Ruling HQ H243595 will modify rulings NY K81790, NY K80388, and HQ 083052 to reflect this change.

Cotton Knit Yarn. CBP is reclassifying tubular cotton knit yarn of 92 percent cotton and 8 percent elastane, measuring more than 20,000 decitex, as loop wale-yarn under HTSUS 5606.00.0010 (8 percent duty) rather than as twine, cordage, rope, or cables under HTSUS 5607.90.9000 (6.3 percent duty). CBP explains that the yarn is not produced by twisting, plaiting, or braiding and is not manufactured as binder twine for tying packages, towing, or loading and is therefore not described by the terms of heading 5607. Further, the yarn meets the definition of loop wale-yarn, which is to be classified in all cases in heading 5606. Ruling HQ H249752 will revoke ruling NY N200641 and modify ruling NY N244143 to reflect this change.

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