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CBP Ruling Revocations and Modifications on Classification, Preference Eligibility, Valuation

Friday, July 21, 2017
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 July 19, 2017, Customs Bulletin and Decisions. Comments on the proposed revocations and modifications are due no later than Aug. 18 and the final revocations and modifications will be effective for goods entered or withdrawn from warehouse for consumption on or after Sept. 18.

Pillow Shell. CBP is proposing to reclassify unfinished quilted pillow shells as cotton pillow shells under HTSUS 6307.90.8945 (7 percent duty) rather than as articles of bedding under HTSUS 9404.90.1000 (5.3 percent duty). CBP explains that these articles are not fitted with springs or internally stuffed or fitted with any materials and therefore cannot be considered articles of bedding or similar furnishing classifiable in heading 9404. Ruling NY N236267 would be revoked to reflect this change.

Shirt and Tie Sets. CBP is proposing to modify ruling HQ H022665 to hold that boys’ shirts cut and sewn in El Salvador and packaged with a tie are eligible for duty-free treatment under the Caribbean Basin Trade Partnership Act only if entered on or before March 1, 2006, the date on which CAFTA-DR entered into force with respect to El Salvador.

Gel Pack Vest Set. CBP is proposing to classify a gel pack vest set used to relieve back pain as a set (under HTSUS 6110.30.30, 32 percent duty) pursuant to GRI 3(b) rather than classifying each component in the set separately. CBP explains that the components are put up together for a common purpose and are suitable for sale directly to users upon importation without repacking. CBP adds that the vest provides the essential character of the set because it is both a functional holder of the gel pack and a visually appealing garment. Ruling NY N259445 would be revoked to reflect this change.

Plastic Cartridge for Ear Piercing Gun. In ruling HQ H266006, CBP is modifying ruling NY N261965 to hold that a plastic cartridge containing a piercing earring and clutch, to be used with an ear piercing instrument, is not a composite good but a GRI 3(b) set. CBP explains that this item consists of two distinct goods that are intended to be used together but are not integrated or combined.

Polyester Flower Leis. CBP is reclassifying polyester flower leis as articles made of artificial flowers under HTSUS 6702.90.3500 (9 percent duty) rather than as imitation jewelry under HTSUS 7117.90.9000 (11 percent duty). CBP explains that these items are made of textile materials and assembled by connecting the flowers with a string and spacing them using clear plastic tubes. Ruling HQ H251022 will revoke rulings NY N048019, NY N245539, and NY N247373 to reflect this change.

Valuation. In ruling HQ H271308 CBP determined that certain commission payments made by the importer to purported agents should be included in the price actually paid or payable because the information presented did not indicate the parties were bona fide agents. In addition, CBP determined that payment for fabric development, inspection fees, and advance payments should be included in the price actually paid or payable. CBP states that this ruling (a) erred in stating that a purported agent instructed the importer’s customers when to make payment and (b) misconstrued an argument regarding the purported agent’s services as a buying agent for the importer and stated that in that situation the importer was the seller. CBP is now issuing ruling HQ H284364 to modify ruling HQ H271308 to correct these two misstatements.

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