In the Sept. 11, 2024, Customs Bulletin and Decisions, U.S. Customs and Border Protection is reclassifying a number of composite goods with the essential character of permanent magnets under HTSUS 8505.19.30 (4.9 percent duty) as magnets of materials other than metal rather than under HTSUS 8505.11.00 (2.1 percent duty) as magnets of metal. This change will be effective with respect to goods entered or withdrawn from warehouse for consumption on or after Nov. 11.
The products at issue include stirrer bars included in a spare parts kit, magnets with plastic covers used in household applications, magnetic floor sweepers, devices using magnets to keep birds away from specified areas, magnets used to hold pieces of pipe together while they are welded, and magnets used in automobiles.
CBP states that in rulings NY N302039, NY N302895, and NY N314064 it suggested that classification under HTSUS 8505.19 was appropriate in part because the subject items were composite goods. However, CBP is now modifying those rulings to clarify that this fact alone does not warrant classification in this subheading. CBP explains that if it is determined that a permanent magnet of heading 8505 imparts the essential character of a composite good per GRI 3(b), the good is to be classified as if it consisted solely of the magnet and no other material or component is relevant.
CBP is also modifying ruling NY J85077, and revoking rulings NY B84458, NY R03088, NY N289369, and NY N290319, because the permanent magnets at issue are each composed, at least in part, of non-metal material that excludes the items from classification under subheading 8505.11.
For more information on how to seek or utilize classification and other rulings, please contact attorney Deb Stern at (305) 894-1007 or via email.
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