Newly Released CBP HQ Rulings for June 17-27
The Customs Rulings Online Search System (CROSS) was updated June 17-27 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
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H325541: Application for Further Review of Protest No. 3901-22-126797; Classification of Dispensing Stations for Hand Sanitizers
| Ruling: The dispensing stations are classified under heading 9403, specifically subheading 9403.70.40, which provides for “Other furniture and parts thereof: Furniture of plastics: Of reinforced or laminated plastics.” The column one general rate of duty is free. Products of China classified under subheading 9403.70.40, unless specifically excluded, are subject to an additional 25% ad valorem rate of duty under subheading 9903.88.04. |
| Issue: Whether the subject dispensing stations for hand sanitizers are classified under heading 8424 as parts of a mechanical appliance for projecting liquids, or under heading 9403 as other furniture. |
| Item: Dispensing stations for automatic hand sanitizer dispensers from China. The subject stations are used to house and support automatic hand sanitizer dispensing machines in an upright position. The stations are predominantly made of plastic and consist of, inter alia: a drip tray for catching excess sanitizer; the dispenser housing; clear, plastic upper and lower panels; a flat stand on the bottom that rests on the floor; and an upper door enclosure. When fully assembled, the dispensing stations stand upright from the floor, keeping the dispensing machines at a proper height and in a fixed, stable position for ease of use. The dispensing machines can also be fitted to a separately sold wall mount. |
| Reason: The subject dispensing stations aren't parts becuase they aren't integral to the functioning of the dispensing machines. The function of the dispensing machine is to project sanitizer liquid. The dispensing machines contain all the internal components necessary to carry out that function. Thus, the machines constitute complete “mechanical appliances for projecting liquid,” under heading 8424. The stations being interchangeable with the wall mounts at all preponderates against their supposed necessity as “parts.” Note 2 to Chapter 94 requires that the dispensing stations be “designed for placing on the floor or ground” to be classified under heading 9403. The dispensing stations are clearly designed to be placed on the floor: they include a stand on the bottom and, when the stations are fully assembled, they allow the dispensing machines to stand upright from the floor. The dispensing stations also constitute “furniture” as they can equip a space for sanitizing users’ hands. |
| Ruling Date: April 26, 2024 |
H336057: DR-CAFTA Eligibility of Women’s and Men’s Jackets
| Ruling: Both models of jacket don't qualify for preferential treatment under the rules of DR-CAFTA. |
| Issue: Whether the women’s jacket style and the men’s jacket style from El Salvador are eligible for preferential tariff treatment under DR-CAFTA. |
| Item: A women’s jacket style and a men’s jacket style, both manufactured in El Salvador using outer fabric from South Korea, liner fabric from Taiwan, and additional components from South Korea, Guatemala, the U.S., Costa Rica and Hong Kong. The 100% nylon woven fabric lining from Taiwan makes up 61.60% of the main body of the garments, and the 100% polyester mesh knit fabric lining from Taiwan makes up 38.40% of the main body of the garments. |
| Reason: The jackets don't qualify for DR-CAFTA preferential treatment because they don't meet the requirements of GN 29(b)(ii)(A). Specifically, the fabric used to construct the visible lining in the main body of the jackets are not formed from yarn and finished in the territory of one or more of the parties to the Agreement per the requirements of GN 29(n), Chapter 62, Chapter Rule 1, and the lining requirement of GN 29(n), Chapter 62, Chapter Rule 2. |
| Ruling Date: June 20, 2024 |
H332160: Coastwise Transportation; Lifting; Outer Continental Shelf; Wind Turbines; 46 U.S.C. § 55102; 19 C.F.R §§ 4.80, 4.80b
| Ruling: Installing and decommissioning the monopiles, transition pieces, jackets and topsides wouldn't constitute a violation of the Jones Act, 46 U.S.C. 55102. |
| Issue: Whether installing and decommissioning the monopiles, transition pieces, jackets and topsides would constitute a violation of the Jones Act, 46 U.S.C. 55102. |
| Item: A dynamically-positioned floating crane barge used for heavy lift operations. The Vessel is currently documented in the U.S. and maintains a coastwise endorsement. However, the Vessel is contracted to undergo a change of ownership and flag. After the change in ownership and flag, the Vessel is anticipated to be used on the outer continental shelf for construction and decommissioning projects. For both projects, the port of mobilization will be a U.S. coastwise point. The Vessel may install and decommission (1) monopiles, (2) transition pieces, (3) jackets, and (4) topsides. |
| Reason: See ruling. |
| Ruling Date: June 13, 2024 |
H335540: Export, self-propelled vehicles, used vehicles, 19 C.F.R. §§ 192.0-192.4; 19 U.S.C. § 1627a
| Ruling: The export requirements of 19 U.S.C. 1627a and 19 C.F.R. Part 192 that apply to “used self-propelled vehicles” do not apply to vehicles when the vehicles are sold directly from the manufacturer to a foreign customer, and title, ownership, insurable interest, risk of loss, and right to use and enjoy does not transfer until after the vehicle is exported and delivered overseas. |
| Issue: Whether the requirements for exports of “used” “self-propelled vehicles” as found in 19 U.S.C. 1627a and 19 C.F.R. 192 apply to the vehicles. |
| Item: A manufacturer of specialized self-propelled vehicles, which are not sold through dealerships or distributors but are sold directly to customers, exports the vehicles and delivers the vehicles to their customers. The customers don't take any equitable or legal title until after the vehicle has been delivered and successfully tested. The manufacturer maintains ownership, insurable interest, and risk of loss past the point of export. If modifications or repairs need to be made, the manufacturer can own the vehicle abroad for the duration. Typically, the manufacturer maintains ownership of the vehicles for days after arrival in the target country, and the customer has no right to enjoy, use, or acquire title until after the vehicle meets the agreed-upon conditions. |
| Reason: In transactions where customers do not take any equitable or legal title until after the vehicle has been delivered overseas, the subject vehicles are not considered “used self-propelled vehicles” for the purposes of the relevant statutes, and the requirements therein don't apply. |
| Ruling Date: June 13, 2024 |
H335529: 46 U.S.C. § 55102; 19 CFR § 4.80b(a); New and Different Product; Proposed Transportation of Gasoline Blendstock
| Ruling: Based on the import and export specifications provided, the four proposed blending operations as described would result in the creation of a new and different products within the meaning of 19 C.F.R. 4.80b(a). Therefore, the proposed transportation by a non-coastwise-qualified vessel would not be in violation of the Jones Act, 46 U.S.C. 55102. |
| Issue: Whether, based on the product specifications provided, the proposed blending operation would result in the creation of a “new and different product” within the meaning of 19 C.F.R. 4.80b(a), such that the proposed transportation by a non-coastwise-qualified vessel would not be in violation of 46 U.S.C. 55102. |
| Item: The transportation of parcels of ungraded petroleum blending components from coastwise points of the U.S. to locations outside of the U.S. aboard foreign-flagged vessels. Following storing, blending, and testing, the resulting Finished Products will be transported aboard foreign-flagged vessels from the Foreign Points to different coastwise points of the U.S. Ethanol will be added to the Finished Products to create an oxygenated gasoline blend. |
| Reason: See ruling. |
| Ruling Date: June 11, 2024 |
H333110: Application for Further Review of Protest No. 0901-21-103100; Section 301 Exclusion; Subheading 9903.88.15, HTSUS; Classification of certain wireless speakers of Chinese origin
| Ruling: The protest should be denied. The speakers don't qualify for the Section 301 exclusion. |
| Issue: Whether the subject wireless speakers constitute wireless communication apparatus that can receive audio data to be distributed to wireless speakers (described in statistical reporting number 8518.22.0000)” as specified in the Section 301 Exclusion Order granted by the USTR and provided in U.S. Note 20(jjj)(60) to Chapter 99. |
| Item: The “Fluance Ai40” and the “FluanceAi60” Bluetooth-enabled bookshelf-style speakers, and the “RS61 Retro” guitar-amplifier style Bluetooth speakers. The Fluance Ai40 and the Fluance Ai60 incorporate multiple loudspeakers (tweeters and woofers) mounted in the same enclosure, and each incorporates an amplifier. They can receive data from a connected device such as a tablet or smartphone via their integrated Bluetooth transceivers and associated electronics, e.g., codecs, with that received data being converted into sound. They can also be wired to a stereo system to reproduce audio over speaker wire. The RS61 Retro has the same capabilities of the Fluance speakers and can also be used as a guitar amplifier by plugging an electric guitar into it. The protestant alleges that the subject merchandise is not subject to the additional duties because the subject devices are described by the text of U.S. Note 20(jjj)(60) to Chapter 99 as “Wireless communication apparatus that can receive audio data to be distributed to wireless speakers (described in statistical reporting number 8518.22.0000).” |
| Reason: A plain reading of the descriptive text of the subject exclusion requires that any device subject to the exclusion must also distribute audio data to wireless speakers. There is no evidence that the subject devices, in their condition as imported, are capable of distributing audio data to wireless speakers. Any such data is simply converted into digital audio waves that are distributed to the speaker components housed within the devices themselves. |
| Ruling Date: April 22, 2024 |
H333699: Country of Origin of Lexmark MS/MX and CS/CX Series Printers; Substantial Transformation; Marking; 19 C.F.R. § Part 102
| Ruling: The country of origin of the Lexmark MS/MX and CS/CX series of printers imported from Mexico for purposes of applying trade remedies and for marking will be Mexico. |
| Issue: What is the country of origin of the Lexmark printers imported from Mexico for purposes of applying trade remedies? What is the country of origin for the above-described Lexmark printers imported from Mexico for marking purposes? |
| Item: The Lexmark MS/MX and CS/CX series of printers, which are imported into the U.S. from Mexico. These are the same printers that were discussed in HQ H304677, but that Lexmark has revised the production processes in Mexico, such that the analysis in HQ H304677 is no longer applicable to the current production procedures. Certain components of the subject printers are assembled in China to create printer subassemblies, referred to as printer transports. A printer transport consists of the basic housings and the associated structures of the printers. Unlike in HQ H304677, yin addition to the Printed Circuit Board Assembly (“PCBA”), three of the most important subassemblies -- the imaging unit (“IU”), developing unit (“DU”), and toner cartridge (“TC”) -- are manufactured in Mexico. |
| Reason: Under the production scenario in HQ H304677, the printer transports had more significant functionality vis-à-vis the finished printers because the Chinese-origin transports included the toner cartridge, developing unit and imaging unit. Under your revised production scenario, with the removal of the toner cartridge, developing unit, and imaging unit from the Chinese-origin printer transports, the Chinese transports no longer have all of the mechanical printing functions incorporated in them. Accordingly, under the revised production scenario, the character of the finished printer, i.e., those that are critical in allowing the printer to feed the paper and to accomplish the goal of printing, scanning, copying, and all other printer functions, is no longer mostly imparted by the Chinese printer transports since the subassemblies that provided this functionality -- the developing unit, imaging unit, and toner-filled toner cartridge -- in conjunction with the PCBA, have been removed from the Chinese transports. |
| Ruling Date: June 6, 2024 |
H336964: Application for Further Review of Protest No. 209523117254; Classification; Applicability of Section 301 Trade Remedies on Certain Speed Drive Controllers
| Ruling: As the subject merchandise falls under the scope of the exclusion set forth under U.S. Note 20(ttt)(i)(59) of Chapter 99, Subchapter III, it is eligible for classification under subheading 9903.88.67. |
| Issue: Whether the speed drive controllers qualify for relief from Section 301 duties under U.S. Note 20(ttt)(i)(59) of Chapter 99 as “Regenerative speed drive controllers for controlling speed of electric motors for elevators (described in statistical reporting number 8504.40.4000).” |
| Item: The “SINAMICS DCM DC Converter and Control Module” is a four-quadrant speed drive controller designed to control electric motors, including elevator motors. Four-quadrant operation allows the speed drive controllers to operate in both directions of rotation by having a driving (motoring) and braking (regenerative) mode. When braking, the power generated is converted into electricity and returned into the source. |
| Reason: Four-quadrant operation entails possessing regenerative capabilities in braking mode. Therefore, given the subject speed drive controllers have four-quadrant operation, they possess regenerative capabilities and are entitled to relief under U.S. Note 20(ttt)(i)(59). |
| Ruling Date: April 17, 2024 |