July 21, 2004 CBP Bulletin Notices on Painted Glass Sinks and Aero-Derivative Gas Turbines
In the July 21, 2004 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 38, No. 30), CBP issued notices: (a) proposing to modify a classification ruling on painted glass sinks, and (b) proposing to revoke a classification ruling on aero-derivative gas turbines. CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions that are contrary to its position in these notices.
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CBP states that any party who has received a contrary ruling or decision on the merchandise that is subject to the proposed rulings, or any party involved with a substantially identical transaction, should advise CBP by August 20, 2004, the date that written comments on the proposed rulings are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in these notices.
CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Proposed Modification of Classification Ruling
Painted Glass Sinks. At issue is a glass sink painted royal blue, which is imported with plastic fittings for the drain and plumbing and a stainless steel drain and drain plug with a rubber backing.
CBP is proposing to issue HQ 966770 in order to modify NY G81092 and reclassify the sinks under HTS 7013.99 as "other glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of HTS 7010 or 7018), etc." rather than under HTS 7020.00.6000 which provides for "other articles of glass."
According to an earlier court decision, CBP states that HTS 7020 is a "basket" provision within Chapter 70, in which classification is appropriate only when there is no tariff category that covers the merchandise more specifically. CBP further states that the sink, upon importation, is intended to be decorative, given its unique color and painted appearance (as compared with "ordinary" porcelain sinks), and it is apparently part of a line of decorative household products.
Therefore, CBP states that, in consideration of its character and appearance, the sink should be classified under HTS 7013.99, with classification at the eighth digit level to be determined by the unit value of the sink.
proposed: 7013.99, duty rate dependent upon the unit value; current: 7020.00.6000, 5%
Proposed Revocation of Classification Ruling
Aero-Derivative Gas Turbines. At issue are two gas turbines that, although originally designed as turbojets to provide motive power for aircraft, have been adapted for industrial use (thereby putting them in a class of engine referred to as "aero-derivative"), and are now incapable of providing motive power for aircraft. According to CBP, the Rolls-Royce RB-211 is capable of generating power between 25,200 and 44,500 kilowatts (kW) and the Rolls-Royce Avon is capable of generating power between 14,672 and 21,000 kW, depending on the type of use each is put to.
CBP is proposing to issue HQ 967102 in order to revoke NY H81222 and reclassify the subject gas turbines under HTS 8411.82.8000 as "other gas turbines, of a power exceeding 5,000 kW" rather than under HTS 8411.12.8000 which provides for "other turbojets, of a thrust exceeding 25 kilonewtons (kN)."
CBP states that in NY H81222, it had classified the gas turbines as turbojets, which is the classification of these engines in an unaltered state, as this was the previous approach to gas turbine classification.
However, CBP now states that its analysis and cited rulings support its finding that aero-derivative gas turbines and gas turbines, designed (i.e., adapted) specifically for industrial use and incapable of providing motive power to aircraft, form the class or kind of gas turbine that is considered a turboshaft engine and which comprise the "other gas turbine" subheading group of HTS 8411.81/82.
In addition, and to further assist in classifying gas turbines, CBP states that it is equally apparent that the power output of turbojet engines is measured in pound thrust (i.e., kilonewtons), while the power output of turboprop and turboshaft engines is normally measured in kilowatts.
proposed: 8411.82.8000, 2.5%; current: 8411.12.8000, duty-free
July 21, 2004 CBP Bulletin (Vol. 38, No. 30) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2004/vol38_07212004_no30/