August 18, 2004 CBP Bulletin Notices on Defective Watches & Recycled Lacquer Thinner and Certain Carbon-Lined Clothing & Carbon-Impregnated Fabric
In the August 18, 2004 issue of the U.S. Customs and Border Protection Bulletin (CBPBulletin) (Vol. 38, No. 34), CBP issued notices: (a) proposing to modify a valuation ruling on defective watches sent abroad for repair and then returned to the U.S. and proposing to revoke a valuation ruling on used lacquer thinner recycled abroad and then returned to the U.S., and (b) withdrawing proposed revocations of two classification rulings on certain carbon-lined clothing and carbon-impregnated fabric.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Regarding the proposed modification and revocation, CBP states that it is proposing to revoke any treatment it has previously accorded to substantially identical transactions that are contrary to its position in the notice.
CBP further states that any party who has received a contrary ruling or decision on the merchandise that is subject to the proposed modification or revocation, or any party involved with a substantially identical transaction, should advise CBP by September 17, 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 the notice.
CBP also states that the proposed rulings notice covers any rulings on the subject merchandise that may exist but have not been specifically identified.
Proposed Modification and Revocation of Two Valuation Rulings
Defective watches sent abroad for repair and then returned to the U.S.; used lacquer thinner recycled abroad and then returned to the U.S. At issue in proposed HQ 548557 are defective watches, both in and out of warranty, which are returned to the importer for repair and then exported to the importer's related party abroad for repair and return to the U.S. The watches are repaired and then sold back to the importer at prices which cover the cost of repairs plus a mark-up.
At issue in proposed HQ 548569 is used lacquer thinner that is acquired from various auto body paint shops where it has been utilized to clean paint from articles. The thinner is recycled abroad (i.e., the impurities are removed to result in a purified solvent) for a fee and then returned to the U.S.
CBP is proposing to issue HQ 548557 and HQ 548569 in order to modify HQ 544241 and revoke HQ 543859, respectively.
CBP states that it has reassessed its analysis in HQ 544241 and HQ 543859, and now believes that the characterization of the watches and the thinner as assists, as defined in 19 USC 1401a(h)(1)(A), for valuation purposes was in error. Therefore, CBP is proposing to issue HQ 548557 and HQ 548569 in order to state that the watches and thinner are not assists for valuation purposes.
With respect to the appraisement method in HQ 543859, CBP held that the returned, recycled thinner would be appraised on the basis of transaction value. However, CBP now states that transaction value cannot be used as the basis for appraisement in all cases, but rather that in certain cases, one of the alternative bases of appraisement may need to be used.
Withdrawal of Proposed Revocations of Two Classification Rulings
Certain Carbon-Lined Clothing and Carbon-Impregnated Fabric. At issue was certain carbon-lined clothing and carbon-impregnated fabric, samples of which were destroyed in the September 11, 2001 terrorist attack.
CBP had proposed to issue HQ 966422 and HQ 966423 in order to revoke NY G86317 and NY F83890, respectively, and reclassify the clothing and fabric in certain chapters of HTS Section XI as "textile and textile articles" rather than under HTS 6815.10.0000 which provides for "nonelectrical articles of graphite or other carbon."
However, CBP states that after analyzing the comments received on the proposed revocations, it has determined not to proceed with the revocations because the samples were critical to a precise classification.
Therefore, CBP states that it is withdrawing its proposed revocations of NY G86317 and NY F83890. Both of these rulings will remain in full force and effect.
(See ITT's Online Archives or 05/26/04 news, 04052645, for BP summary of the proposed revocations.)
August 18, 2004 CBP Bulletin (Vol. 38, No. 34) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2004/vol38_08182004_no34/