November 3, 2004 CBP Bulletin Notices on Certain Dinnerware Sets and Two Chemically Modified Starch Products
In the November 3, 2004 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 38, No. 45), CBP issued notices: (a) proposing to revoke two classification rulings on certain dinnerware (stoneware, flatware, and glassware) sets, and (b) proposing to revoke a classification ruling on two chemically modified starch products. 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 December 3, 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 Revocation of Three Classification Rulings
Certain Dinnerware (Stoneware, Flatware, and Glassware) Sets. At issue are 52-piece and 56-piece dinnerware sets, classified in HTS 8215.20.0000, that are packaged for retail and consist of stoneware, flatware, and glassware.
CBP is proposing to issue HQ 967248 and HQ 967249 in order to revoke NY 875541 and NY A86799, respectively, and set forth the effective rate of duty for dinnerware sets classified in HTS 8215.20.0000.
CBP states that in NY 875541 and NY A86799, it stated that the rate of duty for the dinnerware sets will be the rate applicable to that article in the flatware set subject to the highest rate of duty.
CBP now states that such a statement is incorrect. Instead, in ascertaining the highest rate of duty applicable to a set classified in HTS 8215.20.0000, the duty rate of each and every article in the entire set must be considered, not just the duty rates applicable to articles in a flatware set.
However, CBP states that due to its current lack of information about the dinnerware sets (specifically, the value of the articles in the set), CBP is unable to provide a proposed rate of duty at this time. CBP invites requests for new rulings on the dinnerware sets to obtain rulings that set forth the effective rate of duty for the sets.
According to CBP, product information was destroyed as a result of the terrorist incident on September 11, 2001.
Two Chemically Modified Starch Products. At issue are Cato Size 52A and Cato 15A, which are chemically modified starches. Cato Size 52A contains an added hydrocarbon defoamer and is used as a surface sizing agent in the papermaking industry. Cato15A contains an added phosphorous compound and silicon and is of a kind used in acid paper-making processes. However, CBP states that the added defoamer, phosphorous, and/or silicon compounds make-up less than 1% of each product.
CBP is proposing to issue HQ 966632 in order to revoke NY G81194 and reclassify the Cato Size 52A and Cato 15A in HTS 3505.10.0040 as "other modified starches from corn (maize) starch" rather than in HTS 3809.92.5000 which provides for "other finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparationsof a kind used in the paper or like industries, not elsewhere specified or included."
Among other things, CBP states that based on a review of laboratory findings, these products are cationic starches which have been chemically modified by etherification or esterification. Thus, CBP states that it is now of the opinion that these products have been manufactured to function as "modified starches."
CBP states that HTS 3505 specifically provides for modified starches, and Explanatory Note (EN) 35.05(4) notes that the heading covers esterified starches that are principally used in the paper industries, while HTS 3809 is a basket provision that generally provides for finishing agents, dye carriers and other products and preparations of a kind used in the paper industry which may be based on starch (among other things), and are "not elsewhere specified or included."
(CBP notes that the World Customs Organization (WCO), Harmonized System Committee (HSC), at its 31st session, decided to classify the Cato Size 52A and Cato 15A in HTS 3505.)
proposed: 3505.10.0040, 0.7/kg; current 3809.92.5000, 6%.
November 3, 2004 CBP Bulletin (Vol. 38, No. 45) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2004/vol38_11032004_no45/