March 23, 2005 CBP Bulletin Notices on Flame Cut Nonalloy Steel Circles and Pumpkin Carving Sets
In the March 23, 2005 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 39, No. 13), CBP issued notices: (a) proposing to revoke treatment accorded to flame cut nonalloy steel circles, and (b) revoking or modifying eight classification rulings as well as modifying the analysis in seven classification rulings regarding pumpkin carving sets. CBP states that it is also revoking, or 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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According to CBP, the revocations and modifications are effective for merchandise entered or withdrawn from warehouse for consumption on or after May 22, 2005.
CBP states that any party who has received a contrary ruling or decision on the merchandise that is subject to the proposed ruling, or any party involved with a substantially identical transaction, should advise CBP by April 22, 2005, the date that written comments on the proposed ruling 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 this notice.
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 Treatment
Flame Cut Nonalloy Steel Circles. At issue are steel circle blanks which are disc-shaped and oxyacetylene flame cut from hot-rolled steel plates. After importation, they are heated, then spun into tank heads for use on pressure vessel tank cars for the rail industry and general purpose tanks for the conveyance of water, gas, etc.
CBP is proposing to issue HQ 967410 in order to revoke the treatment CBP has accorded to the subject steel circles and classify the circles in HTS 7208.90.0000 as "flat-rolled products of iron or nonalloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated: other" rather than in HTS 7326.19.0000 as "other articles of iron or steel: forged or stamped, but not further worked: other."
According to CBP, the original determination that the steel circles were provided for in HTS 7326.19.0000 was based on the belief that the goods were made by a stamping process in accordance with Motor Wheel Corp. v. U.S.
However, CBP now states that the subject steel circles are not produced by a recognized stamping process and, therefore, are not stamped articles of the type classifiable in HTS 7326.19.0000. Instead, CBP states that the circles should be classified in HTS 7208.90.0000.
CBP states that 19 CFR 177.12(c) sets forth the rules for determining under that section whether a treatment was previously accorded by CBP to substantially identical transactions of a person.
These rules involve, among other things, an actual determination by a CBP officer regarding the facts and issues involved in the claimed treatment; the CBP officer being responsible for the subject matter on which the determination was made; and over a 2-year period immediately preceding the claim of treatment, CBP consistently applied that determination on a national basis as reflected in liquidations of entries or reconciliations or other CBP actions with respect to all or substantially all of that person's CBP transactions involving materially identical facts and issues.
CBP states that based upon the facts presented, it concludes under 19 CFR 177.12(c) that a treatment does, in fact, exist in classifying the subject steel circles in HTS 7326.19.0000.
proposed: 7208.90.0000, duty-free; current: 7326.19.0000, 2.9%.
Revocation or Modification of Eight Classification Rulings, Etc.
Pumpkin Carving Sets. At issue are pumpkin carving sets. CBP is issuing the following rulings in order to revoke or modify the following rulings:
| Ruling | Ruling being Revoked (R) or Modified (M) |
|---|---|
| HQ 966981 | NY H80987 (R) and NY H81051(R) |
| HQ 967376 | NY G81860 (M) and NY I89059 (M) |
| HQ 967377 | NY G87300 (R) and NY G87214 (M) |
| HQ 967378 | NY J81070 (R) |
| HQ 967379 | NY J82021 (M) |
In the eight rulings being revoked or modified, CBP determined that the pumpkin carving sets were classifiable as goods put up in sets for retail sale under HTS General Rule of Interpretation (GRI) 3(b); however, the sets could not be classified according to GRI 3(b) because no component in the set imparted the essential character of the set. Therefore, the sets were classified according to GRI 3(c) by the component occurring last in numerical order among the competing headings which equally merit consideration.
However, it is now CBP's position that resort to GRI 3(c) was improper, as the carving knife or tool imparts the essential character of the pumpkin carving sets. Therefore, the pumpkin carving sets are classified according to GRI 3(b) in the appropriate HTS Chapter 39 or 82 provision. (See rulings for these Chapter 39 or 82 tariff numbers.)
CBP further states that it is modifying the analysis (but not the classification) of the following rulings so that each is in accordance with the analysis above: NY I89205, NY G87082, NY 818260, NY 807079, NY 817821, NY 899065, and NY 815629.
(See ITT's Online Archives or 01/12/05 news, 05011245, for BP summary of the proposed rulings.)
March 23, 2005 CBP Bulletin (Vol. 39, No. 13) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2005/vol39_03232005_no13/