November 2, 2005 CBP Bulletin Notices on Glass Rods Used to Make Optic Fibers and a White Sauce/Dairy Spread

According to CBP, the revocation is effective for subject merchandise entered or withdrawn from warehouse for consumption on or after 60 days from November 2, 2005.

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 2, 2005, 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 this notice.

In addition, CBP states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.

Proposed Modification and Revocation of Two Classification Rulings

Glass rods used to make optic fibers. At issue are glass rods used to create optic fibers. The subject merchandise is a particular type of glass rod known in the optical fiber production sector as "cane." Cane is used by the importer for the production in the U.S. of glass products known as optical fiber preforms. Optical fiber preforms are subsequently drawn into glass optical fiber. The function or use of optical fibers is to transmit information in the form of light through very thin flexible strands.

CBP is proposing to issue HQ 967059 in order to modify HQ 964879. The HTS classification code, 7002.20.1000, which provides for unworked glass in rods of fused quartz or other fused silica, etc., is not affected by this proposed modification. However, HQ 967059 does propose to clarify the factual predicates and set forth the proper rationale for the classification decision made therein.

CBP is also proposing to issue HQ 967058 in order to revoke HQ 960948 so as to classify subject merchandise under HTS 7002.20.1000, which provides for unworked glass in rods of fused quartz or other fused silica, etc., rather than under HTS 7020.00.6000, which provides for other articles of glass: other.

CBP explains that its classification of glass preforms has focused on the notes to HTS Chapter 70 regarding, whether, in the creation of the glass preforms, the articles are "worked" for tariff purposes. CBP now believes that this classification is in error and that the creation of the glass preforms process is not "working" for tariff purposes.

CBP has considered the concept of the working of glass in several rulings and has uniformly considered the process to have been performed on an extant piece of glass, rather than during the process of creation or manufacture. Based on reexamination of the language from HTS Chapter 70, as well as the relevant headings and explanatory notes, CBP concludes that the "working" of glass articles occurs after their creation.

CBP explains that the manufacture of preforms is a process that requires multiple steps; the articles are not complete until the desired layers are created and the articles are sintered to form a pure, solid whole. Thus, CBP believes it can no longer consider the creation of preforms to be "working" for tariff purposes because the products are being formed into a glass rod from raw material. CBP notes that this interpretation comports with the explanatory notes to HTS heading 7002.

proposed: HTS 7002.20.1000, duty-free; current: 7020.00.6000, 5%.

Revocation of a Classification Ruling

White sauce/dairy spread. At issue is a dairy spread product that consists of 78% milk fat and 21% moisture with very small amounts of additives. At room temperature, the imported product has the appearance of butter and is capable of being spread in a fashion similar to soft butter or mayonnaise.

CBP is issuing HQ 967780 in order to revoke NY D86228 so as to classify this product under HTS 0405.20.3000, which provides for other butter substitutes, whether in liquid or solid state, containing over 45% by weight of butterfat rather than under HTS 2103.90.9060 (1999), which provides for other sauces and preparations thereof.

CBP explains that the consistency, texture, fat content, and general physical characteristics of this product more closely resemble a dairy spread than the class or kind of products used as sauces or sauce preparations. CBP cites various rulings that have examined a number of "white sauce" products which demonstrate the physical characteristics of sauces and sauce preparations in contrast to the imported product.

According to CBP, the subject merchandise is fully described in HTS 0405.20.3000, which provides for goods which are subject to a tariff rate quota (TRQ) but must be entered under the high tier duty rate associated with this provision because they are entered without an import license.

new: HTS 0405.20.3000, $1.996/kg; previous: HTS 2103.90.9060 (1999), 6.6% (currently 6.4%)

(See ITT's Online Archives or 09/13/05 news, 05091345, for BP summary of proposed HQ 967780, including a summary of the Court of International Trade's (CIT) ruling on a notice of action (NOA) issued by the CBP.)

November 2, 2005 CBP Bulletin (Vol. 39, No. 45) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2005/vol39_11022005_no45/