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December 7, 2005 CBP Bulletin Notices on Cutlery Sets and Power Strips

In the December 7, 2005 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 39, No. 50), CBP issued notices: (a) modifying two classification rulings on cutlery sets, and (b) modifying or revoking ten classification rulings on certain power strips. CBP states that it is also revoking 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According to CBP, these revocations and modifications are effective for merchandise entered or withdrawn from warehouse for consumption on or after February 5, 2006. CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.

Modification of Two Classification Rulings

Cutlery sets. The merchandise at issue is various cutlery sets. In HQ 967754, the subject cutlery set consists of six steak knives, one parer knife, one utility knife, one boner knife, one bread knife, one chef knife, one butcher's knife, a scissors, and a hardwood storage block for the knives and scissors. In HQ 967755, the merchandise consists of three different cutlery set models consisting of combinations of knives, forks and storage blocks/sharpening cassettes. (See individual rulings for more specific descriptions of each of the items at issue.)

CBP is issuing HQ 967754 in order to modify HQ 956603 and correct the legal authority for classifying the subject cutlery set under HTS 8211.10.0000 as sets of assorted articles. CBP notes that the classification of the scissors in HTS 8213 remains unaffected by this modification.

CBP is also issuing HQ 967755 in order to modify HQ 087515 and reclassify three subject cutlery sets under HTS 8211.10.0000 as sets of assorted articles, and under 8215.20.000 as other sets of assorted articles; rather than under HTS 8211.92.2000, which provides for kitchen and butcher knives having fixed blades with rubber or plastic handles.

With regard to the subject cutlery set in HQ 967754, CBP states that it should be classified under HTS 8211 pursuant to General Rule of Interpretation (GRI) 3(b) rather than pursuant to GRI 1. GRI 3(b), in relevant part, states that goods put up in sets for retail sale shall be classified as if they consisted of the component which gives them their essential character. CBP finds that because the knives predominate by bulk, quantity, weight, and, presumably, by value, they impart the essential character. Therefore, although the legal authority has changed, the subject cutlery set continues to be classified under HTS 8211.10.0000.

With respect to HQ 967755, CBP states that, under the authority of GRI 3(b), two of the three subject cutlery sets are provided for more narrowly and specifically in HTS 8211.10.0000 because this heading's scope is limited to sets of different knives or sets of assorted articles, in which the knives predominate in number over the other articles.

With regard to the third subject cutlery set in HQ 967755, CBP states that this set differs from the other two sets (which contain multiple knives) because it contains only one knife and one fork. CBP states that this cutlery set meets the criteria for classification pursuant to GRI 3(c), and will be classified under the HTS heading which occurs last in numerical order among those which equally merit consideration, which in this case is HTS 8215.20.0000.

new: HTS 8211.10.0000 and 8215.20.0000, the rate of duty applicable to that article in the set subject to the highest rate of duty; previous: 8211.92.2000, 0.8 each 4.6%.

Modification and Revocation of Ten Classification Rulings

Power strips. At issue are certain power strips with varying combinations of electrical outlets, cords, plugs, surge protectors, circuit breakers, etc. (See individual rulings for more specific descriptions of each of the items at issue.)

CBP is issuing the following rulings in order to modify or revoke previous rulings on subject merchandise:

RulingRevokes(R) or Modifies (M)
HQ 967525PD B89475 (R)
HQ 967869NY FJ83865 and NY J83866 (R)
HQ 967870NY I86010 (R)
HQ 967871NY H89911 (M)
HQ 967872NY H89890 and NY J81768 (R)
HQ 967873NY F87515 (R)
HQ 967874NY F82743 (M)
HQ 967875NY D87643 (M)

In each case, CBP is reclassifying the items at issue under HTS 8537.10.9000, which provides for other boards, panels, consoles, etc. equipped with two or more apparatus of HTS 8535 or 8536 for electric control or the distribution of electricity for a voltage not exceeding 1,000 V, etc.

With the exception of the power strip in NY F82743, all of the subject power strips were previously classified in HTS 8536.30.8000, which provides for other electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits. The power strips in NY F82743 were previously classified under HTS 8544.51.9000, which provides for other electric conductors, for a voltage exceeding 80 V but not exceeding 1,000 V, fitted with conductors.

Among other things, CBP explains that the Explanatory Notes (ENs) at 85.36 discuss fuses and indicate further that the HTS heading includes other devices for preventing overload of circuits (e.g., electro-magnetic devices which automatically break the circuit when the current exceed a certain value). CBP states that the subject power strips are devices that prevent the overload of circuits.

Moreover, CBP states that in Universal Electronics, Inc. v. U.S., articles incorporating two kinds of devices of HTS 8536 (i.e., switches and terminals) were found to be classifiable in HTS 8537. Therefore, the subject power strips, which each incorporate two kinds of apparatus of HTS 8536 on a board panel, console, or other base, principally used for electric control, are provided for in HTS 8537.10.9000.

new: HTS 8537.10.9000, 2.7%; previous: 8536.30.8000, 2.7%; 8544.51.9000, 2.6%.

(See ITT's Online Archives or 10/18/05 news and 10/28/05 news, (Ref:05101845) and 05102850 respectively, for BP summary of the proposed rulings on subject cutlery sets and power strips.)

December 7, 2005 CBP Bulletin (Vol. 39, No. 50) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2005/vol39_12072005_no50/