January 4, 2006 CBP Bulletin Notices on an Item Described in Error as an Ethernet Card and Sugar/Chocolate-Coated Confectioneries
In the January 4, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 2), CBP issued notices: (a) revoking a classification ruling of an item described in error as an Ethernet card, and (b) modifying a classification ruling on sugar or chocolate-coated confectioneries. 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According to CBP, the revocation and modification are effective for merchandise entered or withdrawn from warehouse for consumption on or after March 5, 2006. CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Revocation of a Classification Ruling
Line card described in error as an Ethernet card. At issue is a line card (specifically Cisco Systems, Inc. (Cisco) part number WS-X4148RJ45V), which was originally described and classified in error as an Ethernet card. The subject article is a 48-port switching line card with inline power for certain Cisco Internet Protocol (IP) telephony. The instant line card detects IP telephones and supplies power to them via the switch, in lieu of an electrical outlet. It permits the communication of telephone, fax, and computers over a wide area.
CBP is issuing HQ 967631 in order to revoke NY K87985 so as to classify the subject article under HTS 8517.90.4400, which provides for printed circuit assemblies for telegraphic apparatus; rather than under HTS 8471.80.1000, which provides for control or adapter units.
CBP has previously explained that the subject article was originally classified based on the incorrect part number and description. Based upon CBP's review of the product literature, the line card, being designed for inline power and exclusively used with the particular series of switches for an inline power multi-service communications infrastructure, will be classified as a part of the apparatus of HTS 8517, and specifically provided for under the subheading as a printed circuit assembly for telegraphic apparatus.
new: HTS 8517.90.4400, duty-free; previous: 8471.80.1000, duty-free.
(See ITT's Online Archives or 11/08/05 news, 05110850, for BP summary of proposed HQ 967631.)
Modification of a Classification Ruling
Sugar or chocolate-coated confectioneries. At issue are four varieties of sugar or chocolate-coated candies, imported either in bulk or packaged for retail sale. CBP makes a distinction in classification between chocolate confectioneries packaged for retail sale, and chocolate confectioneries packaged for import in bulk. In this case, the subject merchandise in question is specifically packaged for import in bulk.
CBP is issuing HQ 967865 in order to modify NY C86680 so as to classify the subject merchandise under HTS 1806.90.5500, which provides for chocolate and other food preparations containing cocoa: other articles containing over 10 percent by dry weight of sugar described in additional U.S. note (AUSN) 3 to chapter 17: described in AUSN 8 pursuant to its provisions, and 1806.90.5900, which essentially provides for other articles containing over 10 percent by dry weight of sugar described in AUSN 3 to chapter 17; rather than under HTS 1806.90.9011, which provides for other confectionery containing peanuts or peanut products, and 1806.90.9019, which provides for other confectionery.
CBP explains that although the classification request for subject merchandise indicated that the products would be imported either in bulk or packaged for retail sale, NY C86680 did not provide classifications for both situations. According to CBP, NY C86680 only took into consideration the chocolate products as packaged for retail sale. Therefore, HQ 967865 modifies the original classification to provide for subject merchandise imported in bulk.
CBP has previously stated that subject merchandise packaged for retail sale is "prepared for the marketing to the ultimate consumer in the identical form and package in which they are imported." However, subject merchandise which is imported in bulk is not prepared for marketing to the ultimate consumer in the identical form and package in which they are imported. Therefore, subject merchandise is described by the terms of AUSN 3 to chapter 17, is subject to the quota under AUSN 8 to chapter 17, and is classified in subheadings HTS 1806.90.5500 (in-quota) and 1806.90.5900 (over-quota).
new: HTS 1806.90.5500 (in-quota), 3.5%; 1806.90.5900 (over-quota), 37.2/kg6%; previous: 1806.90.9011 and 1806.90.9019, 6%.
(See ITT's Online Archives or 11/10/05 news, 05111060, for BP summary of proposed HQ 967865.)
January 4, 2006 CBP Bulletin (Vol. 40, No. 2) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_01042006_no2/