January 25, 2006 CBP Bulletin Notices on Brown Sugar Chunks and Certain "Snappin' Slap Bracelets"
In the January 25, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 5), CBP issued notices: (a) proposing to modify a classification ruling on brown sugar chunks, and (b) modifying a classification ruling on certain "Snappin' Slap Bracelets." CBP states that it is also proposing to revoke, or is 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to CBP, the modification for certain "Snappin' Slap Bracelets" is effective for subject merchandise entered or withdrawn from warehouse for consumption on or after March 26, 2006.
With respect to the proposed modification, CBP states that any party who has received an interpretive ruling or decision on subject merchandise, and/or any person involved in substantially identical transactions should advise CBP by February 24, 2006, the date that written comments on the proposed ruling are due.
CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Proposed Modification of Classification Ruling
Brown sugar chunks. At issue are irregularly shaped brown sugar chunks, which are sold with white sugar chunks under the name of "A La Perruche." Only the brown sugar chunks are the subject of this proposed modification.
The subject brown sugar chunks are created by first taking raw sugar and refining it through filtration, crystallization and maturation until the sugar develops into bars. The sugar forming the chunks have caramelized sugar syrup added to change the color to a brown or amber shade. The bars are broken into irregular lumps and are packaged into boxes along with white sugar chunks, which are imported into the U.S. for retail sale.
CBP is proposing to issue HQ 967303 in order to modify HQ 952419 and reclassify the subject brown sugar chunks under HTS subheading 1701.91, which provides for "Cane or beet sugar and chemically pure sucrose in solid form: Other: containing added flavoring or coloring matter" rather than under HTS 1701.11.0125 (1992), as raw cane sugar, not containing added flavoring or coloring matter.
CBP notes that if the subject brown sugar chunks are described in additional U.S. note (AUSN) 5 to Chapter 17 and entered pursuant to its provisions, the specific classification will be in HTS 1701.91.1000. If subject brown sugar chunks are not described in AUSN 5 to Chapter 17 and not entered pursuant to its provisions, the applicable classification will be in HTS 1701.91.3000, which may be subject to additional duties based on their values as described in certain HTS Chapter 99 subheadings.
CBP states that in HQ 952419, it determined that because caramelized syrup (contained in the subject brown sugar chunks) is itself a sugar product, and is commonly added to refined sugar in order to produce brown sugar, that the addition of the caramelized syrup to the sugar was not considered adding coloring or flavoring.
CBP now disagrees with its previous finding-it now states that the purpose of adding the caramelized sugar is to change the color of the sugar in subject brown sugar chunks. Further, CBP takes into consideration a November 2003 ruling by the Harmonized System Committee of the World Customs Organization (WCO), which decided that the addition of a small quantity of caramel to produce brown sugar chunks was adding a coloring matter.
Therefore, because CBP finds that the caramelized syrup contained in subject brown sugar chunks constitutes "added coloring" and based on the WCO's decision, it holds that the subject brown sugar chunks should be classified in subheading HTS 1701.91.
proposed:
- (if described under AUSN 5 to Chapter 17) HTS 1701.91.1000, 3.6606/kg less 0.020668/kg for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 3.143854/kg.
- (if not described under AUSN 5 to Chapter 17) 1701.91.3000, 35.74/kg-certain additional duties may apply under 9904.17.08 and 9904.17.16.
current: HTS 1701.11.0125 (1992), 1.4606/kg less than 0.020668/kg for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 0.943854.
Modification of a Classification Ruling
Certain "Snappin' Slap Bracelets." At issue is merchandise described as "Snappin' Slap Bracelets" (textile-covered metal bracelets that are snapped around the wrist). Subject merchandise consists of two bracelets, bases and stickers, bracelet strips, slide-ons, and charms/markers which are used to create, decorate and change the appearance of the bracelets.
CBP is issuing HQ 967932 in order to modify NY K82999 and reclassify the subject snap bracelets under HTS 7117.19.9000, which provides for "Imitation jewelry: Of base metal, whether or not plated with precious metal: Other: Other: Other;" rather than under HTS 9503.70.0000, which provides for other toys, put up in sets or outfits, and parts and accessories thereof (including educational toy sets).
In reclassifying subject merchandise, CBP states that while the child can decorate and personalize the subject snap bracelets, any amusement value provided by the decoration is finite. In other words, once the bracelet is decorated to the degree deemed appropriate by the child, the playful characteristic ends. Furthermore, CBP notes that the amusement of decorating is the means to the end-wearing a snap bracelet. The activity of decorating what could be worn as a bracelet does not constitute emulative or educational play; gluing and such are creative activities at best.
Thus, CBP concludes that the "slap bracelets" are not educational toy sets classifiable under HTS heading 9503.
In accordance with General Rule of Interpretation (GRI) 1, CBP is reclassifying the subject merchandise under HTS 7117, which provides for articles of imitation jewelry, and is specifically provided for under HTS 7117.19.9000.
(See ITT's Online Archives or 12/12/05 news, 05121250, for BP summary of proposed HQ 967932.)
new: HTS 7117.19.9000, 11%; previous: 9503.70.0000, duty-free.
January 25, 2006 CBP Bulletin (Vol. 40, No. 5) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_01252006_no5/