July 19, 2006 CBP Bulletin Notices on Palm Fatty Acid Distillate and Safety Eyeglass Frames Combined with Prescription Lenses
In the July 19, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBPBulletin) (Vol. 40, No. 30), CBP issued notices: (a) proposing to revoke a classification ruling on palm fatty acid distillate, and (b) withdrawing the proposed revocation of four rulings regarding the country of origin marking for imported safety eyeglasses combined with prescription lenses.
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With respect to the proposed revocation, CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
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 August 18, 2006, 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.
In addition, CBP states that the notice concerning the proposed revocation covers any rulings on the subject merchandise that may exist but have not been specifically identified.
Proposed Revocation of One Classification Ruling
Palm fatty acid distillate (PFAD). At issue is PFAD, which is a product that is produced by subjecting crude oil to heat and steam at reduced pressures. During this process, steam carries off the PFAD until it condenses into a liquid. After condensation, PFAD solidifies at room temperature into an amber-color. Once solidified, fatty free acids compose 85-90% of PFAD's total substance weight.
CBP is proposing to issue HQ 967992 in order to revoke HQ 962807 and reclassify subject merchandise under HTS 3823.19.2000, which provides for other industrial monocarboxylic fatty acids; derived from coconut, palm-kernel or palm oil, rather than under 3824.90.4090, which provides for other prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries, not elsewhere specified or included, etc.
In HQ 962807, CBP classified PFAD in HTS heading 3824-a basket provision where merchandise should only be classified in that heading if it is not "elsewhere specified or included" in another heading-but additional information has come before CBP suggesting that the correct classification of PFAD is in HTS heading 3823, as industrial monocarboxylic fatty acids.
CBP states that PFAD meets the terms of HTS heading 3823, because it is an industrial monocarboxylic fatty acid. Among other things, CBP notes that PFAD is produced through an industrial process that includes fractional distillation and that PFAD's chemical structure comports that of a monocarboxylic acid. Therefore, by application of General Rule of Interpretation (GRI) I, PFAD should be classified in HTS heading 3823.
proposed: HTS 3823.19.2000, 2.3%; current: 3824.90.4090, 4.6%.
Withdrawal of Four Proposed Revocations
Country of origin marking for imported safety eyeglass frames combined with prescription lenses. CBP has previously stated that the merchandise is imported safety eyeglass frames (assembled or unassembled), combined with prescription lenses in the U.S. to render completed safety glasses for sale to employers.
(CBP has also previously stated that it was proposing to issue HQ 562975, HQ 562976, HQ 562977, and HQ 562978 in order to revoke HQ 557996, HQ 734733, HQ 734258, and HQ 729649, respectively, and any other rulings not specifically identified, to reflect that the "employer-provided" marking exception may not be applied to exempt the subject frames from bearing individual country of origin markings.)
CBP states that after reviewing the comments submitted in connection with the proposed revocations, it has decided to take no further action at this time to revoke the four ruling letters. Accordingly, CBP is withdrawing the proposed revocations, and will consider addressing this issue in the future.
As a result of the withdrawal, CBP notes that HQ 557996, HQ 734733, HQ 734258, and HQ 729649 will remain in full force and effect.
(See ITT's Online Archives or 05/06/04 news, 04050645, for BP summary of the proposed revocations on subject merchandise.)
July 19, 2006 CBP Bulletin (Vol. 40, No. 30) available athttp://www.customs.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_07192006_no30/