July 19, 2006 CBP Bulletin Notice on Single Mode Optical Fibers
In the July 19, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 30), CBP issued a notice proposing to revoke the classification treatment accorded to certain single mode optical fibers. CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
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CBP states that any party who has received an interpretive ruling or decision on merchandise subject to this notice, and/or any person involved in substantially identical transactions should advise CBP by August 18, 2006, 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.
CBP also states that this notice covers any rulings on the subject merchandise which may exist but have not been specifically identified.
Proposed Revocation of Treatment
Single mode optical fibers. The merchandise at issue is individually sheathed single mode (SM) optical fibers, which are universally used in long-distance telephony and cable television applications for voice and data transmissions. They consist of a glass core, which carries most of the light, surrounded by a glass cladding, which bends the light and confines it to the core, the whole then covered by both a primary and secondary protective coating of acrylate or vinyl plastic. The acrylate coatings have a combined thickness of approximately 60 microns.
CBP is proposing to issue HQ 968251 in order to revoke previous treatment1 provided by the port of Atlanta and reclassify the subject merchandise under HTS 9001.10.0030, as optical fibers for transmissions of voice, data or video communications, rather than under 8544.70.0000, as optical fiber cables.
The HS 90.01 Explanatory Notes (ENs) describe optical fibers as consisting of concentric layers of glass or plastics of different refractive indices. Those drawn from glass have a very thin coating of plastics, invisible to the naked eye, which renders the fibers less prone to fracture. Optical fibers are usually presented on reels and may be several kilometers in length. They are used to make optical fiber bundles and optical fiber cables.
According to CBP, the subject optical fibers, consisting of a glass core plus glass cladding and two coatings of acrylate plastic, conform to the 90.01 EN description for optical fibers, and are therefore classifiable in HTS 9001.10.0030.
1CBP states that 19 CFR 177.12(c)(1) sets forth the rules for determining under that section whether a treatment was previously accorded by CBP to substantially identical transactions of a person.
These rules involve, among other things, an actual determination by a CBP officer regarding the facts and issues involved in the claimed treatment; the CBP officer being responsible for the subject matter on which the determination was made; and over a 2-year period immediately preceding the claim of treatment, CBP consistently applied that determination on a national basis as reflected in liquidations of entries or reconciliations or other CBP actions with respect to all or substantially all of that person's CBP transactions involving materially identical facts and issues.
CBP states that based upon the facts presented, it concludes under 19 CFR 177.12(c) that a treatment does, in fact, exist in classifying the subject optical fibers as optical fiber cables in HTS 8544.70.0000.
proposed: HTS 9001.10.0030, 6.7%; current: 8544.70.0000, duty-free.
July 19, 2006 CBP Bulletin (Vol. 40, No. 30) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_07192006_no30/