August 2, 2006 CBP Bulletin Notice on Styrofoam Articles Covered With Paper or Natural Materials

CBP states that any party who has received a ruling or decision on the merchandise that is subject to the proposed rulings, or any party involved with a substantially identical transaction, should advise CBP by September 1, 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 notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.

Proposed Revocation and Modification of Eight Classification Rulings

Styrofoam articles covered with paper or natural materials. At issue in these proposed revocations and modifications are various Styrofoam articles covered with paper or natural materials. Such products include a Styrofoam pumpkin and gourd covered with paper, "bean balls," decorative Styrofoam balls, ornamental mushroom articles, etc. (See individual proposed ruling letters for more specific description of each of the individual items at issue.)

CBP is requesting comments on the following proposed rulings in order to modify or revoke previous rulings on subject merchandise and reclassify the covered Styrofoam articles accordingly:

CBP notes that the foil covered Styrofoam pumpkin of HQ 968063 should be classified under HTS 6702.10.2000 if the foil is plastic or under 6702.90.6500 if the foil is metal.

In four of the proposed rulings, CBP is proposing to reclassify the Styrofoam articles under HTS 1404.90.0000 (duty-free), as other vegetable products not elsewhere specified or included, rather than under 3926.40.0000, which provides for other articles of plastics and articles of other materials of headings 3901 to 3914: statuettes and other ornamental articles.

In three of the proposed rulings, CBP is proposing to reclassify the items at issue under HTS 6702.90.6500, as other artificial flowers, foliage and fruit and parts thereof; of other materials, rather than under 6702.10.2000 as artificial flowers, foliage and fruit and parts thereof; of plastics: assembled by binding with flexible materials such as wire, paper, textile materials, or foil, or by gluing or by similar methods.

Lastly, in proposed HQ 968065, CBP is proposing to reclassify the subject item under HTS 4602.10.8000, which provides for other basketwork, wickerwork and other articles, made directly to shape from plaiting materials, or made up from articles of heading 4601; of vegetable materials, rather than under 6702.10.2000.

CBP explains that each of the subject articles is arguably classifiable under two or more HTS headings or subheadings. In addition, because the subject Styrofoam articles are composite goods, CBP states that it must apply the General Rules of Interpretation (GRI) 3(b)-which provides that composite goods are to be classified according to the component that gives the good its essential character.

CBP also states that the materials that cover the Styrofoam articles-not the Styrofoam articles themselves-impart the essential character of the subject Styrofoam articles. As a result, pursuant to GRI 3(b), CBP proposes to classify the subject Styrofoam articles in the aforementioned HTS subheadings.

proposed: 6702.90.6500, 17%; 1404.90.0000, duty-free; 6702.10.2000, 8.4%, 4602.10.8000, 2.3%; current: 6702.10.2000, 8.4%; 3926.40.0000, 5.3% (see HTS 9902.04.99 as well).

August 2, 2006 CBP Bulletin (Vol. 40, No. 32) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_08022006_no32/