August 16, 2006 CBP Bulletin Notices on the 38 th Session of the WCO HSC and Certain DC to DC Converters
In the August 16, 2006 issue of the U.S. Customs and Border ProtectionBulletin (CBP Bulletin) (Vol. 40, No. 34), CBP issued notices: (a) detailing the dates and draft agenda for the 38th Session of the Harmonized System Committee (HSC), and (b) proposing to revoke a classification ruling on certain direct current (DC) to DC converters. 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 September 15, 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.
CBP also states that this notice covers any rulings on the subject merchandise that may exist but have not been specifically identified.
Dates and Draft Agenda for the 38th Harmonized System Committee Session
CBP has published a notice setting forth the dates and draft agenda for the 38th Session of the HSC of the World Customs Organization (WCO), which will be held from October 2 - 13, 2006 in Brussels, Belgium.
(CBP has previously stated that, among other things, the HSC (1) issues classification decisions on the interpretation of the Harmonized System in the form of published tariff classification opinions or amendments to the Explanatory Notes (ENs), and (2) considers amendments to the legal text of the Harmonized System.)
The draft list of agenda items includes (partial list):
Amendments to the Compendium of Classification opinions to reflect the decision to classify certain flooring panels in subheading 4418.30;
Amendments to the Compendium of Classification opinions to reflect the decision to classify spray guns in subheading 8424.81;
Classification of tubes with reagents and tubes without reagents (Reservation by the European Commission);
Possible amendment of the ENs with respect to mercury compounds;
Possible amendment of the ENs to heading 85.13;
Classification of lamp posts (Request from Madagascar);
Classification of a water pipe tobacco; and
Classification of a printed cotton fabric (Request by Sri Lanka).
Proposed Revocation of a Classification Ruling
Certain DC to DC converters. At issue are the PKM, PKL, PKJ, and PKB series, which are all manufactured on Fire Retardant level 4 (FR4), printed circuit board (PCB) material. The parts, capacitors, resistors, diodes, transistors, integrated circuits, etc., are soldered onto the PCB using a thick film process, in two stages. Stage one involves lamination of a copper foil onto an insulating polyamide substrate. In stage two, a conductive pattern is photo-exposed onto the copper, which is then layered with solder and a protective coating is applied to the substrate, etc. (See CBP's notice for complete details.)
CBP is proposing to issue HQ 968273 in order to revoke NY K83213 and reclassify the subject merchandise under HTS 8504.40.95 as other static converters, rather than under 8542.60.0095 as other hybrid integrated circuits.
CBP notes that in order to be considered a "hybrid integrated circuit," Note 5(b) to Chapter 85 requires (1) the passive elements to be obtained by thin- or thick-film technology, and (2) the active elements to be obtained by semiconductor technology. CBP finds that the subject converters do not fulfill the terms of Note 5(b), because their passive elements are not manufactured using thick- or thin-film technology. Consequently, the subject converters are not classifiable in heading 8542.
Furthermore, Explanatory Note 85.04 (II)(D) indicates that direct current converters, by which direct current is converted to different voltages, are included in the group "electrical static converters." CBP states that because the subject converters convert direct current to different voltages, they are properly classified in heading 8504.
proposed: HTS 8504.40.95, 1.5%; current: 8542.60.0095, duty-free.
August 16, 2006 CBP Bulletin (Vol. 40, No. 34) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_08162006_no34/