August 16, 2006 CBP Bulletin Notices on Certain Fastener Repair Kits and Disposable Costumes Packaged with Headpieces and Bags

In the August 16, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 34), CBP issued notices: (a) proposing to revoke the classification treatment accorded to certain fastener repair kits, and (b) proposing to revoke one classification ruling on disposable costumes packaged with headpieces and bags. 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 rulings, or any party involved with a substantially identical transaction, should advise CBP by September 15, 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 these notices.

Proposed Revocation of Treatment

Fastener repair kits. CBP states that in HQ 563322 (October 26, 2005), it determined that certain fastener repair kits should be classified in HTS 8207.40, which provides for tools for tapping or threading, and parts thereof, pursuant to General Rule of Interpretation (GRI) 3(c).

Under GRI 3(c), the subject repair kits are classified based on the component that was classified in the HTS heading that occurs last in numerical order.

However, CBP states that evidence has been presented which substantiates that a "treatment" (in accordance with 19 CFR 177.12(c)) has previously been accorded to substantially identical transactions, where such fastener repair kits were classified in HTS 7318.29.

As a result, pursuant to 19 U.S.C. 1625 (c)(2), CBP proposes to revoke any treatment that has been previously accorded to substantially identical transactions.

CBP notes that the four fastener repair kits include a varying number of steel wire inserts, installation tools, and recoil screw thread insert (STI) taps. (See CBP's notice for further description of the subject kits.)

1. CFR 177.12(c) 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.

proposed: 8207.40.3000, 5.7%; current: 7318.29.0000, 2.8%.

Proposed Revocation of One Classification Ruling

Disposable costumes packaged with headpieces and bags. According to CBP, the subject merchandise consists of disposable costumes identified as the "Devil Disposable Costume," "Scary Creature Disposable Costume," and the "Ghost Disposable Costume." These items are described as disposable Halloween costumes for infants and have been constructed of non-woven fabric consisting of 90% polypropylene, 5% elastic, and 5% hook and loop fasteners.

CBP is proposing to issue HQ 967728 in order to revoke NY L83457 and classify the subject costumes as GRI 3(b)sets under HTS 9505.90.6000, which provides for "festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: other: other," rather than classifying the articles separately (the jumpsuits under 9505.90.6000, and the headpieces under 6505.90.8015 as hats and other headgear.)

CBP states that in NY L83457, it determined that the articles packaged together for retail sale (jumpsuit, headpiece, bag) were not a "retail sale" within the meaning of the HTS, and the jumpsuit and hat were classified separately. CBP also noted that it could not rule on the bag without a further description, the fiber content by generic name, and the percent by weight of the exterior surface material.

CBP has now determined that the subject costumes are classified as GRI 3(b) sets, with the jumpsuit providing the essential character; thus, CBP finds that the set should be classified in HTS 9505.90.6000.

proposed: 9505.90.6000, duty-free; current: 6505.90.8015, 18.7/kg 6.8%.

August 16, 2006 CBP Bulletin (Vol. 40, No. 34) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_08162006_no34/