Newly Released CBP HQ Rulings for Dec. 23
The Customs Rulings Online Search System (CROSS) was updated Dec. 23 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
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H305251: Substitution unused merchandise drawback under 19 U.S.C. § 1313(j)(2); foreign status components of articles produced within a Foreign Trade Zone
| Ruling: Only the domestic status components of the vehicles produced in the FTZ are eligible for drawback under 19 U.S.C. § 1313(j)(2). |
| Issue: Whether vehicles produced within an FTZ from domestic and foreign status components and exported without being entered for consumption are eligible to be substituted for imported and duty-paid vehicles to claim drawback under 19 U.S.C. § 1313(j)(2). MBUSA asserts that if a product manufactured within an FTZ in the United States can be deemed originating in the United States for marking purposes, the product should be deemed “domestic” for drawback purposes and no longer constitute an imported article requiring entry under 19 U.S.C. § 1313(u). |
| Item: Mercedes-Benz USA produces vehicles in a foreign-trade zone with domestic and foreign status components. The foreign components are both in privileged and non-privileged foreign status. Once production is complete, MBUSA proposes withdrawing the finished vehicles for exportation under bond without filing an entry for consumption. MBUSA seeks to claim unused merchandise drawback under 19 U.S.C. § 1313(j)(2) on the vehicles it so exports from an FTZ, substituting them for previously imported and entered vehicles which remain within the United States. MBUSA seeks confirmation that vehicles so exported from an FTZ, containing foreign status components on which no duties were paid, are eligible for substitution unused merchandise drawback. |
| Reason: Articles originating within the United States are referred to as domestic articles but “substantial transformation” does not, under these circumstances, confer domestic status for purposes of duty assessment. When vehicles are produced within an FTZ from domestic and foreign status components and exported without being entered for consumption, only the domestic status components are eligible for drawback under 19 U.S.C. § 1313(j)(2). |
| Ruling Date: Dec. 10, 2021 |
H313592: Application for Further Review of Protest No. 1512-20-100291; Classification of Men’s and Women’s graduated compression socks and graduated compression calf sleeves
| Ruling: Socks: 6115.10.4000, 14.6%, “Panty hose, tights, stockings, socks and other hosiery, including graduated compression hosiery (for example, stockings for varicose veins) and footwear without applied soles, knitted or crocheted: Graduated compression hosiery (for example, stockings for varicose veins): Surgical panty hose and surgical stockings with graduated compression for orthopedic treatment.” Sleeves: 6307.90.9889, 7%, “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.” |
| Issue: What is the tariff classification of the graduated compression socks and graduated compression calf sleeves? |
| Item: Several styles of men’s and women’s graduated compression socks and graduated compression calf sleeves. The socks include knee high socks that cover the foot, ankle, and leg above the knee; and short socks that cover the foot and ankle. The calf sleeves cover the upper ankle and below the knee area. The socks and calf sleeves are constructed of knit synthetic materials and are principally marketed to athletes and other active lifestyle consumers. All of the socks and calf sleeves feature a minimum compression of 20 to 30 mm Hg, and are worn to counter the effects of venous disease and improve venous valve and arterial functions by facilitating blood circulation; to prevent blood pooling and various types of edema, or swelling; to reduce the risk of deep vein thrombosis; and to stabilize muscles and joints to prevent certain types of injuries (e.g., shin splints, plantar fasciitis) and increase proprioception. |
| Reason: The graduated compression socks are not surgical panty hose and surgical stockings with graduated compression for orthopedic treatment classified in subheading 6115.10.05. First, medical-grade compression stockings are prescribed by a doctor, and the compression stockings at issue here do not require a physician’s prescription. Second, medical-grade compression stockings are sold in specialty stores where one’s leg must be measured and fitted by trained personnel. They are not the type of support hose which can be purchased in a variety of retail stores. The compression socks at issue here are sold online and in retail stores, and not do not require fitting by a trained professional. Third, surgical panty hose and surgical stockings are designed for use post-surgery or after injury. |
| Ruling Date: Oct. 19, 2021 |