Newly Released CBP HQ Rulings for May 23
The Customs Rulings Online Search System (CROSS) was updated May 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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H322618: Dredging; Fluidization; Emulsification; Water Jet; 46 U.S.C. § 55109
| Ruling: The Device that will be used by the vessel to create a trench by fluidizing the seabed using pressurized water jets, without the use of a mechanical plow or cutter, does not constitute dredging. |
| Issue: whether the creation of the subject submarine trench by a non-coastwise-qualified vessel violates the Dredging Act, 46 U.S.C. § 55109 |
| Item: N/A |
| Reason: CBP has long ruled that the use of water jets does not constitute “dredging” under the Dredging Act and can be done by a non-coastwise-qualified vessel in U.S. territorial waters. CBP has reasoned that the use of a jetting tool to “temporarily lift” a “narrow ‘slice’” of the seabed amounts to a “temporary manipulation of the seabed” as opposed to the creation of a furrow or trench. |
| Ruling Date: March 25, 2022 |
H310087: Application for Further Review of Protest Number 1303-19-100276; Transaction Value; Related Parties; Post-Importation Adjustments
| Ruling: The merchandise may be appraised based on transaction value and the subject post-importation adjustments may be considered. The protest should be granted. |
| Issues: (1) Is it acceptable to take the subject post-importation price adjustments into account for purposes of determining transaction value? (2) Do the circumstances of sale establish that the price actually paid or payable by the protestant to the parent is not influenced by the relationship of the parties and is acceptable for the purposes of using transaction value? |
| Item: vehicles and spare parts |
| Reason: To claim post-importation adjustments to the value of the imported goods, the protestant must satisfy five criteria. The protestant has provided sufficient information to satisfy the that criteria. CBP finds that the adjustments at issue are not subject to any other considerations or conditions that may affect transaction value; the subject post-importation adjustments may be taken into account in determining the transaction value. The resale prices to the dealers were set to ensure that the protestant covered its operating expenses and a reasonable profit. CBP finds that the adjusted sales price is not influenced by the relationship for purposes of the sale test and determined that transaction value is the proper method of appraisement. |
| Ruling Date: March 18, 2022 |