Newly Released CBP HQ Rulings on Oct. 22
The Customs Rulings Online Search System (CROSS) was updated Oct. 22 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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H290535: Customs business and broker rules; HTSUS classification recommendations; disclaimers
| Ruling: Hampton’s practice of providing HTSUS subheadings to its customers for Hampton products with a disclaimer stating that the HTSUS subheadings are for information only violates 19 U.S.C. § 1641(b)(1) by conducting customs business without a license. |
| Issue: Whether Hampton’s practice of providing HTSUS subheadings to its customers for Hampton products with a disclaimer stating that the HTSUS subheadings are for information only violates 19 U.S.C. § 1641(b)(1) by conducting customs business without a license. |
| Item: N/A |
| Reason: Classifying goods for others is “customs business” and must be carried out by a licensed customs broker. CBP has previously ruled that even when there is a “possibility” that classification information will eventually be used for an entry, a broker’s license is required “to gather classification data which will be reflected on the entry.” |
| Ruling Date: Sept. 29, 2022 |
H322923: Application for Further Review of Protest No. 2704-20-147641; Classification; Applicability of Section 301 trade remedies; Non-mechanically propelled carts/wagons from China
| Ruling: The subject wagons are classified undeR subheading 8716.80.5090 as "Trailers and semi-trailers; other vehicles, not mechanically propelled; and parts thereof: Other vehicles: Other: Other: Other.” As a 4-wheeled wagon for personal goods and household shopping that is not mechanically propelled, the subject wagons are eligible for exclusion from Section 301 duties under U.S. Note 20(p)(7) and corresponding tariff number 9903.88.13.The subject chair is classified under subheading 9401.79.0015 as "Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Other seats, with metal frames: Other: Other: Outdoor: With textile covered cushions or textile seating or backing material: Other.” As the subject chair is a folding chair with a steel frame, it is eligible for exclusion from Section 301 duties under U.S. Note 20(mm)(22) and secondary tariff number 9903.88.34. |
| Issue: whether the subject wagons fall within the scope of the Section 301 exclusion granted under U.S. Note 20(p)(7) and corresponding subheading 9903.88.13, HTSUS |
| Item: Non-mechanically propelled portable folding wagons comprised of tubular steel frames, rubber tires and fabric coverings. They fold compactly for storage. The various models offer different design features such as slide-out tables, lower platforms, extended bodies, and all terrain wheels, etc. The wagons are for the transport of various personal items. |
| Reason: The scope of each exclusion from Section 301 duties is governed by the product descriptions forth in the Annex, and not by product descriptions set forth in a particular request for exclusion. The term “cart” is recognized as a synonym for “wagon.” |
| Ruling Date: Aug. 18, 2022 |
H321160: Application for Further Review of Protest No. 4601-21-127889; Men’s Apparel; Fallback Method under 19 U.S.C. § 1401a(f)
| Ruling: The merchandise should be appraised based on a modified version of transaction value of identical or similar merchandise under the fallback valuation method |
| Issue: What is the proper method of appraisement for the men’s apparel subject to this protest/AFR? |
| Item: Men’s 70% cotton, 30% polyester knitted jackets, hoodies and sweatshirts and men’s 100% polyester knitted hoodies and polos. |
| Reason: The importer refused to cooperate in appraising the merchandise by failing to respond to the two CBP forms. Therefore, all other valuation methods are unavailable and under these circumstances, CBP properly used a modified version of the transaction value of similar and identical merchandise under the fallback method. |
| Ruling Date: Aug. 17, 2022 |
H322092: Application for Further Review of Protest No. 2704-21-156590; Men’s Jackets; Valuation under 19 U.S.C. § 1401a
| Ruling: The subject men’s jackets should be appraised under the fallback method based on the 2020 aggregate value of similar merchandise classified in the same subheading and imported from the same country at or about the same time as the merchandise being appraised. |
| Issue: What is the proper method of appraisement for the subject men’s jackets? |
| Item: 6,000 men’s jackets with a “FOB price” $2.90 each for a total of $17,400. The merchandise is described as “fleece w/dyed sherpa line.” The purchase order instructs shipment of the merchandise to the importer. |
| Reason: The invoice from the seller to the importer did not mention passage of title. A general transfer of money from one corporate entity to another, which cannot be linked to a specific import transaction, is not a "bona fide sale." There is insufficient information to enable CBP to use transaction value to appraise the merchandise. As a result, the CEE used the available data on merchandise classified in the same subheading and imported from the same country at or about the same time as the merchandise being appraised. |
| Ruling Date: Aug. 17, 2022 |
H307939: Internal Advice; Classification of Steel Bulb Flats
| Ruling: The steel bulb flats are classified under subheading 7216.50.00 as “Angles, shapes and sections of iron or nonalloy steel: Other angles, shapes and sections, not further worked than hot-rolled, hot-drawn or extruded." |
| Issue: whether the steel bulb flats are classified in heading 7216 as shapes of nonalloy steel |
| Item: Steel bulb flats imported from Turkey. Bulb flats are a specially shaped steel for use as hull stiffeners in ships. Bulb flats have a unique profile form. Bulb flats are hot-rolled flats with a bulb offset to one side that runs the entire length of the profile. Bulb flats are manufactured in a wide range of sizes to allow for optimum structures and weight management in ship design and construction. Bulbs are sized in millimeters by web depth and thickness. |
| Reason: The subject merchandise does not meet the specifications for other alloy steel products as they lack the minimum required percentages of aluminum, chromium, copper, manganese, molybdenum, nickel, niobium, silicon, titanium, and vanadium. The steel bulb flats have uniform cross sections along their whole length and do not fall within any other definitions or exclusions for other steel products. |
| Ruling Date: Aug 12, 2022 |