Rulings, remedies and court proceedings for customs and trade professionals

Recent CBP NY Rulings

The following are short summaries of recent CBP NY rulings issued by the agency's National Commodity Specialist Division in New York:

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N338681: The tariff classification of a hydroponic planter system from China

HTS: 8424.82.0090, 9903.88.02, 2.4% + 25%, “Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof: Other appliances: Agricultural or horticultural: Other.”
Item: A modular hydroponic system used for growing a variety of plants indoors. The automated watering and lighting systems can be controlled manually via a user interface on the product or wirelessly via a custom-built smartphone app. The product is made of plastic, metal, bamboo, silicone, and electrical components. The planter features an automated watering system, which uses a pump in the base to deliver nutrient water to the uppermost plants before trickling down to the lower plants. Automated LED lights stimulate growth via an LED bar that can be manually positioned to support plants of varying heights. The growth pods are placed in vertical and horizontal modules, which include reusable pot inserts with lids.
Reason: As each kit contains all the components that comprise a complete system, it will be classified as a complete growing system entered unassembled.
Ruling Date: March 13, 2024

N338546: The tariff classification of a Computer Numerical Control (CNC) Band Sawing Machine and a CNC Angle Punching, Marking, and Shearing Line from China

HTS: (1) 8461.50.4050, 9903.88.01, 4.4% + 25%, “Machine tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off and other machine tools working by removing metal or cermets, not elsewhere specified or included: Sawing or cutting-off machines: Numerically controlled: Other.” (2) 8457.30.0010, 9903.88.01, 3.3% + 25%, “Machining Centers, unit construction machines (single station) and multi-station transfer machines, for working metal: Multistation transfer machines: Numerically controlled.”
Item: (1) A CNC Band Sawing Machine. The device is a double column, high-precision horizontal sawing machine which uses a motor-driven, continuous saw blade to cut various structural steel products, including, but not limited to H-beams and geometric profiles. During operation, a workpiece is horizontally fed on a track into the work area, perpendicular to the saw blade, and clamped into position using hydraulic power. The saw blade is vertically moved into the workpiece at high linear speed and cuts off a terminal section to precise length and angle. A steel product is reduced into multiple precisely-cut custom steel products. (2) A CNC Angle Punching, Marking, and Shearing Line. The device is composed of conveyors, infeed carriage, CNC interface, punching unit, marking unit, cutting unit, and related hydraulic, electrical, and pneumatic systems. Within the main housing are three separate units which operate independently; one punching unit head, one marking unit head, and one shearing unit head. Each unit head requires the workpiece to travel to it using the force of the trailing motorized carriage. As the steel angle is automatically fed perpendicularly into the main housing each unit head is moved into the workpiece successively at high force using hydraulic power. The punching unit head is fitted with interchangeable punches that create holes or slots in the workpiece to programmed specifications. The marking unit head is fitted with interchangeable dies that mark the angles with alphanumeric (or other) characters to communicate information to an end user, including but not limited to length, specification, and model number. The shearing unit head is vertically moved into the workpiece at high force and cuts off a terminal section to precise length. The resulting product is a steel angle that, depending on what is programmed into the onboard computer, is cut to length and features holes, slots, and marking.
Reason: (2) Although heading 8462, Harmonized Tariff Schedule of the U.S., specifically names two of the operations performed, it does not provide for marking, and the relevant 8462 ENs specifically exclude “Machining centers, unit construction machines (single station) and multi-station transfer machines, for working metal (heading 8457).”
Ruling Date: March 13, 2024

N338536: The tariff classification of a keystone jack from China

HTS: 8536.69.8000, 9903.88.03, 2.7% + 25%, “Electrical apparatus…for making connections to or in electrical circuits…: Lamp-holders, plugs and sockets: Other: Other.”
Item: The CAT6A Unshielded Toolless Keystone Jack, which is described as a plastic housing containing an arrangement of punchdown contacts for unterminated Ethernet cable. In use, the individual wires are arranged into the socket’s punchdown channel, and a plastic retention clip is manually snapped into place that causes the wires to make contact with the internal electrical contacts.
Reason: The Keystone Jack is an electrical socket, and provided for in previous subheadings.
Ruling Date: March 13, 2024

N338377: The country of origin of a power adapter

Country of Origin: Philippines
Item: The 30W Dual Port USB C+USB A Car Charger with PD fast charge (Power Adapter), which is described as a rectifier having two female sockets, namely one USB Type-A and one USB Type-C socket, on one side and a 12 V vehicle accessory plug on the other end. The Power Adapter is intended to supply power to various types of USB enabled electronic devices. The power adapter has materials from China, Taiwan, and the Philippines. The assembly process begins with the manufacturing of a printed circuit board assembly (PCBA) that occurs in the Philippines by soldering multiple components, such as integrated circuits, resistors, capacitors, diodes, a transformer, etc. onto a bare PCB via a surface mount and through-hole insertion process. The PCBA is then attached to a plastic housing by means of ultrasonic welding. The final product undergoes numerous testing procedures and visual inspection before it is packaged in a retail carton for export.
Reason: The assembly of the PCBA in the Philippines by soldering the individual components onto the bare board results in a substantial transformation of the components to produce a PCBA of Philippine origin.
Ruling Date: March 13, 2024

N338376: The country of origin of a power adapter set

Country of Origin: Philippines
Item: The 67W 3 Port Wall + 240W C to C Cable (Power Adapter Set), which consists of a retail package containing a power adapter plug and a 6-foot electric cable. The 67 W power adapter is rectangular with a two-prong electrical plug on one side and three female sockets, namely a USB Type-A socket and two USB Type-C sockets on the other side. The 6-foot electric cable has two male USB Type-C connectors on either end. The Power Adapter Set is intended to supply power to various types of USB enabled electronic devices. The power adapter is comprised of materials from China, Taiwan, and the Philippines. The assembly process begins with the manufacturing of a printed circuit board assembly (PCBA) that occurs in the Philippines by soldering multiple components, such as integrated circuits, resistors, capacitors, diodes, a transformer, etc. onto a bare PCB via a surface mount and through-hole insertion process. The PCBA is then attached to a plastic housing by means of ultrasonic welding. The final product undergoes numerous testing procedures and visual inspection before it is packaged with the cable in a retail carton for export.
Reason: The assembly of the PCBA in the Philippines by soldering the individual components onto the bare board results in a substantial transformation of the components to produce a PCBA of Philippine origin.
Ruling Date: March 13, 2024

N338375: The country of origin of a power adapter set

Country of Origin: Philippines
Item: The 6-ft. USB-C to C PVC Cable + Dual Port Wall Charger 20W (Power Adapter Set), which consists of a retail package containing a power adapter plug and a 6-foot electric cable. The 20W power adapter is rectangular with a two-prong electrical plug on one side and two female sockets, namely a USB Type-A and a USB Type-C socket, on the other side. The 6-foot electric cable has USB Type-C male connectors on either end. The Power Adapter Set is intended to supply a charge to various types of USB-enabled electronic devices. The power adapter comprises materials from China, Taiwan, and the Philippines. The assembly process begins with the manufacturing of a printed circuit board assembly (PCBA) that occurs in the Philippines by soldering multiple components, such as integrated circuits, resistors, capacitors, diodes, a transformer, etc. onto a bare PCB via a surface mount and through-hole insertion process. The PCBA is then attached to a plastic housing by means of ultrasonic welding. The final product undergoes numerous testing procedures and visual inspection before it is packaged in a retail carton for export.
Reason: The PCBA made in the Philippines by soldering the individual components onto the bare board results in a substantial transformation of the components to produce a PCBA of Philippine origin.
Ruling Date: March 13, 2024

N338277: The tariff classification of Heparin Sodium for Injection in dosage form, from China

HTS: 3004.90.9291, free, “Medicaments … consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses … or in forms or packings for retail sale: Other: Other: Other: Other.”
Item: Heparin Sodium is an anticoagulant. It is indicated for thromboprophylaxis and to treat thrombosis associated with a variety of conditions such as pulmonary embolism and atrial fibrillation. It is also used as an anticoagulant in transfusion, extracorporeal circulation, and dialysis procedures.
Reason: N/A
Ruling Date: March 13, 2024

N338256: The classification of a tourniquet holster from Turkey

HTS: 4202.92.9100, 17.6%, "other containers and cases, with outer surface of sheeting of plastics or of textile materials, other, other, with outer surface of textile materials, of man-made fibers (except for jewelry boxes of a kind normally sold at retail with their contents)."
Item: A tourniquet holster. It is constructed with an outer surface of man-made textile material. It is designed to provide protection, portability, organization, and storage to the tourniquet. The article features a flap with a hook-and-loop closure and one slot pocket.
Reason: The holster is not constructed of vegetable fibers nor is it a trunk or suitcase.
Ruling Date: March 13, 2024

N336563: The tariff classification of Tris (2-Chloroisopropyl) Phosphate (TCPP) (CAS No. 1244733-77-4) from China

HTS: 2919.90.5050, 9903.88.03, 3.7% + 25%, “Phosphoric esters and their salts, including lactophosphates; their halogenated, sulfonated, nitrated or nitrosated derivatives: Other: Other: Other:”
Item: Tris (2-chloroisopropyl) phosphate (TCPP) (CAS No. 1244733-77-4) is an organic compound with the phosphoric ester and halogenated alkyl functional groups. It is also known as tris (1-chloro-2-propyl) phosphate and has the alternative CAS number 13674-84-5. The product is indicated for use mainly as a flame retardant.
Reason: N/A
Ruling Date: March 13, 2024

N338418: The tariff classification of tonneau covers from China

HTS: 8708.29.5160, 9903.88.03, 2.5% + 25%, “Parts and accessories of the motor vehicles of heading 8701 to 8705: Other parts and accessories of bodies (including cabs): Other: Other: Other.”
Item: The items under consideration are subassemblies that comprise Manual Tonneau Bed Covers, which are used specifically on the cargo bed of the Rivian pick-up trucks. The imported components will be a Panel Set - Manual Tonneau Cover, Cargo Bed Front Cross Rail Assembly - Manual, Cargo Bed Side Rail Assembly LH - Manual, Cargo Bed Side Rail Assembly RH - Manual, Locking Panel Assembly; Manual Tonneau and Common Panel Assembly; Manual Tonneau Co (PT00978689-D). All panels and rails are constructed of Aluminum Al 6063 T6 extrusions. The Panel Set includes 3 common panels and 1 locking panel, plus a padded nylon fabric carrying case and instruction card. Each Common Panel contains 2 extruded Al 6063 panels that are machined, coated and fastened together using 2 coated steel supports, and 2 plastic endcaps, using 8 manual riveting process. Each Locking Panel contains 2 extruded Al 6063 panels that are machined, coated and fastened together using 2 coated steel supports, and 2 plastic endcaps, using 8 manual riveting process. In addition a locking pulley system is added to this part. The Cross Rail includes 1 extrusion, 2 coated steel brackets, 8 weld-nuts, 8 screws, 1 gap hider, 1 bulb seal, 1 plastic trim. The LH/RH Side Rails each include 1 extrusion, 1 coated shim, 2 tree clips, 1 plastic insert, 1 seal, 1 over-molded plastic endcap, 3 riv-nuts, 1 compression limiter and 2 screws.
Reason: The subassemblies imported together to make up a complete tonneau cover satisfy GRI 2(a) requirements for an unassembled good. When the subassemblies are imported individually, they are identifiable as automotive goods, and thus, satisfy GRI 1 requirements.
Ruling Date: March 14, 2024