Newly Released CBP HQ Rulings May 6
The Customs Rulings Online Search System (CROSS) was updated May 6 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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H330009: Application for Further Review of Protest 2809-22-109824; Country of Origin of Saturated Wax; Section 301 Measures
| Ruling: Saturated Wax MR3200 is not substantially transformed as a result of the production process as performed in Taiwan and the country of origin is China and is subject to Section 301 measures. The protest should be DENIED. |
| Issue: What is the country of origin of the saturated wax for purposes of Section 301 trade remedies? |
| Item: Saturated Wax MR3200 (“Saturated Wax”). The merchandise was entered on August 18, 2021, and liquidated on June 17, 2022. The protestant claims the entry of the merchandise was inadvertently declared as Chinese origin by the protestant’s broker and was subject to an additional 7.5% duty due to Section 301 measures. The protestant filed the protest challenging the assessment of duties paid and claims the country of origin is Taiwan. Saturated Wax is used to reduce unwanted penetration or interactions of numerous liquids and gases in various surfaces. It serves as improved wet strength coating of corrugated cardboard or other cellulosic paper materials. The production process of Saturated Wax takes place in the manufacturing facility in Taiwan. The paraffin wax is imported from China and the Epolene C16 is imported from the United States. |
| Reason: The production process of Saturated Wax does not result in the formation of new chemical bonds between the wax and the other constituents. Based on the information presented, we also find that the raw materials are not substantially transformed when processed into Saturated Wax. The production of the Saturated Wax involves merely mixing the raw materials and heating the resulting mixture without changing the characteristics and properties of the raw materials. |
| Ruling Date: March 4, 2024 |
H330938: Request for Internal Advice; Classification and applicability of Section 301 China products trade remedy; Electrical cable conductors
| Ruling: The electrical conductors are classified under heading 8544, HTS, specifically statistical reporting number 8544.60.6000, which provides for “[I]nsulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors: Other electric conductors, for a voltage exceeding 1,000 V: Other: Other.” The applicable rate of duty is 3.2% ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8544.60.60, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, importers of goods of China classified under subheading 8544.60.60, HTSUS, must also report the Chapter 99 subheading, i.e., 9903.88.02. Chapter 99, Subchapter III, U.S. Note 20(ttt)(ii)(28) provides an exclusion for “[M]onopolar conductors for a voltage exceeding 1,000 V, other than of copper and not fitted with connectors (described in statistical reporting number 8544.60.6000)” and corresponds to subheading 9903.88.67, HTSUS. The subject electrical cable conductors meet the criteria set forth in the exclusion language and therefore qualify for the claimed exclusion and are eligible to be entered under subheading 9903.88.67, HTSUS, instead of subheading 9903.88.02. |
| Issue: Whether the subject merchandise falls within the scope of the Section 301 exclusion granted under U.S. Note 20(ttt)(ii)(28) to Chapter 99, HTSUS, and is thus eligible for classification under subheading 9903.88.67. |
| Item: Wire cables for use in electrical power transmission. The wires consist of a single conducting aluminum core encased in a “Concentric Neutral” conductor made up of helically-applied, annealed, solid bare copper wires that serve as insulating and strengthening materials. Counsel states the CN conductors are not used for electrical power transmission and only serve a protective and fault current carrying role. The specification sheet for “Aluminum Conductors” submitted by counsel for Voltage, LLC describes the subject merchandise as a compact stranded aluminum conductor (8000 series) with flame-retardant cross-linked polyethylene insulation. It is described as 2000V interconnection wiring for application in photovoltaic power systems and is cut to length in its condition as imported. Voltage, LLC sells the Aluminum Conductors on large spools of different sizes and lengths for use primarily in the solar power industry. |
| Reason: The documentation submitted for the subject merchandise shows it having a voltage rating of over 1,000 V. It is further noted that although the subject cables incorporate copper elements, they are not made of all copper and their primary conducting medium is of aluminum. As such, the subject cables are not “of copper.” Lastly, the submitted documentation describes the subject cables as imported on reels at very long lengths without connectors. Based on the foregoing, the subject electrical conductors fall within the scope of the exclusion. |
| Ruling Date: March 5, 2024 |