Newly Released CBP HQ Rulings for July 23
The Customs Rulings Online Search System (CROSS) was updated July 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):
H305371: Modification of NY N303338, dated March 20, 2019; Section 301 Measures
| Ruling: In N303338, issued to Expeditors Tradewin, there was a request for a determination of the country of origin and applicability of Section 301 trade remedies of a computer server cabinet. CBP had found that the country of origin of the computer server cabinet is Mexico and that the cabinet was not subject to Section 301 trade remedies as provided for under 9903.88.03. However, upon additional review, CBP has found NY N303338 to be incorrect with respect to the application of trade remedies under Section 301 as the decision erroneously used the NAFTA Marking Rules in 19 CFR Part 102, and the North American Free Trade Agreement preferential tariff treatment rules of origin in General Note 12, HTSUS, in its analysis. As a result, CBP modified NY N303338 and the country of origin of the computer server cabinet is China. |
| Issue: Is the computer server cabinet subject to Section 301 duties under 9903.88.03? |
| Item: The Foxconn “Computer Server Cabinet,” a floor-standing moveable steel storage cabinet on four swivel castors designed to secure a computer server and hardware. The cabinet measures approximately 44” in length, 24” in width, and 80” in height. NY N303338 found that the applicable subheading for the cabinet is 9403.10.00, HTSUS, which provides for “Other furniture and parts thereof: Metal furniture of a kind used in offices: Other.” |
| Reason: The analysis applying the NAFTA Marking Rules in 19 CFR Part 102 is not applicable to the question of whether the computer server cabinet is subject to Section 301 duties under 9903.88.03, HTSUS. |
| Ruling Date: July 12, 2024 |
H337726: Application for Further Review of Protest No. 2006-23-107693; Classification of certain pneumatic power clamp cores
| Ruling: The subject pneumatic power clamp cores are classified under subheading 8479.90.95, free, "Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Parts: Other: Other.” |
| Issue: Are the subject pneumatic power clamps classified under subheading 8479.89 as other machines and mechanical appliances, or under subheading 8479.90 as parts of other machines and mechanical appliances? |
| Item: The subject pneumatic power clamp cores are imported from Thailand and are intended to be secured after importation via fasteners and dowels to a type of stable clamping fixture, foundation, or clamping machine, which in turn is generally used in various industries, from aerospace and automotive fields to food and packaging industries. The power clamp cores may be used on welding fixtures and “CNC machining.” They are imported solely for post-importation incorporation into certain end-of-arm tooling machines that are used in the automotive manufacturing process. |
| Reason: The power clamp cores at issue are dedicated for use with pneumatic clamping machines. Moreover, they are integral to the operation of such pneumatic clamping machines inasmuch as they provide the air supply to the pneumatic clamp and they also feature a pivoting mechanism that allows the user to ensure that the clamp is properly positioned once installed after importation. As such, they meet the definition of “parts." While the power clamp cores are integral to the operation of the pneumatic clamping machines, they do not constitute machines of heading 8479 in and of themselves per Note 2(a) to Section XVI, supra, because they do not feature the clamping mechanism nor do they possess the essential character of a finishing automated clamping machine in their condition as imported. Accordingly, CBP finds that the pneumatic power clamps at issue, as imported, are “parts” of machines and mechanical appliances of subheading 8479.90 per Note 2(b) to Section XVI. |
| Ruling Date: May 24, 2024 |
H337342: Protest and Application for Further Review No 1703-21-112219; Classification of Compressors
| Ruling: The compressors are classified in subheading 8414.40, 2.7%, “Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof: Air compressors mounted on a wheeled chassis for towing.” |
| Issue: Are the compressors classifiable under subheading 8414.40 as air compressors mounted on a wheeled chassis for towing or under subheading 8414.80 as other air pumps? |
| Item: Each of the subject compressors are portable, which makes them easy to load and unload. Additionally, each compressor is mounted on small wheels, relative to their overall size, which allows for easy maneuverability. The compressors are used to provide compressed air for heavy industrial applications. The PTS 1600 is a diesel driven compressor and has two variants, the PTS 1600 4i and PTS 1600 Tier 4 Final. This machine has an operating pressure range of 10-150 pounds per square inch (psi). The PNS 1250 is a diesel driven compressor that provides an operating pressure range of 90-350 psi. The PTS 800 is a diesel driven compressor and has two variants, the PTS 800 T3 and the PTS 800 T4F. This machine has an operating pressure range of 7-150 psi. |
| Reason: The subject compressors meet the definition of tow. They are mounted on a chassis with wheels and feature a tow bar that allows them to be hauled or pulled. Based on the common definition of tow and the physical characteristics of the subject compressors, they are appropriately classifiable in subheading 8414.40. Moreover, based on the physical characteristics of the compressors, CBP was unpersuaded by protestant’s argument that they are not intended to be towed. |
| Ruling Date: May 24, 2024 |
H305702: Application for Further Review of Protest No. 2720-19-100428; Classification of boys’ knit briefs with removable cups
| Ruling: The boys’ knit briefs with removable cups are classified in subheading 6114.30.30, 14.9% (2017), “Other garments, knitted or crocheted: Of man-made fibers: Other: Other: Men’s or boys’.” |
| Issue: What is the tariff classification of the boys’ knit briefs with removable cups? |
| Item: Shock Doctor's boys’ knit briefs are composed of 63% polyester, 32% cotton, and 5% spandex, or 90% polyester and 10% spandex, and contain a removable protective flex cup for the groin area. There are three different styles at issue: (1) a brief with a “soft cup”; (2) a brief with a “flex cup;” and (3) a boxer brief with a “flex cup.” The briefs function to replace the need for a separate jock strap, incorporating a removable protective cup designed exclusively to protect the groin against injury by absorbing blows, collisions, or flying objects while playing sports, including baseball, football and hockey. |
| Reason: The briefs in this case are similar to the football girdles and football pants in HQ H274971, despite Protestant’s insistence that CBP has treated briefs with removable protective cups separately and differently than girdles with hip and thigh pads. CBP disagrees with Protestant. CBP has treated football girdles and pants similar to undergarments with a protective cup because despite their exclusive use in sports and incidental protective features, the articles are not transformed to anything other than apparel. Thus, CBP finds that the Shock Doctor briefs with removable cups do not provide protection akin to the exemplars set forth in the EN to heading 95.06 and are therefore properly classified in subheading 6114.30.30, which provides for “Other garments, knitted or crocheted: Of man-made fibers: Other: Other: Men’s or boys’.” |
| Ruling Date: May 15, 2024 |
H325364: Revocation of NY N325599, tariff classification of inflatable Olaf snowman with a sprig of holly leaves and red berries on its scarf
| Ruling: The Olaf inflatable lawn ornament, as described above, is classified according to GRI 1 in heading 9505, HTSUS, and in accordance with GRI 6, in subheading 9505.10.25, free, “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Articles for Christmas festivities and parts and accessories thereof: Christmas Ornaments: Other”. |
| Issue: Is the Olaf figure inflatable lawn ornament described above that has a sprig of holly leaves and red berries on the scarf classifiable under HTS heading 9505? |
| Item: The “Olaf Inflatable Lawn Ornament,” is a three-dimensional Air-blown® inflatable decoration of a snowman “Olaf” from the Disney movie Frozen. The inflatable snowman is composed of 100% polyester woven fabric. The item is decorated with screen printed brown eyebrows, black pupils inside a round blue eye, three black buttons, and a 10-1/2 inch long by 4-1/2 inch wide blue smile. The snowman features three-dimensional brown twigs as arms and hair on its head, a carrot nose, and two snowball legs. The snowman also features a red scarf with white snowflakes. Inside the snowman sewn to the bottom are three pouches, measuring 7 5/8 inches in length by 4-1/2 inches in width, filled with crushed stone weighing 300 grams each, to help the snowman stand upright in a sitting pose when inflated and a LED light that is attached to a blower fan with a 120V AC/DC power adapter. When the power adapter is connected to an electrical outlet and the air intake is zippered closed, the item will inflate and illuminate. |
| Reason: While there is a connection between Olaf and snow and the season of Winter, the Olaf figure alone is not specifically associated with Christmas. An Olaf figure alone might be appropriate to display for instance at a children’s event or an event associated with the movie “Frozen.” It would not be aberrant to display an Olaf figure outside the Christmas season. However, this Olaf figure has a sprig of holly on its scarf. The holly leaves and red berries are a motif traditionally closely associated with Christmas and used or displayed principally during the Christmas season. The Olaf figure with a sprig of holly leaves and red berries is closely associated with Christmas to the degree that its use during other time periods would be aberrant. It is not a general winter decoration; it is likely to be displayed only during the Christmas season because of the holly leaves and red berries motif. Further it is marketed as a Christmas decoration and sold during the Christmas season. |
| Ruling Date: May 2, 2024 |
H324660: Application for Further Review of Protest No. 300420101089; Country of Origin of Brewery Machinery; Section 301 Trade Remedy
| Ruling: CBP finds that the SMS Brewery System classified under heading 8438.40, HTSUS qualifies for preferential tariff treatment under the NAFTA. The country of origin for purposes of Section 301 is Canada and therefore, Section 301 remedies do not apply. | |
| Issue: Are the Chinese vats substantially transformed when manufactured into fermenters and incorporated into the brewery system? Does the brewery system qualify for preferential tariff treatment under the NAFTA? | |
| Item: Specific Mechanical System's brewery system is made up of multiple grain handling components and tanks connected via fabricated framing and platforms, and includes equipment and components used to hold, transfer, and mill grain within the tanks to produce beer. The brew flows between each tank via piping, pumps, and valves throughout the brewing, fermenting and storage processes. | |
| Reason: The brewery system is a fully complete and assembled system before it is exported from Canada and is purchased by the U.S. customer as a single unit. The manufacturing documents provided demonstrate that each component of the brewery system is designed to function as a unit. The processing in Canada transforms the stainless-steel sheets and other components into a new and different article of commerce with a distinct character and use. The Chinese stainless-steel vat becomes an integral part of this larger system as fermentation is a necessary step in the brewing process and therefore, the fermentation tanks are a necessary component of the brewing system. This fact remains true even though the system must be disassembled before the system is shipped to the United States. CBP also notes that the portion of Chinese origin products is relatively small, making up only 4% of the total cost of the brewery system. Therefore, CBP finds the country of origin of the entire brewery system is Canada and the additional Section 301 duties do not apply. Since all the foreign components are classified in a heading other than heading 8438, the tariff shift rule is met. As such, CBP finds that the brewery system qualifies to be marked as a good of Canada under the NAFTA Marking Rules and the brewery system qualifies for preferential tariff treatment under NAFTA. | |
| Ruling Date: March 5, 2024 |
H326072: Country of Origin; Refrigerator Compressors; Section 301 Measures
| Ruling: CBP finds the origin of the refrigerator compressor under scenario one to be China for purposes of Section 301. However, CBP finds the origin of the refrigerator compressor under scenarios two and three to be Thailand for purposes of Section 301. |
| Issue: What is the country of origin of the refrigerator compressors for the purposes of applying Section 301 trade remedies? |
| Item: GMCC and Welling Appliance Component's H series refrigerator compressor is sold to home appliance manufacturers for installation in refrigerators and freezers. This compressor is a reciprocating hermetic compressor, which uses pistons driven by a crankshaft to increase the pressure of a gas by decreasing volume. The compressor consists of six major subassemblies: case A and case B assembly (which together make up the exterior shell of the compressor), a transmission, a crankcase, a suction-discharge assembly, and a motor. |
| Reason: There is additional processing completed in Thailand to create the final refrigerator compressor. The additional production of the rotor in Thailand makes the processing in scenario two a more complicated procedure that is more than simple assembly. Because of the extensive operations that take place in Thailand to create the motor and then compressor, CBP finds the country of origin of the refrigerator compressor to be Thailand. CBP also found that the motor undergoes additional processing to create the refrigerator compressor, so the country of origin of the compressor should be Thailand. However, the assembly of the compressor consists of assembling parts of largely Chinese origin. Therefore, the country of origin of the compressors should be China. |
| Ruling Date: Jan. 25, 2024 |