Sept. 18 CBP Bulletin Proposes to Revoke Ruling Letters on Certain Wheels, Light Strings
In the Sept. 18 Customs Bulletin (Vol. 58, No. 37), CBP published a proposal to revoke ruling letters concerning certain wheels and hubs for trucks and trailers and the applicability of the generalized system of preferences to incandescent string lights.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Comments on Proposal Due Oct. 18
CBP said consideration will be given to any written comments received by Oct. 18 before taking these actions. In addition, any party that has received a ruling or decision on the merchandise that is subject to the proposed revocations or modifications, or any party involved with a substantially identical transaction, should advise CBP by the date that written comments on the proposed ruling are due. (An importer's failure to advise CBP of such rulings, decisions or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agents for importations after the effective date of the final decision in this notice.)
Proposal
CBP is proposing to revoke or modify the rulings below, and any rulings on these products that may exist but have not been specifically identified. CBP also is proposing to revoke any treatment it has previously accorded to substantially identical transactions.
Certain wheels and hubs for trucks and trailers
| Items: Certain spoke wheels for truck steering axles, spoke wheels for trailers, hubs for truck drive axles, and hubs for trailers |
| Current: 8708.70.60, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Road wheels and parts and accessories thereof: For other vehicles: Parts and accessories.” |
| Proposed: Hubs for trucks: 8708.99.68, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other parts of power trains.” Hubs for wheels and trailers: 8716.90.50, which provides for “Trailers and semi-trailers; other vehicles, not mechanically propelled; and parts thereof: Parts: Other.” |
| Reason: Upon review of NY H85742, CBP found that while the classification of the spoke wheels for trucks is correct, the classification of the spoke wheels for trailers, hubs for trucks, and hubs for trailers is incorrect. The wheels and hubs at issue are not designed for interchangeable use with motor vehicles and trailers. Rather, each model corresponds to its specific use. The hubs for motor vehicle use are very much distinguishable from the hubs used on trailers by name and physical characteristics. Therefore, they must be classified separately. Further, we note that wheel hubs (or axle hubs, or hubs) are not wheels, nor parts or accessories to wheels. Wheel hubs are installed on the drive axle of the vehicle, and wheels are then installed on the hubs. In fact, hubs for vehicles of headings 8701 to 8705 are listed separately from those wheels in the HTSUS, in subheading 8708.99. The hubs for trucks are for drive axles, which makes them parts of power trains. As such, they are classified in subheading 8708.99.68, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other parts of power trains....” Lastly, the wheels and hubs for trailers are classified under subheading 8716.90.50, HTSUS, which provides for “Trailers and semi-trailers; other vehicles, not mechanically propelled; and parts thereof: Parts: Other.” |
| Proposed for revocation: NY H85742, dated Dec. 7, 2001 |
| Proposed new ruling: HQ H310555 |
Applicability of Generalized System of Preferences (GSP) to incandescent string lights
| Items: H303773: (1) 150-count Incandescent Steady-on Miniature Christmas Net Lights – Clear; (2) 150-count Incandescent Steady-on Miniature Christmas Net Lights – Multicolor; (3) 300-count Incandescent Steady-on Miniature Christmas Icicle Light String – Clear; (4) 25-count Incandescent Steady-on C9 Christmas Light String – Clear; and, (5) 25-count Incandescent Steady-on C9 Christmas Light String – Ceramic Multicolor; H303816:16 styles using incandescent miniature lamps; N299944: Indoor/outdoor light sets used for Christmas trees and featuring miniature incandescent bulbs |
| Current: In HQ H303773, CBP pointed out that the glass tubes made into bulbs in China retained their Chinese origin, based on HQ 557796, dated June 3, 1994, which determined that the Chinese assembly of bulbs made in Macau did not result in a substantial transformation. This finding was also applied in HQ H303816 and NY N299944. |
| Proposed: While the light bulbs are an important component of the string lights, the more significant work of forming the lamp bases and sockets, by using polypropylene pellets and injection molding them, is being performed in the beneficiary country. Therefore, in HQ H303816, CBP has determined that the light bulbs are substantially transformed in the Philippines, and in HQ H303773 and NY N299944, CBP has determined that the light bulbs are substantially transformed in Cambodia, where such processing takes place. As such, in HQ H303816, the string lights will be considered a product of the Philippines, and in HQ H303773 and NY N299944, the string lights will be considered a product of Cambodia. |
| Reason: After reviewing the samples of the string lights, CBP was of the view that while the light bulbs are a significant component of the string lights, important work is performed in forming the lamp bases and sockets, by using polypropylene pellets and injection molding them in the beneficiary country. |
| Proposed for revocation: H303773, dated June 13, 2019; HQ H303816, dated June 14, 2019; N299944, dated Aug. 24, 2018 |
| Proposed new ruling: HQ H304419 |