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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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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.

N341639: The Country of Origin of Beet Concentrate Powder

Origin: U.S. or France
Item: Beet concentrate powder made from raw beets grown in either the United States or France, since the importer has a supplier in each country. The beet concentrate powder is derived from raw beets through a multi-stage process that involves concentrating key nutrients in raw beets while removing sugar, water, fiber, and other water-soluble elements. The first four stages of production take place either entirely in the United States or in France, apart from a process called chromatography, which further concentrates certain nutrients in the beet concentrate and occurs in China.
Reason: The country of origin of the subject merchandise, Beet Concentrate Powder, is either the United States or France, depending on where the beets are grown and processed into a beet concentrate, because either of those two countries is where the beets are considered to be substantially transformed. No substantial transformation occurs in China, where the beet concentrate is simply further concentrated and spray dried, as the product enters China as a beet concentrate and remains a beet concentrate after processing.
Ruling Date: Aug. 23, 2024

N341736: The appropriate location for country of origin marking of a women’s 100% acrylic knit sweater from China

Ruling: The proposed location of the country of origin label does not satisfy 19 C.F.R. §134.41(b).
Item: A women’s 100% acrylic knit sweater with the country of origin label in the side seam of the garment.
Reason: In T.D. 54640(6), Customs determined that wearing apparel such as shirts, blouses, coats, sweaters, etc. must be legibly and conspicuously marked with the name of the country of origin by means of a fabric label sewn or otherwise permanently affixed on the inside center of the neck midway between the shoulder seams or in that immediate area or otherwise permanently marked in that area in some other manner.
Ruling Date: Aug. 23, 2024

N341739: The tariff classification of a polyvinyl chloride (PVC) stone plastic composite flooring planks from Poland

HTS: (1), (2) 3918.10.1020, 5.3%, "Floor coverings of plastics, whether or not self-adhesive, in rolls or in the form of tiles: of polymers of vinyl chloride: floor coverings: vinyl tile: vinyl tile consisting of a rigid solid polymer core."
Item: (1) Mineral core flooring planks, rectangular in shape and incorporating click lock installation edges. The planks consist of the following layers: a lacquer topcoat, a transparent polyvinyl chloride (PVC) wear layer, a printed decorative layer, and a stone plastic composite (SPC) core comprised of a mixture of PVC and calcium carbonate. (2) Mineral core flooring planks with integrated foam underlay. The flooring planks are rectangular in shape and incorporate click lock installation edges. The planks consist of the following layers: a lacquer topcoat, a transparent polyvinyl chloride (PVC) wear layer, a printed decorative layer, a stone plastic composite (SPC) core comprised of a mixture of PVC and calcium carbonate and an integrated polyethylene or polyolefin foam underlay.
Reason: N/A
Ruling Date: Aug. 23, 2024

N341793: The tariff classification of an all-electric RV camper from an unspecified country

HTS: 8716.10.0030, free, “Trailers and semi-trailers; other vehicles, not mechanically propelled; and parts thereof: Trailers and semi-trailers for housing or camping: Less than 10.6m in length."
Item: The “Pebble Flow” trailer, an all-electric recreational vehicle (“RV”) trailer intended for camping. It is constructed of an all-aluminum frame with a tow hitch for towing behind a car or truck. The interior is equipped with a kitchen, dual use sleeping and living area, and a bathroom. The Pebble Flow is not a motor home nor a motor transport vehicle. It does not have driving capability (driver area, steering wheel, gas or brake pedals) or other accommodations and safety features (passenger seats, seatbelts, airbags, child safety locks) for a driver or passengers. The Pebble Flow is powered by an electric battery, which is recharged through solar panels or through shore power charging. This battery services electrical features within the RV trailer, such as lights, kitchen and bathroom appliances, thermostat, HVAC system, entry steps, retractable awning, vehicle leveler, door locks and connectivity systems, allowing for up to 7 days of off-grid use. At the time of import, the Pebble Flow is substantially complete, with a frame, tow hitch, body, electrical harness, and most interior features installed. However, some post-importation processing is required to install standard components, such as house batteries; solar panels with controllers and inverters; electronic control units and associated connectivity equipment; a macerating toilet; microwave oven; water heater; plumbing fixtures; an electric awning and leveling system; and stabilizers, axle, wheels and tires.
Reason: Though the Pebble Flow may be equipped, at the owner’s request, with a small electric motor and remote that allows the trailer to be easily moved and positioned for towing, the trailer itself is not considered for HTS purposes a “self-propelled” vehicle for either the transport of people (8703), or goods (8704). The Pebble Flow is a towed camper, even if not in its finished, final state. Further, the tow-assist and self-positioning features do not alter the nature of the trailer by making it an independently mobile vehicle.
Ruling Date: Aug. 23, 2024

N341823: The tariff classification of a fog machine from China

HTS: 8424.89.9000, 9903.88.02, 1.8% + 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: Other."
Item: A skeleton motif fog machine, which is a metal fogger with a small decorative skeleton affixed to the top. The device has a .5 liter tank that is filled with “fog juice,” and will emit the fog once plugged into a 120 volt outlet. Once initiated, the fog machine takes 2 to 5 minutes to preheat prior to the fog being generated. The fog machine is imported with the device, a remote control receiver, a remote control transmitter, a mounting bracket, two washers and screws to secure the bracket to the fog machine.
Reason: N/A
Ruling Date: Aug. 23, 2024

N342124: The country of origin of a smart thermostat

Origin: Philippines
Item: The Mysa Smart Thermostat for baseboard heating, convector (short cycle), fan-forced convector (long cycle), and radiant ceiling heating. The smart thermostat is designed to be paired with a smart phone, which allows the user to adjust the setpoint temperature and schedule automatic temperature adjustments. Manufacturing of the product occurs in the Philippines, transforming individual components into a packaged smart thermostat ready for consumer use. The manufacturing includes the creation of the Printed Circuit Board Assembly (PCBA) via a pick and place process using Surface Mount Technology (SMT) machining, plastic case moldings (using plastic injection molding), component assembly of the plastics and PCBAs, firmware flashing, functional and quality verification. The Chinese components include the power board, control board, power supply adapter, power supply, protective film, washers, screws, nuts, integrated circuits, transistors, resistors, capacitors, diodes, inductors, the WIFI module, labels, printed packaging and tape. The components sourced from the Philippines include the case, insulating plate, front plate, matrix, screws, integrated circuits, humidity sensor, wiring, solder, and some packaging material. Taiwanese articles include the chip resistors, chip capacitors, ceramic capacitors, and nylon ties. Malaysian components include integrated circuits and the switch. Additionally, there are wire connectors from Canada, film capacitors from India, and adhesive from Japan. Engineering of the product occurs in Canada including supporting software, firmware and application design.
Reason: The manufacturing involves an assembly process of over a hundred different parts that do not have the ability to perform as a thermostat prior to their manufacturing process. The SMT and manual assembly process takes many of the individual components and generates a working PCBA capable of reading temperature and adjusting the heating source to match the predetermined temperature setting. This is a new and different article of commerce with a name, character, and use distinct from the individual components.
Ruling Date: Aug. 23, 2024

N341539: The tariff classification of a steel wall mounting bracket from China

HTS: 9903.88.03, free, "Base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like; base metal hat racks, hat-pegs, brackets and similar fixtures; …: Hat-racks, hat pegs, brackets and similar fixtures, and parts thereof."
Item: A steel wall mount that functions to mount the OnDemand digital media player onto a wall. This hinged wall mounting bracket measures approximately 16.2 inches wide, 7.1 inches tall and 2 inches deep. The mount consists of one steel wall plate and one steel player plate, both with pre-drilled holes for screws. Mounting hardware is included.
Reason: N/A
Ruling Date: Aug. 22, 2024

N341661: The tariff classification of a coated twill weave polyester upholstery fabric from China

HTS: 5903.90.2500, 9903.88.03, 7.5% + 25%,“Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902: Other: Of man-made fibers: Other: Other.”
Item: Flexsteel Pattern “909,” referred to as “Alley” on the fiber detail sheet submitted, is a coated twill woven fabric of yarns of different colors. According to the information provided, this fabric is composed wholly of polyester yarns. An acrylic latex backing has been applied to the fabric. The fabric weighs 372 g/m2 and the acrylic latex backing weighs 8 g/m2, for a total combined weight of 380 g/m2. You indicate that this fabric will be produced in widths of 54 inches and will be used for upholstery.
Reason: N/A
Ruling Date: Aug. 22, 2024

N341707: Radio Frequency Identification (RFID) labels; GRI 5(b)

Ruling: The “Reelables A Labels” can be considered packing materials within the meaning of GRI 5(b) when they are imported with the articles for which they are intended, are of a kind normally used with such goods, and are not suitable for repetitive commercial use.
Item: Smart labels that store data (airway bill information), which can be read by specific Bluetooth Low Energy (BLE) readers. The “Reelables A Labels” are presented recorded, and no additional data can be recorded after importation. The smart label can be printed with shipping information on them. Moreover, these self-adhesive labels will be affixed to an outer shipping package by the forwarder and to allow packages to be tracked when in the range of a reader. These labels are disposable and are discarded as part of the packaging after receipt at destination.
Reason: N/A
Ruling Date: Aug. 22, 2024