Newly Released CBP HQ Rulings April 25-28
The Customs Rulings Online Search System (CROSS) was updated April 25-28 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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H338331: Application for Further Review of Protest No. 5201-23-103631; screw covers and panel clip shims
| HTS: (screw covers and panel clip shims made of aluminum) 8302.42.3065, 9903.88.15, 3.9% + 7.5%, “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; castors with mountings of base metal; automatic door closers of base metal; and base metal part thereof: Other mountings, fittings and similar articles, and parts thereof: Other, suitable for furniture: Of iron or steel, of aluminum or of zinc: Other.” (screw covers made of brass) 8302.42.6000, 9903.88.15, 3.4% + 7.5%, “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; castors with mountings of base metal; automatic door closers of base metal; and base metal part thereof: Other mountings, fittings and similar articles, and parts thereof: Other, suitable for furniture: Other.” |
| Issue: Whether the instant merchandise is classified in heading 7616, which provides for “Other articles of aluminum”; or heading 8302, which provides for “Base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like”; or heading 8306, which provides for “Bells, gongs, and the like, nonelectric, of base metal”; or heading 8309, which provides for “Stoppers, caps and lids (including crown corks, screw caps and pouring stoppers), capsules for bottles, threaded bungs, bung covers, seals and other packaging accessories, and parts thereof, of base metal.” |
| Item: This protest involves two types of products, a screw cover and a panel clip shim. The protest includes 160 models of screw cover, and 15 models of panel clip shim. Each protested screw cover model consists of a set of four screw covers. Each individual screw cover consists of an aluminum screw cover, and a brass insert. Although the different models vary in size, color and design, all are made of the same essential materials and are used for the same purpose and in the same manner. The sole purpose of the protested screw covers is to conceal the exposed head of a screw under a decorative cover. Each panel clip shim model consists of a set of four flat aluminum discs with a 3M adhesive backing. The diameter of the discs varies by model, from 5/8 inch to 1.25 inches, and the aluminum comes in different finishes and colors. Each imported model consists of a pack of four matching panel clip shims. Like the screw caps, panel clip shims are designed as an ornamental cover to conceal the exposed head of a screw that has been used to mount a sign to the wall. |
| Reason: Protestant’s screw covers and panel clip shims are plain, simple discs with no decorative features. They do not lend grace, beauty, or festivity when used as intended. They may contribute to an orderly appearance, but they are not ornaments of heading 8306. Additionally, while the Protestant argues that the articles provide no utility, a “shim” does typically offer some utility in levelling a surface. These items are not articles of heading 8306. Nor are the screw covers and panel clip shims classifiable as articles of heading 8309. Heading 8309 provides for “stoppers, caps and lids” among other articles, of base metal. Protestant’s screw covers and panel clip shims are not designed to be used with a container or any item to be used for packing, supporting, or the conveyance of goods. Heading 8302 provides for base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, among other articles. Because Protestant’s screw covers and panel clip shims are of the same class or kind of articles as the examples in the heading of 8302, they are classified in heading 8302. The instant articles are not classifiable in heading 7616 because they are classifiable in the more specific heading of 8302. |
| Ruling Date: Feb. 24, 2025 |
H345037: Subheading 9817.60.00, HTSUS; Equipment and Goods related to FIFA Club World Cup 2025 and FIFA World Cup 26
| Ruling: The equipment and goods related to the preparation, operation, and competition of FIFA Club World Cup 2025 and FIFA World Cup 26 at issue are eligible for duty-free treatment under subheading 9817.60.00. |
| Issue: Whether the various equipment and goods related to the preparation, operation, and competition of FIFA Club World Cup 2025 and FIFA World Cup 26 are eligible for duty-free treatment under subheading 9817.60.00, and whether donating the equipment and goods after the conclusion of the events for legacy purposes to be permanently integrated into the venue/stadium use and/or donated to the public would be acceptable under this subheading. |
| Item: Tournament equipment and goods which will be imported into the United States for the World Cups. It includes personal items for FIFA Client Groups, sports equipment for tournament use, broadcast, audio & media equipment to be used by accredited media and the like to be used for tournament and events, and other items for either personal use by players and support staff or equipment for the tournament. |
| Reason: The World Cup Soccer Games are specifically enumerated under subheading 9817.60.00 as eligible international athletic events and therefore, this requirement under subheading 9817.60.00 is met. Moreover, the items are not intended for sale or distribution to the public. Instead, according to the information provided, distribution of the imported merchandise will be limited to participants and tournament organizers, including the FIFA Client Groups. CBP is therefore satisfied that the merchandise constitutes “articles not intended for sale or distribution to the public” for purposes of 9817.60.00. |
| Ruling Date: April 9, 2025 |
H337972: Internal Advice; First Sale Appraisement / Buying Agent Rules
| Ruling: Graniti has not meet its burden of showing that the transaction between itself and Eswari qualifies for first sale treatment, because it failed to provide CBP with a complete paper trail of the entire transaction. Furthermore, Graniti has failed to show that Eswari acted as a bona fide buying agent, and that payments to the agent constitute bona fide buying commissions. |
| Issue: Whether the transaction between Eswari and Graniti qualifies for first sale treatment. If not, whether Eswari qualifies as a bona fide buying agent whose commissions are properly excludable from the price actually paid or payable for the imported merchandise. |
| Facts: Graniti is a Houston-based company, specializing in the distribution and sale of hotel furniture. In a January 2020 purchase of glass countertops, Eswari served as a middleman between Graniti and its Chinese supplier. For the purpose of calculating duties, Graniti requested the use of the “first sale” method of appraisement. A CBP audit team rejected this request, believing that the relationship between Eswari and Graniti was more consistent with an agency relationship than that of a buyer/seller. Consequently, on March 9, 2024, Graniti requested Internal Advice from the Office of Trade, Regulations and Ruling on this issue. In the alternative, Graniti requested that Eswari be considered a bona fide buying agent whose commissions are properly excludable from the price actually paid or payable for the imported merchandise. Eswari is an Indian distribution company, focusing on the sale of goods used aboard ships. The owners of Graniti and Eswari are brothers. Since approximately 2013, Eswari has served as a middleman for certain transactions between Graniti and its overseas suppliers. |
| Reason: In determining first sale, CBP has not been presented with a complete paper trail. The submitted documents, including the purchase terms, invoices between the parties, the shipping information, and the wire transfer between Eswari and Deyuan is insufficient evidence of a complete paper trail showing the structure of the entire transaction. In particular, the documents fail to show that Graniti paid consideration to Eswari for the transaction at issue. None of 22 wire transfers provided by Graniti match the $36,582.24 that Graniti owed Eswari, or contain any reference to that transaction. They also took place nearly two years after the initial transaction was completed. Therefore, insufficient evidence has been presented to support valuation based upon a first sale between Eswari and Deyuan. Accordingly, the appraisement of the merchandise should be based upon the price paid by the protestant. When determining if Eswari qualifies, Graniti has the burden of showing that the purported agent is in fact a bona fide buying agent, and not a selling agent nor an independent seller. Yet here, the documents indicate that Eswari acted with a degree of independence that is not typical of a buying agent. This includes controlling the sales terms and the final sale price, taking title to the goods, bearing the risk of loss, and independently handling all payments to the foreign supplier. Therefore, CBP finds that Graniti has not shown that Eswari acted as a bona fide buying agent and the payments from Graniti to Eswari cannot be deducted as buying agent commissions. |
| Ruling Date: Feb. 24, 2025 |