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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N346923: The country of origin of an end housing (gearbox)
| Origin: Thailand |
| Item: The article at issue is an aluminum end housing, a part of a gearbox. The end housing, which features teeth, is a component of a gearbox that transmits rotary movement. The gearbox allows a drum to turn in a forward or reverse motion, which in turn allows a cable that is wrapped around a drum to be extended and retracted. The end housing is cast in Thailand. Afterwards, the aluminum housing featuring teeth is exported to China, where it is subject to polishing, lathing, painting, drilling and tapping processes. The drilling process enlarges the two mounting holes, which were established during the casting process. The tapping process creates the threading within the mounting holes. |
| Reason: The inner profile of the housing features teeth that will mesh with the teeth of other gearing prior to being exported from Thailand. In this condition, the end housing casting is recognizable as an end housing for a gearbox. It has a pre-determined end use prior to being subjected to the described finishing processes in China. As such, the processes completed in China do not substantially transform the Thai produced casting. The end housing casting is not transformed in China into a new and different article of commerce with a name, character, and use distinct from the article exported from Thailand. Accordingly, the county of origin for the finished end housing, part number 99524, is Thailand for the purpose of Section 301 Trade Remedies. |
| Ruling Date: April 9, 2025 |
N346961: The country of origin of an impact drill
| Origin: Vietnam |
| Item: The item for consideration is a battery-powered impact drill, designed for drilling holes in wood and steel. The major functional components are a printed circuit board assembly (PCBA), a motor (rotor and stator), and a gearbox which are manufactured and combined into a subassembly in Vietnam. The gearbox contains components that deliver rapid and forceful rotational impacts during operation. These impacts assist the drill’s rotation when encountering resistance in a workpiece. After a Chinese-origin chuck is assembled onto the head of the gearbox in Vietnam, the four combined components are shipped to China for final assembly with 45 additional Chinese-origin components, including, but not limited to wires, screws, foam pad, labeling, and handle body. |
| Reason: The essence of the impact drill is imparted by the motor and gearbox subassembly from Vietnam. Accordingly, the country of origin is Vietnam. |
| Ruling Date: April 9, 2025 |
N347170: The classification and country of origin of a plush toy
| HTS: 9503.00.0073, free, “Tricycles, scooters, pedal cars, and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof… ‘Children’s products’ as defined in 15 U.S.C. § 2052: Other: Labeled or determined by importer as intended for use by persons: 3 to 12 years of age.” |
| Origin: Cambodia |
| Item: The product under consideration is a plush character which resembles a reindeer. The plush toy is a full-bodied, three-dimensional reindeer with antlers that measures approximately 16” x 13” x 18.” It is constructed from 100% polyester dyed knit fabric and polyester fill, sewn together. The polyester fabric is sourced from China and shipped in rolls to Cambodia. In Cambodia, the fabric is cut to shape, embroidered and sewn to form the body of the plush toy. Polyester fiber-fill stuffing, sourced from Cambodia (and/or China), is used to fill the body and then sewn closed. The item is finished with hang tag labels. The packaging materials, including the labels, hangtags, and master carton are all sourced from Cambodia. |
| Reason: The fabrics composing the toy’s body shell are sourced from China and shipped to Cambodia in rolls (i.e., uncut and not sewn to shape). The plush toy is then cut and sewn in Cambodia. It is the process of cutting and sewing into shape that determines the character of the plush reindeer toy. Therefore, the fabric sourced in China and shipped to Cambodia in rolls undergoes a substantial transformation by being cut and sewn into shape as the plush reindeer toy. Therefore, based on the information submitted, the country of origin of the plush reindeer toy is Cambodia. |
| Ruling Date: April 9, 2025 |
N347189: The country of origin of folders
| Origin: Thailand |
| Item: A standard hanging file folder consisting of a paper folder with metal rods inserted through the top with hooks on the ends designed to hang in a file cabinet drawer. The folders feature removeable clear plastic tabs with paper inserts for labeling the files. The paper is made in Thailand, where it is die-cut to shape. In Thailand, the full assembly of the paper folder with the metal hook (China-origin) and plastic tab with insert paper (Thai-origin) takes place. |
| Reason: The country of origin will be Thailand. A substantial transformation took place in Thailand where the paper and metal fasteners are all transformed into a hanging file folder. |
| Ruling Date: April 9, 2025 |
N347193: The country of origin of a battery pack
| Origin: China, Malaysia or South Korea |
| Item: The merchandise under consideration is the Hilti B 22-170 Nuron lithium-ion battery pack. It is a 22 VDC battery pack that is used to power a variety of Hilti power tools, including cordless rotary hammers, jig saws, and impact drivers. The subject battery pack consists of cylindrical battery cells inside a protective housing with electrical contacts that align with connectors on the power tool. The battery pack will be assembled in Poland using three different scenarios. All three scenarios will follow identical operational assembly steps but use battery cells of different origins. The first scenario will use Chinese battery cells, the second scenario will use Malaysian battery cells, and the third scenario will use South Korean battery cells. Additional components are sourced from Austria, China, Germany, and the United States, with the most notable component being a Chinese-sourced printed circuit board assembly that functions as a cell monitoring system (CMS). The remaining components include various fasteners, wires, clips, plugs, springs, labels, and packaging material. The assembly process occurs over ten discrete steps in a production line. In the first step, battery cells and cell holders are unloaded onto a conveyor belt at the entrance of the production line machinery. Using an automated process, the battery cells are tested and sorted according to their voltages. In the next step, the sorted battery cells are pressed into the cell holders to create a core pack. The cell holder will also function as the base of the finished battery pack. A worker proceeds to place a contact plate onto each core pack and an automatic resistance welding machine welds the contact plate to the cells. Separately, a cell management system subassembly is prepared, which involves welding a fuse and stranded wires to the CMS. In the following steps, the cell management system subassembly is laser welded onto the core pack, then tested to verify that it functions correctly with the connected cells. If successful, a worker installs the springs, attaches the upper shell, presses in the release switch, and secures the housing’s side shells using screws. The final steps are described as laser engraving the battery pack and greasing the contacts. |
| Reason: The function of the battery cells is to store and provide power, and the function of the battery cells in the finished battery pack is likewise to store and provide power. In view of these facts, and based on the totality of the circumstances, the country of origin of the subject battery pack is China, Malaysia or South Korea, depending on the origin of the battery cell. |
| Ruling Date: April 9, 2025 |
N347220: The eligibility for duty-free treatment under subheading 9817.00.96, HTSUS, of TCC-EZ® Total Contact Cast System from an unidentified country
| Eligibility: Yes |
| Item: TCC-EZ® Total Contact Cast System is said to be a specialized offloading device (a synthetic mesh cast supported by a cast boot) designed to provide a protective wound healing environment for diabetic foot ulcers (DFUs). It consists primarily of a stockinette, a felt padding, a white protective sleeve, a cast sock, and a customized cast boot. The system offloads the wound, reducing pressure and shear force, promoting healing, and protecting the affected limb from further trauma. A Total Contact Cast (TCC) is a cast used to help promote healing by minimizing pressure and shear force at the wound site. TCCs are used to treat patients suffering from diabetic foot ulcers (non-infected neuropathic foot ulcers), charcot neuroarthropathy, or for post operative surgical site protection. The TCCs have demonstrated a wound healing (wound closure) rate of 88% of DFUs in 43 days and is recognized as the Gold Standard treatment for healing DFUs. The TCC-EZ® decreases the time of cast application compared to standard TCCs and makes applying and wearing a TCC easier. |
| Reason: The TCC-EZ® Total Contact Cast System is considered a therapeutic article, since it is effective in treating diabetic foot ulcers and recommended as a gold standard treatment for healing DFUs and preventing amputations. As such, it will be precluded from subheading 9817.00.96, HTSUS, per U.S. Note 4(b), subchapter XVII, Chapter 98. |
| Ruling Date: April 9, 2025 |
N347233: The country of origin of Bar Soap
| Origin: Indonesia or Malaysia |
| Item: A scenario where the subject Bar Soap is produced in China from soap noodles of Indonesia or Malaysian origin. In China the soap noodles are combined (manually mixed) with calcium carbonate and fragrance of Chinese origin. The mixing process does not result in a chemical reaction. The soap noodles comprise 70% of the content of the finished Bar Soap and 62% of the total value. |
| Reason: The soap noodles impart the finished product’s essential identity, because they serve as the soap base and provide the primary ingredients of the finished Bar Soap. In China, the mixing, finishing, and packaging processes do not result in a substantial transformation of the soap noodles. Therefore, the country of origin of the Bar Soap is Indonesia or Malaysia, depending on the origin of the soap noodles. |
| Ruling Date: April 9, 2025 |
N346597: The tariff classification of a stationary oxygen concentrator from China
| HTS: 9019.20.0000, 9817.00.96, free, “[o]zone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus; parts and accessories thereof.” |
| Item: The product under consideration is the IntenOxy 5 Stationary Oxygen Concentrator for hospital or home use. It has a top handle, a plastic housing, and four wheels on the bottom. The top of the device has three control buttons and an oxygen outlet. The front of the plastic housing features a display panel, a flowmeter, and a flowmeter knob. The oxygen concentrator measures 15.35 inches x 9.65 inches x 19.69 inches (W x D x H) and weighs 34.2 lbs. The product is intended as an oxygen supplement device (for adults only) in a professional healthcare facility and/or a home healthcare environment. It provides a high concentration of oxygen to persons requiring oxygen therapy by pulling in and compressing the ambient air, then separating nitrogen from the air to provide purified oxygen for breathing to the end user. The oxygen concentration provides an oxygen flow rate of 0.5 - 5 L/min with an oxygen concentration level between 95.5% and 87% and has a minimum operating time of 15 minutes. The device is specifically designed for the treatment of chronic respiratory conditions (such as COPD, pulmonary fibrosis, and other chronic lung diseases and disorders). It is only available with a doctor’s prescription and the item is distributed directly by Caire Inc. or by health care distributors that have authority to provide prescription-based products. |
| Reason: The IntenOxy 5 Stationary Oxygen Concentrator is specially designed for the benefit of users with chronic respiratory conditions such as COPD. Caire Inc. specifically markets and sells the device for this specific class of persons via health care distributors or its own website. A prescription is required from a doctor to purchase this device. Patients who suffer from chronic breathing impairments and require long-term oxygen therapy are physically handicapped and the oxygen concentrator designed or adapted for the use and benefit of physically handicapped persons qualifies for duty-free treatment under subheading 9817.00.96. |
| Ruling Date: April 8, 2025 |
N346613: The country of origin of an electric fireplace insert from Cambodia
| Origin: Cambodia |
| Item: The product under consideration is the “RTA fireplace insert.” It is an electric fireplace insert with a light emitting diode (LED) feature that provides the appearance of a burning fire. This fireplace insert is assembled in Cambodia mainly from parts sourced from Cambodia. The remaining parts are of Chinese origin. Several of the key components such as the heating element, the printed circuit boards (PCBs), and much of the frame/housing are sourced in Cambodia. The following manufacturing steps are performed in Cambodia: 1. The bottom plate assembly with the synchronous motor bracket component is made. 2. The shading board is added to the bottom plate assembly. 3. The artificial logs are attached to this assembly. 4. The LED board is assembled. 5. Reflective strips are affixed to this assembly. 6. The base plate components are assembled with additional trim parts to create the frame structure of the finished insert. 7. The wiring is organized and attached to the PCB. 8. The LED board is plugged in and checked for appearance issues. 9. The blower components are assembled and added to the completed frame. 10. The power cord is assembled and the cable clipped. 11. The power board is affixed to the interior. 12. The corresponding terminals are inserted into the power board. 13. Wiring is further organized and tied. 14. All leads are routed and secured as required. 15. The top panel is assembled and added to the frame components, finishing the assembly of the insert. |
| Reason: The Cambodian parts, including the heating element and the PCBs, impart the essential identity and functionality to the electric fireplace insert. As such, the country of origin for this product is Cambodia based upon the origin of these components. |
| Ruling Date: April 8, 2025 |
N347058: The tariff classification and country of origin of an inductive charger
| HTS: 8504.50.8000, 9903.88.03, 9903.01.24, 3% + 25% + 20%, “Electrical transformers, static converters and inductors…: Other inductors: Other” |
| Origin: China |
| Item: The merchandise under consideration is the Smartwatch Charger, which is an inductive-type charger consisting of a circular plastic molded housing, a magnetic charging module, a printed circuit board assembly (PCBA), and a permanently affixed USB electrical cable with a USB Type C connector on the end. The module housing has a concave surface to magnetically mate with a user’s smart watch for the purpose of inductively charging the watch’s internal battery. In use, the Charger is plugged into a USB socket to receive power and a user’s personal electronic device is wirelessly charged by placing it in alignment with the charging module. The charging module and the PCBA are manufactured in China, while the housing, the electrical cable, numerous molded components, and the connector are sourced from Vietnam. The assembly process is said to occur in Vietnam and consists of programming the C962 PCBA, soldering the PCBA to the cable, inserting the C962 charging module into the plastic housing, and soldering the individual cable wires to produce a functional inductive charging device. |
| Reason: The assembly operations performed in Vietnam, which consist of programming the C962 PCBA, inserting the C962 magnetic charging module and soldering the wires, and soldering the C962 PCBA to the cable assembly, are neither complex nor do they substantially transform the articles being assembled. Further, the C962 PCBA and magnetic charging module establish the function of the device because they are the articles within the assembly that are performing the inductive charging. Therefore, the subject Charger is considered a product of China for origin purposes at time of importation into the United States. |
| Ruling Date: April 8, 2025 |