Newly Released CBP HQ Rulings June 2-4
The Customs Rulings Online Search System (CROSS) was updated between June 2 and June 4 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):
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.
H320116: Protest and AFR No. 2006-21-106118; Classification of Disposable Nitrile Gloves
| Ruling: 4015.19.1010, HTSUSA (2019) which provides for: “Articles of apparel and clothing accessories (including gloves, mittens and mitts), for all purposes, of vulcanized rubber other than hard rubber: Gloves, mittens and mitts: Other: Other: Seamless, Disposable.” products of China classified under subheading 4015.19.10, HTSUS (2019), unless specifically excluded, were subject to an additional 25% ad valorem rate of duty. |
| Issue: What is the proper classification of the subject merchandise under the HTSUS (2019): (1) in subheading 4015.19.05, as medical gloves; or (2) in subheading 4015.19.10, as other than medical gloves? |
| Item: Shen Wei USA's disposable nitrile gloves. The gloves are reportedly sold to distributors and not sold directly to end users. The country of origin is China. The subject merchandise (brands and models) have each also obtained FDA pre-market 510(k) approval as being in conformance with the FDA requirements and are therefore authorized for marketing and sale in the United States as “medical” gloves. |
| Reason: As it has not been established that the principal use of the instant gloves is as medical gloves, one cannot assess with any degree of certainty whether the gloves under consideration are recognized in the trade as for use as medical gloves. Upon review of the submissions and arguments presented on behalf of the protestant and the descriptions and pictures from websites of entities that sell the three types of gloves under consideration (i.e., TrueForm disposable gloves, PowerForm disposable gloves and MegaMan disposable gloves), the record does not support or establish that the instant goods are a member of a class or kind of gloves that are principally used (i.e., use which exceeds any other single use) in a medical application. Thus, they cannot be classified under the HTSUS (2019) as medical gloves. |
| Ruling Date: Feb. 10, 2023 |
H342829: Application for Further Review of Protest No. 3901-22-126417; Subheading 9801.00.10, HTSUS
| Ruling: The case-y-diffuser is eligible for duty-free treatment under subheading 9801.00.10. |
| Issue: Whether the case-y-diffuser is eligible for duty-free treatment under subheading 9801.00.10. |
| Item: MTU Maintenance Hannover, who performs maintenance, repair, and operations services on large commercial aircraft engines. The merchandise subject to the protest at issue is a case-y-diffuser. The protestant clams that the case-y-diffuser is eligible for duty-free treatment under subheading 9801.00.10. |
| Reason: The declaration lists the port of exportation as Atlanta and the date of exportation as June 2, 2021. The declaration states that the merchandise was returned without having been advanced in value or improved in condition by any process of manufacture or other means. The declaration includes all of the required information. While the manufacturer’s affidavit was not submitted, the merchandise was returned within three years of the date of export from the United States. Since the documentary requirements under 19 C.F.R. 10.1 are met, CBP found that the case-y-diffuser is eligible for duty-free treatment under subheading 9801.00.10. |
| Ruling Date: Jan. 28. 2025 |
H341787: Enerzan L (20); United States-Mexico-Canada Agreement; Country of Origin; Marking
| Ruling: Based on the information provided, Enerzan L (20) is eligible for preferential tariff treatment under USMCA. Pursuant to 19 C.F.R. § 102.11(d), the country of origin for marking purposes of Enerzan L (20) is Canada and the country of origin for purposes of section 301 trade remedies is Canada. |
| Issue: 1. Whether Enerzan L (20) is eligible for preferential tariff treatment under the USMCA when imported from Canada into the United States. 2. What is the country of origin of Enerzan L (20) for marking purposes? 3. What is the country of origin of Enerzan L (20) for purposes of Section 301 trade remedies? |
| Item: Canadian Energy Services' Enerzan L (20), which is used as a viscosifier added to water-based drilling fluids in ground drilling activities, particularly in oil and natural gas drilling. Enerzan L (20) is a mix of predominantly premium mineral oil and xanthan gum. The blending production of Enerzan L (20)takes place in Canada. According to your request, and confirmed by the NCSD, Enerzan L (20) is classified under subheading 3824.99.49, which provides for: “Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural product), not elsewhere specified or included: Other: Cultured crystals (other than optical elements of chapter 90), weighing not less than 2.5g each: Other:” |
| Reason: For the first issue, the net cost of the Enerzan L (20) is $3.52, with the value of the non-originating materials is $2.45.This is above the 30% minimum required by GN 11(o)/ 38.5(B)(2). Accordingly, Enerzan L (20) qualifies as a USMCA originating good and will be eligible for preferential tariff treatment under the USMCA when imported into the United States from Canada. For the second issue, CBP found that the operations performed in Canada constitute more than “minor processing” and exceed a “simple assembly.” Consequently, by application of 19 C.F.R. 102.11(d)(3), the country of origin of Enerzan L (20) is the last country in which the goods underwent production. The term “production,” as defined in 19 C.F.R. 102.1(n), includes manufacturing, processing, and assembling a good. The operations performed in Canada constitute production. Accordingly, CBP found that the country of origin of Enerzan L (20) is Canada for marking purposes. For the third issue, the end product, Enerzan L (20), has an identity that is distinct from the materials from which it was produced. Therefore, CBP held that the materials will undergo a substantial transformation as a result of the operations performed in Canada in making Enerzan L (20), and that the country of origin is Canada and, therefore not subject to Section 301 measures. |
| Ruling Date: May 13, 2025 |
H342359: Ingots; United States-Mexico-Canada Agreement
| Ruling: Based on the information provided, the subject ingots are eligible for preferential tariff treatment under USMCA. |
| Issue: Whether the subject ingots are eligible for preferential tariff treatment under the USMCA when imported from Canada into the United States. |
| Item: Heneken Group sought a a binding ruling regarding the eligibility of certain ingots for preferential tariff treatment under the United States-Mexico-Canada Agreement. ZD Metal located in Petoskey, Michigan, is a producer of die-cast magnesium parts for the automotive industry. The raw materials for the parts are magnesium alloy ingots, classified under subheading 8104.19, which provides for: “Magnesium and articles thereof, including waste and scrap: Other.” These raw material ingots are purchased from Heneken Magnesium Technology in Quebec, Canada, and from an additional supplier, MagPro LLC, located in Camden, Tennessee. The die-casting process takes place in ZD Metal’s production plant in Michigan, and the magnesium scrap is classified under subheading 8104.20, which provides for: “Magnesium and articles thereof, including waste and scrap: Waste and scrap.” A portion of the scrap is recycled by MagPro LLC, and the other portion is sent to Heneken in Canada. In Canada, Heneken remelts the magnesium scrap and adds beryllium metal purchased from a U.S. distributor, and stated to be originating, to create ingots. The recycled ingots are shipped to ZD Metal in the United States to continue and repeat the production cycle. |
| Reason: In its production process of parts in the U.S., ZD Metal melts ingots, which create 50% scrap that is then sent to Canada and remelted. The created scrap may be considered originating “wholly obtained or produced materials.” Further, it is stated that originating beryllium metal is added to the scrap to create the recycled ingots. Therefore, the subject ingots qualify as USMCA-originating goods and will be eligible for preferential tariff treatment under the USMCA when imported into the U.S. from Canada. |
| Ruling Date: May 14, 2025 |