Newly Released CBP HQ Rulings
The Customs Rulings Online Search System (CROSS) was updated 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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H346942: Subheading 9801.00.10, HTSUS; Helicopter Parts
| Ruling: The helicopter parts at issue are eligible for duty-free treatment under 9801.00.10 when reimported into the U.S., provided the regulatory code-related documentary requirements are satisfied. |
| Issue: Whether the helicopter parts at issue are eligible for duty-free treatment under 9801.00.10. |
| Item: Used helicopter parts purchased by Dakota Air Parts. The company parts had supported the Brazilian Air Force during its service life and operation in Brazil, and they were originally manufactured in the U.S. by Bell Helicopter and others. |
| Reason: The parts at issue were not advanced in value or improved in condition since they were merely used to support the UH-1H helicopter fleet during the fleet’s service life and operation within Brazil. In this case, U.S. military helicopter parts are purchased for return to the United States and are merely used during the course of the fleet’s service life to support the fleet in Brazil. |
| Ruling Date: May 28, 2025 |
H343750: Outdoor Barrel Saunas; United States-Mexico-Canada Agreement; Section 301 Trade Remedies
| Ruling: The subject barrel saunas are not eligible for preferential tariff treatment under U.S.-Mexico-Canada trade agreement. In addition, the barrel saunas originate in China for the purposes of applying Section 301 trade remedies. |
| Issue: Are the imported sauna barrels eligible for preferential tariff treatment under the USMCA when imported from Mexico into the U.S.? What is the country of origin of the subject barrel saunas for the purpose of Section 301 remedies? |
| Item: Red Rock Outdoors' outdoor barrel saunas. Each barrel sauna is manufactured in both China and Mexico using Canadian-origin hemlock and cedar woods. In China, the wood is kiln-dried, sawed into boards, and sanded. The unassembled barrel saunas would be classifiable under 9406.10.10. |
| Reason: The regional value content of the barrel saunas is less than 60%. Accordingly, the barrel saunas do not qualify as USMCA-originating goods. The individual components of the barrel saunas are manufactured in China and Mexico. A majority of the components (e.g., wooden prefabricated components, metal components, and other accessories) are manufactured in China, whereas the barrel staves are continuously shaped in Mexico. The components of the barrel saunas have a predetermined use, and their character and use remain unchanged after they are packaged in Mexico. In addition, the continuous shaping of the wooden staves and packaging occurring in Mexico is a relatively simple combining operation that does not change the name, character, or use of the individual Chinese-origin components. |
| Ruling Date: June 4, 2025 |
H348804: Appraisement of Frozen Veal Carcasses; Transaction Value
| Ruling: The customs value of the imported veal carcasses should not account for the value of certain “drop components” retained and resold by the exporter. |
| Issue: Whether the customs value of imported veal carcasses should account for the value of certain “drop components” retained and resold by the exporter. |
| Item: Atlantic Veal & Lamb's imports of frozen veal carcasses into the U.S. from Europe. In a typical transaction, the exporter purchases animals from regional farmers in Europe and processes them to remove “the hides, offals, and other by-products (collectively referred to as the ‘drop’).” Atlantic then purchases the processed carcasses for approximately $1,000 each, with the exporter retaining the drop components. |
| Reason: "The merchandise” that is “sold for exportation” to the U.S. is the veal carcasses with drop components removed. No provision of the valuation statute or regulations authorizes a deduction from this price based on the exporter’s retention and resale of the drop components. Accordingly, the transaction value will be based on the “price actually paid or payable” for the imported merchandise (i.e., $1,000). |
| Ruling Date: June 6, 2025 |
H335581: Internal Advice; Applicability of Subheading 9802.00.80 to Wire Harnesses
| Ruling: The documentary requirements of 19 C.F.R. § 10.24 regarding the certifications of the origin of the United States materials and the requirements for updating cost data provided for in 19 C.F.R. 10.21 have not been met. Consequently, the imported wire harnesses under consideration are not entitled to the partial duty exemption under subheading 9802.00.80. |
| Issue: Whether the imported wire harnesses assembled in China with some U.S.-origin central core components qualify for a partial duty exemption under 9802.00.80. |
| Item: Global Engineered Products' (GEP) wire harnesses imported from China. The wire harnesses have been imported under 8544.43.90. The wire harnesses essentially serve to organize the wires for easy implementation into machines and equipment such as small tractors, snowmobiles, snow blowers, and other small equipment. They are intended to transmit power or information in a uniform or streamlined way. Generally, a wire harness is an assembly of multiple parts, including connectors, conductors, cables, tubes, wire, and tape. |
| Reason: Counsel contends the costs on the price list used by GEP to apply subheading 9802.00.80 would generally be lower than the prices that GEP actually paid for the U.S. components. Using the cost information based upon the costs of the materials used in the wire harnesses from the prior year is not permitted to establish the actual costs of those materials. Furthermore, the documents GEP submitted in support of their claim for the partial duty exemption under 9802.00.80 were unreliable because the certifications presented were often from the suppliers who are not the actual manufacturers of the components. In many instances, GEP’s suppliers did not have direct knowledge of the country of origin of the materials used in making the wire harnesses. These suppliers often appear to have purchased components from other providers and the information to accurately trace the components back to their actual manufacturers and the country where they were originally manufactured is lacking. In addition, the certifications provided by GEP often contained incomplete/vague certifications because they only stated that the producer is available upon request, with no follow-up provided to CBP. |
| Ruling Date: Aug. 30, 2024 |
H345809: Instruments of International Traffic; 19 U.S.C. § 1332(a); § 10.41a(a)(1), Goodpack USA, Inc.; Returnable Pallets
| Ruling: The subject pallet cubes qualify for treatment as instruments of international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(1). |
| Issue: Whether the subject pallet cubes qualify for consideration as IIT within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). |
| Item: Goodpack USA's various models of a collapsible and stackable steel pallet cube. There are four models of this item: RP3, RP4, RP4T, and RP5. The differences between these items are limited to dimensions, tare weight, and maximum allowable payload. They are comprised of steel collapsible corner posts and a metal pallet foundation. The subject pallets are designed to be multimodal, collapsible, and reusable and are intended for transporting bagged products such as pellets, powders, grains, etc. The subject pallets are made of galvanized steel. |
| Reason: The subject pallet cubes are containers that are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. They are substantial in that they are made of galvanized steel and are expected to have a multidecade lifespan. CBP has previously held steel is substantial. They are also advertised as reuseable, and Goodpack claims to clean and inspect them upon their return to enable their continued use, which, depending upon the nature of the vertical supply chain, is estimated at between 60 and 120 use cycles. Lastly, they are used in significant numbers in international commerce, as more than four million Goodpack reuseable pallets and containers are currently in circulation. Accordingly, the pallets in the present case may be released without the payment of duty or entry. CBP further noted that Goodpack’s customers have the option to keep the subject IITs in their possession. IITs are required to exit the United States within 365 days from day of admittance or else will be subject to duty for consumption per 19 C.F.R. § 10.41a(g)(1). |
| Ruling Date: May 30, 2025 |
H344505: Instruments of International Traffic; 19 U.S.C. § 1332(a); 19 C.F.R. §§ 10.41a(a)(1), 10.41a(a)(2); plastic tray; dunnage
| Ruling: The subject dunnage plastic trays qualify for treatment as instruments of international trade within the meaning of 19 U.S.C. 1322(a) and 10.41a(a)(1). |
| Issue: Whether the subject dunnage plastic trays qualify for consideration as IIT within the meaning of 19 U.S.C. 1322(a) and 19 C.F.R. 10.41a(a)(1). |
| Item: SK Battery America's dunnage plastic trays, which are custom-designed, safety packaging containers specifically used for the secure transportation of lithium-ion battery modules and cells from the SKBA manufacturing facility in Hungary to automobile manufacturers in the U.S., such as Ford and Hyundai Motors, for use in the production of electric vehicles. The primary use of the plastic trays is to surround the lithium-ion battery modules and cells to protect them during transit. They are exclusively used for transportation purposes and are not for sale or any other use beyond facilitating safe transportation, and they are are repetitively utilized in international shipments. |
| Reason: The requirement that an article be “substantial” is not only a threshold requirement under 9803.00.50, but also a requirement for an article to be an instrument of international traffic pursuant to CBP decisions. Based upon review of the submission and information provided, the subject dunnage plastic trays are containers that are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. They are substantial in that they are made of from durable plastic material, to be used indefinitely, unless in the case of loss or damage. The plastic trays are also used in significant numbers in international commerce, with approximately 18,000 trays utilized annually, and an additional 14,600 expected at the end of this year. |
| Ruling Date: May 30, 2025 |
H348567: Gold Necklace Medallions; Country of Origin for Purposes of Marking and Trade Remedies
| Ruling: The country of origin of the finished gold necklace medallions for purposes of marking and trade remedies, such as reciprocal or global tariffs will be the United States. Therefore, the medallions will be excepted from country of origin marking requirements and will not be subject to additional trade remedy measures. |
| Issue: What is the origin of the necklace medallions for purposes of marking and additional trade remedy measures? |
| Item: Cemayla's necklace medallions consisting of U.S.-origin 18-karat gold castings that are set with stones of various origins. The gold castings will be made in the U.S. and will be sent to India or Thailand for assembly into finished medallions. |
| Reason: The gold castings produced in the United States from casting trees in 18-karat gold will impart the essential character to the finished necklace medallions in this matter. The gold castings do not undergo a substantial transformation in India and Thailand, where the stone setting, polishing, and final assembly take place. |
| Ruling Date: June 6, 2025 |