July 2 CBP Bulletin Proposes to Revoke Rulings on Wireless Headphones and Earphones, Brake Hose
In the July 2 Customs Bulletin (Vol. 59, No. 27), CBP published proposals to revoke ruling letters concerning the tariff classification for certain wireless headphones and earphones and the country of origin of a brake hose.
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Comments on Proposal Due Aug. 2
CBP said consideration will be given to any written comments received by Aug. 2 before taking these actions. In addition, any party that has received a ruling or decision on the merchandise that is subject to the proposed revocations or modifications, or any party involved with a substantially identical transaction, should advise CBP by the date that written comments on the proposed ruling are due. (An importer's failure to advise CBP of such rulings, decisions or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agents for importations after the effective date of the final decision in this notice.)
Proposals
CBP is proposing to revoke or modify the rulings below, and any rulings on these products that may exist but have not been specifically identified. CBP also is proposing to revoke any treatment it has previously accorded to substantially identical transactions.
Wireless Headphones and Earphones
| Items: H251033: SCEA’s Model No. 98085, “Wireless Stereo Headset for Playstation 3,” a wireless stereo headset with microphone and a USB dongle transceiver; N308565: wireless earbuds referred to as the IFrogz Airtime Premier, model number IFIETWS43B; H245902: Samsung mobile phone handsets, batteries, and Bluetooth wireless ear phones |
| Current: 8517.62.00, which provides for “Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.” |
| Proposed: 8518.30.20, which provides for “Microphones and stands therefor; loud speakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio frequency electric amplifiers; electric sound amplifier sets; parts thereof: Headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers: Other.” |
| Reason: The subject articles incorporate a transceiver that allows the articles to wirelessly interface with other devices. For example, users can use them to wirelessly receive and control audio from external devices, and also adjust features such as incoming audio volume, audio track control and two-way voice communication. The wireless transmission and reception functions executed by the transceivers in the subject headphones are not indicative of a principal function of “the reception or transmission of voice, images, or other data.” Rather, the wireless connectivity facilitated by the transceivers is directly analogous to the connectivity found in wired headphones. The wireless headphones and earphones each incorporate a primary component (the speaker/microphone assembly) and support components such as the wireless transceiver modules. All components work together to facilitate the principal function of sound reproduction. Notably, there is no exclusionary language in heading 8518 that limits the heading to headphones and earphones of the wired variety. |
| Proposed for modification: HQ H245902, dated Jan. 28, 2015 |
| Proposed for revocation: HQ H251033, dated July 31, 2014; NY N308565, dated Jan. 16, 2020 |
| Proposed new ruling: HQ H346387 |
Brake Hose
| Items: N302378: Teflon and Nylon steel-braided hoses; N331974: front brake hose is used on Harley Davidson motorcycles |
| Current: N302378: country of origin is China; N331974: country of origin is Thailand |
| Proposed: N303378: the Teflon and Nylon brake hoses with steel wire braided around it, followed by extrusion of the outer nylon cover on top of the hose in Spain, are not substantially transformed when they are cut to a specific length and fittings are attached in China; N331974: the Japanese-origin brake hoses consisting of fluorine resin, SUS wire braiding and a thermoplastic urethane outer cover, are not substantially transformed when they are cut to specific length and fittings are attached in Thailand |
| Reason: N302378: The reinforcement with braided materials, cutting to length, and the addition of Chinese fittings in China did not substantially transform the hose; N331974: The manufacturing of the subject brake hoses at issue happened during the first manufacturing phase before the hose was cut to length and fittings were attached in the final manufacturing phase. In particular, the brake hoses at issue underwent more extensive manufacturing during the first phase when steel wire was braided onto the hoses and the outer nylon cover was extruded on top of the hoses before they were shipped to China in NY N302378 and to Thailand in NY N331974, where they were cut to length and fittings were attached. By the time the brake hoses were shipped to China or Thailand for additional processing, they were no longer simply bulk spools of hose. The steel wire braided reinforcement and extruded plastic cover established the fundamental character of the merchandise as brake hoses. Moreover, based on CBP practice, cutting the brake hose to length and attaching fittings to the brake hose does not substantially transform the brake hoses. Accordingly, CBP should have continued to apply its long-standing position regarding the types of manufacturing operations that will substantially transform hoses and similar merchandise (e.g., the electrical cable in HQ 561392) for purposes of country of origin |
| Proposed for revocation: N302378, dated Feb. 15, 2019; NY N331974, dated May 3, 2023 |
| Proposed new ruling: H325607 |