Newly Released CBP HQ Rulings July 29-30
The Customs Rulings Online Search System (CROSS) was updated on July 29-30 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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H347415: Unassembled Latch Assemblies; Country of Origin; Section 301 and IEEPA Duties
| Ruling: The countries of origin of the unassembled q-latch and t-latch assemblies at issue will be China for purposes of Section 301 and IEEPA duties. |
| Issue: What are the countries of origin of the complete unassembled q-latch and t-latch assemblies for purposes of Section 301 and IEEPA duties? |
| Item: Two unassembled latch assemblies imported by D&D Technologies. The first latch assembly is a q-bolt latch (“q-latch”). It includes a plastic housing (two narrow brackets), bag, stickers and instructions made in Australia; steel screws manufactured in Taiwan; and a steel q-bolt from China. The second latch assembly is a toggle latch (“t-latch”), which includes a plastic housing (cover, backing plate, and catch), bag, stickers and instructions from Australia; steel screws from Taiwan; and a steel t-bolt pin from China. |
| Reason: The goods at issue here are considered to be complete but unassembled gate latch assemblies classifiable under subheading 8302.49.60, pursuant to General Rules of Interpretation 1, 2(a), 3(b), and 6. Each latch assembly is an unassembled composite good made up of a metal bolt and three pieces of plastic housing that, when combined, create the gate latch. The stainless-steel t-latch striker pin and q-bolt drop rod are made in China; the steel screws are made in Taiwan; and the plastic housings, the packaging bags, stickers, and instructions are made in Australia. The latch assemblies will be packaged by the importer’s supplier in Australia and will enter the United States as an unassembled latch for home assembly by a U.S. purchaser. Like the bicycle frame in NY N344425 and NY N302992, the front and rear assemblies in NY N339173, and the torque jack handle in NY N340848, the steel t-latch striker pin and q-bolt drop rod impart the essential character to the latches because they provide the latches with their functionality, and, indeed, are the most expensive component. The substantial transformation of the t-latch striker pin and q-bolt drop rod occurs in China. Their character and use are pre-determined and will remain the same after importation in the United States. |
| Ruling Date: July 21, 2025 |
H345343: Origin; USMCA Eligibility; Section 301 Measures; Plastic Chairs
| Ruling: The plastic chairs do not qualify for preferential treatment under the USMCA when imported into the United States from Canada. The country of origin of the chairs will be Mexico, and Section 301 duties will not apply. The country of origin of the chairs will be Mexico for marking purposes. |
| Issue: Are the chairs eligible for preferential treatment under the USMCA? What is the country of origin of the chairs for purposes of marking and Section 301 trade remedies? |
| Item: Item 10364-SF, the “Stack Chair 14,” a metal and plastic stacking seat. The metal leg assembly, classifiable under subheading 9401.99, HTSUS, leg post swivel glides, washers, and rivets for the plastic chairs will be sourced from China. The plastic seat foundation and backrest shell, classifiable under subheading 9401.99, corrugated fanfold, and labels will be sourced from the United States. Glue will be sourced from Portugal. The seating components and materials will be shipped and exported to Mexico, and additional labels will be locally sourced. In Mexico, the incomplete, unassembled, and unfinished seating components will undergo manufacture, inspection, packaging, and then be exported to the United States. |
| Reason: GRI 2(a) does not apply because the plastic chairs will be assembled in Mexico and will not be imported in an unfinished state. The manufacturer will add additional components that give the seats their essential character, namely, the plastic moldings. Further, the applicable tariff shift will occur as a result of the production in Mexico. Both the metal leg assembly and the plastic molding will undergo the applicable tariff shift from subheadings 9401.91-9401.99, providing for parts of chairs, to subheading 9401.79, providing for other seats with metal frames. The country of origin of the “Stack Chair 14” is Mexico. As for Section 301 measures, the assembly of the plastic chairs in Mexico is not a substantial transformation. The assembly consists of screwing together the frame and the seat mold. No machining is done in Mexico, and no specialized training, skill, or equipment would be required to finish these chairs. Further and more importantly, the components do not emerge with a new name, character, or use. The components are chair legs, chair backs, and chair swivels before and after the assembly in Mexico. Their use is predetermined when they were made. The parts are not altered; they are simply assembled as they are received. Therefore, we find no substantial transformation is performed in Mexico. CBP believes the character of the chairs at issue is also imparted by the chair seats and backs, not the chair frames. Therefore, for substantial transformation and Section 301 duty purposes only, the country of origin will be the United States, since that is where the chair seats and backs are manufactured and a substantial transformation does not occur in Mexico. |
| Ruling Date: July 21, 2025 |
H344327: Subheading 9808.00.30, HTSUS; Emergency War Materials
| Ruling: The worsted fabric imported may be eligible for duty-free treatment under subheading 9808.00.30, provided that they are certified to the Commissioner of Customs by the authorized procuring agency to be emergency war material purchased abroad, and the documentary requirements of 19 C.F.R. § 10.102 are satisfied. |
| Issue: May CBP approve the worsted fabric as “emergency war materials” for purposes of duty-free treatment under subheading 9808.00.30? |
| Item: Hyman Brickle and Son's imports of worsted fabric for the use in the production of United States military uniforms |
| Reason: Section 10.102(b), CBP Regulations (19 C.F.R. § 10.102(b)), states that the certification required under subheading 9808.00.30 must be provided to CBP for the agency to accept the goods as emergency war materials. This provision is only applicable when a certificate executed by a duly authorized officer or official of the applicable military department is presented. Therefore, provided the certification identifies the article(s) and entry number(s) at issue, articles will be eligible for duty-free treatment under subheading 9808.00.30. |
| Ruling Date: July 22, 2025 |
H343575: Valuation of Recycled Clothing
| Ruling: The imported merchandise shall be appraised under the fallback method using the fee paid to the U.S. recyclers to take possession of the clothing for recycling. |
| Issue: What is the correct method of appraising the recycled clothing? |
| Item: Canada-based Debrand Services seeks the valuation of: Bales of rejected, shredded and worn garments that are destined for the United States for recycling |
| Reason: CBP has previously found that merchandise entering the U.S. for purposes of recycling should be appraised under the fallback method using the fee paid to take possession of the merchandise. As in some past cases, the imported merchandise is not being sold to the U.S. recycler. Rather, the U.S. recyclers are being paid a fee to take possession of the bales into the U.S. and to downcycle them for specified applications. Also, the contract provides that the products may not be sold in their original form. Although, unlike the cases cited, the subject clothing is recycled instead of disposed of, it is not in its recycled state at the time of importation. Therefore, in accordance with the cited rulings, CBP finds that the imported merchandise may be appraised under the fallback method using the fee paid by Debrand to the U.S. recyclers to process the imported goods and repurpose the material. However, for purposes of valuation under the fallback method, as it is claimed that the clothing has no commercial value, and is not legally saleable in their imported condition, the importer should be prepared, if requested, to support such claims by providing further evidence, as requested by the Apparel, Footwear, and Textiles, Center of Excellence and Expertise to establish that the merchandise is indeed defective or damaged and has no commercial value. Such information may be, but is not limited to, the submission of specifications, quality control reports, internal and external correspondence addressing the relevant merchandise, photographs, samples, and/or any other documentation that individually or cumulatively establishes the condition of the merchandise at the time of importation. |
| Ruling Date: July 22, 2025 |
H345669: Country of Origin Marking of Smart Glasses; Section 301
| Ruling: The country of origin of the Smart Glasses for purposes of marking and for purposes of additional Section 301 measures is Vietnam. Therefore, the Smart Glasses are not subject to Section 301 measures. |
| Issue: What is the country of origin for marking purposes of the Smart Glasses? Are the Smart Glasses subject to Section 301 measures? |
| Item: Unnamed company's two different models of Smart Glasses. Smart Glasses - Model #1 are artificial intelligence glasses that offer users the opportunity to capture photos and videos, make video calls or livestream, store photos and videos, listen to music, make phone calls, send texts using voice commands, and ask questions and receive answers using AI. The manufacturing steps occur in three main stages: (1) the production of individual components in the following countries: Taiwan, Japan, China, the United States, the Philippines, Malaysia, Vietnam, Singapore, South Korea, Thailand, and Germany; (2) the production of the main logic board (MLB) and the secondary logic board (SLB) in Vietnam by means of surface mount technology (SMT); (3) and final assembly, final software uploads, testing and pack out (FATP) in China. New Smart Glasses - Model #2 is similar to the model #1 glasses and will enable the user to take and share photos and videos, make phone calls and video calls, send and receive messages, listen to audio playback and interact with an AI assistant in different forms and methods, including voice, display, and manual interactions. The manufacturing steps occur in three main stages: (1) the production of individual components in the following countries: Taiwan, Japan, China, the United States, the Philippines, South Korea, Germany, Malaysia, and Thailand; (2) the production of the MLB and the SLB in Vietnam by means of SMT; (3) and FATP in China. |
| Reason: The subject Smart Glasses are similar in some ways to the wearable electronic smart device in HQ H302801. In that ruling, CBP considered the country of origin of a Fitbit device. CBP determined that the Fitbit’s printed circuit board assembly (PCBA) represented the essence of the Fitbit device because it incorporated the electronic components that together gave the smart device its functionality and enabled the device to operate as intended. However, the country of origin of a PCBA does not automatically determine an article’s country of origin. In HQ H328859, CBP found that, even though the PCBA of a printer was manufactured in Japan, the country of origin of the printer was China. The individual components and the blank circuit board undergo a change in use when the components are assembled onto the blank circuit board and become the PCBA via the SMT process. Like some of the components in HQ H302801, the individual components and blank circuit board are “stand-alone, general use items” that are usable in other devices and do not alone accomplish the full functionality of the Smart Glasses. In this case, the MLBs allow the device to use AI functionality, capture photos and videos for consumption or sharing through the companion app, listen to audio, make and receive voice calls, and send and receive text messages. The functionality of the Smart Glasses is dependent on the collective capabilities of the PCBAs. Further, even though a majority of the components in these glasses, as in HQ H328859, are of Chinese origin, CBP does not find that the country of origin of these Smart Glasses is China. Although the FATP process occurring in China also takes a significant amount of time, CBP is satisfied that, because the MLB and SLB are the “brain” of the Smart Glasses, the FATP does not result in a substantial transformation. After the MLB and SLB have been assembled, the Smart Glasses do not undergo any operations that change their name, character, or use. The PCBAs are the essence of the Smart Glasses, and the Smart Glasses are products of Vietnam, where the PCBAs are manufactured through SMT. As for Section 301 measures, the Smart Glasses are not subject to the additional Section 301 measures because the country of origin of the Smart Glasses is Vietnam, where the PCBAs are manufactured by SMT operations. |
| Ruling Date: July 23, 2025 |
H345243: Applicability of Subheading 9817.00.96, HTSUS; Intermittent Catheters
| Ruling: The intermittent catheters at issue are eligible for duty-free treatment under subheading 9817.00.96 as articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons. |
| Issue: Are the intermittent catheters imported by ConvaTec eligible for duty-free treatment under subheading 9817.00.96? |
| Item: ConvaTec's intermittent catheters |
| Reason: CBP holds that these intermittent catheters are specially designed for the use or benefit of handicapped persons. However, Subheading 9817.00.96 excludes articles for acute or transient disability, even if those articles are specially designed for the use or benefit of handicapped persons. Though urinary catheters are used temporarily, the evidence presented indicates that is not the predominant use of the intermittent catheters at issue here. ConvaTec is clearly marketing its products to those who have permanent and chronic conditions. The photographs on its website and catheter pamphlets feature users in wheelchairs and testimonials from those with permanent disabilities. Further, ConvaTec provided documentation stating that 85% of intermittent catheter users have long-term conditions requiring use for more than three years. Therefore, CBP believes the predominant use of these catheters is for the treatment of chronic conditions. Though Customs has shown a preference for goods that are reusable in determining whether the goods are for permanent or temporary conditions, there is evidence that doctors recommend intermittent catheters even to those who use catheters consistently over a long period of time because intermittent catheters cause fewer complications and improve the quality of life of users. The intermittent catheters help manage but do not cure an underlying condition. Incontinence is an issue while individuals use the catheter, and still is an issue if users stop using the catheter. Therefore, CBP believes the catheters do not treat but simply help users manage the underlying condition causing the incontinence. |
| Ruling Date: July 23, 2025 |