Newly Released CBP HQ Rulings Sept. 2
The Customs Rulings Online Search System (CROSS) was updated on Sept. 2 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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H349573: Pediatric Ventricular Assist Device; 9817.00.96, HTSUS
| Ruling: The subject Ventricular Assist Device (VAD) is eligible for subheading 9817.00.96 treatment. |
| Issue: Is the Ventricular Assist Device (VAD) eligible for subheading 9817.00.96 treatment? |
| Item: Berlin Heart EXCOR Pediatric Ventricular Assist Device (VAD), a mechanical circulatory support system designed for children, from newborns to adolescents, with life-threatening heart failure after all conservative therapeutic options have been exhausted. |
| Reason: The VAD may be used short-term, but it is designed for children with end-stage heart failure, which is not a transient disability. The VAD is used solely for the purpose of providing the heart’s pumping function to children with severe isolated left ventricular or biventricular dysfunction who typically need a heart transplant and are physically handicapped persons under U.S. Note 4(a), subchapter XVII, Chapter 98. Severe heart problems that require heart transplants or mechanical support for the pumping function are permanent or chronic impairments, not transient disabilities, even though once children receive healthier donor hearts, the VAD needs to be surgically removed. The fact that the VAD acts as a bridge to heart transplant does not remove the children’s long-term mobility limitations and other impairments. Under these circumstances, CBP finds that the VAD was clearly designed for, and is predominantly used by, children with permanent or chronic physical handicaps, and is eligible for subheading 9817.00.96 treatment. |
| Ruling Date: Aug. 26, 2025 |
H348824: Network Security Device; Country of Origin; Marking; 9802.00.50; 9802.00.80
| Ruling: Both the imported network security device with U.S.-programmed software and the device with Taiwanese-programmed software will not be eligible for tariff treatment under subheading 9802.00.50 and under subheading 9802.00.80. The country of origin for purposes of marking and trade remedies of the network device uploaded with software programmed in the U.S. will be the U.S. The network security device of U.S. origin will be excepted from country of origin marking requirements and will not be subject to additional trade remedy measures, such as reciprocal or global tariffs. The country of origin for purposes of marking and trade remedies of the network device uploaded with software programmed in Taiwan will be Taiwan. The network security device of Taiwanese origin will be subject to additional trade remedy measures, such as reciprocal or global tariff, and may be marked “Made in Taiwan.” If the U.S. content of the network security device of Taiwanese origin is at least 20% of the Customs value of the imported device, it may qualify for the exemption under subheading 9903.01.34 and Chapter 99, Subchapter III, U.S. Note 2(v)(xii), and additional duties will only be imposed on the non-U.S. content. |
| Issue: What is the country of origin of the network security device for purposes of marking and additional trade remedy measures? Does the device need to be marked when imported into the United States? Is the device eligible for a partial duty exemption under subheading 9802.00.50? Is the device eligible for a partial duty exemption under subheading 9802.00.80? |
| Item: A network security device of subheading 8543.70.98 that functions as an add-on device that integrates various security protocols, such as firewalls and Artificial Intelligence protocols for network monitoring. |
| Reason: The motherboard is manufactured in the United States and is programmed with U.S. or Taiwanese BIOS and OS software in Taiwan where the network security device is assembled. When the software is programmed in the U.S. and downloaded in Taiwan, the last substantial transformation will occur in the U.S. The motherboard will be the essence of the network security device. The individual components will undergo a change in name, character and use in the U.S. free trade zone or U.S. non-bonded factory when they become a motherboard via the SMT and DIP processes. The country of origin for purposes of marking and trade remedies under this scenario will be the U.S. The network security device of U.S. origin will be excepted from country of origin marking requirements and will not be subject to additional trade remedy measures, such as reciprocal or global tariffs. When the BIOS and OS software is programmed and uploaded in Taiwan, no one country’s operations dominate the manufacturing operations of the security network device. The motherboard produced in the U.S. is important to the function of the device, as is the Taiwanese software used to program the device in Taiwan. Further, the assembly operations in Taiwan complete the network security device. Therefore, CBP finds that the last substantial transformation in this instance will occur in Taiwan, and the country of origin of the network security device for purposes of marking and trade remedies will be Taiwan. For subheading 9802.00.50, when the U.S. or Taiwanese software is uploaded in Taiwan, the upload process is a continuation in the fabrication process and exceeds an alteration. The software upload in Taiwan is a necessary step in the manufacture of the network security device. For subheading 9802.00.80, the device assembled in Taiwan is incomplete and non-functional without the BIOS and OS software, which enables it to function as a network security device. Since the network device will be advanced in value or improved in condition in Taiwan as a result of the programming, which is not incidental to assembly, the device will not be eligible for tariff treatment under subheading 9802.00.80. |
| Ruling Date: Aug. 27, 2025 |
H346928: Plastic Bottle Caps; U.S. Content; 9903.01.34, HTSUS
| Ruling: The U.S.-origin HDPE resin represents 66% of the customs value of the plastic bottle caps, which will be imported from the Dominican Republic. Therefore, the additional duties imposed by subheading 9903.01.25 won't apply to the U.S. HDPE resin portion consistent with subheading 9903.01.34 and Chapter 99, Subchapter III, U.S. Note 2(v)(xiii), provided the value-content will be satisfied at the time of entry. |
| Issue: Does the U.S.-origin HDPE resin qualify for the U.S. content exemption under subheading 9903.01.34? |
| Item: Exporter Poly-Chem International's U.S.-origin high-density polyethylene/synthetic resin (HDPE resin) used to make plastic bottle caps in the Dominican Republic. |
| Reason: The USMCA Certificate of Origin certified by the U.S. exporter and the certificate of analysis provided by the U.S. manufacturer of the HDPE resin indicate that the HDPE resin is produced in the United States. Based on the bill of materials, the U.S. content represents 66% of the price paid or payable for a plastic bottle cap, the non-U.S. content represents 4%, and the total production costs represent 30%. The U.S. content value exceeds 20% of the customs value and may be subtracted from the total price paid or payable for the plastic caps listed on the sample invoice. Only the remaining non-U.S. content value will be subject to additional duties pursuant to subheading 9903.01.34 and Chapter 99, Subchapter III, U.S. Note 2(v)(xiii). |
| Ruling Date: Aug. 27, 2025 |