Newly Released CBP HQ Rulings Sept. 23
The Customs Rulings Online Search System (CROSS) was updated on Sept. 23 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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H341177: Application for Further Review of Protest No. 460124137563; United Porte Inc.; Antidumping and Countervailing Duty Orders; Certification; Certain Hardwood Plywood Products and Veneered Panels from the People’s Republic of China
| Ruling: CBP properly assessed AD/CVD on United Porte’s entry of hardwood plywood. |
| Issue: Did CBP properly assess AD/CVD on United Porte’s entry of hardwood plywood? |
| Item: In September 2023, United Porte entered a shipment containing hardwood plywood from Vietnam. The entry was a type “01,” applicable to formally entered goods which are not subject to AD/CVD. However, effective July 20, 2023, hardwood plywood completed in Vietnam using hardwood plywood inputs (face veneer, back veneer, and/or either an assembled core or individual core veneers) manufactured in China, or Chinese hardwood plywood inputs (assembled cores, multi-ply core panels, or individual core veneers) combined in Vietnam with other inputs (face and/or back veneers) manufactured in Vietnam or third countries, and subsequently exported to the United States, may be subject to the orders. |
| Reason: United Porte’s reliance on HQ H058767, dated Sept. 25, 2009, and the Court of International Trade's decision in GulfstreamAerospace Corp. v. U.S., to argue such certificates can be provided during protest or otherwise perfected prior to liquidation is mistaken. In HQ H058767, the exporter failed to timely respond to CBP’s requests for information during the NAFTA verification process, as required by 19 C.F.R. § 181.72. Similarly, in Gulfstream, the Court of International Trade determined that an importer was entitled to relief from duties pursuant to 19 C.F.R. § 10.112 despite not filing the requisite certifications at the time of entry. The cited regulation, 19 C.F.R. 10.112, concerns the requirements for articles which are conditionally free or subject to a reduced duty rate -- it has no bearing whatsoever on articles subject to an AD/CVD order. Neither HQ H058767 nor Gulfstream have any relevance to this protest because CBP is statutorily bound to implement the Department of Commerce’s liquidation instructions. |
| Ruling Date: July 21, 2025 |
H313855: Protest no. 2704-20-126918; steel coils; A-580-878-001; C-580-879-000
| Ruling: CBP properly assessed antidumping duties on entry no. xxxxxxxx454. |
| Issue: Did CBP properly assess antidumping duties on Dong Chuel’s entry of steel coils? |
| Item: Dong Chuel America's shipment of electrolytic galvanized steel coils from Korea. Steel coils from Korea were subject to antidumping and countervailing duty orders. The entry was a Type 03, applicable to formally entered goods which are subject to AD/CVD. The entry summary identified Dong Chuel as the importer of record, and the commercial invoice listed Dong Chuel as both the buyer and consignee. For the single line item of steel coils in entry no. xxxxxxxx454, Dong Chuel reported a Manufacturer Identification Code (MID) that corresponds to Dongkuk. The steel import license provided with the entry identified Dong Chuel as the importer and “Dongkuk Steel” as the manufacturer. Dong Chuel indicated the entry was subject to Dongkuk’s company-specific AD rate and the country-wide CVD rate. |
| Reason: CBP didn't and doesn't dispute that Dongkuk produced the steel coils entered by Dong Chuel. Instead, CBP disputes that steel products produced by Dongkuk were entitled to a company-specific rate at liquidation. In applying Commerce Message No. 9135304 to entry no. xxxxxxxx454, it is clear from the evidentiary record of the protest that Dongkuk was not the “importer or customer” for the steel coils imported by Dong Chuel. The entry summary lists Dong Chuel as the importer of record, and Dongkuk as the manufacturer based on the MID for the line item of steel coils. The associated commercial invoice lists Dong Chuel as both the buyer and consignee for the steel coils. The steel import license provided with the entry lists Dong Chuel as the importer and Dongkuk as the manufacturer. The evidentiary record for the protest thus evidences that Dongkuk is not the “importer or customer” the steel coils in addition to being the producer and/or exporter. Consequently, the steel coils were not products described in paragraph 2 of the message. CBP thus properly assessed the country-wide rate to steel coils “not covered by paragraph 2” in accordance with Commerce’s liquidation instructions in paragraph 4. |
| Ruling Date: July 21, 2025 |
H344538: Classification, Country of Origin, and USMCA Eligibility of Transmission Fluid Pump
| Ruling: The subject merchandise is classified in subheading 8413.60.00. Because a substantial transformation occurs in Canada, the merchandise is a product of Canada for purposes of Section 301 measures. Additionally, the goods qualify as USMCA originating and will be eligible for preferential tariff treatment under the USMCA, provided that all other applicable requirements are met. |
| Issue: What is the classification of the transmission fluid pump? What is the country of origin of the transmission fluid pump for purposes of Section 301 measures? Is the transmission fluid pump eligible for USMCA preferential tariff treatment under the USMCA when imported from Mexico into the United States? |
| Item: A transmission fluid pump assembly (finished good part number 612818), that will be manufactured by an affiliated company (Johnson Electric Canada) in Mississauga, Ontario. The function of the product is to provide pressurized automotive transmission fluid to the appropriate bands and clutches within the transmission of a passenger vehicle. |
| Reason: For classification, in NY N171997, dated July 18, 2011, CBP held that a “fixed (positive) displacement gear pump” was properly classified in 8413.60.00. The pump used an arrangement of gears to generate fluid pressure and circulate hydraulic fluid to both the transmission and the torque converter. For similar reasons, CBP holds that the merchandise at issue is properly classified in subheading 8413.60.00 under General Rules of Interpretation 1 and 6. For country of origin, the processing of the castings, along with the addition of numerous additional components, will result in an article with a different name, character, and use. The Canadian processing of the castings involves machining, milling, drilling, reaming, disc griding, and deburring. A significant portion of the total value materials used in the production of the goods is Canadian. Moreover, the assembly operations require precision in order to produce a sophisticated device that can effectively regulate the flow of transmission fluid. Accordingly, CBP holds that a substantial transformation will occur in Canada, and the country of origin of the merchandise for purposes of Section 301 measures will be Canada. For USMCA eligibility, the regional value content exceeds the 60% threshold. Therefore, the goods will qualify as USMCA-originating. |
| Ruling Date: Sept. 11, 2025 |
H347879: Toys; Transaction Value; First Sale
| Ruling: The appraisement of the imported merchandise should be based on the price paid by the importer. |
| Issue: Whether the sales between the middleman and the factories are sales for exportation to the United States upon which the goods may be appraised at entry. |
| Item: Brooklyn Lollipops' imports of toys and toy robots from China through middleman Hipro Trade in Hong Kong. |
| Reason: CBP does not find a bona fide sale between the parties. Delivery terms listed on the commercial invoices without more, such as agreements/contracts between the parties, is not sufficient evidence to demonstrate that the middleman held title to the goods or bore the risk of loss. Accordingly, since the sale between the factory and the middleman is not a bona fide sale, the transaction value for the transactions at issue is the amount paid by the importer for the merchandise. CBP also notes that the flow of the ordering process is flawed as the purchase orders from the factory to the middleman and the middleman to the importer indicate a different quantity of merchandise than the quantity that is ultimately imported. |
| Ruling Date: Sept. 12, 2025 |
H349011: Frozen Fish Fillets; U.S. Content; 9903.01.34, HTSUS
| Ruling: The U.S. headed and gutted rock sole represents 76% of the customs value of the frozen rock sole skinless fish fillets, which will be imported into the United States from China, and the additional duties imposed by subheading 9903.01.25 will not apply to the headed and gutted rock sole consistent with subheading 9903.01.34 and Chapter 99, Subchapter III, U.S. Note 2(v)(xiii). |
| Issue: Whether headed and gutted fish that is a product of the United States and is processed into frozen fish fillets qualifies for the U.S. content exemption under subheading 9903.01.34. |
| Item: Wild caught rock sole (Lepidopsetta Polyxystra) and other types of fish from an unnamed U.S. exporter. After the fish is harvested in U.S. waters by a U.S. flag fishing vessel, it is headed, gutted, and frozen. The U.S. seller/exporter ships the headed, gutted, and frozen fish to a fish processor in China. The processing in China involves thawing, skinning, boning, trimming, cutting, freezing, and packaging. Eastern Fisheries will import the frozen fish fillets into the United States from China. |
| Reason: “U.S. content” refers to the portion of an article’s customs value, determined under 19 U.S.C. § 1401a, attributable to components that are wholly obtained, entirely produced, or substantially transformed in the United States. At least 20% of the total customs value must be of U.S.-origin for the content to qualify under subheading 9903.01.34. This exemption applies only to the U.S. portion. The remaining non-U.S. content remains subject to duties under subheadings 9903.01.25, 9903.01.35, 9903.01.39, 9903.01.63, and 9903.02.01-9903.02.71. Based on the work order and the invoice from the Chinese processor, the U.S. headed and gutted rock sole represents approximately 76% of the total price paid or payable for the frozen rock sole skinless fillets. The U.S. content value exceeds 20% of the customs value of the frozen rock sole skinless fillets and may be subtracted from the total price paid or payable for the frozen rock sole skinless fillets. Only the remaining non-U.S. content values for the frozen rock sole skinless fillets 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: Sept. 17, 2025 |