Newly Released CBP HQ Rulings for Aug. 17
The Customs Rulings Online Search System (CROSS) was updated Aug. 17 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):
H318891: Country of origin; Section 301; unassembled futon
| Ruling: The countries of origin of the unassembled futon for purposes of Section 301 remedies will be China (country of origin of the unassembled metal frame), Canada (country of origin of the mattress pads), and Cambodia (country of origin of the cover). |
| Issue: Whether the mattress has a country of origin of Canada and the frame has a country of origin of China because the packaging of the individual components into a retail box does not result in their substantial transformation |
| Item: Polyester fiber mattress pads, a mattress cover, and an unassembled metal futon frame. In Canada, the mattress pads will be manufactured using polyester fibers as raw materials. The manufacturing process involves mixing and shredding bundles of fibers. The fibers will be baked, formed to desired thickness and density, and cured and cut to required size. The mattress cover will be manufactured in Cambodia and imported into Canada. It will stay separate, and the pads will not be inserted into the cover in Canada. The metal futon will be manufactured in China and imported unassembled into Canada. No assembly will take place in Canada. The mattress pads, the cover, and the frame will be packaged into a retail box in Canada and imported into the United States. After importation into the U.S., the mattress and the frame will be sold in unassembled form for home assembly by the ultimate purchaser. The final consumer will assemble the frame, will insert the pads into the mattress cover, and will attach the mattress to the frame. |
| Reason: The imported futon components here have a predetermined use at the time of entry as components of a futon, but there is no assembly of the Chinese metal futon frame or of the Cambodian mattress cover in Canada, and they remain distinct articles and will retain their name, character, or use. Rather, all of the assembly will be done by the U.S. consumer. The packaging of the unassembled mattress and frame into a retail box in Canada will not substantially transform them in Canada. |
| Ruling Date: Aug. 6, 2021 |
H312859: Unassembled dog pens and extension kits; USMCA; Country of Origin; Section 301
| Origin: U.S. and Taiwan |
| USMCA: Qualifies for duty-free treatment |
| Issue: The eligibility of certain unassembled dog pens and extension kits for duty-free treatment under USMCA and their country of origin for purposes of Section 301 trade remedies. |
| Item: Unassembled dog pens (small, medium, large) and extension kits. Each dog pen consists of acrylic walls, aluminum tubes and plastic connectors, and comes in four colors, three sizes, and two heights. The acrylic sheets forming the acrylic door and wall panels will be cut in Mexico by computer numerical control machine from U.S.-originating acrylic. The door of the dog pen will be pre-assembled in Mexico and will be packaged together with the other components and exported to the U.S. as an unassembled pen. The wall panels, tubes, connectors, and hardware will remain unassembled until they are received by the U.S. consumer. The unassembled dog pen would be classifiable in subheading 3924.90.5650. |
| Reason: The regional value content (RVC) of each of the dog pens and the extension kits are not less than 60%. Accordingly, the dog pens and extension kits will qualify as USMCA-originating goods. The components of the dog pens and the extension kits have a predetermined use and their character and use remain unchanged after their assembly by the final U.S. purchaser. The assembly after purchase in the U.S. is a relatively simple combining operation that does not change the name, character, or use of the individual components of the dog pens and the extension kits. The door produced in Mexico and the wall panels will not require marking because they are made of U.S. acrylic. The pens and extensions’ loose tubes of Taiwanese origin will have to be marked “Made in Taiwan.” The screws, nuts, steel hex key, and plates are insignificant parts of the dog pens and extensions, and as such they are not subject to marking. The cost of the pens and extensions’ Chinese connectors is de minimis and as a result, the connectors will not need to be marked. |
| Ruling Date: Aug. 5, 2021 |
H319817: 9801.00.10, HTSUS; Household Products
| Ruling: The household products at issue are eligible for duty-free treatment under subheading 9801.00.10, provided the documentary requirements of 19 C.F.R. § 10.1 are satisfied. |
| Issue: Whether the merchandise is eligible for duty-free treatment as goods returned under subheading 9801.00.10, Harmonized Tariff Schedule of the United States (HTSUS) |
| Item: Lighting fixtures and sinks purchased from unrelated vendors abroad primarily in China and Cambodia. Currently, the merchandise is sold for exportation to the United States and is delivered to a port of entry in the United States, where it is entered for consumption and duties are paid. The goods are appraised on the basis of transaction value according to the prices paid to the unrelated Chinese vendors. In rare instances where the imported goods have been resold to United States purchasers, the goods are unloaded from the carriers in the United States and shipped to the purchasers. Most goods, however, are exported to Canada, without benefit of drawback, where they are stored in a duties relief warehouse. The inventory is arranged by product code and all the inventory is traceable to a particular United States import entry, export bill of lading, and Canadian B-3 Customs’ entry for consumption transaction. When customers in the United States order merchandise, Artika ships it to the United States customer from the Canadian warehouse. |
| Reason: The merchandise will be imported into the United States within three years after been exported to Canada. Further, the goods will be exported from the United States to Canada without the benefit of drawback. All of the merchandise can be traced back to specific U.S. Customs entries, export bill of lading, and Canadian B-2 Customs entry for consumption transaction which would help verify that the returned article is the same article that was exported from the United States, which is absolutely essential in order to qualify for subheading 9801.00.10 treatment. The household goods exported to Canada do not undergo any operations, other than storage and repacking the shipments. |
| Ruling Date: Aug. 5, 2021 |
H312097: Application for Further Review of Protest No. 1001-19-100242; Classification of Calcified Seaweed Powders
| HTS: 1212.21.0000, free, “Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh, chilled, frozen or dried, whether or not ground; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety Cichorium intybus savitum) of a kind used primarily for human consumption, not elsewhere specified or included: Seaweeds and other algae: Fit for human consumption.” |
| Issue: Whether the calcified seaweed powders are classifiable in heading 2106, as liquidated by CBP, or heading 1212, as claimed in the protest |
| Item: 100% calcified seaweed powders, a natural mineral source produced from calcareous marine algae (Lithothamnion spp.) and are sold for use in the fortification of food, beverage and supplement products, and to promote bone, joint, and digestive health. They consist of 100% pure seaweed that has been heat-treated, dried, and filtered by physical processes to remove impurities and ground. |
| Reason: Heading 2106 provides for food preparations not specified or included elsewhere in the schedule. Classification under heading 2106 would only occur if the terms of no other heading in the schedule adequately describe the instant product. Since the subject calcified seaweed powders are specifically classified in heading 1212 these products cannot be classified in heading 2106. Therefore, heading 2106 is excluded from any consideration. |
| Ruling Date: June 14, 2021 |
H310928: Application for Further Review of Protest No. 3004-20-100247; Classification of Roofing Underlayments
| HTS: 5903.90.2500, 7.5%, "Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902: Other: Of man-made fibers: Other: Other.” |
| Issue: Whether the essential character of the underlayments is provided by the top layer, which provides grip, or the third layer of woven scrim |
| Item: Four multi-layered textile underlayments for use in roofing projects to protect the construction from water damage and moisture infiltrations while also providing a nonslip feature for those working on the roof construction and grip to the shingles to keep them from sliding. The top and third layers of each roofing underlayment are 25% or more of the overall weight of each product, and the second and bottom layers of each roofing underlayment are less than 25% of the overall weight of each product. The top layer is a nonwoven fabric, comprised of nonwoven polypropylene, an ultraviolet light (“UV”) protection additive, and a pigment. The function of this layer is to provide grip to a person walking on the roof surface while shingling the roof, and to provide grip to the shingles to keep them from sliding. The second layer is a bonding layer, comprised of polypropylene, low density polyethylene (“LDPE”), a UV additive, and pigment. The function is to bond the top and third layers together, and to provide a water barrier. The third layer is a woven scrim layer, comprised of woven polypropylene, calcium carbonate, and a UV additive. The function of the scrim layer is to provide mechanical strength and dimensional stability to the product. The fourth layer is a grip coating, comprised of polypropylene, LDPE, a thermoplastic elastomer, and a pigment. This layer provides grip from the underlayment to the roof surface. |
| Reason: What makes the Roof Pro and ProTec products “indispensable,” and what makes the products roofing underlayments is not their griping abilities, it is their primary function, which is to protect a roof from water damage and moisture infiltration from the effects of snow, rain, wind, etc. Consumers purchase roofing underlayments precisely for this reason; because they function as a layer of protection against weather conditions that can cause water damage and moisture infiltration to roofs. When the woven scrim layer is coated with plastic it becomes a much stronger material, which provides protection against the elements of whether, creating a nearly waterproof layer. As a result, it is the plastic-coated woven scrim layer classified in heading 5903 that provides this water resistance to the roofing underlayments and thus functions as the essential character of the products. |
| Ruling Date: June 11, 2021 |
H314355: Ruling Request; U.S. International Trade Commission; Limited Exclusion Order; Investigation No. 337-TA-1067; Certain Road Milling Machines and Components Thereof
| Ruling: Caterpillar has met its burden to establish that its updated road milling machines do not infringe any of claims 2, 5, 16, and 23 of the ‘530 patent and claim 29 of the ‘309 patent. Accordingly, the articles at issue are not subject to the limited exclusion order issued as result of Investigation No. 337-TA-1067. |
| Issue: Whether redesigned road milling machines are subject to an International Trade Commission limited exclusion order issued in the context of a Section 337 investigation on patent infringement |
| Ruling Date: May 19, 2021 |