Newly Released CBP HQ Rulings for Oct. 15
The Customs Rulings Online Search System (CROSS) was updated Oct. 15 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):
H320038: DR-CAFTA qualifying frozen broccoli shipped through Mexico
| Ruling: The packaged frozen broccoli which is entered into Mexico and delivered to a plant, outside of customs control, loses its originating status under the DR-CAFTA and cannot be entered into the United States claiming preferential treatment under the DR-CAFTA. |
| Issue: Whether the packaged frozen broccoli, grown, processed and packaged in Guatemala, and shipped through Mexico as described above, qualifies for preferential tariff treatment under the DR-CAFTA |
| Item: Broccoli grown in Guatemala where it is packaged and frozen. At the plant in Guatemala, the packaged frozen broccoli is packed in cartons which are packed on skids for delivery to the ultimate U.S. customer. The packaged, frozen broccoli is sold to the affiliated U.S. customer and shipped to a plant in Mexico. The product is entered into Mexico under a temporary import permit, which requires a bond, never enters the commerce of Mexico and must be exported. The imported product, under bond, does not remain in Mexican customs custody, but is delivered to a related plant. A shipping label indicating the purchase order number will be placed on the skid and then loaded for importation into Laredo, TX. The shipped products will be entered into the United States as an entry for consumption. The invoice indicates the price is FOB from Guatemala and the place of delivery is McAllen, Texas. |
| Reason: In order to not lose originating status, the good may not leave customs control outside the territories of the NAFTA countries, and even if within customs control outside the territories of the NAFTA countries, may only be subjected to certain operations. The storage of the packaged frozen broccoli at a plant in Mexico, outside of customs control, causes the originating packaged frozen broccoli to lose its originating status. |
| Ruling Date: Oct. 13, 2021 |
H320380: Tariff classification of “Frequencies of Living Flowers”
| Ruling: 2208.90.7500, free, “Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 percent vol.; spirits, liqueurs and other spirituous beverages: Other: Other: Spirits: Other.” |
| Issue: Whether the frequencies are classifiable in heading 2208 as diluted ethyl alcohol or in heading 3303 as perfumes and toilet waters |
| Item: "Frequencies of living flowers" captured in spring water, preserved with 5% grain alcohol (ethanol). The product is said to be created by capturing light photons emitted from living flowers in spring water with 5% grain alcohol. The stated purpose of the product is “restoring emotional and soul balance.” To consume the product, the user typically adds 30 drops to a 4 oz. glass of water, and sips the mixture. Other formulations of the product include those designed to be held against the body, sprayed topically or throughout a room, or swilled in the mouth and spit out. |
| Reason: Light photons are not tangible or physical, and are not described by any of the HTSUS headings. As such, light photons cannot be considered for tariff classification purposes. For tariff classification purposes, the product at issue contains spring water and 5 percent by volume grain alcohol. In other words, the product is diluted ethyl alcohol. |
| Ruling Date: Oct. 6, 2021 |
H315264: Tariff classification of a Pet Collar with Health and Location Tracking
| Ruling: 9031.80.80, free, “Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Other instruments, appliances and machines: Other.” |
| Issue; Whether the Whistle 05 is classified in heading 4201 as saddlery or a harness for an animal, in heading 8517 as other apparatus for the transmission or reception of voice, images or other data, in heading 8526 as radio navigational aid apparatus, or in heading 9031 as a measuring or checking instrument |
| Item: A pet collar with health and location tracker electronics. The Whistle 05 consists of a GPS receiver, CAT M1 cellular radio, a Bluetooth BLE radio, a Wi-Fi radio, and an accelerometer with an integrated pedometer. The Whistle 05’s GPS multi global navigation satellite system receiver determines position data and is used for locating and tracking a pet’s movements. The accelerometer acquires pet motion data, which is used to track the pet’s health and fitness. The data created by the sensors is transmitted by the Whistle 05 via Wi-Fi or through a user’s smartphone using Bluetooth or through the cellular network if the pet is outside the Wi-Fi range safety zone. The Whistle 05 is also able to store the data received from the accelerometer. The Whistle 05 can be programmed to send text messages, push and email alerts to the user. The Whistle 05 is used with the Whistle Application on a user’s smartphone |
| Reason: GRI 3(c) provides that when goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. Among those headings which merit equal consideration pursuant to GRI 3(c), heading 9031 -- which covers the accelerometer sensor -- occurs last in numerical order. |
| Ruling Date: Sept. 24, 2021 |
H314296: Internal Advice; Related Parties; Unrelated final customer; Transaction Value
| Ruling: The merchandise may be appraised using transaction value based on the price paid or payable by the final U.S. customer Company R to the U.S. importer, and as a result, the royalty issue is moot. |
| Issue: Whether transaction value is appropriate to appraise the merchandise and which transaction may be used to appraise the imported merchandise. Whether the royalty payments made by the U.S. importer to its parent company should be part of the price paid or payable for the imported merchandise or an addition to the price actually paid or payable for the imported merchandise. |
| Item: Laser cutting machines imported into the United States via a multi-tiered transaction with related parties, with royalty payments paid by the importer for the use of its parent company’s trademark. |
| Reason: The roles of the parties and the circumstances of the transactions between the related manufacturer, middleman and U.S. importer indicate that the parties are not functioning as a buyer and seller. A sale involves a transfer of title from one party to another for consideration. No sales occurred between the manufacturer and the middleman and between the middleman and the importer because the middleman had no title to the merchandise when it was shipped to the importer and delivered to the unrelated final customer. The title transferred directly from the Swiss manufacturer to the final customer in Alabama. In addition, the relationship between the related parties affected the price. Although the Swiss manufacturer received a late payment from the middleman, it still provided a sales discount for the merchandise, which would unlikely occur if the parties were unrelated. |
| Ruling Date: Aug. 12, 2021 |
H316726: Restricted Merchandise; Switchblade Knives; 15 U.S.C. §§ 1241-1245; 19 C.F.R. §§ 12.95-12.103; Battenfeld Technologies, Inc.
| Ruling: The knife is a switchblade knife within the meaning of the Switchblade Knife Act, and is not admissible into the United States. |
| Issue: Whether the subject knife is admissible into the United States under the provisions of the Switchblade Knife Act, 15 USC 1241 to 1245, or 19 CFR 12.95(a)(1) |
| Item: A folding knife composed of a two-piece, blue and black colored steel grip, and a tapered, single-edged blade that operates under spring pressure. The blade is sharpened on one side and tapers toward a sharp tip. The grip with the blade retracted in the closed position is approximately four inches long and one inch wide at its widest point. With the blade extended out in the fully opened position, the entire knife is approximately seven inches long. The blade of the knife in the opened position is approximately three inches long. |
| Reason: The operation of the spring and detent system does not “…create a bias toward closure of the blade that requires exertion applied to the blade by hand, wrist, or arm to overcome the bias toward closure to assist in opening the knife;” rather, when the knife is closed, it creates a bias toward opening of the blade which causes the blade to spring out of the grip into the fully extended open position with great ease and speed. |
| Ruling Date: July 27, 2021 |