Newly Released CBP HQ Rulings for Dec. 8
The Customs Rulings Online Search System (CROSS) was updated Dec. 8 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):
H320036: Country of Origin; Section 301; Window Air Conditioners
| Origin: Thailand |
| Issue: What is the country of origin of window air conditioners for purposes of Section 301 trade remedies? |
| Item: Self-contained air conditioning units designed to be mounted to a window and cool spaces. Each window unit is packaged with a remote control from Thailand, a screw, and a top shutter frame from China. The production of each air conditioner unit begins with the production of sheet metal components in Thailand. The production process in Thailand continues with the heat exchange units and the printed circuit board assembly. The final assembly of each air conditioning unit, which also occurs in Thailand, includes screwing a Chinese compressor to the chassis of the unit. |
| Reason: The essence of the finished air conditioning unit is the cooling unit which consists of three components: the compressor, the condenser, and the evaporator. In the instant case, the condenser and the evaporator are from Thailand, and the compressor is from China. Since the majority of the components which constitute the cooling unit are from Thailand and the final assembly occurs there, the country of origin of the air conditioning unit is Thailand for purposes of Section 301 trade remedies. |
| Ruling Date: Nov. 18, 2021 |
H320037: Country of Origin; Section 301; Portable Air Conditioners
| Origin; Thailand |
| Issue: What is the country of origin of portable air conditioners for purposes of Section 301 trade remedies? |
| Item: Self-contained air conditioner units that feature a control panel with a light-emitting diode (“LED”), casters, a filter, a drain outlet, and a cooling system. The production of each portable air conditioner unit begins in Thailand with the production of the plastic components consisting of the exterior parts, such as the front panel and the rear panel, and the internal parts used for structural support, including the air supply volute, exhaust volute cover, and the intermediate separator using a plastic injection process. The production process of the unit in Thailand continues with the heat exchange units and printed circuit assembly. The final assembly of each portable air conditioner unit, which also occurs in Thailand, begins by screwing a Chinese compressor to the chassis of the unit. |
| Reason: The essence of the finished air conditioning unit is the cooling unit which consists of three components: the compressor, the condenser, and the evaporator. In the instant case, the condenser and the evaporator are from Thailand, and the compressor is from China. Since the majority of the components which constitute the cooling unit are from Thailand and the final assembly occurs there, we find that the country of origin of the air conditioning unit is Thailand for purposes of Section 301 trade remedies. |
| Ruling Date: Nov. 18, 2021 |
H300198: Internal Advice Request; Tariff classification of components of a mud motor
| HTS: 8412.90.90, free, “Other engines and motors, and parts thereof: Parts: Other… .” |
| Issue: Whether the components are classified as other articles of iron or steel under heading 7326, or as parts of a motor under heading 8412 |
| Item: Four components of a mud motor. The components include: (1) a fixed Bent Housing – a steel alloy component with a specified/pre-bent angle that cannot be adjusted (unlike adjustable housings). Orients the mud motor and drill bit downhole to allow the mud motor to be used in directional drilling. (2) Bottom Seal Cap – a steel alloy component cap that locks the seal boot in place. The bottom seal cap and seal boot keep the drive shaft from coming out of the bearing adaptor. (3) Adjust Ring – a grooved ring made of a steel alloy which allows the mud motor to be set to a desired angle and locked into place for directional drilling. The adjust ring contains marking indicators that line up with marking indicators on the offset housing, permitting the rig operator to adjust the angle of the mud motor. (4) Offset Housing – a grooved, steel alloy component that allows the mud motor to be set to a desired angle and locked into place for directional drilling. The offset housing contains marking indicators that line up with marking indicators on the adjust ring, permitting the rig operator to adjust the angle of the mud motor. |
| Reason: The components are designed to channel drilling fluid through the mud motor, thus enabling the mud motor to produce sufficient pressure to power the drilling tool. If a stationary subject component is missing from the mud motor, then the drilling fluid will spill out of the tool and not provide enough flow pressure to rotate the rotating components. If a rotating subject component is missing from the mud motor, then the whole rotating section of the tool will be inoperable and unable to rotate the drill bit. Without the subject components, a mud motor cannot function as a mud motor. |
| Ruling Date: Oct. 5, 2021 |
H311412: Application for Further Review of Protest No. 3901-20-112902; Tariff Classification of mixed feeds and mixed-feed ingredients
| Ruling: 2309.90.1050, free, “Preparations of a kind used in animal feed: Other: Mix feeds or mixed-feed ingredients, Other.” |
| Issue: Whether the subject animal feed formulation is “mix feeds or mixed-feed ingredient” for purposes of Additional U.S. Note 1 to Chapter 23, HTSUS, and, therefore, classifiable under subheading 2309.90.10, or whether the animal feed formulation is properly classified under subheading 2309.90.95 |
| Item: An animal feed preparation, utilized in dry feed formulations. Carniking 10 is a source of L-carnitine. Carnitine is an amino acid derivative that occurs naturally in the body. It is essential for energy metabolism - in particular, the metabolism of fatty acids. L-carnitine aids in fat digestion and impacts other cellular biochemical processes in the body, both directly and indirectly. Carniking 10 is produced by applying L-carnitine to an inert carrier. It is said to be free flowing, non-hygroscopic, and readily miscible. Carniking 10 is used in the manufacturing of dry animal feed formulations, premixes, and other base mixes. |
| Reason: The subject Carniking 10 can be defined as an admixture in that it is a product that consists of various ingredients that have been mixed together. In particular, the subject Carniking 10 is produced by mixing together various ingredients such as: wheat bran, and L-carintine, which are blended together, mixed and sieved to create a formulation to be used in dry dog food or cat food. Such a formulation is an admixture for purposes subheading 2309.90.10 Likewise, the component L-carintine ingredient satisfies the definition of a “feedstuff” portion of the admixture. |
| Ruling Date: Aug. 17, 2021 |