Newly Released CBP HQ Rulings for May 9
The Customs Rulings Online Search System (CROSS) was updated May 9 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):
H324094: Instruments of International Traffic; 19 U.S.C. § 1332(a); §§ 10.41a(a)(1), 10a(a)(2); Cold Chains Technology, Inc.; Endeavair and Insulation Panels; Accessories
| Ruling: The Endeavairs qualify as IIT and the Vacuum Insulated Panels qualify as accessories of IIT. |
| Issues: (1) whether the subject Endeavair qualify for consideration as IIT (2) whether the subject VIPs qualify for consideration as IITs accessories of IIT |
| Items: (1) Kool Temp Endeavair 1600L Bulk shipping container. The Endavairs are leased to customers who will use them in the international shipping of temperature sensitive products, such as: pharmaceutical, biomedical, life-science and food products. Upon arrival at their destination, the product will be unladed, and the container picked up by a third-party company who will return them to a Cold Chain site, generally in the U.S. or the Netherlands. The container will then be cleaned, refurbished, and prepared for the next shipment. The containers and VIPs will be used in international airfreight. Both will have serial numbers that can be tracked by Cold Chain. With respect to the Endeavairs, the containers are manufactured in the U.S. The Endeavairs provide over 144 hours of temperature control. Currently, there are over 100 Endeavairs in use throughout the world. Each Endeavair will be used about 12 times per year with a minimum lifespan of 10 years. (2) Vacuum Insulated Panels designed to be secured to the interior of an Endeavair container. The VIPs are manufactured in China and imported by Cold Chain. The VIPs are manufactured specifically for the required size for use within the Endeavair. The Endeavair cannot perform the temperature control function without the subject VIPs. Each Endeavair will use approximately 24 subject VIPs that are made from fiberglass, polyethylene, polyurethane, and aluminum. The VIPs have a lifespan of five to 10 years. |
| Reason: CBP has previously determined that similar thermal containers qualify for treatment as IIT. The subject individual Endeavairs are substantial, they are capable of repeated use and over one hundred of subject Endeavairs are to be used in international traffic. The subject VIPs are accessories insofar they attach to the subject Endeavair, are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. |
| Ruling Date: April 28, 2022 |
H321240: Coastwise Transportation; 46 U.S.C. §§ 55102, 55103; Merchandise; Passengers; Vessel Equipment; Oil Well Stimulation; 19 C.F.R § 4.50(b); 19 C.F.R. § 4.80; 19 C.F.R. § 4.80a; 19 C.F.R. § 4.80b.
| Ruling: (1) The proposed well stimulation operation in scenario 1 by a non-coastwise-qualified vessel constitutes “transportation” within the meaning of the Jones Act and would violate the Jones Act. The proposed well stimulation operation in scenario 4 by a non-coastwise-qualified vessel does not constitute “transportation” and would not violate the Jones Act. The proposed well stimulation operation in the remaining scenarios by a non-coastwise-qualified vessel does not constitute “transportation” and would not be in violation of the Jones Act. (2) The subject well stimulation crew are not “passengers” within the meaning of the Passenger Vessel Services Act so their transportation is not in violation of the Passenger Vessel Services Act. |
| Issues: (1) whether the contemplated well stimulation operation by the non-coastwise-qualified vessel violates the Jones Act (2) whether the contemplated transportation of individuals onboard the non-coastwise-qualified vessel violates the Passenger Vessel Services Act |
| Item: N/A |
| Reason: (1) In scenario 1, the well stimulation fluid (WSF) constitutes merchandise and not vessel equipment because it is not transported on the vessel on which it is used. In scenario 4, the well stimulation vessel would perform the well stimulation operation, which would make the WSF “necessary and appropriate for the operation” of the vessel and constitute "vessel equipment." (2) The well stimulation technicians will join the vessel to perform the well stimulation operation. While the vessel is in transit, the proposed activities of the technicians are considered substantial and necessary for the operation of the vessel and thereby, the technicians are not passengers. |
| Ruling Date: March 21, 2022 |
H316132: Internal Advice Request; Tariff Classification of Processed Onion Products from China
| Ruling: The onion products are classified in subheading 2005.99.2000, HTSUS, which provides for “Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006: Other: Onions.” |
| Issue: What is the tariff classification of the processed onion products? |
| Item: Processed onion products which entered the United States at the Port of Chicago between Feb. 13, 2020, and Dec. 31, 2020. The importer had previously imported the processed onion products under either subheading 0712.20.2000 or subheading 0712.20.4000. It is now their belief that a more accurate classification would be subheading 2005.99.9700. During the initial processing of oven drying, the cut or sliced onions are hot air dried in a multi-layer continuous drying machine and then cooled. The moisture levels are monitored and tested with a target of approximately 7% moisture. Once the cut or sliced onions are cooled, they are transferred into bags for storage and further processing. Then, within a single layer "toasting" oven, the cut or sliced onions are baked at a temperature between 65 to 90°C. The moisture levels of the products are monitored with a target of 3.3%. |
| Reason: When onion or garlic products, which have been harvested, dried, and stored by a manufacturer, undergo an additional processing phase beyond simple drying, this additional processing has been considered “further preparation” beyond the scope of heading 0712. |
| Ruling Date: March 3, 2022 |
H323156: Application for Further Review of Protest No. 5301-21-107666; Tariff Classification of Men’s Pants
| Ruling: The men’s pants are classified in heading 6107, HTSUS. Specifically, the men’s pants are classified under subheading 6107.91.1030, HTSUSA, which provides for: “Men’s or boys’ underpants, briefs, nightshirts, pajamas, bathrobes, dressing gowns, and similar articles, knitted or crocheted: Other: Of Cotton: Sleepwear: Men’s.” |
| Issue: whether the imported men’s pants are classified as loungewear under heading 6103, HTSUS, or as sleepwear under heading 6107, HTSUS |
| Item: A men’s pants-like garment. Protestant describes the merchandise as being 60 percent cotton/40 percent polyester blended knit fabric, with a weight of 140 grams per square meter. It has a tunnel elastic waistband, a drawstring, single button/fly closure, hemmed leg openings, and side pockets. The fabric is lightweight and partially translucent. |
| Reason: With a weight of 140 GSM, the subject fabric is below the threshold limit for sleep or other intimate garments. Classification of the subject garment as sleepwear is consistent with previous CBP rulings which examined the physical characteristics of similar garments along with consideration of other factors such as the marketing and advertising of such garments. |
| Ruling Date: March 1, 2022 |
H318294: Application for Further Review of Protest No. 5501-20-101069; Northern Tool & Equipment Co. Inc.; Sprayers; 9817.00.50, HTSUS
| Ruling: The protest should be denied. The sprayers are ineligible for duty-free treatment under subheading 9817.00.50. |
| Issue: Whether the sprayers are eligible for duty-free treatment under subheading 9817.00.50, HTSUS. |
| Item: Sprayers imported under subheadings 8424.41.1000 and 8424.49.0000. The protestant claims that it imports these sprayers and sells them to various customers who will use them in agricultural and/or horticultural applications. The sprayers generally consist of a pump, sprayer gun and receptacle for insecticide. CBP liquidated the entries under subheadings 8424.41.1000 and 8424.49.0000. |
| Reason: Protestant submitted a blanket declaration covering the period during which the entries at issue were made but it was not filed as part of the entry at the time of importation. CBP has repeatedly denied protests seeking reclassification to an actual use provision where the protestant entered goods without properly evidencing declaration of intent. |
| Ruling Date: Jan. 7, 2022 |