Communications Litigation Today was a Warren News publication.

Newly Released CBP HQ Rulings on Aug. 30

The Customs Rulings Online Search System (CROSS) was updated Aug. 30 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):

H314335: Reconsideration of NY N314063; tariff classification of an O ring

Ruling: The plastic O-rings in this case were properly excluded from classification in Chapter 84. The O-rings were properly classified in subheading 3926.90.45. NY N314063 is affirmed.
Issue: What is the proper classification of the O rings?
Items: (1) A chamber lid O-ring seal. It is specifically designed to be used on a semiconductor waferChemical Vapor Deposition processing chamber. The O-ring seal is seated into a groove machined into the top surface of the wafer processing chamber body, and it functions to form a compressible seal between the chamber body and the chamber lid when closed. (2) A wafer lift formed O-ring specifically designed to be used on a semiconductor wafer High Density Plasma Chemical Vapor Deposition processing chamber. The chamber uses a gaseous plasma under vacuum to deposit chemical films on the surface of semiconductor wafers. The O-ring is seated into a groove machined into the side of the chamber body where it forms a compressible seal between the chamber body and a wafer lift mechanism.
Reason: Section Note 1(g), section XVI, HTSUS, excludes parts of general use from heading 8486.
Ruling Date: Aug. 11, 2022

H321716: Application for Further Review of Protest No. 4503-21-101434; Tariff Classification of Sewing Thread; PTPA Eligibility; Women’s Garments

Ruling: (1) The sewing thread is classified under subheading 5508.10.1000 as “Sewing thread of man-made staple fibers, whether or not put up for retail sale: Of synthetic staple fibers.” (2) The garments are all eligible for preferential tariff treatment under the Peru Trade Promotion Agreement (PTPA).
Issues: (1) What is the tariff classification of the relevant sewing thread? (2) Is the subject merchandise eligible for preferential tariff treatment under the PTPA?
Items: Four items of women's clothing: A scoop neck T-shirt and a long sleeve scoop neck T-shirt, both constructed from 95 percent organic Pima cotton and 5 percent spandex knit fabric, a square neck dress and a maxi skirt, both constructed from 100 percent organic Pima cotton.
Reason: All components used in the production of the garments, other than the sewing thread, were wholly formed and finished in the territory of Peru. Both styles of shirts are constructed from 95 percent organic Pima cotton and 5 percent spandex knit fabric. Documentation detailed that this spandex knit fabric was produced entirely in the territory of Peru from yarn originating from the territory of Peru. Since the spandex knit fabric is a fabric classifiable within heading 6002, HTSUS, and is both formed from Peruvian-origin yarn and finished in Peru, the requirements of GN 32(n), Chapter 61, Chapter Rule 3 are satisfied. Documentation also showed that the organic Pima cotton fabric was produced entirely in the territory of Peru. Therefore, the organic Pima cotton fabric is an originating material and is not required to undergo a change in tariff classification. Since the sewing thread is properly classified in heading 5508, HTSUS, it does not need to be formed or finished in the territory of Peru, the U.S., or both, for the garments to be originating.
Ruling Date: June 29, 2022

H302244: Affirmation of NY N284256; country of origin of multilayer wood flooring

Ruling: The country of origin for non-preferential duty purposes remains China, and the country of origin for marking purposes remains Canada. NY N284256 is affirmed.
Issue: What is the country of origin for duty purposes of multilayer flooring?
Item: A multilayer flooring product consisting of a 2mm-thick oak or maple face ply laminated onto a 7.8mm-thick high-density fiberboard core, and backed with a 1.2mm-thick birch veneer. The panels are imported in widths of 3.5” and 5”, and in lengths of 15” to 48.” The panels were continually shaped on edges and ends with an interlocking ‘click’ mechanism for installation. The panels were stained and coated with a clear material that did not obscure the grain of the wood.
Reason: Since the wood flooring was manufactured in part, in a NAFTA country, CBP applied the NAFTA Rules of Origin to determine the country of origin for marking purposes. With respect to heading 4412 HTSUS, there must be a change to the surface-covered plywood from any other plywood that is not surface covered or is surface-covered only with a clear or transparent material which does not obscure the grain, texture, or markings of the face ply. CBP found that the further processing in Canada met the requirement to be Canadian in origin for marking purposes. At the time NY N284256 was issued, it was only for the limited purpose of determining whether a good may receive preferential tariff treatment under NAFTA pursuant to General Note 12. For other duty purposes, the substantial transformation test is currently used.
Ruling Date: June 24, 2022

H316742: Internal advice request; Classification of Echo Show 5, Echo Show 8, and Echo Show 10

Ruling: The items are properly classified in subheading 8517.62.00 as “Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.”
Issue: Are the Echo Show devices classified in heading 8518 as loudspeakers, or in heading 8517 as machines for the reception, conversion and transmission or regeneration of voice, images, or other data, including switching and routing apparatus?
Item: Echo Show 5, Echo Show 8, and Echo Show 10. Each product incorporates a main circuit board comprised mainly of an integrated microprocessor, random access memory, and flash drive/memory; a touch screen; a camera; speakers; and an array of microphones. Those components allow the products to receive and process voice and touch inputs from a user, and then transmit the resultant data through a user’s connected Wi-Fi router to external servers. The servers interpret the transmitted requests and determine the appropriate signals to transmit back to the Echo Show products that would allow the products to perform myriad tasks.
Reason: The principal function of the devices is to coordinate (i.e., receive and transmit) the data traveling between the aforementioned servers, other devices connected to the network, and the users.
Ruling Date: June 3, 2022