Newly Released HQ Rulings Jan. 18-19

January 22, 2024 by Noah Garfinkel|Customs Rulings

The Customs Rulings Online Search System (CROSS) was updated Jan. 18-19 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):

H320198: Application for Further Review of Protest No. 3901-20-120810; Retroactive Application of Exclusions from Section 232 Duties

Ruling: The protest is denied, except to the extent the Section 232 exclusions of the merchandise as indicated above result in a net duty reduction and partial allowance.

Issue: Are the subject white carbon steel coils in various sizes properly excluded from the Section 232 duties?

Item: (1) A white carbon steel coil with a width of 34.5–35.5 mm, a thickness of 0.2025–0.2035 mm, and a coil length of 50–500 inches ; (2) A white carbon steel coil with a width of 34.5–35.5 mm, a thickness of 0.15–0.16 mm, and a coil length of 50–500 inches ; (3) A white carbon steel coil with a width of 31.5–32.5 mm, a thickness of 0.250–0.260 mm, and a coil length of 50–500 inches ; (4) A white carbon steel coil with width of 25.0–26.0mm, a thickness of 0.25–0.26 mm, and a coil length of 50–500 inches ; and (5) A white carbon steel coil with a width of 24.5–25.5 mm, a thickness of 0.2025–0.2035 mm, and a coil length of 50–500 inches. The protestant initially submitted five requests for exclusions from the Section 232 duties on April 10, 2019. On Sept. 27, 2019, the protestant submitted five additional requests for exclusions from the Section 232 duties.

Reason: The September 2019 Exclusion Requests were submitted on Sept. 27, 2019, as stated in the exclusion request forms, and that Protestant incorrectly claims that the submission dates of the September 2019 Exclusion Requests predate the date of the subject entries. The approved September 2019 Exclusion Requests can be retroactively applied to the subject entries only if the subject entries were entered on or after Sept. 27, 2019. The subject entries were entered between May 13, 2019, and July 1, 2019. Therefore, the approved April 2019 Exclusion Requests are applicable to the entries, and Protestant is entitled to the corresponding refund of the Section 232 duties. The approved September 2019 Exclusion Requests, however, are not applicable to the subject entries, because they were entered before the September 2019 Exclusion Requests were submitted on the Section 232 Exclusion Portal.

Ruling Date: Nov. 20, 2023

H333250: USMCA Eligibility of Bicycles

Ruling: The Chainsaw bicycle model is classified under subheading 8712.00.3500, which provides for “Bicycles and other cycles (including delivery tricycles), not motorized: Bicycles having both wheels exceeding 63.5cm in diameter: Other.” The Ewoc bicycle model is classified under subheading 8712.00.1550, which provides for “Bicycles and other cycles (including delivery tricycles), not motorized: Bicycles having both wheels not exceeding 63.5cm in diameter: Having both wheels exceeding 55cm but not exceeding 63.5 cm in diameter.” Based on the information provided, the Chainsaw and Ewoc models of full suspension bicycles are eligible for preferential tariff treatment under USMCA.

Issue: Are the bicycles eligible for preferential tariff treatment under the USMCA when imported from Canada into the United States?

Item: Two models of full suspension bicycles, the Chainsaw and the Ewoc. The bicycles are manufactured in Canada using both originating and non-originating parts. The Chainsaw model, weighing 17.5 kg, has two options for wheel sizes: 27 and 29 inches (68.58 cm and 73.66 cm). It has a cross sectional tire diameter of 5.8 cm. The Ewoc model, weighing 14 kg, is sold with a wheel size of 24 inches (60.96 cm) having a cross sectional tire diameter of 5.8 cm.

Reason: The applicable rule of origin requires a regional value content of not less than 60% where the transaction value method is used or 50 percent where the net cost method is used." The transaction value of the Chainsaw bicycle is $3396.36. The costed bill of materials indicates that the value of the non-originating materials is $1283.92 ($1482.50 - freight costs of $198.50). As such, the RVC is (($3396.36 - $1283.92) /$3396.36) * 100] = 62.2%. This is above the 60% minimum required by GN 11(o)/ 87.59 (B)(1). Accordingly, the Chainsaw bicycle classified under subheading 8712.00.3500 qualifies as a USMCA originating good. The transaction value of the Ewoc bicycle is $2229.48. The costed bill of materials indicates that the value of the non-originating materials is $720.27 ($848.27 – freight costs of $198.58). As such, the RVC is (($2229.48 - $720.27) /$2229.48) * 100] = 67.69%. This is above the 60% minimum required by GN 11(o)/ 87.59 (B)(1). Accordingly, the Ewoc bicycle classified under subheading 8712.00.1550 also qualifies as a USMCA originating good.

Ruling Date: Jan. 11, 2024

H328353: Internal Advice; Classification of 15N-isotopic Ammonium Sulfate

Ruling: The ammonium sulfate modified with the nitrogen-15 atom is classified in heading 2845, specifically subheading 2845.90.0100, which provides for “Isotopes other than those of heading 2844; compounds, inorganic or organic, of such isotopes, whether or not chemically defined: Other.” The 2023 column one, general rate of duty is free.

Issue: Is the instant ammonium sulfate isotope classified in heading 2845, HTSUS, as an inorganic isotope compound, or in heading 3102, HTSUS, as a nitrogenous fertilizer?

Item: 10% 15N-isotopic ammonium sulfate, produced by the replacement of the standard Nitrogen isotope of nitrogen-14 with nitrogen-15.

Reason: The EN to heading 2844, defining the term “isotopes” for the purposes of headings 2844 and 2845, states that the term isotopes covers not only isotopes in their pure state but also chemical elements whose natural isotopic composition has been artificially modified by enriching the elements in some of their isotopes. The natural isotropic balance of the instant product has been modified by enriching the nitrogen-15 isotope from 0.37% to 10% of the total composition. The 15N-isotopic ammonium sulfate is therefore an isotope as defined in EN 28.45. As a stable, non-radioactive isotopic compound, the 15N-isotopic ammonium sulfate is described by heading 2845a.

Ruling Date: June 9, 2023