Newly Released CBP HQ Rulings May 24
The Customs Rulings Online Search System (CROSS) was updated May 24 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):
H333319: Food Waste Disposers; Origin; Section 301 trade remedy
| Ruling: The country of origin of the instant food waste disposers will be Mexico and Section 301 duties don't apply. |
| Issue: What is the origin of the food waste disposers as described for purposes of Section 301 trade remedies? |
| Item: The food waste disposers of subheading 8509.80.20 will be electrically powered, incorporating an electric motor housed in a plastic chamber and a leak-proof seal connected to a kitchen sink trap enabling shredded waste to be discharged down the sink’s drain. All four models will be manufactured in Mexico using Mexican, U.S. and Chinese-origin component parts. There will be 34 unique purchase parts (14 sourced from the U.S., 12 from Mexico and 8 from China) required for the food waste disposer unit assembly. The assembly operation in Mexico will consist of 10 distinct steps, including molding of plastic parts, pressing, fastening, screwdriving through the use of complex tools, and extensive testing with complex tools and equipment. During the assembly operation, the rotating shredder plate subassembly will be attached to the shaft of the Chinese motor to form a subassembly. The motor and rotating shredder plate subassembly will be inserted into the Mexican motor cover. The Mexican stationary shredder will be attached and incorporated with the Mexican container body. The rotating shredder, motor subassembly, container body, and stationary shredder subassembly will be assembled together to create a third subassembly, which will be vacuum that will be leak and electrical tested to ensure quality, safety, and performance prior to final assembly processes. The U.S. body flange and U.S. mounting subassembly will be assembled together. The U.S. mounting subassembly, the fully tested and quality-assured container body/stationary shredder subassembly, motor/rotating shredding subassembly, and U.S. plumbing (tailpipe) kit will be assembled together to create the finished food waste disposer. |
| Reason: The manufacturing process in Mexico will substantially transform the original components into various subassemblies, which will be combined together to form the final food disposer, a different article of commerce with a new name, character, and use. |
| Ruling Date: May 15, 2024 |