February 4, 2004 CBP Bulletin Notices on a Set Top Box and Certain Liquid Rubber
In the February 4, 2004 issue of the U.S. Customs and Border Protection Bulletin (CBPBulletin) (Vol. 38, No. 6), CBP issued notices: (a) proposing to revoke a classification ruling on a set top box, and (b) proposing to revoke a classification ruling on certain liquid rubber. CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions that are contrary to its position in these notices.
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CBP states that any party who has received a contrary ruling or decision on the merchandise that is subject to the proposed revocations, or any party involved with a substantially identical transaction, should advise CBP by March 5, 2004, the date that written comments on these proposed rulings are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in these notices.
CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Proposed Revocation of Classification Ruling
Set Top Box. According to CBP, at issue is a set top box (set top terminal) identified as model TZ-PCD2000. It is equipped with a tuner and is designed to receive both analog (NTSC) and digital (QAM) cable television broadcast signals via a RF cable. The tuner receives, demodulates and converts the television broadcast signal for direct viewing on to the television set. CBP states that this model has the capability to communicate by sending a signal back to the cable headend via the same RF cable. It does not incorporate a modem, and has output terminals for both composite video and S-video signals.
CBP states that additional facts presented include that the box is only used for cable television reception. It has an out of band (OOB) communications link that is used by the cable company to authenticate the cable box in the cable system and is used by the customer to order pay-per-view. The box does not have any Internet capability.
CBP is proposing to issue HQ 966799 in order to revoke NY G82574 and classify the box under HTS 8528.12.9700 as other reception apparatus for television, etc. rather than under HTS 8528.12.9200 which provides for other set top boxes which have a communications function.
CBP explains that, among other considerations, the box is designed only for cable television reception, and it does not have a modem or any other means to gain access to the Internet. Without access to the Internet, the box does not satisfy Information Technology Agreement (ITA) requirements of a set top box which has a communications function. Therefore, CBP states that the box should be classified under HTS 8528.12.9700 as other reception apparatus for television, etc.
proposed: 8528.12.9700, 5%; current: 8528.12.9200, duty-free.
Proposed Revocation of Classification Ruling
Certain Liquid Rubber. CBP states that at issue is Liquid 1,2-Polybutadiene Rubber (NISSO PB-B1000), which is made from 100% 1,2 liquid polybutadiene polymer. It is used in the manufacture of tires and treads for automobiles, industrial products such as conveyor belts, hoses, seals, and gaskets, and other applications. CBP reports that butadiene rubber is the second largest-volume synthetic rubber accounting for 23% of synthetic rubber consumption, and polybutadiene rubber is known in commerce as synthetic rubber.
CBP is proposing to issue HQ 966558 in order to revoke NY 818016 and classify the subject liquid rubber under HTS 4002.20.0000 as butadiene rubber (BR) rather than under HTS 3902.90.00 as other polymers of propylene or of other olefins, in primary forms.
CBP explains that HTS Chapter 39, Note 2(h) states that Chapter 39 does not cover synthetic rubber as defined for purposes of Chapter 40.
According to CBP, a sample of the subject liquid rubber was tested for compliance with HTS Chapter 40, Note 4(a), using an elongation test. A Customs Laboratory Report determined that the sample of the liquid rubber meets the definition of HTS Chapter 40, Note 4(a).
Therefore, CBP states that pursuant to Chapter 39, Note 2(h), the liquid rubber is not included in Chapter 39, but rather should be classified in HTS 4002.20.0000 as butadiene rubber (BR).
proposed: 4002.20.0000, duty-free; current: 3902.90.00, 6.5%.
February 4, 2004 CBP Bulletin (Vol. 38, No. 6) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2004/