September 24, 2003 CBP Bulletin Notices on Multifunctional Digital Cameras, Applicability of HTS 9802.00.50 to Certain Sweatshirts Embroidered in Mexico, and Mechanic's Gloves
In the September 24, 2003 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 37, No. 39), CBP issued notices (a) revoking or modifying three classification rulings on multifunctional digital cameras, (b) modifying a ruling related to the applicability of HTS 9802.00.50 to certain men's sweatshirts embroidered in Mexico, and (c) modifying or revoking classification rulings on mechanic's gloves. CBP states that it is also revoking any treatment it has previously accorded to substantially identical transactions that are contrary to its position in these notices.
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With respect to these revocations and modifications, CBP states that these actions were effective for merchandise entered or withdrawn from warehouse for consumption on or after November 23, 2003.
CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Revocation and Modification of Three Classification Rulings
Multifunctional Digital Cameras. The three cameras at issue are multifunctional cameras which, among other things, record and store digital still images and have videoconferencing functions.
CBP is issuing HQ 966072, HQ 966531, and HQ 966530 in order to revoke NY I84955, NY I84563, and modify NY I86730, respectively, and reclassify each of these multifunctional cameras under HTS 8525.40.4000 which provides for digital still image video cameras, rather than under HTS 8525.40.80, which provides for other still image video cameras and other video camera recorders; digital cameras.
Among other considerations, CBP states that because it is not possible to determine the cameras' principal function, General Interpretive Rule (GRI) 3(c) applies, which provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. In this case, HTS 8525.30 (which provides for television cameras) and HTS 8525.40 (which provides for, among other things, digital cameras) merit equal consideration; as a result, CBP is classifying these cameras in HTS 8525.40.
CBP further explains that a 2002 HTS amendment added the term "digital cameras" to the legal text of heading 8525 and subheading 8525.40. However, the scope of HTS 8525.40.4000, where digital cameras were previously classified, did not change. Therefore, these three digital cameras are still classified under HTS 8525.40.4000.
(See ITT's Online Archives or 08/11/03 news, 03081140, for BP summary of the proposed rulings, including a complete description of the multifunctional digital cameras.)
new: 8525.40.4000, duty-free; previous: 8525.40.80, 2.1%.
Modification on Applicability of HTS 9802.00.50
Certain Men's Sweatshirts Embroidered in Mexico. The men's sweatshirts at issue are made in Lesotho, imported into the U.S., and then exported to Mexico where they will be machine embroidered with various names or logos and returned to the U.S.
CBP is issuing HQ 562687 in order to modify NY I87698 so that the returned embroidered sweatshirts are eligible for entry under HTS 9802.00.50, which provides for a partial or complete duty exemption for articles that are returned to the U.S. after having been exported to be advanced in value or improved in condition by means of repairs or alterations provided that the documentary requirements of 19 CFR 181.64 (for articles returned from Canada or Mexico) are met.
According to CBP, 'repairs or alterations' within the context of 19 CFR 181.64(a) means a restoration, addition, renovation, redyeing, cleaning, resterilizing, or other treatment which does not destroy the essential character of, or create a new and commercially different good from, the good exported from the U.S.
CBP reasons that while the embroidery imparts new decorative characteristics to the articles, this change in the appearance of the article clearly does not result in the loss of the good's identity or the creation of a new article with a different commercial use. Moreover, the embroidery does not significantly change the quality, character, or performance characteristics of the sweatshirts. Therefore, CBP states that the foreign embroidery operation qualifies as an acceptable alteration under HTS 9802.00.50.
(See ITT's Online Archives or 07/08/03 news, 03070850, for BP summary of the proposed ruling, including a complete description of the sweatshirts.)
Modification and Revocation of Classification Rulings
Mechanic's Gloves. At issue are certain styles of mechanic's gloves which are specially designed for use by pit-crew mechanics in automotive sports, and feature various types of padding and lining. Some of the styles of the gloves are partly composed of synthetic leather-like material and others are composed in part of leather.
CBP is issuing HQ 966248, HQ 966431, and HQ 966432 in order to modify HQ 965692, and revoke NY A86298 and NY B85790 and reclassify the subject gloves under HTS 6216.00.5820 which provides for other gloves of man-made fibers with fourchettes or under HTS 4203.29.1500 which provides for other gloves of horsehide or cowhide (except calfskin) leather with fourchettes or sidewalls which, at a minimum, extend from fingertip to fingertip between each of the four fingers.
According to CBP, three additional rulings on substantially similar merchandise have been identified that were not specified in the proposed notice. Therefore, CBP states that it is issuing HQ 966647 in order to revoke NY C81172 and NY D83272, and it is also issuing HQ 966648 in order to revoke NY G80387, and classifying the subject gloves under HTS 6216.00.5820 or under HTS 6116.93.9400 which provides for other gloves of synthetic fibers with fourchettes.
CBP explains that because the functions performed by mechanics are not sporting activities, the gloves used by pit-crew members are not "specially designed for use in sports." Therefore, CBP is classifying the gloves to reflect the fact that they are not designed for use in sports.
(See ITT's Online Archives or 06/03/03 news, 03060345, for BP summary of the proposed rulings, including a complete description of the mechanic's gloves.)
new: 6216.00.5820 (synthetic), 20.7/kg 10.4% (Cat 631); 6116.93.9400 (synthetic), 18.6% (Cat 631); 4203.29.1500 (leather), 14%.
previous: 6216.00.4600 (synthetic), 2.8%; 6116.93.0800 (synthetic), 2.8%; 4203.21.8060 (leather), 4.9%.
September 24, 2003 (Vol. 37, No. 39) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2003/vol37_09242003_no39/