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May 12, 2004 CBP Bulletin Notices on Satellite Radio Receiver Sets, Radar Apparatus that Measures Liquid Levels, and Textile Tool Holders

In the May 12, 2004 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 38, No. 20), CBP issued notices: (a) revoking a classification ruling on satellite radio receiver sets; (b) revoking a classification ruling regarding a radar apparatus that measures liquid levels; and (c) revoking or modifying three classification rulings on textile tool holders. 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respect to these revocations and modification, CBP states that these actions are effective for merchandise entered or withdrawn from warehouse for consumption on or after July 11, 2004.

CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.

Revocation of a Classification Ruling

Satellite Radio Receiver Sets. At issue are three models of XM satellite radio kits: C model, R model, and H model.

CBP is issuing HQ 966675 in order to revoke NY I84878 and reclassify the C and R models under HTS 8527.21.4080 as "other radiobroadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles, etc., combined with sound recording or reproducing apparatus" and the H model under HTS 8527.31.6080 as "other radiobroadcast receivers, etc., combined with sound recording or reproducing apparatus" rather than classifying all three models under HTS 8527.29.80 which provides for "other radiobroadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles, etc."

CBP explains that the C and R models are advertised for installation in a motor vehicle, and are sold as a set for retail sale with accessories such as the car docking station for use in a motor vehicle or the cassette adapter or RF modulator to connect the receiver to an existing car stereo. However, the H model is advertised and sold with a home accessory kit (although the user may separately purchase a car accessory kit).

CBP also states that all three of the receivers incorporate Synchronous Dynamic Random Access Memory (SDRAM), which is sound recording apparatus.

(See ITT's Online Archives or 03/30/04 news, 04033045, for BP summary of the proposed ruling, including a complete description of the kits. Subscribers should note that in the proposed ruling, CBP had only specified the applicable proposed HTS numbers up to eight-digit levels.)

new: 8527.21.4080, duty-free (C and R models); 8527.31.6080, duty-free (H model).

previous: 8527.29.80, 4.4%.

Revocation of Classification Ruling

Radar Apparatus that Measures Liquid Levels. The system at issue is the DDS non-contacting depth and level gauging unit that utilizes electromagnetic radar waves to measure the level of liquids in containers.

CBP is issuing HQ 966930 in order to revoke NY 873105 and reclassify the subject system under HTS 8526.10.0040 as "other radar apparatus" rather than under HTS 9026.10.6000 which provides for "other instruments and apparatus for measuring or checking the flow or level of liquids."

CBP states that HTS Chapter 90, Note 1(h) excludes, in pertinent part, radar apparatus of HTS 8526. In addition, according to the Explanatory Notes (ENs) to HTS 8526, radar height measuring apparatus (radio altimeters) are among the goods included in HTS 8526. Therefore, CBP states that the system at issue is excluded from classification within HTS Chapter 90, and for the same reasons, is classified in HTS 8526.

(See ITT's Online Archives or 03/18/04 news, 04031855, for BP summary of the proposed ruling, including a complete description of the system. Subscribers should note that in the proposed ruling, CBP had only specified the applicable proposed HTS number up to the eight-digit level.)

new: 8526.10.0040, duty-free; previous: 9026.10.6000, duty-free.

Revocation and Modification of Three Classification Rulings

Textile Tool Holders. At issue are three types of textile tool holders: (a) tool bucket organizer1 (HQ 966830); (b) tool bucket organizer2 (HQ 966907); and (c) garden bucket tool caddy (HQ 966908).

CBP is issuing HQ 966830 and HQ 966908 in order to revoke NY J80360 and NY J81807, respectively, and reclassify the subject tool bucket organizer1 and garden bucket tool caddy under HTS 4202.92.9026 which provides for "other tool bags and similar containers, etc. with an outer surface of textile materials of man-made fibers;" rather than under HTS 6307.90.9889 as "other made up articles, etc."

CBP is also issuing HQ 966907 in order to modify NY G85500 and reclassify the subject tool bucket organizer2 under HTS 4202.92.9026 rather than under HTS 6307.90.9989 which provided for "other made up articles, etc."

CBP explains that in light of the court's rationale in Rooster Products, Inc. v. U.S., it is clear that the scope of HTS 4202 is broad enough to encompass all forms of tool bags, including the subject tool bucket organizers and garden tool bucket caddy. Accordingly, CBP states that the tool bucket organizers and garden tool bucket caddy are classified under HTS 4202.92.9026.

(See ITT's Online Archives or 03/19/04 news, 04031940, for BP summary of the proposed rulings, including a complete description of the textile tool holders.)

new: 4202.92.9026, 17.6% (Cat 670).

previous: 6307.90.9889, 7% (tool bucket organizer1 and garden tool bucket caddy);

6307.90.9989 (2001), 7% (tool bucket organizer2)

May 12, 2004 CBP Bulletin (Vol. 38, No. 20) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2004/vol38_05122004_no_20/