May 19, 2004 CBP Bulletin Notices on Metalized Embroidery Thread & Decorative Wired Trim and Karaoke Machines
In the May 19, 2004 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 38, No. 21), CBP issued notices: (a) modifying two classification rulings on metalized embroidery thread and decorative wired trim, and (b) revoking two classification rulings on karaoke machines. 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respect to these modifications and revocations, CBP states that these actions are effective for merchandise entered or withdrawn from warehouse for consumption on or after July 18, 2004.
CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Modification of Two Classification Rulings
Metalized Embroidery Thread and Decorative Wired Trim. At issue are a metalized polyester gold embroidery thread, composed of polyester strip wrapped spirally (gimped) around a multifilament core; and decorative wired trim, composed of lengths of metalized plastic strips that have been wrapped around untwisted filament and a wire. CBP states that for both articles, the strips are considered textile material for tariff classification purposes.
CBP is issuing HQ 966599 and HQ 966438 in order to modify NY J81433 and NY J82071, respectively, and classify the thread and trim under HTS 5605.00.9000 as "other metalized yarn, combined with metal, etc.;" rather than classifying the thread under HTS 5606.00.0090 which provides for "other gimped yarn, etc." and the trim under HTS 5607.50.3500 which provides for "other twine, etc. not braided or plaited, of other synthetic fibers, etc."
According to CBP, the thread and trim clearly meet the terms of HTS 5605 and are in accordance with the Explanatory Note (EN), which states, among other things, that it covers yarn of any textile material (including monofilament, strip and the like, and paper yarn) covered with metal by any other process. Additionally, Section XI EN, General Note (I)(B)(2) Table I places metalized yarn in HTS 5605 "in all cases."
(See ITT's Online Archives or 03/30/04 news, 04033045, for BP summary of the proposed rulings, including a complete description of the thread, trim, and HTS numbers.)
new: 5605.00.9000 (Cat 201), 13.2%.
previous: 5606.00.0090 (Cat 201), 8% (thread); 5607.50.3500 (Cat 201), 19.9/kg 10.8% (trim).
Revocation of Two Classification Rulings
Karaoke Machines. At issue are three models of karaoke machines. Models STVG-500 and 159678 contain a cassette player/recorder which allows the user to record his performance. Model SMVG-600 contains a built in video camera but no recording capability.
CBP is issuing HQ 966608 in order to revoke NY I87338 and reclassify the STVG-500 under HTS 8543.89.9695 as "other electrical machines and apparatus, having individual functions, not specified or included elsewhere in Chapter 85, etc." and the SMVG-600 under HTS 8519.99.0060 which provides for "other sound reproducing apparatus, not incorporating a sound recording device, etc." rather than classifying both models under HTS 8528.22.0000 as "black and white or other monochrome video monitors."
CBP is also issuing HQ 966976 in order to revoke NY I85746 and reclassify model 159678 under HTS 8543.89.9695 rather than under HTS 8520.33.00 as "other cassette type magnetic tape recorders incorporating sound reproducing apparatus."
CBP finds that the karaoke machines are composite machines within the meaning of HTS Section XVI, Note 3, and that pursuant to General Rule of Interpretation (GRI) 1 and Section XVI, Note 3, the principal function of the karaoke machines is determined by their sound reproducing function.
(See ITT's Online Archives or 03/24/04 news, 04032440, for BP summary of the proposed rulings. Subscribers should note that in the proposed rulings, CBP had only specified the proposed classifications up to eight-digit levels.)
new: 8543.89.9695, 2.6% (models STVG-500 and 159678); 8519.99.0060, duty-free (model SMVG-600); previous: 8528.22.0000, 5% (models STVG-500 and SMVG-600); 8520.33.00, duty-free (model 159678).
May 19, 2004 CBP Bulletin (Vol. 38, No. 21) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2004/vol38_05192004_no21/