May 25 CBP Bulletin Has 4 Notices on Proposed Ruling Actions
In the May 25, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 22), CBP published four notices that propose to modify rulings regarding NAFTA eligibility of refined sugar, preferential treatment of certain garments with belts as composite goods, and the tariff classification of vodka and of Diasorin Dynabeads.
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Comments on Proposed Rulings due June 24
CBP states that any party who has received a ruling or decision on the merchandise that is subject to the proposed revocations or modifications, or any party involved with a substantially identical transaction, should advise CBP by June 24, 2011, the date that written comments on the 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 this notice.
Proposed Modifications and Revocations
CBP states that these proposed modifications and revocations cover the below rulings, and any rulings on these products that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
Mexican Raw Sugar Refined in Canada
| Item: Cane sugar refined from Mexican raw sugar. The Mexican raw sugar is processed at sugar refining facilities located in Canada. The polarity of the sugar is said to be 99.9 degrees and will be packaged in 50 pounds bags and/or 1 metric ton tote bags. |
| Current: Refined sugar wholly obtained or produced entirely in the territory of Mexico |
| Proposed: Refined sugar wholly obtained or produced entirely in the territory of Canada and Mexico |
| Reason: CBP states that the refined sugar is not wholly produced or obtained in Mexico; but rather in the territory of Canada and Mexico. The country of origin of the refined sugar is Mexico, as the Mexican raw sugar imparts its essential character to the good. The imported refined sugar would be considered an originating good under the North American Free Trade Agreement (NAFTA). |
| Proposed for modification: NY N065187, NY N025726 Proposed new rulings: HQ H131644, HQ H131645 |
Pants/shorts with Chinese-Made Textile Belts (Composite Goods)
| Item: Four different styles of pants or shorts that have a waistband with belt loops. The pants/shorts are assembled either in Jordan or in a Qualified Industrial Zone (QIZ). The pants are imported to the U.S. with a textile belt produced in China, as composite goods. |
| Current: The pants/shorts imported with a textile belt are ineligible for the Israel or Jordan FTA's* duty-free treatment. |
| Proposed: The pants/shorts imported with a textile belt are eligible for FTA duty free treatment. |
| Reason: CBP states that the pants/shorts and textile belt as “composite goods” are products of Jordan or the QIZ as they are “wholly assembled” there, as defined in 19 CFR 102.21(b)(6). It was an error for CBP's previous rulings to be based on Treasury Decision 91-7 rather than 19 USC 3592 (Rules of origin for textiles and apparel), the statutory basis for 19 CFR 102.21. Under 19 CFR 102.21, the single country of origin of pants/shorts and textile belt as “composite goods” is the country of assembly of the garment. Numerous CBP rulings support this outcome. |
| Proposed for modification: NY K80820, NY N013984, NY N019427, and NY N118184 Proposed new ruling: HQ H135360, HQ H135361 and HQ H141201 |
*The U.S.-Israel Free Trade Implementation Act provides duty-free treatment to articles which are product of the West Bank, Gaza Strip, or a qualifying industrial zone, provided certain requirements are met. The U.S.-Jordan Free Trade Implementation Act provides preferential treatment for eligible apparel articles that: are the growth, product, or manufacture of Jordan; meet the 35% value content requirement; and are imported directly into the U.S.
Vodka
| Item: Vodka produced in Sweden or Denmark from ethyl alcohol followed by fermentation with yeast of cereals. The vodka will be imported in bulk and contains 80% or greater alcohol/volume. In the U.S., the vodka will be diluted to 35% or 40% alcohol/volume for standard vodka and it will be diluted similarly for flavored vodkas, and in the case of the latter, flavorings and/or sweeteners will be added. |
| Current: 2207.10.3000, 18.9¢/proof liter (undenatured ethyl alcohol of alcoholic strength by volume of 80% volume or higher) |
| Proposed: 2208.60, free (spirits, liqueurs, and other spirituous beverages) |
| Reason: As the vodka is prima facie classifiable under both headings, the heading that provides the most specific description shall be preferred. While vodka falls under the scope of heading 2207, not all ethyl alcohol in this heading meets the terms of heading 2208 as spirits, etc. As a result, HTS 2208 is the more specific heading. |
| Proposed for modification: HQ H099760, NY N064255 Proposed new ruling: HQ H112716 |
Diasorin Dynabeads
| Item: Diasorin Dynabeads M-450 Tosylactivated and M-280 Tosylactivated are polystyrene spheres that contain an iron oxide salt. The M-450-TOS is used in Cell Isolation procedures and the M-280 TOS is used in Protein Purification and Immunoassay procedures. |
| Current: 3903.19.0000, 0.9¢/kilo + 9.2% (other polystyrene) |
| Proposed: 3822.00.50, free (other diagnostic or laboratory reagents on a backing and prepared for laboratory reagents) |
| Reason: CBP states that cell isolation, protein purification, and immunoassay procedures use a ligand to isolate and separate a target molecule. However, the Dynabeads, as imported, cannot be used for these procedures. The end user must first employ a Ligand Coupling Protocol, which causes a chemical reaction that creates a new chemical substance which can then be used for the aforementioned procedures. CBP states the Dynabeads meet the definition of “reagent” because of the fact that they are mixed with the ligand to create a different set of chemicals usable for a new purpose. |
| Proposed for modification: NY 860953 Proposed new ruling: HQ H129336 |