June 22 CBP Bulletin Action on 9801 Diffuser Ruling Modification
In the June 22, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 26), CBP published a notice on its modification of a ruling on the 9801 classification and NAFTA country of origin marking of certain electric room fragrance heater/diffusers.
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Action is Effective August 22
This Customs Bulletin action is effective for merchandise entered or withdrawn from warehouse for consumption on or after August 22, 2011, and covers any rulings on this merchandise which may exist but have not been specifically identified. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
Modification
Electric Room Fragrance Heater/Diffusers
| Item: A plug-in electric room fragrance heater/diffuser. The electric heater/diffuser is imported into the U.S. from China. Duty is paid upon importation, and then the heater/diffuser is exported to Mexico to be repackaged with a replaceable scent bulb designed to attach to the heater/diffuser. It is then reimported from Mexico into the U.S. |
| New Ruling: HQ H090975 (dated 06/07/11, modified NY N077738) |
| New Rate/Marking: 9801.00.20, free (for heater/diffuser), 8516.79.00, 2.7% (for scent bulb),country of origin for marking is China |
| Old Rate/Marking: 8516.79.00, 2.7% (for heater/diffuser with scent bulb), proposed country of origin for marking of heater/diffuser is China, for scent bulb is Mexico |
| Reason: CBP finds that the heater/diffuser is eligible for duty-free treatment under subheading 9801.00.201 as: (i) its repackaging is not considered an advancement in value or improvement in condition, and it is exported to Mexico under a written agreement where the importer retains ownership of the articles throughout the whole process, and (ii) the importer is the party exporting and reimporting the product. CBP states that the scent bulb remains classified in subheading 8516.79.00, even when the heater/diffuser qualifies for subheading 9801.00.20 classification. (If the scent bulb were imported alone, it would be classified in subheading 8516.90.90.) CBP also states that under the NAFTA Marking Rules, the country of origin of the heater/diffuser and scent bulb is China as the heater/diffuser imparts the essential character to the articles. |
1Subheading 9801.00.20 provides duty-free treatment for: articles, previously imported, with respect to which the duty was paid upon such previous importation or which were previously free of duty pursuant to the Caribbean Basin Economic Recovery Act or Title V of the Trade Act of 1974, if (1) reimported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, after having been exported under lease or similar use agreements, and (2) reimported by or for the account of the person who imported it into, and exported it from the U.S.
(See ITT's Online Archives or 04/18/11 news, 11041829, for BP summary of the proposed revocation and modification of this item.)