Aug 3 CBP Bulletin Ruling Actions on Women's Garment, Sugar, Business Cards
In the August 3, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 32), CBP published three notices on its revocation or modification of four rulings regarding the tariff classification of a woman's upper body garment and certain printed business cards, and the NAFTA eligibility of Mexican raw sugar refined in Canada.
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Actions Are Effective October 3
These Customs Bulletin actions are effective for merchandise entered or withdrawn from warehouse for consumption on or after October 3, 2011, and cover any rulings on this merchandise which may exist but have not been specifically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.
Revocation
Woman's Upper Body Garment
| Item: Woman's upper body garment. The garment is made of 97% cotton and 3% spandex woven fabric. It is collarless and features a round neckline, 3/4 length sleeves, a full front opening secured by four buttons, two chest pockets with buttoned flaps and a hemmed bottom. |
| New Ruling: HQ H055795 (dated 07/12/11, revoked NY N052662) |
| New HTS/Rate: 6211.42.00, 8.1% (Women's jacket) |
| Old HTS/Rate: 6206.30.30, 15.4% (Women's blouse) |
| Reason: CBP states that the material of the garment does not have the softness typical of a shirt or blouse. In addition, the heavy internal seams indicate that the garment would not be worn as a blouse due to the discomfort that these seams would cause from direct contact with the wearer's skin. The garment also has large shell buttons and a bottom rounded frontal opening not typical for a blouse. CBP also notes that similar items by this company are marketed as jackets, not blouses. Thus by application of GRI 11, CBP states the subject garment would not be used as a blouse based on the garment's design, manufacturing, marketing, and likely use. |
1General Rules of Interpretation. Classification by application of GRI 1 is made according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes.
Modifications
Refined Sugar
| Item: Refined sugar. Mexican raw cane sugar is processed at sugar refining facilities located in Canada. The polarity of the resulting refined sugar is said to be 99.9 degrees and will be packaged in 50 pounds bags and/or 1 metric ton tote bags. |
| New Rulings: HQ H131644, HQ H131645 (dated 06/30/11, modified NY N065187, NY N025726) |
| Origin/Marking: Refined sugar wholly obtained or produced entirely in the territory of Mexico and Canada, country of origin marking is Mexico |
| Origin/Marking: Refined sugar wholly obtained or produced entirely in the territory of Mexico |
| Reason: Pursuant to General Note (GN) 12, for an article to be eligible for NAFTA preference, it must be "originating" and must qualify to be marked as a good of a NAFTA country under the NAFTA Marking Rules (19 CFR 102.20)2. CBP states that because the refined sugar is wholly obtained or produced entirely in the territory of Canada and Mexico, it is a NAFTA originating good. CBP states that the country of origin of the single material that imparts the essential character to the good would determine the NAFTA country origin of the good, which in this case, CBP finds is the Mexican raw sugar. Therefore, the NAFTA country of origin of the imported raw sugar is Mexico for purposes of country of origin marking, rate of duty, and for quota purposes. |
2The North American Free Trade Agreement Marking Rules state that the country of origin of a good is the country in which: (1) the good is wholly obtained or produced; (2) the good is produced exclusively from domestic materials; or (3) each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
Printed Business Cards
| Item: Lenticular printed business cards from China, Korea, and Japan. The cards display an image and text, which are printed directly onto a flexible plastic material. The cards may be printed on both sides and are sold by the box. |
| New Ruling: HQ H101588 (dated, 07/14/11, modified NY N095291) |
| New HTS/Marking: 4911.99.80, free (Other printed matter) Cards need not be individually marked with the country of origin |
| Old HTS/Marking: 4911.99.60, free (Printed matter on paper) Cards must be individually marked with the country of origin |
| Reason: CBP finds that because the content of the business cards is printed on plastic and not paper, the business cards are classifiable in subheading 4911.99.80. Additionally, because the business cards will be sold directly to the ultimate purchasers in the same, marked container in which they are imported, CBP finds that marking the container in lieu of marking the cards themselves is an acceptable country of origin marking3, provided the port director is satisfied that the articles will remain in the marked container until they reach the ultimate purchaser in the U.S. |
3The marking statute of the Tariff Act of 1930 (19 USC 1304) requires every article of foreign origin (or its container) imported into the U.S. to be marked with the country of origin. General exceptions to marking requirements, found in 19 CFR 134.32, include articles for which the marking of the containers will reasonably indicate the origin of the articles.
(See ITT's Online Archives or 05/17/11, 06/07/11, and 06/23/11 news, 11051723, 11060720, and 11062304, for BP summaries of the proposed modification or revocation of these rulings.)