Aug 24 CBP Bulletin Actions on Plush Night-Lights, Garments with Belts
In the August 24, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 35), CBP published a notice on its revocation and modification of six rulings and similar treatment regarding the tariff classification of certain plush animals with lights and the preferential tariff treatment of certain garments with belts.
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Revocations and Modifications Are Effective October 24
These revocations and modifications are effective for the listed rulings, as well as any treatment CBP has previously accorded to substantially identical transactions, for merchandise entered or withdrawn from warehouse for consumption on or after October 24, 2011.
Plush Animals with Lights
| Item: Two novelty night-lights. The "Twilight Turtle" is a battery-operated turtle-shaped night-light composed of textile plush body parts. The upper portion of its body is covered with a perforated plastic shell, which depicts the pattern of constellations, and covers LED light bulbs. The "Kozy Light" consists of a circular-shaped plastic LED night-light that is incorporated within the torso of a plush stuffed animal in the form of a monkey. |
| New Ruling: HQ H128417 (dated 07/26/11, revoked NY L83764, NY K88764) |
| New HTS/Rate: 9503.00.00, free (Other toys) |
| Old HTS/Rate: 9405.40.80, 3.9% (Other electric lamps and lighting fittings) |
| Reason: CBP found1 that the Twilight Turtle is classifiable as a toy in heading 9503 using General Rule of Interpretation I (GRI 1) because it is described by the terms of heading 9503 and Explanatory Notes (ENs). CBP states the Twilight Turtle is a toy because it is used for amusement and not utilitarian purposes, is marketed as a toy, and is expected by ultimate consumers to be played with by children. As it is classifiable as a toy, the Twilight Turtle is precluded from classification under heading 9405, a catch-all provision for lamps and lighting fittings that are not elsewhere specified or included in the HTS. |
1CBP sources have previously stated that CBP had a backlog of revocations, many of which concern similar articles. Therefore, CBP's proposed rulings may revoke multiple rulings while using one ruling as the lead revocation, and its analysis and holding will be applied to certain similar rulings. In this case, CBP used the Twilight Turtle ruling as the lead revocation, but the analysis in HQ H128417 and the proposed revocation would also apply to the Kozy Light.
Certain Garments with Belts
| 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. |
| New Rulings: HQ H135360, HQ H135361, HQ H141201 (dated 07/26/11, revoked NY K80820, NY N013984, NY N019427, NY N118184) |
| New Treatment: The pants/shorts imported with a textile belt are eligible for duty-free treatment under the Israel or Jordan FTAs*. |
| Old Treatment: The pants/shorts imported with a textile belt are ineligible 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. As the pants/shorts are assembled in either Jordan or the QIZ, they are eligible for duty-free treatment under the FTAs. Numerous other CBP rulings support this outcome. |
*The U.S.-Israel Free Trade Implementation Act provides duty-free treatment to articles which are products of the West Bank, Gaza Strip, or a QIZ, 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 a 35% value content requirement; and are imported directly into the U.S.
(See ITT's Online Archives or 06/30/11 and 06/07/11 news, 1063018 and 11060720, for BP summaries of the proposed revocation and modification of these rulings.)