Oct 5 CBP Bulletin Proposes to Revoke Rulings on Terracotta Grill, Homeopathic Remedies

October 12, 2011 by Elizabeth Parker|Customs and Ports

In the October 5, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 41), CBP published two notices that propose to revoke a ruling and similar treatment regarding the classification of homeopathic remedies and a terracotta grill.

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Comments on Proposed Ruling Actions due November 4

CBP states that any party who has received a ruling or decision on the merchandise that is subject to the proposed revocations, or any party involved with a substantially identical transaction, should advise CBP by November 4, 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 agents for importations subsequent to the effective date of the final decision in this notice.

Proposed Revocations

CBP is proposing to revoke the rulings below, 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.

Terracotta Grill

Item: Terracotta grill. By weight, its materials consist of 90% terracotta (frame/base) and 10% stainless steel (grill).

Current: 6914.90.80, 5.6% (Other ceramic articles)

Proposed: 6912.00.50, 6% (Other household articles other than of porcelain or china)

Reason: CBP states that it has consistently interpreted the phrase "household articles" to include items which are used outdoors in the immediate vicinity of the home, such as a key concealing case, cooler, stones for a garden or pathway, etc. Therefore, it follows that by application of General Rule of Interpretation 1¹, the terracotta grill, which is a ceramic product intended for backyard cooking, falls within the scope of "other household articles" for purposes of classification under heading 6912. As such, the terracotta grill is precluded from classification under heading 6914, which is a basket provision covering ceramic articles that are not provided for in any other heading of Chapter 69.

Proposed for revocation: NY N025431 (dated 2008)

Proposed new ruling: HQ H141335

¹Classification 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.

Homeopathic Remedies

Item: Homeopathic remedies for various psychosomatic ailments (such as stress, lack of focus, restoration of energy, etc.). The products are prepared from plant material, flower heads, and natural spring water, and are sold in different forms (solid pills, lozenges, or liquid sprays/droplets). The liquid remedies are 27% alcohol by volume and 70% water. The products are regulated as drugs under the Federal Food, Drug, and Cosmetic (FD&C) Act.

Current: Liquid form: 2208.90.80, 21.1¢/pf.liter (Other undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% volume)

Lozenge form: 2106.90.99, 6.4% (Other food preparations not elsewhere specified or included)

Proposed: 3004.90.91, free (Other medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses or in forms or packings for retail sale)

Reason: CBP states that medicaments principally prepared for therapeutic or prophylactic use are regulated as a drug and are packaged for oral, parenteral, or dermatological administration. The ultimate purchaser expects that the products will cure their condition or reduce its symptoms, and are used according to a strict dosage schedule with a time limit on the recommended use. By contrast, food supplements are simply packaged for oral ingestion as a capsule, tablet, powder, or liquid. They are put up in packaging with indications that they maintain general health or well-being, and are often used daily without a strict dosage schedule or time limit recommended.

Because the subject homeopathic products contain an active ingredient officially included in the Homeopathic Pharmacopoeia of the U.S. (HPUS) and are packaged with statements of the specific ailments or symptoms for which the product is to be used; the recommended dosage; etc., CBP finds they are classified as medicaments in heading 3004. Therefore, CBP states its earlier ruling in this case is in error and that, by application of GRI 1, the subject homeopathic products are properly classified in subheading 3004.90.91.

Proposed for revocation: HQ H086082 (dated 2010)

Proposed new ruling: HQ H145541