June 4 CBP Bulletin Proposes to Modify, Revoke Rulings on Electronic Drumsticks, Yachts
In the June 4 issue of the CBP Customs Bulletin (Vol. 48, No. 22), CBP published a notice that proposes to modify rulings and similar treatment for the tariff classification of "mi Jam" electronic drumsticks.
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Comments on Proposed Revocations Due July 7
CBP said consideration will be given to any written comments received by July 7 before taking this action. In addition, 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 the date that written comments on the proposed ruling are due. (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 Modifications, Revocations
CBP is proposing to modify or 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 or modify any treatment it has previously accorded to substantially identical transactions.
Drumsticks
| Item: "mi Jam drummer." The product consists of two plastic drumstick shaped items that produce up to six different drum sounds when played. The drumsticks are connected via a cord to a small controller, which is used to modify the drum pattern, tempo, and volume of the sounds produced when using the drumsticks. The controller includes an audio out jack for connection with earphones or any other amplifying device, as well as an additional cord with a male connector end for connection with an iPod or any other music-reproducing device. This item draws energy from batteries, which are not included at the time of importation or at the time of retail sale |
| Current: 8522.90.7580, 2%, (Parts and accessories suitable for use solely or principally with the apparatus of headings 8519 to 8521: Other: Other: Other: Other.) |
| Proposed: 9503.00.00, Free, (Tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages; dolls, other toys; reduced-scale (“scale”) models and similar recreational models, working or not; puzzles of all kinds; parts and accessories thereof) |
| Reason: The utility purpose of the “mi Jam drummer” is incidental to its amusement value and its principal use is as a toy musical instrument and is classifiable in Chapter 95. Chapter 85 excludes articles of Chapter 95. |
| Proposed for modification: NY R04026 (2006), NY M83685 (2006), and NY M85350 (2006) are proposed for modification. |
| Proposed new ruling: HQ H034739 |
Imported Duty-paid Yachts Sailed from the U.S. to the Bahamas for Transport Back to the U.S.
| Item: Imported duty-paid yachts sailed from the U.S. to the Bahamas for transport back to the U.S. on foreign cargo vessels. The Italian-made yachts are imported as cargo, and do not arrive under their own power. A consumption entry is filed and duty is paid. Depending on sales and inventory needs, Ferretti, the importer, moves the yachts between South Florida and Newport, Rhode Island. The yachts are not sailed from Florida to Newport because doing so would make them “used” and decrease their value. Instead, Ferretti sails the yachts from Florida to the Bahamas, on their own bottom, and obtains temporary cruising permits from Bahamian customs. The yachts are then placed on foreign-flagged vessels for transport to Newport as cargo. |
| Current: The yachts are exported and must be reimported upon unlading in Newport. |
| Proposed: The yachts were not exported and do not need to be reimported. |
| Reason: There was no intended or actual introduction of the yachts into the Bahamas for consumption, sale or use, and are "not united to the mass of things belonging to the Bahamas". Therefore, the yachts are not exported when they sailed to the Bahamas for carriage back to the United States and upon their return, are not reimported or subject to entry as merchandise. CBP also found that the scenario presented in this case does not violate U.S. coastwise laws. |
| Proposed for revocation: HQ H175416 (2012) |
| Proposed new ruling: HQ H213415 |