Newly Released CBP HQ Rulings for Sept. 24
The Customs Rulings Online Search System (CROSS) was updated Sept. 24 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
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H320131: Instruments of International Traffic; Mexican-based Truck; 19 U.S.C. § 1322(a); 19 C.F.R. § 123.14
| Ruling: The trailer qualifies as an instrument of international traffic. It will not be carrying goods between points in the U.S. |
| Issue: To qualify as instruments of international traffic, trucks having their principal base of operations in a foreign country must be arriving in the United States with merchandise destined for points in the United States, or arriving empty or loaded for the purpose of taking merchandise out of the United States (19 CFR 123.14(a)). Under 19 CFR 123.14(c)(1), a Mexican-based vehicle “may carry merchandise …between points in the United States if such carriage is incidental to the immediately prior or subsequent engagement of that vehicle in international traffic.” |
| Item: Transportation of Mexican merchandise destined for the United States which will be loaded in a Mexican-based trailer in Mexico and transported to El Paso, Texas. The Mexican goods would be unladen and then laden into an American truck destined for Dallas with a different Mexican driver holding a B1 Visa. The same American truck would then be used to lade an international shipment in Dallas, destined for Juarez, Mexico. The American truck would then return to the El Paso warehouse to wait for Mexican Customs to complete their formalities. Once completed, the load would be unladen from the American truck and laden to a Mexican truck for export to Mexico. |
| Reason: The Mexican-based trailer would be arriving in the United States from Mexico. The trailer would be arriving with Mexican merchandise destined to the United States. Consequently, this Mexican vehicle would qualify as an instrument of international traffic. The Mexican-based truck would not be engaged in carrying merchandise between points in the United States. The Mexican truck would merely bring the merchandise to a single point in El Paso. Therefore, the Mexican truck’s carriage of merchandise would not be “incidental to” its engagement in international traffic. |
| Ruling Date: Sept. 17, 2021 |
H315735: Country of origin of the PhotonBlade Electrosurgical Device; Section 301 trade remedy
| Ruling: The country of origin of the device is "Country A." |
| Issue: What is the country of origin of the electrosurgical device? |
| A single use surgical cutting instrument that consists of a single blade with a rotatable and adjustable length shaft. It is used in general purpose surgical procedures and operations performed on humans. The device includes the following functions: illumination, coagulation, and plasma cutting. There are three main subassemblies constructed in Country A that make up the final device: (1) heatsink subassembly, which dissipates heat when the PhotonBlade is in use, (2) waveguide subassembly, which guides the RF energy to the blade, and (3) the telescoping subassembly. These are combined with a ceramic blade from Country C and other parts, and the assembly is then sent to China where it is combined with a cable and connector of Chinese origin and other aprts. By value, the ceramic coated blade from Country C accounts for the largest percentage of material costs. |
| Reason: The identifiable use of the PhotonBlade is to enable surgeons to coagulate and cut tissue with RF energy, while providing increased visibility and ease of use. The blades alone cannot perform any of these functions before they are assembled into the PhotonBlade. The subassemblies created in Country A provide the necessary functions of guiding the RF Energy to the blade and dissipating heat created through use of the PhotonBlade. Additionally, the LED added in Country A provides illumination and the telescoping subassembly created in Country A provides maneuverability. Therefore, the commercial identity and identifiable use of the PhotonBlade is created by the processing done in Country A and the country of origin is Country A. |
| Ruling Date: Sept. 10, 2021 |
H316154: Protest and Application for Further Review No 3195-19-100475; Classification and applicability of Section 301 trade remedy to patch-clamp amplifiers from China
| Ruling: The patch-clamp amplifiers are described by statistical reporting number 9030.33.3800 and meet the following exclusion terms: “Programmable DC electronic load instruments capable of presenting a constant load to a device, such as constant resistance, constant voltage, constant current, or constant power, weighing more than 4 kg but less than 8kg (described in statistical reporting number 9030.33.3800).” |
| Issue: Whether the patch-clamp amplifiers satisfy an exclusion provision pertaining to products classified under subheading 9030.33.3800 and are eligible to claim the secondary tariff number of subheading 9903.88.19. |
| Item: Programmable DC electronic load devices, also referred to as patch-clamp amplifiers. The primary function of these devices is to (a) present a programmed DC constant current (current clamping mode) or constant voltage (voltage clamping mode) to a device under test, and (b) provide a means to monitor (e.g., with a separate oscilloscope or recording device) the response of the device under test. None of the devices incorporate a recording device. |
| Resaon: The subject patch-clamp amplifiers are directly used in the process of measuring or checking voltage or current. When a constant voltage is applied, the patch-clamp amplifiers measure the resulting current of the measured item. When a constant current is applied, the patch-clamp amplifiers measure the resulting voltage of that item. The products can satisfy a wide range of test requirements. They can be programmed to present a constant current or constant voltage to a device under test. |
| Ruling Date: July 27, 2021 |
H312954: Internal Advice Request; Classification of DT 80 (86.9% palmitic acid content), DT 98 (99.2% palmitic acid content), and DT 100 (45.5% palmitic acid content)
| Ruling: DT80 and DT100: 3823.19.2000, 2.3%, “Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols: Industrial monocarboxylic fatty acids; acid oils from refining: Other: Derived from coconut, palm-kernel or palm oil.” (2) 2915.70.0110, 5%, “Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulfonated, nitrated or nitrosated derivative: Palmitic acid, stearic acid, their salts and esters: Palmitic acid." |
| Issue: Whether the subject DT 80, DT 98, and DT 100 are classified in subheading 2915.70.0110, as “Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulfonated, nitrated or nitrosated derivative: Palmitic acid, stearic acid, their salts and esters: Palmitic acid,” or in subheading 3823.19.2000, as “Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols: Industrial monocarboxylic fatty acids; acid oils from refining: Other: Derived from coconut, palm-kernel or palm oil.” |
| Item: Three different composite formulations of beaded fatty acids known as (1) DT 80, (2) DT 98, and (3) DT 100. |
| Reason: Note 1(a) to chapter 29 says products of chapter 29 must be separate chemically defined compounds, which may or may not contain permissible additions mentioned in the chapter note. In addition, the EN 29.15 excludes fatty acids of a purity of less than 90% (calculated on the weight of the dry product). The DT 80 and DT 100 consists of various fatty acids, including palmitic acid -- no single fatty acid component is over 90%. For DT 98, the minimum palmitic acid content is 98%, while the certificate of analysis indicates a palmitic acid content of 99.2%. Unlike the DT 80 and DT 100, in which no single fatty acid component is over 90%, the DT 98 consists of 99.2% palmitic acid. Note 1(a) to chapter 38, HTSUS, excludes separate chemically defined elements or compounds. Furthermore, the EN 38.23 states that fatty acids of a purity of 90 percent or more (calculated on the weight of the dry product) are excluded from heading 3823c |
| Ruling Date: July 8, 2021 |
H318727: Electronic Information for Outward Cargo Required in Advance of Departure; 19 CFR § 192
| Ruling: The requirements of 19 CFR Part 192 for exporters of used, self-propelled vehicles to provide a certificate of title prior to exportation does not apply to the shipment of used vehicles from the continental U.S. to Puerto Rico because such a shipment does not constitute an “export” as the term is used in the applicable statute and regulation. |
| Issue: Whether the requirements of 19 CFR Part 192 for exporters of used, self-propelled vehicles to provide a certificate of title prior to exportation applies to the subject shipment of used vehicles from the continental United States to Puerto Rico. |
| Item: Used vehicles to be shipped on board a vessel from the U.S. to Puerto Rico, will be purchased at auction in the continental U.S. Often, the purchaser is not provided with a vehicle title at the time of purchase. Instead, the title is issued by the state in which the auction occurs. It may take a month or longer for the title to be issued after each sale. As such, the vessel owner anticipates it will not have the title for every used vehicle by the time the subject transportations occur. With respect to previous shipments of used vehicles to Puerto Rico, the vessel owner has been directed by CBP officials to present certificates of title for each vehicle at least 72 hours before the shipment is to occur. |
| Reason: In relevant part, 19 CFR 192.2 requires that, unless a vehicle is untitled, shippers “attempting to export” a used vehicle must present an official certificate of title at least 72 hours prior to export. 19 CFR 192.1, meanwhile, defines the term “export” as “the transportation of merchandise out of the U.S. for the purpose of being entered into the commerce of a foreign country.” It is clear, however, that Puerto Rico is not a foreign country, as it is an unincorporated territory of the United States. |
| Ruling Date: July 21, 2021 |
H312745: USMCA Eligibility; Country of Origin Marking under 19 U.S.C. 1304, and Applicability of Section 301 Trade Remedy Duties to a Lower Bearing Assembly
| Ruling: The lower bearing assemblies are not eligible for USMCA treatment. They must be marked as products of Canada. The lower bearing assemblies are subject to Section 301 tariffs on products from China. |
| Issue: Whether the Lower Bearing Assemblies qualify for duty-free treatment under USMCA? What is the country of origin of the Lower Bearing Assemblies for country of origin marking purposes under 19 U.S.C. 1304? Whether the Lower Bearing Assemblies are subject to Section 301 Trade Remedy Duties? |
| Item: Lower bearing assemblies for sand and gravel washing machines. The bearing assemblies are only used on machines that wash sand and gravel in a tub of water. The lower bearing assemblies incorporate a mounting base that is specifically designed to mount to the end wall of the tub, and the stub shaft is specifically designed to attach to the auger shaft within the tub. The assemblies auger shaft at the lower end of the machine and allows it to turn. In China, the mounting ring, bearing housing, and stub shaft are cast at a foundry out of ductile iron. All parts are then machined to specification. The donut seal is made from injection molded rubber. The stainless wear and bearing adaptor sleeves are machined to specification from a stainless-steel pipe. In Canada, the Chinese components are inspected, cleaned, and painted, and not further manufactured in Canada. Next, all components, including the components from the U.S., Taiwan, and Canada are assembled resulting in a complete lower bearing assembly. 83.6 percent of the costs of the parts for the lower bearing assemblies are attributable to China, while 14.5 percent and 1.9 percent of the costs of the parts for the lower bearing assemblies can be ascribed to Canada and Taiwan. |
| Reason: Several parts do not undergo the required tariff shift, and regional value content requirements are not met. The lower bearing assemblies are not produced through a simple assembly because the assembly to make them involves the fitting together of more than five parts, so the country of origin for marking purposes will be determined according to Section 102.11 (d)(3) as the last country in which the good underwent production, Canada. The most important work to make the lower bearing assemblies is performed in China, where the most significant components were manufactured. |
| Ruling Date: June 15, 2021 |