Newly Released CBP HQ Rulings for Nov. 9
The Customs Rulings Online Search System (CROSS) was updated Nov. 9 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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H321591: Applicability of subheading 9802.00.50, HTSUS; Algal Oil
| Rulinng: The imported algal oil will be eligible for preferential tariff treatment under subheading 9802.00.50, provided that the documentary requirements of 19 CFR 10.8 are met. |
| Issue: Whether the subject unrefined algal oil is eligible for preferential tariff treatment under subheading 9802.00.50 as articles returned to the U.S. after having been exported for alteration. |
| Item: Algal biomass powder, a whole cell algae product fermented from one of several strains of algae containing algal oil rich in Omega-3 fatty acid Docosahexaenoic acid (“DHA”). Biomass will be fermented, dried, and packaged at a DSM facility in South Carolina. The biomass will be exported from the U.S. to a processor in Europe to undergo a mechanical oil extraction process. During the extraction process, hexane will be used as a solvent to separate the DHA oil from the biomass. The evaporation process will remove the hexane from the unrefined DHA oil. No ingredients will be added. The chemical structure of the oil and DHA content will remain the same. The unrefined algal oil will then be imported into the U.S. |
| Reason: The processing overseas will not result in a chemical reaction that will change the identity or composition of the algal biomass powder. The foreign extraction process will extract the oil from the biomass without modifying its chemical structure. No new and commercially different product will be created. The mechanical extraction process will simply change the form of the product from algal powder into algal oil. Both the algal biomass and the algal oil will be sold as a source of DHA in foods and dietary supplements. |
| Ruling Date: Nov. 3, 2021 |
H321256: Undersea Cable Laying; 46 U.S.C. § 55102; 46 U.S.C. § 55103; 46 U.S.C. § 55109; 19 C.F.R § 4.50(b); 19 C.F.R. § 4.80.
| Ruling: The proposed cable laying operations by a non-coastwise-qualified vessel do not constitute “transportation” within the meaning of the Jones Act, sp the proposed operation is not in violation of the Jones Act. The proposed use of the trenching system to bury the underwater cable does not constitute “dredging” within the meaning of the Dredging Statute, so the proposed trenching operation is not in violation of the Dredging Statute. The subject individuals are not “passengers” within the meaning of the Passenger Vessel Services Act, and the proposed transport is either a voyage to nowhere or does not involve coastwise transportation, so the transportation of such individuals is not in violation of the Passenger Vessel Services Act. |
| Issue: Whether the subject cable laying operation by the non-coastwise-qualified vessel violates the Jones Act, 46 USC 55102? Whether the subject cable burial operations by the non-coastwise-qualified vessel violates the Dredging Statute, 46 USC 55109? Whether the subject transportation of individuals onboard the non-coastwise-qualified vessel violates the Passenger Vessel Services Act, 46 USC 55103? |
| Item: A company proposes to use a non-coastwise-qualified vessel employing a self-propelled cable burial tool lay telecommunications cable. The Vessel will be laden with cable segments and proceed to the landfall site where it will begin laying and burying the cable. When the project is complete, the Vessel will leave U.S. waters and discharge any remaining cable at a foreign location. The cable burial as involves a proprietary self-propelled cable burial tool to simultaneously lay the cable and bury it for protection in certain locations. The tool is equipped with water jets and jetting nozzles to fluidize the soil and utilizes a cutting wheel or digging chain to cut through hard sediment and rock. Six specialized technicians will join the Vessel at a US port, and either be returned to the same port after the Vessel goes beyond US territorial limits or stay on board and leave the vessel at a Canadian port. |
| Reason: The proposed cable laying operations do not constitute “transportation” within the meaning of the Jones Act. The trenching system will not use a mechanical hoe or plow. so the proposed operation does not constitute dredging for the purposes of the Dredging Statute. The technicians will join the vessel to operate the cable burial device, which would be directly and substantially connected with the operation of the Vessel and the technicians will be onboard because of a necessary business interest, so the subject individuals are not “passengers” |
| Ruling Date: Nov. 2, 2021 |
H312266: Request for a determination of the right to act as importer of record by Marmen, Inc.
| Ruling: Marmen does not have the right to make entry. |
| Issue: Whether Marmen has sufficient financial interest in the goods, at the time of entry, to act as importer of record. |
| Item: Marmen manufactures and sells “up to 7-section towers” for exportation to the U.S. to Company X. Marmen invoices Company X after production is complete; title and risk of loss pass to Company X after payment, either in full or 98% of the agreed amount, or 30 days after invoicing, whichever occurs first. Typically the payment or 30-day post invoice occurs prior to exportation of the wind towers to the U.S. Marmen also stores the completed wind tower sections until Company X retrieves them, prior to importation. Company X is responsible for all transportation cost, but Marmen provides a warranty and guarantee on the imported merchandise, as well as maintains responsibility for any expense for repairs of any defective towers after delivery to the United States. Repairs are normally minor in nature and are needed on less than 1% of imports |
| Reason: Marmen does not have a sufficient financial nexus with the goods at the time of entry to allow it to have the right to make entry. Marmen does not maintain title to the goods, it does not assume any risk, but for minor repairs, and it has not described any significant post-importation processing, such as assembling the towers, that it would perform after importation. Even when Company X pays 98% of the agreed amount, the fact that a mere partial 2% payment in the goods remains after entry is not enough to afford Marmen a sufficient financial nexus between itself and the imported goods. |
| Ruling Date: Oct. 29, 2021 |
H318707: Internal Advice; Tariff Classification of Children’s Play Tents
| Ruling: 9503.00.90, 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: Other.” |
| Issue: Whether the subject children’s play tents are classifiable as tents under subheading 6306.22.90, or as toys under subheading 9503.00.90. |
| Item: Three tents, which are described as play tents or kid’s tents. |
| Reason: The tents are not designed nor have the capacity to be secured to the ground, they cannot provide the type of shelter contemplated by heading 6306. Their unsecured fiberglass poles and lightweight construction defeat any utilitarian value or protection against the elements. As such, the subject “kid’s tents” could not be used as outdoor camping tents or outdoor shelters. The kids’ tents are not marketed toward adult users for purposes of procuring a temporary shelter or protection against the elements. They are designed and intended to be used for the amusement of children. |
| Ruling Date: Sept. 1, 2021 |
H319515: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. §§ 10.41a(a)(1); HTSUS subheading 9803.00.50; Robert Bosch, LLC; containers and lid assemblies
| Ruling: The subject containers and lid assemblies are Instruments of International Traffic (IITs). |
| Issue: Whether the subject containers and lids are IITs within the meaning of 19 USC 1322(a) and 19 USC 10.41a(a)(1) |
| Item: Sets of containers and lids that are primarily used for the transportation of various automotive and electrical components, such as coils, housings and connectors, between the United States and Mexico. Bosch owns and uses these items, which are made of durable plastic and come in various sizes. These containers are injection-molded, straight-wall, square or rectangular plastic cubes that consist of a base and four walls and are assembled according to the needs and size of the goods they are used to ship. They are manufactured in Germany. The subject containers and lids are reused 11 times a year, and their average lifespan is three to five years. |
| Reason: The subject containers and lids are used to hold and transport automotive and electrical components. In addition, these items are substantial in that they are made of durable plastic and have a life expectancy of three to five years. They are capable and suitable of reuse in that they are reused eleven times a year. Lastly, there are sufficient numbers of them in circulation in that there are between 289 and 1156 of the various types of these containers in circulation. |
| Ruling Date: Aug. 23, 2021 |
H315864: Application for Further Review of Protest No. 4601-19-106736; Classification of Certain Computer Tablets; Classification of Certain Vehicle Communication and Pass-Through Interfaces; Classification of Videoscope Cameras
| Ruling: (1) 8471.30.01, free, “Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: Portable automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display." (2) 8517.62.00, free, “Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data including switching and routing apparatus.” (3) 8525.80.40, free, “Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: Television cameras, digital cameras and video camera recorders: Digital still image video cameras.” |
| Issue: (1) Whether the computer tablets are classified under heading 8471 as an automatic data processing machine or under heading 9031 as measuring or checking instruments, appliances and machines not specified elsewhere in Chapter 90. (2) Whether the VCIs are classified under heading 8517 as a machine for the reception, conversion and transmission of data or under heading 8473 as a part or accessory suitable for use solely or principally with machines of headings 8470 to 8472. (3) Whether the videoscope cameras are classified under heading 8525 as a digital still image video camera, or under heading 9031 as measuring or checking instruments, appliances and machines not specified elsewhere in Chapter 90. |
| Item: (1) Computer tablets that are used in conjunction with automotive diagnostics. (2) Vehicle communication and pass-through interface devices (“VCIs”) that connect to the on-board diagnostic (“OBD”) port of an automobile and transmit the data via Bluetooth to a tablet or computer. (3) Videoscope cameras mounted on a flexible arm, that take digital photographs of items in hard to reach areas. |
| Reason: (1) The tablets, in their condition as imported, do not to merely provide measurements or check settings; rather, they operate whatever software and applications they contain. (2) The VCIs communicate with a vehicle’s electronic control unit, receive data, and then broadcast the data wirelessly via Bluetooth technology to a tablet. The VCIs are not capable of checking or measuring data but rather receive data from a vehicle and then transmit that data via Bluetooth or USB cable to a separate device. (3) The videoscope cameras are capable of taking and recording digital still photographs and/or video only. In that regard, they are no different from a standard camera or video recording device except that they can fit into areas that may be hard to reach. Therefore, they cannot be classified as measuring or checking instruments. |
| Ruling Date: July 21, 2021 |