customs and international trade news

 
CAFC Rules Oil Bolts for Cars as Screws and Not Parts of Vehicles

In Honda of America Mfg., Inc. v. United States, the CAFC held that oil bolts specially constructed for use in car engines are parts of general use and are simply classified as screws of 7318.15.80, HTSUS, with a duty rate of 8.5 %  and not as parts of vehicles in Chapter 87 because the legal term of art “parts of general use”, by definition, includes fasteners of heading 7318, HTSUS, and oil bolts meet the definition of screws of subheading 7318.15.80, HTSUS. Honda of America Mfg., Inc. v. United States

CIT Case Excludes Conveyor Belts from Provision for Conveyor Belts

In Sparks Belting Company v. U.S., the CIT held that certain conveyor belts designed and used in industrial applications for the conveyance of food products and other goods are classified as plastic-covered textile fabrics under HTSUS 5903.10.20 (1.7% duty) or as other plastic sheets combined with textile materials under HTSUS 3921.90.25 (10.3% duty), not as “transmission or conveyor belts or belting” in heading 5910 (with a duty rate of 5.6% or 3.6% ad valorem)  because they meet the term of Chapter Note 6 to Heading 5910, which excludes belts of a thickness of less than 3 mm.  Sparks Belting Company v. U.S.

NAFTA Eligibility and Country of Origin Marking of Lamp Ballasts from Mexico

On April 28, 2010, CBP Headquarters issued Ruling HQ H079220, determining that lamp ballasts assembled in Mexico from components of both NAFTA and non-NAFTA countries are NAFTA-eligible and products of Mexico for marking purposes.

CPSC to Propose Public Product Safety Database

The Consumer Product Safety Commission issue a proposed rule on May 24, 2010, that would establish a publicly available information database on the safety of consumer products, and other products or substances regulated by the Commission. Link to Federal Register notice.

Customs Bulletin, May 26, 2010 - Revocation and Modification of Ruling Letters                                                                                                                                        

Multifunctional Digital Cameras
CBP HQ re-classified certain digital cameras which can take both still and video images from the provision for “digital still image video cameras”, which has a duty rate of 0% to the provision for “television cameras, digital cameras and video camera recorders” which has duty rate of 2.1% in Ruling No. HQ H046643.

Men’s Sleepwear Pants
CBP HQ has re-classified men’s knit and woven sleep pants from the provisions for pants (with duty rates of 16.1%-16.6% under the theory that they were “multi-purpose apparel” to the provisions for sleepwear (with duty rates of 6.1%-8.7%), because the pants featured a lightweight and loose construction, an elasticized waistband with an outside drawstring, and an unsecured fly front opening with no means of closure.  

CIT Dismisses Case Due to Lack of Jurisdiction

In Hitachi Home Elecs. (America), Inc. v. United States, the CIT held that CBP is not mandated to act on a protest within the  two year time period of 19 U.S.C. § 1515(a). Since Plaintiff did not comply with the normal jurisdictional procedures, such as requesting accelerated disposition of the protest, the court lacked jurisdiction and the case was dismissed without prejudice. Link to case

BIS Invites Comments on Voluntary Self-Disclosures Procedures

USITC Institutes Section 337 Investigation on Certain Electronic Paper Towel Dispensing Devices and Components Thereof

The U.S. International Trade Commission issued a notice of investigation concerning the Section 337 violation of certain electronic paper towel dispensing devices and components thereof. To see the complete investigation notice, follow this link.

CPSC Seeks Comments on Hand Held Dryers and Children’s Garments As Possible Hazardous Products

The Consumer Product Safety Commission is seeking comments on a proposed rule to determine if any hand-held hair dryers or children’s garments with drawstrings have characteristics that would constitute substantial product hazards. Document 1  Document 2

CBP Posts FAQ Document on of Instruments of International Traffic With Residue

CBP posted a Frequently Asked Questions (FAQ) document addressing the advance electronic cargo information obligations of transporting carriers and entry requirements for importers when importing containers or other “instruments of international traffic” containing “residue” of goods previously shipped.  See FAQ.

CBP Ruling on NAFTA Eligibility and Marking of ADP Systems

In HQ H074136 (January 21, 2010), CBP modified ruling HQ H027696, confirming that a computer system, consisting of a computer assembled in Mexico, along with a monitor, keyboard and mouse made in either China, Taiwan or Malaysia and merely packaged together with the computer in Mexico, is an originating NAFTA-eligible good of Mexican origin by virtue of General Note 12(u).

CIT Requires Payment of Disputed Import Duties Prior to the Date Summons Is Mailed

The Court of International Trade held in Great American Insurance Company of New York v. U.S., that a surety must pay disputed import duties to Customs prior to the date that the summons was mailed. Since payment was not received before the Summons was filed, the Court dismissed the action for lack of jurisdiction. Source.

The USITC investigates FTAs with Chile, Singapore, and Australia

On March 13, 2010, the U.S. International Trade Commission published a notice of commencement of an investigation on the effects of three free trade agreements, with Chile, Singapore, and Australia. See this link.

Commerce Preliminarily Finds Dumping of Seamless Refined Copper Pipe and Tube from the People’s Republic of China and Mexico

The Department of Commerce announced its affirmative preliminary determinations in the antidumping duty investigations on imports of seamless refined copper pipe and tube from Mexico and the People’s Republic of China. To see this notice, follow this link.

CIT Case Discusses Classification of “Hydration Packs”

In Camelbak Prods. v. United States, decided May 10, 2010, the Court of International Trade (CIT) discussed the classification of merchandise described as “Hydration Packs” or “Hydration Systems.” The court determined that the merchandise is properly classifiable as “Travel, sports and similar bags.”  To see the complete text of this case, please follow this link.

 CBP Revokes and Modifies Rulings Relating to the Tariff Classification of Certain LED Modules

In the April 21^st edition of the Customs Bulletin and Decisions, CBP published a notice revoking two ruling letters and modifying two ruling letters relating to the tariff classification of LED modules. Certain LED modules were classified under Heading 8541, HTSUS, as “light-emitting diodes.” It is now CBP’s position that they are properly classified under heading 9405, HTSUS, as “Lamps … not elsewhere specified or included.” To see the complete bulletin, please click here.

CBP Ruling Revocations – Mass Flow Controllers and Automatic Fan Shrouds

In the April 7, 2010, Customs Bulletin and Decisions, U.S. Customs and Border Protection (CBP) revoked three rulings covering merchandise described as Mass Flow Controllers and Automatic Fan Shrouds. Click here to read the complete Customs Bulletin.

 CBP Publishes Quarterly IRS Interest Rates

 In the April 19, 2010 edition of the Federal Register, U.S. Customs and Border Protection (CBP) published a notice advising the public of the quarterly IRS interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties. Follow this link to see the complete list of IRS interest rates used, covering the period from before July of 1974 to date.