May 16 CBP Bulletin Proposes to Revoke Rulings on Perforating Gun Assemblies, SCT Livewire Flash Device
In the May 16, 2012 issue of the U.S. Customs and Border Protection Bulletin (Vol. 46, No. 21), CBP published two notices that propose to revoke two rulings and similar treatment regarding the tariff classification of certain perforating gun assemblies and the SCT Livewire flash device.
Comments on Proposed Revocations Due June 15
CBP said that before taking this action, consideration will be given to any written comments received by June 15, 2012. 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 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.
Perforating Gun Assemblies
| Item: Perforating gun assemblies. The assemblies are used to perforate oil wells and consist of a tube-like device called a charge holder with holes cut out to exact specifications which is then combined with perforating gun. Detonation of the gun then blows holes in rock. |
| Current: 9303.90.8000, (Free) (Other firearms and similar devices which operate by the firing of an explosive charge ) and 9305.90.4000, (Free)(Of shotguns or rifles of heading 9303) |
| Proposed: 7326.90.85, 2.9% (Other articles of iron or steel) |
| Reason: CBP previously ruled perforating gun assemblies as classified as a firearm or other devices, however CBP now states the perforated gun assemblies don't meet the definition of a firearm. CBP said it isn't a firearm because it does not use an internal firing or triggering mechanism to fire a projectile from a barrel nor is it capable of re-use as are the articles and is used for oil drilling. |
| Proposed for revocation: N012463 (2007), NY C83105 (1998), NY C82398 (1997) |
| Proposed new ruling: HQ H053672, HQ H102845 and HQ H102847 |
Flash Device
| Item: SCT Livewire Flash Device. The instant flash tuner is designed to work with Powertrain Control Modules (PCM) to help the user diagnose potential problems, adjust certain performance settings, and record performance data. It features 128MB of total memory, internal PCB assembly, LCD display, indicator lights, and directional buttons housed in plastic housing with a push/scroll jog wheel. The product is fitted with a USB plug and other connectors that allow it to be mounted in a Ford vehicle. |
| Current: 9031.80.80, 1.7% (Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Other instruments, appliances and machines: Other.) |
| Proposed: 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 communications in a wired or wireless network (such as a a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528: 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.”) |
| Reason: CBP said the Livewire device is different than devices that receive, collect, store and display data on the way the vehicle functioned, data that allowed the user to ascertain whether the vehicle was functioning properly. By contrast, the Livewire, while it performs these functions, is used mainly to change a vehicle’s performance via a separate mechanism , irrespective of how well the vehicle may be functioning. |
| Proposed for revocation: HQ H097095 (2010) |
| Proposed new ruling: HQ H126020 |