May 16 CBP Bulletin Revokes Rulings on T-Shirt Craft Kit and Thermal Oxidizers
In the May 16, 2012 issue of the U.S. Customs and Border Protection Bulletin (Vol. 46, No.21), CBP published two notices of its revocation of its rulings and treatment regarding the tariff classification of jingle bell wreaths and hanging decorations and trunk/cab organizers.
Revocations Are Effective July 16
CBP is revoking these rulings, as well as any treatment CBP previously accorded to substantially identical transactions, effective for merchandise entered or withdrawn from warehouse for consumption on or after July 16, 2012.
Trendy Tee Craft Kit
| Item: The "Trendy Tee" craft kit. It is described as a toy craft kit consisting of a stud tool, a plastic workstation, metal studs, plastic rhinestones, chalk, cardboard stencil pattern cards, and a sheet of instructions packaged inside an illustrated cardboard box. The articles are used to decorate t-shirts, although a t-shirt is not included in the kit. The box is marked as appropriate for children of eight years of age and older. |
| New Ruling: HQ 968017 (dated 4/23/12), revokes NY K87306 (2004) |
| Old HTS/Rate: 9503.70.00, free (other toys, put up in sets or outfits) |
| New HTS/Rate: 8479.89.98, 2.5% (other machines and mechanical appliances) |
| Reason: CBP notes that none of the items included in the kit on their own are classifiable as toys in heading 9503, but instead, are classifiable in different headings. Therefore, pursuant to GRI 3(b)1, the kit must be classified according to the item which provides its essential character. CBP states that because the kit is designed to fix decorative studs and/or rhinestones to a t-shirt, the stud tool is the component that provides the essential character. For the stud tool to be a toy of heading 9503, it must be designed and used principally for amusement. However, CBP finds the tool is utilitarian rather than amusing, and any amusement derived from the tool is incidental to its purpose of decorating clothes. Therefore, the kit is an "other" machine and mechanical appliance in heading 8479. |
(See ITT's Online Archives 12010310 for summary of the proposed revocation of this ruling.)
Thermal Oxidizers
| Item: Two thermal oxidizers. These machines treat waste gases to destroy pollutants known as volatile organic compounds (VOCs). A stream of air laden with VOCs enters the oxidizers. The air stream is later ignited by an electrical spark. Due to the heat, a chemical reaction occurs whereby the VOCs react with the oxygen and are converted into water and carbon dioxide. The resulting output is 99.99% free from VOCs. |
| New Ruling: HQ H118895 (dated 04/23/12), modifies NY J84466 (2003), revokes NY K88616 (2004) |
| Old HTS/Rate: 8417.80.00, 3.9% (other industrial or laboratory furnaces and parts thereof) |
| New HTS/Rate: 8421.39.80, free (other purifying machinery and apparatus for gases) |
| Reason: CBP states that HTS heading 8417 covers incinerators and similar apparatus specially designed for the burning of waste. The subject merchandise use a heated chamber to burn up waste gases, thus CBP states they could be classified as a furnace of heading 8417. The merchandise could also be classified as a purifier of heading 8421 because (i) it satisfies the courts' definition of "purifier" as it removes unwanted constituents (VOCs) from a substance (the air stream); and (ii) it satisfies the definition of a "purifier in the Explanatory Notes (EN) as it eliminates harmful materials (VOCs) through combustion. Therefore, the merchandise are multi-function machines. However, CBP states it could not determine the principal function of the merchandise. Thus, by application of GRI 3(c)1, the merchandise is classified under heading 8421 because it appears last in numerical order. |
(See ITT's Online Archives 11111814 for summary of the proposed revocation of this ruling.)