Igloo Pushes for Add'l Cooler Ruling Revocation at CBP, Says Exclusion Undermines 'Exterior Area' Analysis
CBP should revoke an additional 2008 ruling regarding the tariff classification of insulated cooler bags, Igloo Products said in comments to CBP. The comments were submitted in response to CBP's proposed revocation of three other rulings included in the agency's Oct. 10 bulletin. Igloo's lawyer, Gregory McCue of Steptoe and Johnson, filed the comments on behalf of Igloo.
(Email ITTNews@warren-news.com for a copy of the comments. See ITT's Online Archives 12101520 for summary of CBP's proposed ruling revocations on the cooler bags.)
CBP should revoke ruling NY NO47035 because of its clear similarities to to the other rulings CBP proposed to revoke, Igloo said. CBP proposed for revoke those rulings due to a revised analysis that relied on the composition of the exterior surface area for determining essential character of the cooler bags. Igloo said it prompted the ruling request based on the surface area analysis, seeking reconsideration of four previous rulings, the three CBP is proposing to revoke and ruling NY NO47035. Ruling NY NO47035 is (here).
"CBP's proposal not to apply the same analysis and, consequently, not to revoke that ruling, would represent an unreasonable departure from the 'bulk of the exterior area' analysis and all of CBP's other rulings on point," said Igloo. "The proposed singling out of this one bag is not supported by the factors noted in the proposed revocation analysis and would open the door to numerous importers of numerous types of bags to request specialized treatment based on minor, random and aesthetic factors."
Undermines 'Bulk of the Exterior Area' Analysis
The exclusion of that ruling in the proposal creates uncertainty regarding the industry understanding of CBP's "bulk of the exterior area" analysis commonly used by CBP to determine essential character, said Igloo. CBP's consideration of the ruling "injects a great deal of randomness into the understanding of these products" by pointing to features like the "curved shape of the top of the bag" and "placement of the logo," said Igloo. Such analysis strays from previous CBP analysis of cooler bags or other rulings in subheading 4202, the company said.
Such analysis "would leave a future importer with no way to guess whether this or that curve or shape to a bag would be enough to cause CBP to abandon its usual rule," said Igloo. CBP said it correctly classified the bag the NY ruling "according to the textile material, even though it did not comprise the bulk of the external surface area of the bag" because it "comprised roughly 40 percent of the external surface area of the bag" and the textile material was more valuable than other materials involved. The use of that 40 percent number now means importers can't rely on which material is the bulk but would now "have to consider how much more than just 'bulk' is enough," said Igloo. "While CBP has discretion in this area, the proposed analysis presents no rational reason for deviating from the usual rule when this case is considered alongside all the other cooler bag and 4202 rulings, all of which seem quite consistent with each other."
Igloo previously asked CBP to give the company a chance to provide further information if the agency were not going to revoke all the rulings the company asked be revoked, said the filing. But Igloo didn't get a chance to provide more information prior to publication of the bulletin, it said. CBP should give Igloo a chance to discuss the proposal before it's finalized, it said.