Newly Released CBP HQ Rulings June 21

June 22, 2023 by Ben Perkins|Customs Rulings

The Customs Rulings Online Search System (CROSS) was updated June 21 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):

H326950: Iranian-origin carpets; 31 C.F.R. § 560.524(b); personal and household goods; 9804.00.05, HTSUS

Ruling: The Iranian carpet is eligible for importation under 31 C.F.R. § 560.524(b) and may enter duty-free under 9804.00.05, Harmonized Tariff Schedule of the U.S., as long as you used the carpet for at least one year prior to leaving Iran.

Issue: Is the Iranian carpet eligible for duty-free importation?

Item: A carpet to be imported by an Iranian immigrant. The carpet was allegedly for personal use in the home in Iran before leaving it in 2014.

Reason: Subheading 9804.00.05, HTSUS, provides for an exemption from duty for the importation of household effects actually used by the importer or by the importer and his family abroad for at least one year, if the merchandise is not intended for any other person or for sale. According to 19 C.F.R. §148.52(a), this exemption includes carpets, and the year of use need not be continuous, nor need it immediately precede the time of importation.

Ruling Date: June 20, 2023

H319996: Application for Further Review (AFR) of Protest No. 2402-19-100089 (lead); electro-mechanical actuators; drive shift actuators; vehicle seat actuators NAFTA parts exclusion

Ruling: The subject 30.282 W actuators are classified under subheading 8501.10.60 as “Electric motors and generators (excluding generating sets): Motors of an output not exceeding 37.5 W: Of 18.65 W or more but not exceeding 37.5 W." The subject 39.98 W and 49.18 W actuators are classified under subheading 8501.31.20 as "Electric motors and generators (excluding generating sets): Other DC motors; DC generators: 8501.31 Of an output not exceeding 750 W: Motors: Exceeding 37.5 W but not exceeding 74.6 W.” The protest should be denied.

Issue: What is the proper classification of the subject electro-mechanical actuators, and does the “parts” exception to the NAFTA tariff shift rule also apply to the instant merchandise?

Items: Several models of electro-mechanical actuators for use in automotive applications. The subject 4WD actuators create mechanical force to move a vehicle’s drive train. The vehicle seat actuators create mechanical force to move a vehicle’s seat. Both are similar in design, except that the 4WD actuator also features a shift fork mechanism. The subassemblies comprising both actuators are assembled separately and combined into the finished housing in Mexico prior to importation into the U.S.

Reason: In HQ 562196, a power pack assembly was imported from the U.S. into Mexico and the importer claimed NAFTA preferential tariff treatment. Both the power pack assembly and its Chinese motor were classified in heading 8501 and the Chinese-origin motor did not undergo the required change in tariff classification. CBP found that “heading 8501, HTSUS, does not provide for both the good and its parts. Rather, a separate heading (heading 8503) is provided for parts suitable for use solely or principally with the goods of heading 8501. Therefore, the exception to the change in tariff classification provided by 19 C.F.R. part 181, app. § 4(4)(b) does not apply.” The instant matter is identical. Each actuator is an electric motor equipped with additional components. The electric motor converts electric energy into mechanical force, while its additional components complement this function by directing the motor’s force for various automotive applications. Both the actuator assembly and the Chinese motor are classified as “electric motors and generators” of heading 8501, which only provides for the good and does not provide for both the good and its parts as explained in HQ 562196. As a result, the claimed exception for parts set out in GN 12(b)(iv) and Section 4(4)(b)(ii) does not apply, and the subject actuators do not qualify for preferential tariff treatment under NAFTA.

Ruling Date: April 10, 2023