Nov 16 CBP Bulletin Proposes Ruling Action on Current Detectors, Oxidizers
In the November 16, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 47), CBP published two notices that propose to modify one ruling and revoke two rulings and similar treatment regarding the classification of current detectors and thermal oxidizers.
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Comments on Proposed Ruling Actions Due December 16
CBP states that any party who has received a ruling or decision on the merchandise that is subject to the proposed revocations or modification, or any party involved with a substantially identical transaction, should advise CBP by December 16, 2011, the date that written comments on the proposed ruling are due. Furthermore, CBP states that 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 and Modification
CBP is proposing to modify or 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.
Current Detectors
| Item: Devices that protect power electronic circuits by signaling when current in the circuit has exceeded a designated trip point. The devices contain three distinct parts, a Hall effect sensor (a monolithic integrated circuit), a gapped magnetic core, and a plastic case. They are designed to be mounted to a printed circuit board. Applications for this merchandise include MRI machines, treadmills, motor controllers, inverters, etc. The output of the merchandise is digital while the current it senses is analog. |
| Current: 8542.30.00, free (other monolithic integrated circuits) |
| Proposed: 8543.70.40, 2.6% (other electric synchros and transducers) |
| Reason: CBP states that while the subject merchandise contains a monolithic integrated circuit, the entire package is not classified as one because it contains a magnetic core -- a component that is not an inseparably associated circuit element as required by Note 8(b)(1) to HTS Chapter 85. On the other hand, CBP states subheading 8543.70.40 provides in part for electric synchros and transducers. CBP has previously determined that the term transducer encompasses devices which convert variations in one energy form into corresponding variations in another, usually electrical form. The subject devices measure changes in the magnetic field and changes them to electrical signals as so as to protect against over currents in power conversion equipment. As such, the devices are classifiable as a transducer in heading 8543. |
| Proposed for revocation: NY H80199 (2001) |
| Proposed new ruling: HQ H122802 |
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. |
| Current: 8417.80.00, 3.9% (other industrial or laboratory furnaces and parts thereof) |
| Proposed: 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. |
| Proposed for modification: NY J84466 (2003) Proposed for revocation: NY K88616 (2004) |
| Proposed new ruling: HQ H118895 |
1General Rule of Interpretation 3(c) provides that when goods cannot be classified by the heading that provides the most specific description or by their essential character, they should be classified under the heading which occurs last in numerical order among those which equally merit consideration.