Jan 4 CBP Bulletin Proposes to Modify Rulings on CoCo Peat, Lighting Fixture
In the January 4, 2012 issue of the U.S. Customs and Border Protection Bulletin (Vol. 46, No. 2), CBP published two notices that propose to modify two rulings and similar treatment regarding the NAFTA eligibility and country of origin of CoCo Peat and the tariff classification of a lighting fixture.
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Comments on Proposed Modifications Due February 3
CBP states that before taking this action, consideration will be given to any written comments received by February 3, 2012. In addition, any party who has received a ruling or decision on the merchandise that is subject to the proposed modifications, 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 Modifications
CBP is proposing to modify 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.
NAFTA Eligibility and Country of Origin of CoCo Peat
| Item: CoCo Peat. It is comprised of used coconut shell coir pith. Coir is the outside layer of husk surrounding the outside shell of the coconut. Coir pith is the cork-like substance between the fibers. The coir pith is originally imported into Canada from Sri Lanka to be used for the hydroponic growing of vegetables in Canada. After one season of use, the coir pith is no longer suitable for use in growing vegetables and is normally discarded. One company, Envirotex, collects the used coir pith and ships it to their Canadian facility where it is run through a number of screens to break down the product down to a fine medium and transformed into the product identified as CoCo Peat. The CoCo Peat is then imported to the U.S. under 1404.90.90 (duty-free) as vegetable products not elsewhere specified or included. In the U.S., it is blended with other raw materials, such as peat moss and compost, and used as an ingredient in the Miracle Gro® potting soil mix product. |
| Current rate: Ineligible for NAFTA preferential treatment but free under 1404.90.90 Country of origin: Sri Lanka for country of origin and marking purposes |
| Proposed rate: Eligible for NAFTA preferential treatment Country of origin: Canada, NAFTA originating good for marking purposes |
| Reason: CBP previously held that the CoCo peat was a product of Sri Lanka because its tariff classification did not change between export from Sri Lanka and importation into the U.S and no substantial transformation occurred. CBP now finds that the used coir pith is fit only for the recovery of its raw materials and cannot be used for growing hydroponic vegetables. As the CoCo peat is derived from the used coir pith, it constitutes used goods collected within the territory of a NAFTA party (Canada). Therefore, CBP now holds that CoCo Peat is "waste and scrap" and is a NAFTA originating good and may be marked as a product of Canada. |
| Proposed for modification: NY N054636 (2009) |
| Proposed new ruling: HQ H061739 |
Wing Reflector with Lamp-Holder
| Item: The Wing Reflector with lamp-holder. It is designed for use in commercial greenhouses and is comprised of a rectangular sheet of highly polished light-weight aluminum with a series of bends forming a half cylinder shaped reflector, which incorporates a lamp-holder. A steel hanging plate with sturdy hangers allows it to be suspended from the ceiling. |
| Current: 9405.10.80, 3.9% (electric ceiling or wall lighting fitting of other than base metal, of a class or kind for household use) |
| Proposed: 9405.10.60, 7.6% (electric ceiling or wall lighting fitting of base metal other than brass, for other than household use) |
| Reason: The Wing Reflector with lamp-holder is composed of base metals other than brass and is designed for use in commercial greenhouses. Therefore, the merchandise is described eo nomine (by name) by subheading 9405.10 and should be classified as such. |
| Proposed for modification: NY N032539 (2008) |
| Proposed new ruling: HQ H089796 |