CBP Rules Wooden Framed Mirrors Duty Exempt
Wooden framed mirrors imported from China then exported to Mexico, where they undergo alterations, and finally returned to the U.S. are eligible for preferential duty exemption status, according to a CBP June decision. The ruling addresses consideration of the mirrors under subheading 9802.00.50 of the Harmonized Tariff Schedule, which says items exported from the U.S. that are brought back into the U.S. after increasing in value are fully or partially duty exempt.
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Debate about the decision also centered on the definition of “alteration." The CBP ruled that the work performed on the items in Mexico constitutes an “alteration” because it does not fundamentally change the nature of the product. The items now technically avoid Chinese anti-dumping regulations, as well. "Since the articles at issue do not qualify as wooden bedroom furniture when they are imported from China, and there is no antidumping duty order on wooden furniture imported from Mexico, the articles at issue are not subject to anti-dumping duties," the ruling said. RSI Home Products filed request for guidance in March.