International Trade Today is a Warren News publication.

July 3 CBP Bulletin Proposes to Revoke, Modify Ruling on Certain Composite Goods with Character of Permanent Magnets

In the July 3 Customs Bulletin (Vol. 58, No. 26), CBP published a proposal to revoke or modify eight ruling letters, all of which concern the tariff classification of composite goods with the essential character of permanent magnets under the Harmonized Tariff Schedule of the United States.

Sign up for a free preview to unlock the rest of this article

If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.

Comments on Proposals Due Aug. 2

CBP said consideration will be given to any written comments received by Aug. 2 before taking these actions. In addition, any party that has received a ruling or decision on the merchandise that is subject to the proposed revocations or 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 after the effective date of the final decision in this notice.)

Proposals

CBP is proposing to revoke or modify the rulings below, and any rulings on these products that may exist but have not been specifically identified. CBP also is proposing to revoke any treatment it has previously accorded to substantially identical transactions.

Certain Composite Goods with the Essential Character of Permanent Magnets

Item: Permanent magnets each composed, at least in part, of non-metal material
Current: 8505.19, “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Other.”; 8505.11, “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Of metal.”
Proposed: 8505.19.30, “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization: Other: Other.”
Reason: The magnets identified in the rulings impart the essential character of the composite goods, and likewise by application of GRI 3(b), are classified as “permanent magnets” of heading 8505. CBP has previously held that the magnet’s composition is the main determinant, and that permanent magnets of ferrite must be classified differently from permanent magnets of metal.
Proposed for revocation: NY B84458, dated May 15, 1997; NY R03088, dated Feb. 10, 2006; NY N289369, dated Sept. 13, 2017; and NY N290319, dated Oct. 18, 2017
Proposed for modification: NY J85077, dated June 19, 2003; NY N302039, dated Feb. 5, 2019; NY N302895, dated April 3, 2019; and NY N314064, dated Sept. 14, 2020
Proposed new ruling: HQ H328977