Published February 28, 2014 by

LED (Light Emitting Diode) Lamps / Bulps – Classification Revisited (Yet Again)!

The author feels that enough has been written on the LED topic.  See here and here.  Yet, LawCustoms statistics indicate an interest of our visitors to this topic.  Additionally, our Office received inquiries related to LED lights imports on other occasions.  So we feel it is important enough of a topic to devote few more lines to it for our audience. As of yesterday, in the name of GRI 1, CBP proclaimed that classification of LED light bulbs is classified under 8543.10.70 8543.70.70 at 2% general duty rate.  This is three times less the duty of CBP’s previously held position with respect to LED light bulbs under 9405.40.60 at 6% the duty.  CBP moved away from their interpretative GRI 2(a) methodology we previously addressed in this post.  Reasons and the official text is in the current issue of the Customs Bulletin.  Basically, Note 1(f) to Chapter 94 ruled the day, as CBP accepted that LED lights classification in the basket provision of Chapter 85.  Justification partly comes from WCO, partly from secondary sources.  Since CBP classification is presumptively correct under 26 U.S.C. § 2639, that means the import community is compelled to accept CBP’s current views.  Other members, with outstanding unliquidated…

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Product Regulation U.S. Federal Agencies

Computer & Electronic Products Customs and Border Protection Electric Products HTS Heading 8543 HTS Heading 9405

Published July 8, 2013 by

Warm Welcome to Residential and Industrial Appliance Importers from Brand New 19 C.F.R. § 12.50

EPCA’s Non-Tariff Barrier. CBP adopts a new regulation – 19 C.F.R. § 12.50 – to help its sister agencies FTC and DOE bring Energy Policy and Conservation Act of 1975 (EPCA) mandate to U.S. borders.  Now CBP has regulatory framework to see if certain products are labeled and manufactured in compliance with EPCA.  Now, if CBP finds that importer does not follow FTC and DOE EPCA recommendations, that product will be refused admission into the United States. Obvious questions that follow include: What are these certain products? What are manufacturing standards? What are the labeling requirements? Before this inquiry is made, establishment of basic jurisdictional responsibilities between FTC, DOE, and CBP may probably help.  Basically, DOE is responsible for technical side of EPCA standards for “certain” appliances.  FTC’s responsibility mainly pertains to labeling requirements of DOE’s EPCA standards.  CBP responsibility is to see that FTC and DOE rules in fact apply to imports. According to the DOE’s Building Technologies Office, there are over 50 products that have EPCA standards.  The list is broken down into (1) residential products, (2) commercial and industrial products, (3) lightning products, and (4) pluming products.  But, if an importer finds that no standards – according…

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Product Regulation U.S. Federal Agencies

Computers & Electronic Products Customs and Border Protection Department of Energy Electric Products Federal Trade Commission Home & Garden Products Industrial Products Labeling & Marking

Published May 24, 2013 by

HTSUS Classification for 3-D Printers

Court of International Trade published opinion earlier this month, laying down the HTSUS classification principles for 3-D printing technology (or “laser sintering” / “additive manufacturing”  machines, using the court’s terminology).  The 46 page opinion – EOS of North America, Inc. v. US – lays rest to rumors and ambiguities of how this increasingly popular technology should be classified.  Classification principles can change if the case is appealed, but Judge Stanceau did a fine job of explaining the position of the court. Members of international trade community had divergent views about the appropriate classification of the product.  Some even expressed views that 3-D printers should be classified as domestic appliances (HTSUS heading 8509), reasoning that the 3-D technology is cost effective and is becoming a household item.  Other, more reasonable propositions entertained classification in the machine tools category (HTSUS heading 8463) and laser welding machines (HTSUS heading 8515).  The opinion, at least for now, settled this controversial question. Court concluded that 3-D printers, such as described below, designed to work with plastic materials are classified under 8477.80.00, which provides for “Machinery for working plastics … Other.”  However, if the 3-D printers can work with materials such as metals, instead of or…

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Product Regulation U.S. Federal Courts

Computers & Electronic Products Court of International Trade Electric Products Harmonized Tariff Schedule Classification HTS Heading 8477 HTS Heading 8479 Industrial Products

Published April 26, 2012 by

Customs “Substantial Product Hazard” Seizures

A scary trend is on the way, which may become a nightmare for customs and trade compliance professionals.  The trend can lead to a job loss because those professionals may not be able to explain why their products were seized.  This phenomenon is called “substantial product hazard” enforcement.  This is a joint CBP-CPSC program, which resulted in publications of articles by CBP, including “CBP Stops Thousands of Unsafe Hair Dryers” and “CBP Turns Off Importation of Unsafe Holiday Lights.”  In the case of hair dryers, CBP states the reason for seizure was because the hair dryers “were determined to constitute a ‘substantial product hazard’ under U.S. law, for failing to have adequate immersion protection.”  This notice is a warning to trade compliance folks dealing with consumer goods that “substantial product hazard” prong is yet another check list on their ever-growing regulatory product review plate. Substantial product hazard is defined in Sec. 15(a) of the Consumer Product Safety Act, 15 U.S.C. 2064(a), as well as, 16 C.F.R. 1115.2.  The regulation states that the product will become a “substantial product hazard” if it fails to comply with “applicable consumer product safety rule.”  16 C.F.R. 1115.2(a)(1).  Well, that is helpful, because the rules are somewhat concrete, and…

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Product Regulation U.S. Federal Agencies

Consumer Product Safety Commission Consumer Product Safety Improvement Act Customs and Border Protection Electric Products

Published April 19, 2012 by

LED (Light Emitting Diode) Lamps / Bulps – Classification Revisited

Almost 2 1/2  years ago LawCustoms published an article dealing with classification of LED bulbs/lamps suggesting 8539.39.0000 classification based on N020620 (2007).  The interpretative methodology with respect to LED bulbs/lamps classification has evolved since the post‘s publication.  Since the LED lamp/bulb classification attracts the substantial amount of interest among LawCustoms guests, the author is revisiting the LED bulbs/lamps classification issue one more time. The classification departure point primarily took place in H024874 (2010), which extended GRI 2(a) principle to LED lamps/bulbs because they are LED Modules and therefore “comprise the light source of complete lamps.”  Id.  CBP reasoned that GRI 2(a) applies to LED modules because “when installed into housings adequate for their intended purpose, and connected to a power source by a power supply unit, they emit light.”  Id.  In H024876 (2010) CBP clarified what LED module is, stating that LED module may contain (1) printed circuit board, (2) light emitting diode, and (3) pin clasp.  In light of this development and the legal position that CBP is presumptively correct in classification determinations, trade community dealing with LED light bulbs/lamps will now have to extend the GRI 2(a) principle to the bulbs/lamps that contain the “module.”  Today, CBP GRI 2(a) method leaves trade community with two headings for LED light bulbs/lamps: 9405 and 8513.  For 8513 heading classification of lamps please see…

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Product Regulation U.S. Federal Agencies

Computers & Electronic Products Customs and Border Protection Electric Products Harmonized Tariff Schedule Classification HTS Heading 8513 HTS Heading 8539 HTS Heading 9405

Published December 18, 2011 by

Ozone-Depleting Chemicals

The Internal Revenue Service (IRS) has issued its publication on excise taxes (IRS Publication 510) which, among other things, summarizes the tax the IRS imposes on the sale or use of: chemicals that deplete the ozone-layer (ozone-depleting chemicals, ODCs); and imported products containing or manufactured with ODCs (e.g. dusting sprays, television receivers, certain microwave ovens, foam sofas and mattresses, etc). The IRS explains that Form 6627 is used to calculate the environmental tax on ODCs, imported products containing or manufactured with ODCs, etc. This figure is then entered and reported on Form 720, to which Form 6627 must be attached. (In addition to providing information on environmental taxes (i.e. ODC taxes), IRS Publication 510 also provides information on communications and air transportation taxes, fuel taxes, heavy truck taxes, etc.) Taxable ODCs IRS Form 6627 states that the following ODCs are taxable : Post-1989 ODCs: CFC-11, CFC-12, CFC 113, CFC-114, CFC-115, Halon-1211, Halon-1301, and Halon-2402. Post-1990 ODCs: Carbon tetrachloride, methyl chloroform, CFC-13, CFC-111, CFC- 112, and CFC-211 through CFC-217. Tax on ODCs Generally Imposed when ODC is First Used or Sold. IRS Publication 510 states that this tax is imposed on an ODC when it is first used or sold by…

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Product Regulation U.S. Federal Agencies

Chemical Products Communication and Network Products Computers & Electronic Products Electric Products Home & Garden Products Industrial Products Internal Revenue Service

Published December 12, 2011 by

Federal Communications Commission Regulation of Imports

Radio frequency devices that are imported into the Customs Territory of the United States need to be declared with CBP / FCC via form FCC 740.  PDF version of the form is made available by FCC here, while MS Word version of the form can be downloaded here. Many frequency devices that are introduced to the commerce of the United States are required to be licensed. The licensed transmitters will have FCC ID issued to them by the Federal Communications Commission. When filling out the FCC740, you are asked to provide the FCC ID. FCC id can be verified through the agency’s website utilizing Equipment Authorization Search. Some frequency devices may not require license. See FCC’s Office of Engineering and Technology Article.

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Product Regulation U.S. Federal Agencies

Communication and Network Products Computers & Electronic Products Electric Products Federal Communication Commission

Published June 1, 2009 by

LED lights

If one tries to bring LED light bulbs, she may rely on 8539.39.0000 classification based on N020620 (2007), which is presumptively valid 2.4% duty category. Mr. Campanelli, a CBP National Import Specialist who issued this ruling, said that LED bulbs belong neither to discharge, nor to electric filament category. This very issue is currently under review in CBP HQ, that leans toward the British interpretation of LED light emitting bulbs – 8543.70 (electrical apparatus, having individual functions n.e.s.o.i.). See in www.uktradeinfo.com for further information If this goes through, this would effectively raise the U.S. import duty by 0.2%

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Product Regulation U.S. Federal Agencies

Customs and Border Protection Electric Products Harmonized Tariff Schedule Classification HTS Heading 8539

Published August 14, 2008 by

Airfield Lighting

In an obscure NY M86452, CBP classified airfield lighting under 8530.80.0000 9405.40.6000 9405.60.6000 CBP provided no explanation of why classification of heading 9405 was used for lighting equipment clearly used for electrical signaling airfield installations.

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Product Regulation U.S. Federal Agencies

Customs and Border Protection Electric Products Harmonized Tariff Schedule Classification HTS Heading 8530 HTS Heading 9405 Industrial Products

Published August 13, 2008 by

USB cable and Ethernet cable

CBP is proposing to issue HQ H029719 in order to revoke NY N007536 and reclassify the cables under HTS 8544.42.2000, as electric conductors “of a kind used for telecommunication” rather than under HTS 8544.42.9000 as other electric conductors, “other.” CBP proposes this change as a correction based on the fact that USB and Ethernet cables are used for the two-way transfer of data between a personal computer and various other devices. By application of GRI 1, the USB cable and the Ethernet cable are specifically provided for and should be classified under HTS 8544.42.2000, which provides for: “Insulated . . . wire, cable . . . and other insulated electric conductors, whether or not fitted with connectors . . . Other electric conductors, for a voltage not exceeding 1,000 V: Fitted with connectors: Other: Of a kind used for telecommunications.” Proposed: 8544.42.2000, duty-free; current: 8544.42.9000, 2.6%

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U.S. Federal Agencies

Computers & Electronic Products Customs and Border Protection Electric Products Harmonized Tariff Schedule Classification HTS Heading 8544