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Modification of NY J85077, NY N302039, NY N302895, and NY N314064; Revocation of NY B84458, NY R03088, NY N289369, and NY N290319; Classification of certain permanent magnets and articles with the essential character of permanent magnets
HQ H328977 August 19, 2024 OT:RR:CTF:EMAIN H328977 MFT CATEGORY: Classification TARIFF NO.: 8505.19.30 Ms. Melissa Cannon Master Magnetics, Inc. 1211 Atchinson Court Castle Rock, CO 80109 RE: Modification of NY J85077, NY N302039, NY N302895, and NY N314064; Revocation of NY B84458, NY R03088, NY N289369, and NY N290319; Classification of certain permanent magnets and articles with the essential character of permanent magnets Dear Ms. Cannon: This letter is in response to your request, submitted September 22, 2020, seeking reconsideration of New York Ruling Letter (NY) N314064 (dated September 14, 2020). That ruling considered the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of a certain three-in-one magnetic sweeper from China. We have re-examined NY N314064 and find its ultimate classification of the merchandise to be correct; however, we hereby modify that ruling to emend certain dicta expressed therein. Furthermore, after reviewing NY N302039 (dated February 5, 2019) and NY N302895 (dated April 3, 2019), we similarly affirm their ultimate classification determinations but hereby modify those rulings as to certain dicta. We have also reviewed NY J85077 (dated June 19, 2003); NY B84458 (dated May 15, 1997); NY R03088 (dated February 10, 2006); NY N289369 (dated September 13, 2017); and NY N290319 (dated October 18, 2017). Each of these rulings classified certain permanent magnets of materials other than metal under subheading 8505.11.00, HTSUS, which provides for “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: Of metal.” We have determined that the tariff classification of these magnets is incorrect and hereby revoke or modify those rulings, accordingly, as explained below. Pursuant to Section 625(c)(1) of the Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by Section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. No. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed action was published on July 3, 2024, in Volume 58, Number 26, of the Customs Bulletin. No comments were received in response to this notice. FACTS: In NY N314064, the merchandise at issue was a three-in-one magnetic sweeper described in the ruling as follows: The item under consideration is a 3-in-1 magnetic sweeper, part numbers MS3N1-48, MS3N1-60, MS3N1-72, MS3N1-84, and MS3N1-96, designed to magnetically attract ferrous metal debris, such as nails, screws, metal filings, and other metal scrap from floors, walkways, driveways, parking lots, and work areas. The item consists of ceramic magnets (predominantly ferric oxide material) and a steel bar enclosed in a heavy-gauge steel and aluminum housing. Attached is a quick release handle, mounting brackets, removable tow handle, and semi-pneumatic wheels on both sides. As the sweeper moves across the ground, the magnets attract ferrous metal debris. When the quick release handle is pulled, it creates a gap wide enough to dislodge the collected debris, where it can then be cleaned up. The item can be used in several configurations including being pushed or pulled by the handle, mounted using eyebolts on the forks of a forklift, hung from a vehicle, and towed behind a vehicle. Each part number is identical in design with the exception of the sweeping width, which come in 48 inches, 60 inches, 72 inches, 84 inches, or 96 inches. We noted that the magnetic sweeper was a composite good and that a prior decision classified another composite good under subheading 8505.19.30, HTSUS: The 3-in-1 magnetic sweeper is a composite good consisting of steel, aluminum, and rubber materials, which make up components including magnets, wheels, a steel bar, a handle and various hardware to form a complete article. It is the opinion of this office that the article is distinguished by the magnetic component, which allows it to function as a magnet. Accordingly, the magnetic portion appears to be of primary importance to the composite article and the component which imparts its essential character. Composite goods in which a magnet is used to “sweep” metal articles have previously been classified in subheading 8505.19.3000. See NY ruling N302895 dated April 3, 2019. [emphasis added] As such, the applicable subheading for the 3-in-1 magnetic sweeper, part numbers MS3N1-48, MS3N1-60, MS3N1-72, MS3N1-84 and MS3N1-96, will be [subheading] 8505.19.3000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for 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. The article at issue in NY N302039 is discussed therein as follows: The item under consideration is referred to as a Sea Turtle PVC magnet, item number 88277. The item consists of a PVC turtle with a circular magnet affixed to the underside of the turtle. The hard magnet is described as a ceramic (ferrite) magnet that is primarily of iron oxide material. The Sea Turtle PVC magnet allows for notes, pictures, and the like to be secured to metal surfaces. [. . .] While we agree that the article is classified within heading 8505, we disagree at the subheading level. The Sea Turtle PVC magnet is a composite good that consists of a PVC turtle with a hard magnet. Such articles have been classified in subheading 8505.19.3000. See NYR N019818, dated December 11, 2007[,] and NYR N062663, dated June 11, 2009. [emphasis added] As such, the applicable subheading for the Sea Turtle PVC magnet, item number 88277 will be 8505.19.3000, Harmonized Tariff Schedule of the United States (HTSUS) [Annotated], which provides for Permanent magnets and articles intended to become permanent magnets after magnetization: Other: Other. The rate of duty will be 4.9 percent ad valorem. In NY N302895, U.S. Customs and Border Protection (CBP) considered the classification of a magnetic floor sweeper from China and described the article as follows: The product in question is referred to as the 17” Mini Magnetic Floor Sweeper, item number GRIP 53417. The floor sweeper consists of a ceramic (iron oxide material) magnetic bar that is attached to a steel bar with a rubber grip. Two rubber wheels are attached to the outer sections of the magnetic bar and as the user pushes the steel bar, the floor sweeper rolls over the ground and this allows the magnet, which imparts the essential character, to retrieve metal articles, such as screws and nails. That ruling similarly considered the fact that the sweeper constituted a composite good and stated as follows: The 17” Mini Magnetic Floor Sweeper is a composite good that consists of a handle, rollers and a non-flexible magnet that imparts the essential character. Composite goods in which a magnet is used to retrieve metal articles have previously been classified in subheading 8505.19.3000. See NYR N061775 dated May 28, 2009. This office notes that in your letter, you mention that the magnetic floor sweeper is similar to the magnets classified in NYR N289369 and NYR N290319, which classified ceramic magnets in subheading 8505.11.0030. However, this office does not find any of [the] afor[e]mentioned rulings relevant, as the subject floor sweeper is a composite good. [emphasis added] As such, the applicable subheading for the 17” Mini Magnetic Floor Sweeper, item number GRIP 53417, will be 8505.19.3000, HTSUS, which provides for Per
Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 will then be applied in order.The classification of goods consisting of more than one material or substance follows the principles of GRI 3. In relevant part, GRI 3(b) states that composite goods that cannot be classified by reference to GRI 3(a) are to be classified as if they consisted of the component that gives them their essential character. GRI 6 provides that for legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. Although the ENs are not legally binding or dispositive, they provide commentary on the scope of each heading of the HTSUS and generally indicate the proper interpretation of these headings at the international level. The HTSUS subheadings under consideration are as follows:8505 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:8505.11 Of metal* * * * *8505.19 Other: There is no dispute that the magnets identified in the rulings above impar