Question 21
Domain 3: Customs ValuationHigh End Store (High End), a U.S. retailer, submitted an administrative ruling request for classification of a woman’s hooded blouse prior to the importation of such blouses. New York Ruling Letter (NY) N123456 was issued to High End, which classified the hooded blouse under subheading 6106.20.2010 of the Harmonized Tariff Schedule of the United States (HTSUS). As part of the decision in NY N123456, the following instruction was included: “[a] copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported.” The manufacturer who produces hooded blouses for High End also produces identical hooded blouses for Discount Retailer, another U.S. retailer. Both High End and Discount Retailer imported the blouses after the issuance of NY N123456. Which of the following statements is TRUE?
Correct answer: A
Explanation
A ruling letter may be relied on for the same merchandise because Customs rulings apply to the described article, not just the requester, when the goods are identical. NY N123456 classified the hooded blouse under subheading 6106.20.2010 and instructed that “a copy of the ruling or the control number” be provided with entry documents, showing it may be used at importation for that merchandise.
Why each option is right or wrong
A. Discount Retailer may classify its identical hooded blouses under subheading 6106.20.2010, HTSUS, in reliance upon NY N123456.
Under 19 C.F.R. § 177.9(b)(1), a ruling letter is issued on the basis of the facts presented and may be relied upon for the described merchandise; if another importer’s goods are identical in all material respects, the same classification applies. Here, NY N123456 specifically classified the hooded blouse in subheading 6106.20.2010, HTSUS, and the instruction to submit a copy of the ruling or control number with entry documents confirms it was intended to be used at importation for that merchandise.
B. In reviewing the entry documentation filed by Discount Retailer, the Center Director may request additional information regarding the imported blouses. If the Center Director determines that Discount Retailer has not obtained a ruling affirming that its hooded blouses are also classifiable under 6106.20.2010, HTSUS, the Center Director is required to suspend liquidation of the entry until Discount Retailer obtains a ruling.
A separate ruling is not required before liquidation when identical merchandise is already covered by an existing classification ruling.
C. Prior to relying upon NY N123456, issued for High End, Discount Retailer should write to the Port Director at the port of entry and seek clarification as to whether NY N123456 has been modified or revoked.
Importers do not need port-specific preclearance before relying on an applicable published ruling for identical goods.
D. Once published, NY N123456 is not subject to modification or revocation unlike other administrative ruling letters that do not classify merchandise.
Classification rulings can be modified or revoked; publication does not make them permanently immune from change.