In Binding Ruling Letter HQ H058876 of May 14, 2009, Customs and Border Protection designated certain plastic garment hangers as instruments of international traffic, which enables the items to be released without payment of duty. In order to qualify as an IIT CBP has traditionally held that an article must be: used as a container or holder in international traffic, substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. CBP has reviewed its prior rulings and determined this ruling letter to be in error. It is now CBP's position that plastic garment hangers cannot be granted IIT status when they are not used to physically suspend garments during transportation in international traffic. The proposed revocation does not foreclose the possibility that CBP will grant IIT status to certain plastic garment hangers in response to future ruling requests that satisfy this analysis, however.
CBP is proposing to revoke HQ H058876 and to revoke or modify any other ruling not specifically identified to reflect the analysis contained in a new Ruling, HQ H300587. Additionally, CBP is proposing to revoke any treatment previously accorded by CBP to substantially identical transactions.
The rate of duty on plastic hangers (Classification 3923.90.0080 Harmonized Tariff Schedule of the United States) is just 3%, but the significance of this proposed action is that plastic hangers from China are subject to additional 10% Section 301 import duty. As instruments of international traffic the 301 tariff could be avoided.
Before taking this action, CBP will consideration any written comments timely received. Comments must be received on or before May 31, 2019.
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