10/10/2024

Melt and Pour Requirements Updated for Steel and Steel Derivative Articles

Check out this week's Customs Corner to read the latest about the new melt & pour requirements, clarifications to ACE entry type 86 test, and more.

Trade and Customs Updates

1) Melt and Pour Requirements Updated for Steel and Steel Derivative Articles

CBP has provided important updates and clarifications regarding the reporting of the "country of melt and pour" for steel imports as outlined in CSMS #62095799.

 

CSMS # 62582900confirms the country of melt and pour as the location where the raw steel is first melted in a steel-making furnace and poured into its initial solid shape (e.g., slabs, billets, or ingots). This process is documented on mill test certificates generated during production.

 

Mandatory Reporting: For all steel imports, the ISO country code where the steel was melted and poured must be reported.

 

Steel Derivative Products: For imports of derivative steel products from Mexico, the country of melt and pour or the applicability code "OTH" (if the ISO code isn't provided) is required. For derivative steel products from countries other than Mexico, reporting the ISO country code is optional.

 

Steel Mill Certificate Requirement: A mill certificate must be submitted via the Document Image System (DIS) in the Automated Commercial Environment (ACE) for steel imports classified under Chapter 72 or headings 7301 to 7307 of the HTSUS.

 

Implementation Date: The ACE functionality for reporting the country of melt and pour will be effective starting November 21, 2024.

 

 

2) Clarifications Pertaining to the Ace Entry Type 86 Test: Chapter 98 and Customer Returns

CBP has published guidance as to whether merchandise classifiable under Chapter 98 and customer returns are eligible for entry under Entry Type 86 Test.

 

CSMS # 62520662 provides updates and clarifications regarding the ACE Entry Type 86 Test, republished in the Federal Register on January 16, 2024 (89 Fed. Reg. 2630). It outlines the eligibility of goods classified under Chapter 98 of the Harmonized Tariff Schedule of the United States (HTSUS) and customer returns for entry under the ACE Entry Type 86 Test.

 

Chapter 98 Merchandise:

Merchandise classifiable under a Chapter 98 HTSUS subheading must also be classified under an appropriate Chapter 1-97 HTSUS subheading.

 

The Entry Type 86 test allows for a duty exemption under 19 U.S.C. § 1321(a)(2)(C), meaning that the duty-free provisions of Chapter 98 are not applicable for Entry Type 86.

 

Goods classifiable under Chapter 98 may still receive duty-free treatment under a separate entry type specifically for Chapter 98. However, if claiming the exemption under 19 U.S.C. § 1321(a)(2)(C), the goods must be reported under a Chapter 1-97 HTSUS subheading for Entry Type 86.

 

Customer Returns:

Customer returns are eligible for filing under Entry Type 86.

 

Returns under this entry type are subject to the $800 daily limit for goods shipped by one person to one consignee on the same day. These items must be classified under an appropriate Chapter 1-97 HTSUS subheading.

 

The fair retail value of the returned merchandise is included in the $800 limit for the consignee.

 

Filers have the flexibility to choose whether it is more advantageous to file under Entry Type 86 or to use a formal or informal entry under Chapter 98, depending on the specific circumstances of the return.

 

 

3) Safety Standards for Infant Bath Seats

CPSC provided an update to the mandatory safety standards for infant bath seats. The update follows the process laid out by the Consumer Product Safety Improvement Act (CPSIA) for adopting voluntary standards when revisions are made.

 

The Federal Register outlines an update to the U.S. Consumer Product Safety Commission's (CPSC) mandatory safety standard for infant bath seats, which has been updated to incorporate by reference the ASTM F1967-24 standard. The ASTM F1967-24 standard, which replaces ASTM F1967-19, introduces various changes aimed at improving the safety of infant bath seats, such as clarifying test surface requirements and making changes to the bathtub platform used for testing.

 

Authority and Legal Framework: The CPSC must adopt voluntary standards for infant or toddler products unless it determines that more stringent requirements are necessary for safety. When a voluntary standards organization like ASTM revises a standard, the CPSC must either accept or reject the revision within 90 days, or the new version becomes the mandatory standard by default.

Revisions in ASTM F1967-24:

  1. Substantive Changes: These include clarifications to the surfaces used in stability tests, requiring all bath seats to be tested on two distinct surfaces: one with safety tread strips and one without. This ensures more consistent testing across different labs. Other revisions update the description of the test platform, such as allowing for the use of more commonly available "Alcove" bathtubs.
  2. Non-Substantive Changes: Editorial revisions, updates to contact information, and clarification of section numbers.

 

Incorporation by Reference: The ASTM F1967-24 standard will be incorporated into the federal regulations, and a read-only version will be available to the public on ASTM's website. The rule is set to take effect on January 4, 2025, unless adverse comments are received within 30 days of the notification.

 

Third-Party Testing: Infant bath seats, being children's products, must be tested by CPSC-accepted third-party labs, which must update their testing procedures to align with ASTM F1967-24.

 

Direct Final Rule Process: CPSC is using the direct final rule process because the update is considered noncontroversial. If significant adverse comments are received, the rule may be withdrawn and reconsidered.

This update reflects changes in bathtub designs on the market and ensures that the test methods used for infant bath seats remain relevant and effective in promoting product safety.

 

 

EVENT: USFIA National Import Specialists Apparel Classification Workshop

Tuesday, November 12, 2024 from 2 - 4pm | U.S. Customs & Border Protection, One World Trade Center, New York, NY 10007

 

USFIA invites you to participate in a special pre-Conference event: a meeting with key National Import Specialists and gain a better understanding of the U.S. Customs & Border Protection classification process. After a brief introduction and overview of the classification process by Deborah Marinucci, Branch Chief of the National Commodity Specialist Division, you will have the opportunity to talk informally with each National Import Specialist in a trade fair-style environment. We anticipate participation by NIS’s for apparel, home textiles, and accessories areas. Pricing for the event is $45 for USFIA members and free for registered conference attendees. 

 

Register for the Apparel Classification Workshop.

 

EVENT: 2025 Trade Facilitation and Cargo Security Summit

May 6 - 8, 2025 | Hilton New Orleans Riverside, Two Poydras St, New Orleans, LA 70130

 

This event will be hosted in person and webcasted. Event and registration details will be available soon and posted to the TFCS Summit web page. 

 

Click here for more information.

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