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HQ 220988


August 29, 1989

CLA-2-CO:R:C:E 220988 L

CATEGORY: CLASSIFICATION MARKING

TARIFF NO.: Additional U.S. Note 2, Chapter 49, Harmonized Tariff Schedule of the United States

John J. Scanlon, Jr., Esq.
Kemp, Smith, Duncan & Hammond
P.O. Drawer 2800
El Paso, Texas 79999-2800

RE: Classification of certain used airline tickets and used credit card charge forms; your reference JS No. 88-0537

Dear Mr. Scanlon:

Your inquiry of October 7, 1988, requests a binding ruling on the classification of certain used airline tickets and used credit card charge forms, and a binding ruling that the used airline tickets and used credit card forms are exempt from country of origin marking requirements.

FACTS:

A 5-page description of the sorting and data collection process (the "process") abroad involving the used airline tickets and credit card charge forms has been submitted. Stripped of detail and so far as is pertinent to the classification issue, used airline tickets are collected from United States airline companies. Although not specifically stated, it appears the tickets are issued, used, and collected in the United States by the airline companies or their agents. Similarly, the credit card charge forms appear to be used and collected in the United States by the airline companies or their agents.

On a regular basis the used airline tickets and credit card charge forms are exported to Mexico for processing. Following processing the used airline tickets and credit card charge forms are returned to the United States.

ISSUE:

Two issues are presented. The first is whether the used airline tickets and used credit card charge forms are intangibles within the purview of General Headnote 5(d), Tariff Schedules of the United States (TSUS). The second issue is whether used airline tickets and used credit card charge forms are subject to country of origin marking requirements pursuant to 19 U.S.C. 1304.

LAW AND ANALYSIS:

The TSUS was supplanted by the Harmonized Tariff Schedule of the United States (HTSUS) on January 1, 1989. General Note 4(c), HTSUS, provides that for the purposes of General Note 1, HTSUS, records, diagrams and other data with regard to any business, engineering or exploration operation whether on paper, cards, photographs, blueprints, tapes or other media are not goods subject to the provisions of the tariff schedule.

Section 141.4, Customs Regulations, as pertinent here provides that entry under 19 U.S.C. 1484(a) is not required for articles listed in General Note 4, (erroneously indicated as General Note 5) HTSUS, and additional U.S. Note 2 to Chapter 49, HTSUS, exempts items provided for in heading 4907 from the requirement for entry or the payment of duty. Additional Note 2 to Chapter 49 in some respects parallels former General Headnote 5(d), TSUS.

Heading 4907.00.00, HTSUS, provides for unused postage, revenue or similar stamps of current or new issue in the country to which they are destined; stamp-impressed paper; banknotes; check forms; stock, share or bond certificates and similar documents of title.

Heading 49.07(E), Section X, Explanatory Notes to the Harmonized System, provides in part that "similar documents of title" are formal documents issued, or for issue, by public or private bodies conferring ownership of, or entitlement to, certain financial interests, goods or benefits named therein.

The used airline tickets and used credit charge forms, as described, have no intrinsic value. Rather, it is stated, they are evidence of amounts owed to the various airlines for services which the airlines have rendered or will soon render. Likewise, it is stated, they are evidence of such debt or obligation to the various issuing banks at the time of their importation and in the condition imported.

The process described appears similar to a bank clearinghouse but with the exchange of used airline tickets and credit card charge forms issued by the various parties and the balancing of the accounts. The used airline tickets and used credit card charge forms are not "similar documents of title" within the meaning of heading 4907 HTSUS. They are, however, business records within the intendment of General Note 4(c), HTSUS, and, accordingly, are exempt from the requirement for entry or the payment of duty.

With respect to the second issue, the Customs Service has held that "intangibles" under the TSUS are not articles within the meaning of 19 U.S.C. 1304 and therefore need not be marked with the country of origin.

The same view is adopted with respect to General Note 4(c), HTSUS.

HOLDING:

Used airline tickets and used credit card charge forms exported from the United States for processing as described in detail in a submission dated October 7, 1988, bearing the reference JS No. 88-0537, and subsequently returned to the United States are business records within the meaning of General Note 4(c), HTSUS, and are exempt from the requirement for entry or the payment of duty.

The subject used airline tickets and used credit card charge forms are not subject to the marking requirements of 19 U.S.C 1304.

Sincerely,


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