HQ 0222740 - Same condition drawback; 19 U.S.C. 1313(j); repacking; incidental operations; 19 CFR 191.141(a)(3). - United States International Trade Commision Rulings

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HQ 222740

October 3, 1991

DRA-4-CO:R:C:E 222740 GG

CATEGORY: DRAWBACK

John A. Slagle
Director, Customs Laws and Regulations
Wolf D. Barth Co., Inc.
7575 Holstein Avenue
Philadelphia, Pennsylvania 19153

RE: Same condition drawback; 19 U.S.C. 1313(j); repacking; incidental operations; 19 CFR 191.141(a)(3).

Dear Mr. Slagle:

This is in response to your letter, dated October 5, 1990, which requests a binding ruling for your client, Decision Data Computer Corporation ("Decision Data"). Our decision follows.

FACTS:

Decision Data plans to import color terminal monitors from Hong Kong. The boxes containing the monitors will include cavities for a keyboard, user manual, line cord and a Smart T. The monitors will be stored in these boxes in Decision Data's warehouse until an order is received. Then, a box containing a monitor will be opened, the correct keyboard, user manual, line cord and Smart T will be inserted into the proper cavities, the box will be resealed, and the entire unit will be exported.

ISSUE:

Whether the insertion of a keyboard, user manual, line cord, and Smart T into preexisting cavities found in boxes containing imported monitors, changes the condition of the imported monitors, or would be considered a use, under the same condition drawback law?

LAW AND ANALYSIS:

Section 313(j) of the Tariff Act of 1930, as amended (19 U.S.C. 1313(j) (1991)), authorizes a refund of 99% of the duties paid on imported merchandise that is, within 3 years of its importation, either exported in the same condition as when imported or destroyed under Customs supervision, and is not used within the United States before such exportation or destruction. The performing of incidental operations (including but not limited to testing, cleaning, repacking, and inspecting) on the imported merchandise, which do not amount to a manufacture or production for drawback purposes, is permitted and will not be considered a use of that merchandise. 19 U.S.C. 1313(j)(4); 19 CFR 191.141(a)(3).

Opening a box containing an imported monitor, and inserting a keyboard, user manual, line cord, and Smart T into preexisting cavities in what we understand to mean the box itself or the styrofoam insulation, is a repacking procedure which would fall within the definition of incidental operation. In reaching this conclusion, we take into consideration the fact that nothing will be done, and no attachments made, to the monitor itself. It will be exported in exactly the same condition as it was when it was imported.

HOLDING:

Inserting a keyboard, user manual, line cord, and Smart T into preexisting cavities in a box containing an imported monitor, is a repacking operation which would be considered incidental under the same condition drawback law. The performing of an incidental operation on imported merchandise does not amount to a proscribed use, nor does it change the condition of that merchandise.

Sincerely,

John Durant
Director, Commercial

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