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HQ 223373

December 11, 1991

CON-3-05/BAG-5-05
CO:R:C:E 223373 DHS

CATEGORY: CONDITIONALLY FREE

Jack Alsup, Esq.
Alsup & Alsup, Inc.
P.O. Box 1251
Del Rio, Texas 78841

RE: Alcoa Fujikura Ltd.; 9804.00.10; Weighing Equipment; Tools of Trade

Dear Mr. Alsup:

This is in reference to your letter of July 26, 1991, on behalf of your client, Alco Fujikura Ltd. (AFL), concerning the the applicability of 9804.00.10 HTSUS to weighing scales.

FACTS:

You have stated that AFL is an assembler of auto ignition wire harnesses in Mexico, operating under the Mexican in-bond maquiladora program. The principal inventory method employed by AFL in its seven assembly plants importing and exporting through the Del Rio, Texas Customs Port of Entry, is inventory by weight.

AFL proposes to export from the U.S. to Mexico 40 to 50 weighing scales obtained from their affiliated companies to be used for a two to three day period. Many scales are of foreign origin.

You have stated that an employee of AFL will accompany the equipment to and from Mexico. The equipment will be registered with the U.S. Customs Service, in the individual's name, on a CF 4455 when departing the U.S.

ISSUE:

What procedure must be followed to entitle an employee to an exemption from duty under 9804.00.10 HTSUS? LAW AND ANALYSIS:

Professional books, implements, instruments, or tools of trade, occupation or employment, may be allowed entry free of duty and tax under the provisions of subheading 9804.00.10, Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202), and for such articles taken abroad by or for the account of any person arriving in the U.S.. (19 CFR 148.53)

The procedures regarding the entry and clearance of tools of trade is primarily set forth in section 10.68, 148.6 (unaccompanied shipments), and 148.53 (exemption for tools of trade) of the Customs Regulations.

The exemption for tools of trade is considered a personal exemption available only to individuals arriving in the U.S. from a foreign country. Merchandise consigned to and entered by or for the account of a firm does not qualify for this exemption. There is no requirement of ownership by the individual in order to benefit from the exemption. Therefore, merchandise of domestic or foreign manufacture exported from the U.S. by an individual employed by the company, AFL, and reimported by the same individual, even though actually owned by AFL, is eligible for exemption from duty as tools of trade. Additionally, the act by the employee of accompanying the equipment to and from Mexico, although not required, would be a sufficient connection between the exportation of the goods and the employees journey home.

Before exportation, the equipment foreign or domestic subject to classification under 9804.00.10 HTSUS, must be registered on Customs Form 4455, Certificate of Registration, in the name of the individual, or the employee of an organization, by or for whose account the articles are taken or shipped abroad and will be returned.

Upon reentry into the U.S., the returning individual or broker on behalf of the returning individual is required to present the CF 4455, the CF 7501, Entry Summary including a reference made to the employee as the importer, and the Customs Form 3299, Declaration For Free Entry of Articles Not Accompanying a Resident or Nonresident. If the district director is satisfied an oral declaration may be accepted in lieu of a written declaration.

HOLDING:

The equipment which will be accompanied by an employee of AFL to Mexico from the U.S. and from Mexico returning to the U.S. will be entitled to exemption from duty under 9804.00.10 HTSUS as tools of trade if the CF 4455, the CF 3299 and the CF 7501 is completed and presented according to 19 CFR 148.53, 10.68 of the Customs Regulations.

Sincerely,

John Durant, Director

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