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HQ 223722


May 26, 1992

BON-1-04-CO:R:C:E 223722 SLR

CATEGORY: BONDS

TARIFF NO.: 9813.00.75

Mr. William L. Morandini
District Director
Patrick V. McNamara Bldg.
477 Michigan Ave.
Detroit, MI 48226

RE: TIB Extension; Untimely Request; 19 CFR 10.37

Dear Mr. Morandini:

This is in reference to your memorandum of February 5, 1992, concerning an untimely request for extension of the bond period on TIB entries 510-37196535 and 510-37196543, filed by Mr. James M. Licate of Mazda Motors Manufacturing (USA) Corporation. Our decision follows.

FACTS:

On May 10, 1991, Mazda entered car bodies duty-free under temporary importation under bond (TIB) as show vehicles in subheading 9813.00.75, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). On January 17, 1992, the District Director of Customs, Detroit, Michigan, issued a "Notice of Penalty of Liquidated Damages Incurred and Demand for Payment" (CF 5955A) for failure to export within the bond period (May 10, 1991 - November 10, 1991), or to obtain lawful extension thereof. Liquidated damages were assessed at $2055.36, which is twice the amount of duty due. The importer now requests extension of the TIB as well as waiver of the liquidated damages. Mazda indicates that it had flagged the shipment as a one year TIB and did not realize that for subheading 9813.00.75, HTSUSA, the length of the bond period is only six months. Mazda feels that due to the "extenuating circumstances," it should be allowed the TIB extension and relief from all penalties.

ISSUE:

Whether an extension of the TIB and the cancellation of liquidated damages are warranted in this case.

LAW AND ANALYSIS:

Subheading 9813.00.75, HTSUSA, provides for the free importation, under bond, of "[a]utomobiles, automobile chassis, automobile bodies ... when intended solely for show purposes." Under U.S. Note 1(a) of Subchapter XIII, HTSUSA, articles described in the provisions of this subchapter, when not imported for sale or sale on approval, may be admitted into the United States without the payment of duty, under bond for their exportation within one year from the date of importation. U.S. Note 1(a) adds, however, that "articles imported under heading 9813.00.75 shall be admitted under bond for their exportation within 6 months from the date of importation and such a 6-month period shall not be extended...." (Emphasis added.)

Untimely TIB extension requests are referred to Customs Headquarters under 19 CFR 10.37. Generally speaking, Customs employs a five part criteria to determine whether an extension of a TIB is warranted. This is unnecessary here, however, as U.S. Note 1(a) of Subchapter XIII of the HTSUSA strictly prohibits the extension of the subheading 9813.00.75 six month bond period.

HOLDING:

Based on the foregoing, you should deny the TIB extension request. Moreover, you should proceed with the liquidated damages claim in accordance with Part 172 of the Customs Regulations. You may provide a copy of this decision to the importer if you so desire.

Sincerely,

John Durant, Director
Commercial Rulings Division

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