United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1993 HQ Rulings > HQ 0223541 - HQ 0223772 > HQ 0223729

Previous Ruling Next Ruling


HQ 223729


June 18, 1992

CON-9-04 CO:R:C:E 223729 TLS

CATEGORY: ENTRY

Mr. V.M. DeLisi
Fanwood Chemical, Inc.
219 Martine Avenue North
P.O. Box 159
Fanwood, New Jersey 07023

RE: Ruling request on dutiable status of chemical imported from Germany; Harmonized Tariff Schedule of the United States Annotated (HTSUSA) subheading 9813.00.05; temporary importation bond (TIB).

Dear Mr. DeLisi:

The above-referenced request has been received by this office for consideration. We have considered the issues raised in your submission and our decision follows.

FACTS:

The requester would like to import a chemical under a duty- free provision of HTSUSA. The importation would be done under a TIB. The requester plans to use the chemical in its production of a chemical compound, all of which is to be exported. None of the imported merchandise will be wasted in production, nor will any of the manufactured product be marketed domestically.

ISSUE:

Whether the imported chemical may be entered under a temporary importation bond rather than a consumption entry.

LAW AND ANALYSIS:

HTSUSA subheading 9813.00.05 provides for entry under bond of certain articles. It reads as follows:

9813.00.05 Articles to be repaired, altered, or processed (including processes which in articles manufactured or produced in the United
States)................Free, under bond as prescribed in U.S. note
1 to this subchapter

U.S. Note 1(a) of HTSUSA subchapter XIII reads in pertinent part as follows:

The articles described in the provisions of this subchapter, when not imported for sale or for sale on approval, may be admitted into the United States without the payment of duty, under bond for their exportation within 1 year from the date of importation, which period, in the discretion of the Secretary of the Treasury, may be extended, upon application, for one or more further periods which, when added to the initial 1 year, shall not exceed a total of 3 years,...

Note 2 of the same subchapter reads as follows:

Merchandise may be admitted into the United States under heading 9813.00.05 only on condition that:

(a) Such merchandise will not be processed into an article manufactured or produced in the United States if such article is:
(i) Alcohol, distilled spirits, wine, beer, or any dilution or mixture of any or all of the foregoing;
(ii) A perfume or other commodity containing ethyl alcohol (whether or not such alcohol is denatured); or
(iii) A product of wheat; and
(b) If any processing of such merchandise results in an article (other than an article described in (a) of this U.S. note) manufactured or produced in the United States:
(i) A complete accounting will be made to the Customs Service for all articles, wastes and irrecoverable losses resulting from such processing; and
(ii) All articles and valuable wastes resulting from such processing will be exported or destroyed under customs supervision within the bonded period; except that in lieu of the exportation or destruction of valuable wastes, duties may be tendered on such wastes at rates of duties in effect for such wastes at the time of importation.

In the present case, the imported merchandise will not be used to produce alcohol, perfume, wheat, or any other commodity listed under U.S. note 2(a). The requester has stated that it will keep an accounting of the imported article and its use in the manufacturing process. As noted before, the manufacturing process referred to here also will not result in any valuable waste; consequently, U.S. note 2(b)(ii) does not apply here.

The requester has indicated an understanding of the requirements to be followed under a TIB entry and has expressed no difficulty in abiding by them. There is nothing under Customs laws and regulations or the HTSUSA that would suggest the subject chemical is precluded from being entered under a TIB. Therefore, we find that the proposed transaction is permissible under Customs laws to the extent that the importer meets all the requirements concerning the TIB entry.

As a final note, if the foreign manufacturer of the imported article is to be the importer of record on the transaction, the foreign company must retain the surety who will post the bond. The domestic manufacturer who will receive the imported article for production may export the final product on behalf of the importer in this case.

HOLDING:

The subject imported chemical may be entered under a temporary importation bond pursuant to the provisions of Harmonized Tariff Schedule of the United States Annotated subchapter XIII, U.S. Notes 1(a) and 2, and subheading 9813.00.05.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: