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HQ 224246

February 17, 1993

CON-9-04-CO:R:C:E 224246 DH

CATEGORY: CONDITIONALLY FREE

C.K. Murphy
Manager
International Logistics
Eveready Battery Company, Inc.
Post Office Box 450777
Westlake, Ohio 44145-0616

RE: Temporary importation under bond applied to the application or processing of lithograph metal displaying labels to batteries; Labelling; Subheading 9813.00.05, HTSUS

Dear Mr. Murphy:

This is in response to your letter of September 2, 1992, regarding the applicability of the temporary importation under bond (T.I.B.) procedures and subheading 9813.00.05 of the Harmonized Tariff Schedule of the United States (HTSUS), to lithograph metal applied to batteries as labels.

FACTS

Lithograph metal displaying labels has been imported into the U.S. from Japan under subheading 7210.90.60009, HTSUS. The sheets are cut to the size of 9v battery jackets and applied to the individual 9v batteries. Upon completion, the batteries are exported. An inventory of the imported lithograph metal used for exported batteries is kept separately from the inventory of lithograph metal used on the domestic batteries.

LAW AND ANALYSIS

Under subheading 9813.00.05, HTSUS, articles to be repaired, altered or processed (including processes which result in articles manufactured or produced in the United States) may be entered duty-free, temporarily, under bond for their exportation within one year from the date of importation unless an extension for one or more additional periods, which when added to the initial period does not exceed three years, is granted by the district director.

From the description of the operation given, all indications are that a process takes place. However, you must meet all of the accountability requirements under the U.S. Notes of Subchapter XIII, HTSUS. In particular, subheading 9813.00.05, HTSUS, U.S. Note 2(b) states that if any processing of such merchandise results in an article 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.

The applicable Customs regulations may be found at 19 CFR 10.31 through 10.40. Section 10.31(f) states that a bond shall be given on Customs Form 301 in an amount equal to double the duties which it is estimated would accrue (or such larger amount necessary to protect the revenue) had all the articles covered by the entry been entered under an ordinary consumption entry. The basis for the computation of the amount of a temporary importation bond is estimated duties determined in accordance with section 141.90 and 141.103 of the Customs Regulations (19 CFR 141.90 and 19 CFR 141.103). To this amount is added any other duties that the district director ascertains may become due on the articles so entered.

HOLDING

Entry is permitted in this case under a temporary importation under bond as a process under subheading 9813.00.05, HTSUS. The importer must meet all of the accountability requirements under the U.S. Notes of Subchapter XIII to the satisfaction of the District Director and all other requirements contained in 19 CFR 10.31-10.40.

Sincerely,

John Durant, Director

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