HQ 0735320 - Internal Advice Request 41/93; Appraisement Entry; Unknown Country of Origin - United States International Trade Commision Rulings

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HQ 735320

January 28, 1994

MAR 2-05 CO:R:C:V 735320 LR

CATEGORY: ENTRY MARKING

District Director of Customs
El Paso, Texas

RE: Internal Advice Request 41/93; Appraisement Entry; Unknown Country of Origin

Dear Sir:

This is in response to your memorandum dated April 27, 1993, forwarding a request for Internal Advice submitted by Westinghouse Electric Corporation ("Westinghouse").

FACTS:

Westinghouse contracted with American Industries, Inc. through its Mexican subsidiary, Industrias de Americanas, for the assembly of kits of electronics products - primarily radar subassemblies for the defense and aerospace industries. The kits consist of both foreign and domestic components gathered in Westinghouse's U.S. facility for shipment to Mexico through E1 Paso, Texas. After assembly, the finished products were to be returned to the United States. Westinghouse indicates that both the finished assembly and unassembled piece parts were the subject of marking waivers approved by your district.

On March 31, 1993, Westinghouse closed its factory in Mexico and shifted the production to the United States. All equipment and raw materials from the Mexican plant have been returned to the United States. The non-U.S. origin equipment and components are under temporary deposit in the City of E1 Paso Foreign Trade Zone and cannot be entered under the usual and normal entry procedures due to the unavailability of country of origin information. The goods entered into the FTZ consist of unassembled and partially assembled kits, ledger storeroom components, capital production equipment, and test equipment which Westinghouse had previously exported to Mexico.

You have advised that Westinghouse filed documentation requesting approval for use of an appraisement entry for this merchandise. Through use of the appraisement entry procedures, Westinghouse would like to identify on the entry documents, the origin of non-U.S. components returned by use of a generic designation of "foreign" or by listing the source countries in which the components may have originated. You are holding the appraisement entry documents pending our approval of such procedures.

ISSUE:

Whether Westinghouse, through use of the appraisement entry procedures, may identify on the entry documents the origin of non- U.S. components returned in unassembled kits by use of a generic designation of "foreign" or by listing the source countries in which the components may have originated.

LAW AND ANALYSIS:

19 U.S.C. 1481 provides that all invoices of merchandise to be imported into the United States shall set forth various information including facts deemed necessary to a proper appraisement, examination, and classification of the merchandise that the Secretary of the Treasury may require. Section 141.86(a)(10), Customs Regulations (19 CFR 141.86(a)(10)), provides that the country of origin is required on each invoice of imported merchandise.

Special entry procedures are provided in 19 CFR Part 143. Entry by appraisement is covered in 19 CFR Part 143, Subpart B. Such procedure is generally used when the importer has insufficient information as to the value of the imported articles and is unable to obtain such information or to determine the value of the articles for the purpose of making formal entry thereof. In such case, the importer shall present any bills or statements of cost relating to the merchandise which may be in his possession along with a declaration that he has no other information as to the value of the articles and is unable to obtain such information or to determine the value of the articles for the purpose of making formal entry thereof. See 19 CFR 143.13

As provided in 19 CFR 143.12, application for an entry by appraisement shall be made on the entry summary, Customs Form 7501. Each request for such approval shall be filed with the district director and shall state in detail the reasons for the request. 19 CFR 143.11(b). Except in situations specified in 19 CFR 143.11(a), which do not apply here, each entry by appraisement shall be allowed only with the approval of Headquarters.

By memorandum dated November 23, 1993 (copy enclosed), the Chief, Entry Rulings Branch, determined that appraisement entry procedures may be used in the present situation where due to the plant closing, Westinghouse does not have sufficient information regarding country of origin to specify the country of origin on the entry documents. However, certain conditions must be satisfied. The goods which are in the FTZ and are the subject of Westinghouse's request may be entered by means of an appraisement entry provided you are satisfied that: 1) the marking requirements will be complied with; 2) none of the goods are subject to antidumping or countervailing duties; 3) the merchandise is not from a column 2 country; and 4) the merchandise is not subject to quota. These conditions are discussed in more detail in the November 23, 1993 memorandum. Use of the appraisement entry procedures will enable Westinghouse to use a generic designation of "foreign" or to list the source countries in which the components may have originated on its entry documentation-

HOLDING:

If you are satisfied that the conditions specified in the November 23, 1993 memorandum are satisfied, Westinghouse may enter the merchandise described above for which it cannot ascertain the country of origin by means of an appraisement entry. Westinghouse may identify on the entry documents the origin of non-U.S. components by use of a generic designation of "foreign" or by listing the source countries in which the components may have originated.

The Office of Regulations and Rulings will take steps to make this decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Lexis, Freedom of Information Act and other public access channels 60 days from the date of this decision.

Please provide Westinghouse with a copy of this decision and the November 23, 1993 memorandum.

Sincerely,

John Durant, Director
Commercial Rulings Division

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