HQ 224789 - Zone to Zone transfers; transfer of foreign status merchandise; 19 CFR 146.41(a) - United States International Trade Commision Rulings

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 > 1995 HQ Rulings > HQ 113529 - HQ 224789 > HQ 224789

September 27, 1993

HQ 224789

FOR-2-03-CO:C:E: 224789 CB

CATEGORY: ENTRY

Mr. Thomas S. Moore
Port of Corpus Christi Authority
222 Power Street
P. O. Box 1541
Corpus Christi, TX 78403

RE: Zone to Zone transfers; transfer of foreign status merchandise; 19 CFR 146.41(a)

Dear Mr. Moore:

This is in response to your letter of June 14, 1993, wherein you requested a binding ruling, on behalf of several oil refinery subzones, regarding the ability to transfer foreign status merchandise from one subzone to another.

FACTS:

According to your letter, subzones 122A, B, and C may manufacture products utilizing non-privileged foreign status merchandise. The products refined at these subzones are then either exported from the United States, entered into the customs territory of the United States, or transferred to another subzone.

Subzones 122I, J, and L have restrictions in their Grants of Authority which require that the subzone "elect privileged foreign status on foreign crude oil and other foreign merchandise admitted to the subzone." Therefore, when the non-privileged foreign status merchandise is transferred from subzones 122A, B, or C to subzones 122I, J, and L, the receiving subzone must, according to its grant, admit said foreign status merchandise into its subzone in privileged foreign status designation.

You have requested a "ruling to the effect that 'non- privileged foreign status' merchandise may be transferred from a subzone in which it has been manipulated or manufactured so as to effect a change in its tariff classification to a second subzone and be admitted therein in 'privileged foreign status.'"

ISSUE:

Whether non-privileged foreign merchandise, which has been manipulated or manufactured in a foreign trade zone, may be transferred to a second zone and admitted in privileged foreign status?

LAW AND ANALYSIS:

In your letter you note that the applicable regulation, 19 CFR been manipulated or manufactured so as to effect a change in tariff classification will be given status as privileged foreign status merchandise...." Therefore, since the non-privileged foreign status merchandise has been manipulated or manufactured at subzones 122A, B or C so as to effect a change in its tariff classification, the District Director does not have any regulatory authority to approve the admission of the foreign status merchandise in privileged foreign status in a subsequent subzones 122I, J, and L. The fact that, as you stated, there are "two separate manufacturing operations involved" does not make a difference. The language of the regulation is very clear.

The Foreign Trade Zones Board is charged with the primary responsibility of administering the Foreign Trade Zones Act, as amended, 19 U.S.C. ?81c. Therefore, we suggest that you bring the issue of the limiting language contained in the Grants of Authority issued to Subzones 122I, J, and L with the Board.

HOLDING:

Non-privileged foreign merchandise which has been admitted into one foreign trade zone, and therein manipulated or manufactured, may not be transferred to a subsequent foreign trade zone and admitted in privileged foreign status.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling