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October 12, 1994

HQ 225482

ENT-4-02-CO:R:C:E 225482 CB

CATEGORY: ENTRY

J. W. Noonan
American Airlines
P. O. Box 619616
Dallas/Fort Worth Airport, TX 75261-9616

RE: Ruling request regarding pre-clearance of used passenger flight coupons; General Note 13(c), HTSUS

Dear Sir/Madam:

This is in reply to your letter of May 31, 1994, wherein you requested a ruling on the above-referenced matter. Our response follows.

FACTS:

On a daily basis, bags of used passenger flight coupons which represent the lifted tickets of passengers flown on American Airlines flights originating at Toronto and a collection of Canadian Airlines International lifted coupons will be processed under American Airlines Revenue Accounting program. You state that determining an air carrier's revenue on a timely basis is critically important and this preclearance process will eliminate the need to hold these coupons for post clearance in New York.

You have requested our approval to have U.S. Customs in Toronto, Canada, preclear on a daily basis these used coupons.

ISSUE:

Are the used passenger flight coupons eligible for preclearance in Toronto?

LAW AND ANALYSIS:

The issue of whether the used passenger flight coupons are eligible for preclearance is irrelevant because the coupons are exempt from the requirement for entry or the payment of duty.

General Note 13(c), Harmonized Tariff Schedule of the United States (HTSUS), provides that for the purposes of General Note 1, HTSUS, records, diagrams and other data with regard to any business, engineering or exploration operation whether on paper, cards, photographs, blueprints, tapes or other media are not goods subject to the provisions of the tariff schedule.

Section 141.4, Customs Regulations, provides that entry under 19 U.S.C. ?1484(a) is not required for articles listed in General Note 13, (erroneously indicated as General Note 4) HTSUS, and additional U.S. Note 2 to Chapter 49, HTSUS, exempts items provided for in heading 4907 from the requirement for entry or the payment of duty.

The question of whether used airline tickets are subject to entry was addressed in Headquarters Ruling (HQ) 220988, dated August 29, 1989. That ruling held that used airline tickets imported into the United States are business records within the meaning of General Note 13(c), HTSUS, and are exempt from the requirement for entry or the payment of duty. There is no reason to conclude otherwise in the instant case.

HOLDING:

The used passenger flight coupons are exempt from the requirement for entry or the payment of duty by virtue of General Note 13(c), HTSUS. Therefore, such used coupons are not eligible for preclearance.

Sincerely,

John Durant, Director
Commercial Rulings Division

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