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HQ 113852

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March 20, 1997

EXP-1-RR:IT:EC 113852 CC

CATEGORY: ENTRY

Rebekah J. Poston, Esq.
Steel Hector & Davis
200 South Biscayne Boulevard
Miami, FL 33131-2398

RE: Long Range Cordless Telephones Imported for Export Only

Dear Ms. Poston:

This is in response to your letter of February 13, 1997, forwarding a letter dated October 4, 1996, on behalf of your client, concerning making consumption entries for telephones that are intended for export only.

FACTS:

According to your submissions, your client desires to import long range cordless telephones intended for later export only. The long range cordless telephones, which are phones with a range of more than 700 feet, are prohibited from being sold for use in the United States by law and by regulations promulgated by the Federal Communications Commission (FCC).

You state that your client desires to import long range cordless telephones via consumption entries and then transport the merchandise by its own vehicles to un-bonded facilities located within 25 miles of an airport or other exit points. The packaging labels of the merchandise, the instruction manuals of the telephones, as well as all the sales materials and brochures, will each bear a conspicuous statement that the telephones are for export only and cannot be sold for use in the United States. The box in which the individual cordless telephone is to be sold will carry such a statement in a prominent location, visible to the buyer before purchase.

You state that your client desires to sell these long range cordless telephones to customers who are foreigners visiting the United States and who will use these telephones in their home countries after leaving the United States. You state the purchaser will be required to complete a "Customer's Affidavit for Export" which includes information such as purchaser name, country of citizenship, flight number, date of departure from the U.S., etc. In addition, your client will require other supporting documentation, such as a copy of the purchaser's airline ticket. Your client wants to use this documentation, as well as the Affidavit, to show that the telephones are for export only and not for domestic consumption in the United States.

Your client also desires to bring these telephones to electronics trade shows in the United States where your client will sell them to distributors and retailers, provided that each purchasing distributor or retailer executes a "Distributor/Retailer's Affidavit for Export."

ISSUES:

Whether the importer may make consumption entries for long range cordless telephones that are intended for export only, rather than entering them in foreign trade zones or bonded warehouses.

Whether the importer may enter long range cordless telephones for demonstration and sale at electronics trade shows.

LAW AND ANALYSIS:

In Headquarters Ruling Letter (HQ) 456502, dated November 4, 1993, we found that an importer was permitted to make consumption entries for long range cordless telephones which are intended for export only. This ruling was based in part on a letter from the FCC to Customs, dated October 21, 1993, in which the FCC stated that its regulations did not require the use of a foreign trade zone or bonded warehouse for the importation of devices intended for export, even when the devices were not in compliance with the requirements set for devices to be used in the United States. That letter also indicated that the FCC was aware that entry for exportation could only be properly monitored by Customs if such entry were into a foreign trade zone or bonded warehouse. Consequently, based on HQ 456502, we find that the importer may make consumption entries for long range cordless telephones intended for export only.

You have also stated that your client requests to bring long range cordless telephones to electronics trade shows in the United States. We note that 47 CFR ? 2.1204(a)(4) concerns the importation of radio frequency devices for demonstration at industry trade shows and may apply to your matter. Since that regulation is within the administration of the FCC, we suggest you contact them concerning this question at the following address:

Federal Communications Commission
Chief, Compliance Division
Compliance and Information Bureau
1919 M St., N.W.
Washington, DC 20554

HOLDING:

The importer may make consumption entries for long range cordless telephones which will later be exported.

Sincerely,

Acting Chief
Entry and Carrier Rulings Branch

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