AIR-1-01 CO:R:IT:C 112719 JBW
Mr. Kenneth H. Rucki
President
North Country Helicopters
127 West Flower Avenue
Watertown, N.Y. 13601-3934
RE: Air Commerce; Helicopter; Ambulance; Rescue; Importation;
Lease; 19 U.S.C. 1322; 19 C.F.R. 10.41(d).
Dear Mr. Rucki:
This letter is in response to your request dated April 26,
1993, for a ruling on the application of customs laws and
regulations to the use of a foreign-registered helicopter in an air
ambulance service.
FACTS:
You state that you wish to establish a commercial air ambulance
service in rural northern New York. A Canadian company currently
has idle helicopters that it will lease to your company for use in
the service. However, you state that the lessor wishes to keep the
helicopters under Canadian registry so that the helicopters will not
be deemed "reimported" into Canada after expiration of the lease.
Both types of helicopters that may be leased were manufactured in
the United States. The crews will be United States certified .
ISSUE:
Whether a foreign-registered helicopter is exempt from entry
and payment of duty if such helicopter is brought into the United
States for use in a commercial air ambulance service on a long-term
lease.
LAW AND ANALYSIS:
Section 1322(b) of Title 19, United States Code, provides in
pertinent part:
(b) The Secretary of the Treasury may provide by
regulation or instruction for the admission, without
entry and without the payment of duty or tax imposed upon
or by reason of importation, of--
* * *
(2) fire-fighting and rescue and relief equipment
and supplies for emergent temporary use in
connection with conflagrations;
(3) rescue and relief equipment and supplies for
emergent temporary use in connection with floods and
other disasters....
19 U.S.C. 1322(b)(2)&(3) (1988). The Customs Regulations provide
for the admission without entry or the payment of duty of the
articles described in the statute. 19 C.F.R. 10.107 (1992). The
facts indicate that the Canadian-owned helicopters in the air
ambulance service will be for long-term as opposed to temporary use.
Therefore, the terms of the exemptions contained in 19 U.S.C.
1322(b)(2)&(3) are not met.
Alternatively, Section 10.41 of the Customs Regulations
provides, in pertinent part:
(d) Any foreign-owned vehicle, aircraft, or
undocumented boat brought into the United
States for the purpose of carrying merchandise
or passengers between points in the United
States for hire or as an element of a
commercial transaction ... is subject to
treatment as an importation of merchandise from
a foreign country and a regular entry therefor
shall be made.
19 C.F.R. 10.41(d) (1992). The helicopters that you propose to use
are currently owned by a Canadian corporation and will be used in a
commercial air ambulance service. The foreign-owned helicopters
will therefore be transporting passengers between points in the
United States for hire. As such, the helicopters will be treated as
imported merchandise pursuant to 19 C.F.R. 10.41(d); entry will be
required and duty will be assessed at the airport of first arrival.
19 C.F.R. 141.1(a) (1992). Use in the United States will be
without further supervision by the Customs Service unless or until
the helicopters leave the United States.
Two methods may be used to establish the rate of duty for the
helicopters. Under the first method, helicopters are classified
depending on their size under either subheading 8802.11.00 or
subheading 8802.12.00 of the Harmonized Tariff Schedules of the
United States (HTSUS). In either case, as importations from Canada,
the rate of duty would be free pursuant to the Agreement on Trade in
Civil Aircraft. Regulations governing importations under this
agreement may be found in section 10.183 of the Customs Regulations
(19 C.F.R. 10.183). Under the second method, as products of the
United States, the helicopters may also qualify for a free or
reduced duty rate under heading 9801 HTSUS or heading 9802 HTSUS.
Regulations governing importations under these provisions may be
found in section 10.1 of the Customs Regulations (19 C.F.R. 10.1).
Treatment under both of these methods is contingent on the
helicopters meeting specified eligibility criteria. We recommend
that you contact the appropriate import specialist at your intended
port of arrival to ascertain eligibility of the helicopters to be
imported under these programs.
HOLDING:
Foreign-owned helicopters used in a commercial air ambulance
service in the United States will be transporting passengers between
points in the United States for hire. Pursuant to 19 C.F.R.
10.41(d), the helicopters will be treated as imported merchandise;
entry will be required and duty will be assessed at the airport of
first arrival. Because the helicopters will be based in the United
States for long-term use, they will not be eligible for the
exemptions granted to rescue equipment under 19 U.S.C. 1322(b).
This letter addresses only those issues within the
administrative authority of the Customs Service. Authorizations
required under the Federal Air Regulations should be addressed to
the Department of Transportation.
Sincerely,
Acting Chief