OT:RR:CTF:VS H174206 CMR

Mr. Daley Dunham
Government Affairs
Port of San Francisco
Pier 1
San Francisco, CA 94111

RE: Importation of equipment and materials related to the America’s Cup and associated regattas; Subheading 9817.60.00, HTSUS

Dear Mr. Dunham:

This ruling is in response to your ruling request of June 30, 2011, on behalf of the America’s Cup Event Authority, regarding the classification in subheading 9817.60.00 of the Harmonized Tariff Schedule of the United States (HTSUS) of all equipment and materials related to the 34th America’s Cup, including the associated preliminary qualifying regattas held at U.S. ports.

FACTS:

The America’s Cup is an international sailing competition dating back to 1851. The 34th America’s Cup, includes associated preliminary qualifying regattas; that is, the Louis Vuitton Cup (America’s Cup Challenger Series), the Defender Series (if any), and the America’s Cup World Series. The first 34th America’s Cup World Series event to be held in the U.S. will be in San Diego, California, in November of 2011. The second and third scheduled America’s Cup World Series events to be held in the U.S. will be in San Francisco, California, in 2012. It is also possible that one or more other America’s Cup World Series events will be held in San Diego or San Francisco or in other U.S. ports yet to be determined. The America’s Cup Event Authority is planning to hold the Louis Vuitton Cup (America’s Cup Challenger Series) and the America’s Cup Finals in San Francisco in 2013. The America’s Cup competition involves events at various ports around the world. You have informed us that the America’s Cup Event Authority has chartered a cargo vessel for the purpose of moving event related equipment from one event location to the next. You stated via an e-mail to this office: “[A]fter every event, every single piece of equipment, including the race boats and support boats, are broken down and stored in cargo containers, and placed on that ship [the cargo vessel]. The entire race is essentially boxed up and moved to a new port.”

You have requested CBP issue a ruling that the regatta events held in the U.S. are international sporting events. In addition, you request that CBP rule that all event-related equipment and materials, including but not limited to, racing watercraft, support craft, support equipment, personal effects, television broadcast and production equipment, specialized electronic race management equipment (for timing and umpiring) and all other race-production related equipment, provided none of said items are for sale or distribution to the public, are eligible for classification in subheading 9817.60.00, HTSUS, as necessary components of the sporting event known as the America’s Cup. The ruling issued by CBP will be cited by all persons involved in the production of the 34th America’s Cup regattas in subsequent applications for classification in subheading 9817.60.00, HTSUS.

ISSUE:

Is the America’s Cup, including its related regattas, an international athletic event within the meaning of subheading 9817.00.60, HTSUS?

Are the items described above, imported for use during the America’s Cup events held in the United States, eligible for duty-free treatment under subheading 9817.60.00, HTSUS?

LAW AND ANALYSIS:

Subheading 9817.60.00, HTSUS, provides for:

Any of the following articles not intended for sale or distribution to the public: personal effects of aliens who are participants in, officials of, or accredited members of delegations to, an international athletic event held in the United States, such as the Olympics and Paralympics, the Goodwill Games, the Special Olympics World Games, the World Cup Soccer Games, or any similar international athletic event as the Secretary of the Treasury may determine, and of persons who are immediate family members of or servants to any of the foregoing persons; equipment and materials imported in connection with any such foregoing event by or on behalf of the foregoing persons or the organizing committee of such an event, articles to be used in exhibitions depicting the culture of a country participating in such an event; and, if consistent with the foregoing, such other articles as the Secretary of the Treasury may allow. . . . Subheading 9817.60.00, HTSUS, became a provision in the tariff with the enactment of the Miscellaneous Trade and Technical Corrections Act of 2000, Public Law 106 – 476 (November 9, 2000). The Senate Report stated with regard to this new provision:

This provision would amend subchapter XVII of chapter 98 of the HTS by inserting a new heading 9817.60.00 for duty free treatment of the personal effects of participants in, officials of, and accredited members of delegations to, international athletic events, including the paralympics, held in the United States provided that these items are not intended for sale or distribution in the United States. H.R. 2715 would also exempt the articles covered under this provision from taxes and fees and would give the Secretary of the Treasury discretion to determine which athletic events, articles, and persons are covered under this provision.

See S. Rep. No. 503, 106th Cong., 2nd Sess. (2000), (“Tariff Suspension and Trade Act of 2000”) The House Report, H.R. Rep. No. 789, 106th Cong, 2nd Sess. (2000), (“Miscellaneous Trade and Technical Corrections Act of 2000”) contains virtually identical language with regard to the provision.

In explaining the reason for the creation of subheading 9817.60.00, both the House and Senate Reports stated:

The Committee recognizes the importance of international athletic events and the tremendous efforts of the athletes and participants. Although athletes and other officials connected with certain sporting events are currently afforded duty free treatment for their personal belongings and equipment under current law, such treatment will expire in December 2002. This legislation will give athletes and participants of future competitions certainty regarding their future duty liability.

See S. Rep. No. 503, 106th Cong., 2nd Sess. (2000), and S. Rep. No. 503, 106th Cong., 2nd Sess. (2000).

With regard to your request that CBP rule that the America’s Cup and its associated regattas are international athletic events, on May 14, 2002, notice was published in the Federal Register designating the Volvo Ocean Race, a round-the-world international sailing competition, as a qualifying international athletic event under subheading 9817.60.00, HTSUS. As the America’s Cup is another similar international sailing competition, it too qualifies as a qualifying international athletic event under subheading 9817.60.00, HTSUS.

Based on the information you have provided, the merchandise identified in your request, i.e., event-related equipment and materials, including racing watercraft, support craft, support equipment, personal effects, television broadcast and production equipment, specialized electronic race management equipment (for timing and umpiring) and all other race-production related equipment, provided none of said items are for sale or distribution to the public and provided said items are imported by, or on behalf, of eligible individuals, falls within the coverage of subheading 9817.60.00, HTSUS, and qualifies for duty-free entry under that provision. However, U.S. Note 8, Subchapter XVII, Chapter 98, provides:

Any article exempt from duty under heading 9817.60.00 shall be free of taxes and fees that may otherwise be applicable, but shall not be free or otherwise exempt or excluded from routine or other inspections as may be required by the Customs Service. [Emphasis added.]

With regard to merchandise that you have not specifically identified, it is within the discretion of the port to determine whether the merchandise meets the conditions and requirements of subheading 9817.60.00, HTSUS. We recommend that you work with the port of entry with regard to any merchandise not identified herein and any other issues you may have, such as the correct marking of the merchandise, prior to importation.

HOLDING:

The America’s Cup and its associated regattas are qualifying international athletic events under subheading 9817.60.00, HTSUS. The merchandise identified in this request qualifies for duty-free treatment under subheading 9817.60.00, HTSUS, as either “personal effects of aliens who are participants in, officials of, or accredited members of delegations to, an international athletic event held in the United States, . . . , and of persons who are immediate family members of or servants to any of the foregoing persons;” or as “equipment and materials imported in connection with any such foregoing event by or on behalf of the foregoing persons or the organizing committee of such an event.” Any additional articles meeting the conditions and requirements set forth in subheading 9817.60.00, HTSUS, imported by, or on behalf of, eligible individuals in connection with the America’s Cup and its associated regattas, will be entitled to duty-free treatment.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents are filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.

Sincerely,


Monika R. Brenner, Chief
Valuation and Special Programs Branch