VES-4-03-CO:R:IT:C 113004 GEV

Hendrik N. Smit
37 C Avenue Hamoir Bte.5
B-1180 Bruxelles, Belgium

RE: Foreign-Flag Pleasure vessel; Importation; HTSUSA

Dear Mr. Smit:

This is in response to your letter dated January 13, 1994, regarding the possible assessment of duty on your pleasure boat upon its arrival in the United States. Our ruling on this matter is set forth below.

FACTS:

A retired member of the United States Senior Foreign Service has elected, upon retirement, to make his residence in Belgium. He has the status of a non-resident for IRS purposes. He owns a 21' diesel-powered pleasure boat which he would like to bring to the United States to explore the Intra Coastal Waterway during several seasons. The boat would be transported on a freighter and unloaded in either Savannah, Georgia or Charleston, South Carolina.

ISSUE:

Whether a pleasure vessel brought into the United States by a non-resident to be used for his own pleasure purposes would be subject to the assessment of duty pursuant to the HTSUSA.

LAW AND ANALYSIS:

Pursuant to Additional U.S. Note 1, Chapter 89, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), vessels brought into the Customs territory of the United States by non- residents thereof for their own use in pleasure cruising shall be admitted without formal Customs consumption entry or payment of duty. - 2 - We note your cite to 148.45, Customs Regulations (19 CFR 148.45) which provides that non-residents are entitled to entry free of duty and internal revenue tax under subheading 9804.00.35 and Chapter 98, U.S. Note 3, HTSUSA, for, among other things, boats that are imported in connection with the arrival of the non- resident to be used in the United States only for the transportation of the non-resident, his family and guests, and such incidental carriage of articles as may be appropriate to his personal use of the boat.

Accordingly, in view of your status as a non-resident and your intent to use the vessel for your own pleasure purposes in this country, the vessel may be brought into the United States free of duty and without formal Customs entry pursuant to the provisions discussed above. Informal entry of the vessel may be made pursuant to 143.21 - 143.28, Customs Regulations (19 CFR 143.21 - 143.28).

HOLDING:

A pleasure vessel brought into the United States by a non- resident to be used for his own pleasure purposes would not be subject to formal Customs entry and payment of duties pursuant to Additional U.S. Note 1, Chapter 89, U.S. Note 3, Chapter 98, HTSUSA. Sections 148.45, 143.21 - 143.28, Customs Regulations (19 CFR 148.45, 143.21 - 143.28), noted.

Sincerely,

Arthur P. Schifflin
Chief