CON-9-09-CO:R:C:E 224496 SR
Dr. Albert M. Fleischner
Roberts Laboratories Inc.
Meridian Center III
6 Industrial Way West
Eatontown, NJ 07724
RE: Temporary importation under bond for processing and testing
Benzylamine
Dear Dr. Fleischner:
This is in response to your letter dated February 16, 1993,
requesting entry free of duty under subheading 9813.00.30,
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
Roberts Laboratories Inc. imports 2,3-Dichloro-6-Nitro
Benzylamine from Denmark into the ports in Milwaukee, Wisconsin
and New York, NY. The benzylamine is delivered to Cambridge
Chemical, Inc. to be processed for use by Roberts Laboratories,
Inc.. Roberts Laboratories uses this product solely for the
purpose of research and development studies in relation to the
production of a pharmaceutical active ingredient known as
anagrelide. Neither the material nor the anagrelide will enter
the commercial market for sale but shall only be used in animal
toxicology studies.
ISSUE:
Whether the benzylamine may enter the U.S. duty-free
temporarily under bond.
LAW AND ANALYSIS:
Articles that are intended solely for testing, experimental,
or review purposes may be entered duty-free, temporarily, under
bond (TIB) under subheading 9813.00.30, HTSUS. Under U.S. Note
1, Subchapter XIII, articles may be admitted TIB when not
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imported for sale or for sale on approval, provided they are
exported within one year from the date of importation, unless an
extension is granted by the district director. Extensions are
granted for a period of one year at a time which, when added to
the initial 1 year, shall not exceed a total of 3 years.
In this case the imported drug is benzylamine. The
benzylamine is processed into anagrelide which is used for the
experimental testing. Because the benzylamine is further
processed it is not the drug that is actually being used for the
testing and therefore cannot meet the requirements to be imported
temporarily under bond under subheading 9813.00.30, HTSUS.
Articles may also be entered duty-free, temporarily, under
bond, under subheading 9813.00.05, HTSUS, if they are to be
altered or processed, including processes which result in
articles manufactured or produced in the United States. However,
under this provision the article must be exported.
Exception to the exportation requirement applies only to
articles that are admitted for experimental testing. The article
that was admitted is not the article that was tested. Instead,
anagrelide, which was made from the imported article, was the
article that is to be tested. Note 3, to Subchapter XIII, states
"[u]pon satisfactory proof that any article admitted under
heading 9813.00.30 has been destroyed because of its use for any
purpose provided for therein, the obligation under the bond to
export such article shall be treated as satisfied." Because the
anagrelide is not being admitted under subheading 9813.00.30,
HTSUS, this exception does not apply. Since the benzylamine,
which is imported, is consumed it can not meet the exportation
requirement of subheading 9813.00.30, HTSUS.
HOLDING:
The merchandise at issue does not meet the qualifications
for duty-free temporary importation under bond.
Sincerely,
John Durant, Director
Commercial Rulings Division