OT-RR:CTF:VS H028001 GOB
Peter A. Quinter, Esq.
Becker & Poliakoff
P.O. Box 9057
Fort Lauderdale, FL 33310-9057
RE: Subheading 9801.00.10, HTSUS; Documentation
Dear Mr. Quinter:
This is in response to your correspondence of May 7, 2008 on behalf of AJ Jewels, Inc. (“AJJ”). Our ruling follows.
FACTS:
You describe the pertinent facts as follows. AJJ is engaged in the business of selling U.S.-manufactured jewelry in Mexico and Panama. The owner of AJJ travels by air between Miami, Florida and these locations, transporting the jewelry in his luggage. You state that the owner of AJJ occasionally returns to the U.S. with unsold merchandise, the value of which typically exceeds $2,000. The products of U.S. origin have not been advanced in value or improved in condition by any process of manufacture or other means while abroad.
You seek a ruling with respect to the documentation which is required where the owner of AJJ travels from the U.S. with goods for sale and returns to the U.S. with unsold merchandise. You state that upon return to the U.S. the goods are eligible for duty-free treatment under subheading 9801.00.10, Harmonized Tariff Schedule of the United States (“HTSUS”).
You state that prior to departure, AJJ routinely files a Shipper’s Export Declaration (“SED”), Form 7525-V. AJJ provides all of the required information on the SED, including a detailed description and the value of the goods being transported. AJJ provides the cost of the goods on the SED, rather than the “tag price,” which is the estimated selling price of the goods. You have also suggested the use of CBP Forms 3311 and 4455.
ISSUE:
What documentation is required or may be filed with respect to the reimportation of jewelry which is eligible for treatment under subheading 9801.00.10, HTSUS?
LAW AND ANALYSIS:
Subheading 9801.00.10, HTSUS, provides for the free entry of products of the United States that have been exported and returned without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, provided the documentary requirements of section 10.1, Customs and Border Protection (“CBP”) Regulations (19 CFR § 10.1), are met.
We will assume for the purpose of this ruling that the goods upon
re-entry into the U.S. are valued at more than $2,000 and that the goods are products of the United States. Formal entry is required for merchandise valued at over $2,000. See 19 CFR § 143.21(a), CBP Regulations which provides that certain shipments of merchandise not exceeding $2,000 in value may be entered under informal entry.
Section 10.1(a), CBP Regulations (19 CFR § 10.1(a)) provides in part that a declaration by the foreign shipper and a declaration by the owner, importer, consignee, or agent shall be filed in connection with the entry or articles in a shipment valued over $2,000 and claimed to be free under subheading 9801.00.10 or 9801.00.20, HTSUS.
Section 10.1(b), CBP Regulations (19 CFR § 10.1(b)) provides:
In any case in which the value of the returned articles exceeds $2,000 and the articles are not clearly marked with the name and address of the U.S. manufacturer, the port director may require, in addition to the declarations required in paragraph (a) of this section, such other documentation or evidence as may be necessary to substantiate the claim for duty-free treatment. Such other documentation or evidence may include a statement from the U.S. manufacturer verifying that the articles were made in the United States, or a U.S. export invoice, bill of lading or airway bill evidencing the U.S. origin of the articles and/or the reason for the exportation of the articles.
Section 10.1(d), CBP Regulations (19 CFR § 10.1(d)) provides:
If the port director is reasonably satisfied, because of the nature of the articles or production of other evidence, that the articles are imported in circumstances meeting the requirements of subheading 9801.00.10 or 9802.00.20, HTSUS, and related section and additional U.S. notes, he may waive the requirements for producing the documents specified in paragraph (a) of this section.
In the factual situation which you present there is no foreign shipper. Therefore, the requirement in 19 CFR § 10.1(a) for a declaration of the foreign shipper is effectively eliminated. The other provisions of 19 CFR
§ 10.1(a) are applicable, including: the requirement of a declaration by the owner of the goods; the fact that the port director may require additional documentation pursuant to 19 CFR § 10.1(b); and the fact that, pursuant to 19 CFR § 10.1(d), the port director may waive the documents specified in 19 CFR § 10.1(a).
In this case you have not indicated whether the jewelry is marked as made in the U.S. Therefore, as provided in 19 CFR § 10.1(b), the port director may require, in addition to the owner’s declaration, additional documentation to satisfactorily establish that the jewelry is a product of the U.S. While CBP does not object to the use of the SED or CBP Form 3311 and/or 4455 upon departure, these forms are not a substitute for documentation required under 19 CFR § 10.1, including any documentation the port director may require pursuant to 19 CFR § 10.1(b). In fact, the CBP Form 3311 was eliminated for the purpose of subheading 9801.00.10, HTSUS (T.D. 94-47, 59 FR 25563), as it was viewed as procedurally burdensome.
Rather, with respect to the exportation and subsequent reimportation of jewelry, upon request by CBP, AJJ should be prepared to provide documentation which satisfactorily establishes that the goods are products of the U.S. This documentation may include invoices from a U.S. manufacturer, as well as bona fide appraisals of the goods which include the country of manufacture and a thorough and specific description of the goods.
To summarize, the individual must meet the requirements of 19 CFR
§ 10.1 and must be able to satisfactorily establish that the goods are products of the U.S. The SED and CBP Forms 3311 and 4455 may be helpful for these purposes, but they do not guarantee eligibility for subheading 9801.00.10, HTSUS.
HOLDING:
For the reimportation of jewelry valued at over $2,000, as described above, formal entry is required. The documentary requirements for subheading 9801.00.10, HTSUS are provided in 19 CFR § 10.1. The individual must be able to satisfactorily establish that the goods are products of the U.S. The SED and CBP Forms 3311 and 4455 may also be used, but these forms do not substitute for the documentation required in 19 CFR § 10.1, including any documentation which may be required by the port director pursuant to 19 CFR § 10.1(b). Upon request, complete invoices and/or appraisals of the jewelry should be included with the documentation filed with CBP.
Sincerely,
Monika R. Brenner
Chief
Valuation & Special Programs Branch