OT:RR:CTF:VS H327171 RMC
Jacquelyn Votra
Trans-Border Global Freight Services
2103 Route 9
Round Lake, NY 12151
RE: Importation of Materials for the World University Games; Subheading 9817.60.00, HTSUS
Dear Ms. Votra:
This is in response to your correspondence dated August 24, 2022, in which you request a ruling on behalf of Schure Sports USA Inc. (“Schure”) on the applicability of subheading 9817.60.00, Harmonized Tariff Schedule of the United States (“HTSUS”) to materials that will be imported for the 2023 Winter World University Games. Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for response.
FACTS:
You describe the Winter World University Games (“Games”) as the “largest winter multi-sport collegiate event in the world.” The Games are organized by the Federation Internationale du Sport Universitaire (“FISU”), which is headquartered in Lausanne, Switzerland. The FISU is responsible for the organization and governance of worldwide sports competitions for student-athletes between the ages of 17 and 25. According to the FISU, the Games are held every two years in different cities around the world, bringing together thousands of athletes from over 150 countries. See Federation Internationale du Sport Universitaire, About FISU, https://www.fisu.net/fisu/about-fisu (last visited Nov. 16, 2022). The program for the Games includes 25 sports: 15 summer and 10 winter. Id. The next winter Games will take place from January 12-22, 2023, in Lake Placid, New York.
In fulfillment of a sales contract concluded with the Lake Placid 2023 World University Games Organizing Committee (“Organizing Committee”), Schure plans to import sweaters, jackets, hats, sports bags, globes, and blankets for use at the 2023 Games. You state that, before importation, the merchandise will have been sold to the Organizing Committee. Schure will act as the importer of record and be the ultimate consignee of the merchandise. Each imported item will be marked with the logos “Lake Placid 2023” and “FISU World University Games Winter.” After importation, the Organizing Committee will distribute the merchandise to participants, games officials, and volunteers free of charge. You state that the merchandise will not be sold or distributed to the general public.
On behalf of Schure, you have requested that U.S. Customs and Border Protection (“CBP”) issue a ruling that the merchandise will qualify for a duty-free treatment under that provision subheading 9817.60.00, HTSUS.
ISSUES:
Whether the items described above, imported for use during the Games in Lake Placid, are eligible for duty-free treatment under subheading 9817.60.00, HTSUS.
LAW AND ANALYSIS:
Subheading 9817.60.00, HTSUS, provides duty-free treatment 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 HTSUS 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 contains virtually identical language with regard to the provision. See H.R. Rep. No. 789, 106th Cong, 2nd Sess. (2000), (“Miscellaneous Trade and Technical Corrections Act of 2000”).
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).
In this case, you state that the imported merchandise will not be available to the general public. Instead, according to the information provided, distribution of the imported merchandise will be limited to participants, Games officials, and volunteers. We are therefore satisfied that the merchandise will constitute “articles not intended for sale or distribution to the public” for purposes of 9817.60.00, HTSUS. Because the Games are not among the qualifying events specifically enumerated in 9817.60.00, HTSUS, the next issue is whether the Games are a “similar international athletic event held in the United States” for purposes of the provision.
Here, the Games will take place in the United States and share important attributes with the enumerated qualifying events in 9817.60.00, HTSUS (“the Olympics and Paralympics, the Goodwill Games, the Special Olympics World Games, [and] the World Cup Soccer Games . . .”). Like those events, the Games are a competition organized by an international sports organization that involve participating athletes from various countries.
Moreover, events comparable to the Games have previously been designated as “similar international athletic event[s]” for purposes of subheading 9817.60.00, HTSUS. See, e.g., T.D. 02-21, Duty-Free Treatment of Articles Imported in Connection With the 2002 World Basketball Championship for Men, 67 Fed. Reg. 30414 (U.S. Customs Serv. May 6, 2002); T.D. 02-25, Duty-Free Treatment of Articles in Connection with the Volvo Ocean Race, 67 Fed. Reg. 34518 (U.S. Customs Serv. May 14, 2002); and CBP Dec. 04-23, Duty-Free Treatment of Articles Imported in Connection With the 2004 FINA World Championships, 69 Fed. Reg. 45072 (CBP July 28, 2004). Additionally, in Headquarters Ruling (“HQ”) H174206, dated July 22, 2011, CBP concluded that articles imported for the America’s Cup qualified for duty-free treatment under subheading 9817.60.00, HTSUS. In holding that the America’s Cup was a “similar international athletic event” for purposes of the provision, we noted the designation of the Volvo Ocean Race in 2002. Based on the similarities between the Volvo Cup and the America’s Cup—namely that both were international sailing events—CBP concluded that the America’s Cup was also a qualifying international athletic event for purposes of subheading 9817.00.60, HTSUS.
Here, considering the shared attributes between the Games and the enumerated qualifying events in the provision, as well as the similarities between the Games and the events previously designated as qualifying events, the Games will qualify as a “similar international athletic event” for purposes of subheading 9817.60.00, HTSUS. Therefore, the last issue is whether the merchandise will constitute “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 . . .” for purposes of the provision.
Because the merchandise has been sold to the Lake Placid 2023 World University Games Organizing Committee for distribution to participants, games officials, and volunteers, it will qualify as material imported both in connection with the Games and on behalf of the organizing committee. The physical marking of each item with the logos “Lake Placid 2023” and “FISU World University Games Winter” further supports the connection between the imported goods and the qualifying international athletic event. Therefore, because each requirement for eligibility under subheading 9817.60.00, HTSUS, has been satisfied, the merchandise identified in your request will qualify for duty-free treatment under that provision.
We note however, that in accordance with U.S. Note 8, Subchapter XVII, Chapter 98: “[a]ny 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.”
HOLDING:
The merchandise identified in this request qualifies for duty-free treatment under subheading 9817.60.00, HTSUS.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by [CBP] field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
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