CLA-2 OT:RR:CTF:VS H276787 EE
Damon V. Pike
The Pike Law Firm, P.C.
2897 N. Druid Hills Rd. NE – Suite 155
Atlanta, GA 30329-3924
RE: Subheading 9801.00.10, HTSUS
Dear Mr. Pike:
This is in response to your letter, dated June 1, 2016, on behalf of your client, Hunter Douglas, Inc. (“HDI”), concerning the requirements for the recently amended subheading 9801.00.10, HTSUS.
FACTS:
HDI frequently exports materials to various countries outside the United States and then re-imports U.S.-origin items under heading 9801, Harmonized Tariff Schedule of the United States (“HTSUS”). Typically, HDI has a “Manufacturer’s Affidavit” on file for each U.S. originating good prior to export that contains the U.S. manufacturer’s attestation of the U.S. origin of the good. You provided us a copy of this affidavit, which states that the particular article (listing date of affidavit, manufacturer name and contact information, customer name and contact information, manufacturer’s part number, purchaser part number, detailed description of fabric, fiber/filament content, material content (if not fabric), and country of origin) was formed in the United States of imported fibers, that the fabric was not manufactured in a Foreign Trade Zone (“FTZ”), and that the buyer will be notified if the country of origin and/or place of manufacture of the fabric changes after the date of the letter. In addition, you state that HDI has not requested or received waivers from U.S. Customs and Border Protection (“CBP”) at any port of entry releasing it from the requirement that the foreign shipper’s declaration as well as the importer’s declaration be on file for each duty-free claim under heading 9801, HTSUS.
ISSUE:
What documentation is required for U.S.-origin goods entered under subheading 9801.00.10, HTSUS?
LAW AND ANALYSIS:
Section 904(b) of the Trade Facilitation and Trade Enforcement Act of 2015 (Pub. L. 114-125, February 24, 2016) amended subheading 9801.00.10, HTSUS, to include any products which are returned within 3 years after having been exported. Previously, subheading 9801.00.10, HTSUS, only applied to products of the United States. Subheading 9801.00.10, HTSUS, now provides for the duty-free treatment of:
Products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad.
Your first inquiry concerns whether the amendment to subheading 9801.00.10, HTSUS, removes the requirement that goods entered under that subheading be of U.S. origin if they are entered within three years of having been exported from the United States. As is clear, prior to the amendment, only “[p]roducts of the United States when returned after having been exported” were eligible for duty-free treatment. The amendment now allows, “any other products when returned within 3 years after having been exported” to be eligible for duty-free treatment. In both instances, the exported articles may not be advanced in value or improved in condition while abroad. Products of the United States may continue to be returned without a time restriction. Therefore, we find that the amendment does not require an importer to show that an article is a product of the United States, if it is returned within 3 years.
CBP has not yet amended the regulations to implement the change to subheading 9801.00.10, HTSUS. You have also not indicated what the value of the merchandise will be. Although we have not been provided with any information on the value of your shipments, we assume for purposes of your inquiry that they would be valued at over $2,500.
Your second inquiry concerns whether a “Manufacturer’s Affidavit” or the documentation set forth in 19 C.F.R. § 10.1(a) is still required for goods entered under subheading 9801.00.10, HTSUS, when they are imported within three years of their date of export from the United States. It is our opinion that a manufacturer’s affidavit attesting to the U.S. origin of the good is no longer required if the good is returned to the United States within 3 years. However, portions of 19 C.F.R. § 10.1(a) still remain valid. For example, 19 C.F.R. § 10.1(a)(1) requires the foreign shipper to declare that the articles were exported from the United States, from a particular port and the date of their exportation, and that they were not advanced in value or improved in condition by any process of manufacture or other means. Further, 19 C.F.R. § 10.1(a)(2) requires the owner, importer, consignee, or agent to declare that the foreign shipper’s statement is true and that the articles were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS, and that the articles were exported from the United States without benefit of drawback. Additionally, the port director may require such other documentation or evidence as may be necessary to substantiate the claim for duty-free treatment including a U.S. export invoice, bill of lading or airway bill evidencing the exportation of the articles from the United States and/or the reason for the exportation of the articles demonstrating that the same items were returned within 3 years. Therefore, in reference to your question whether the Electronic Export Information (“EEI”) by Internal Transaction Number filed through the Automated Export System with the Bureau of Census, or a customs entry form filed with the importing jurisdiction may be acceptable, while we find that this information may be used to show that the article is returned within three years of the date of export from the United States, the port director may require additional documentation or evidence per 19 C.F.R. § 10.1(b).
Your third inquiry concerns whether it is still required to prove U.S. origin if the date of import into the United States is past the three-year export date. If the merchandise is returned after three years, in order to be eligible for duty-free treatment under subheading 9801.00.10, HTSUS, the importer must demonstrate that the article is a product of the United States. We do not find that the amendment to subheading 9801.00.10, HTSUS, changes any prior requirements
to prove the U.S. origin of the articles if more than three years have elapsed between the date of import from the date of export. As previously noted, U.S. origin merchandise returned after three years may be eligible for subheading 9801.00.10, HTSUS treatment, provided that the documentary requirements of 19 C.F.R. § 10.1 are satisfied. Provided the importer submits a declaration by the foreign shipper pursuant to 19 C.F.R. § 10.1(a)(1), a declaration by the owner, importer, consignee, or agent declaration pursuant to 19 C.F.R. § 10.1(a)(2), along with the Manufacturer’s Affidavit, indicating that the fabric was formed in the United States of imported fibers, or a NAFTA Certificate of Origin, the available documentation should be sufficient to prove eligibility for subheading 9801.00.10, HTSUS, treatment. See HQ H142395, dated January 25, 2011. We note that pursuant to 19 C.F.R. § 10.1(b), the port director may require other documentation or evidence, in addition to the declarations required in 19 C.F.R. § 10.1(a), as may be necessary to substantiate that an article is a product of the United States.
HOLDING:
The amendment to subheading 9801.00.10, HTSUS, does not require an importer to show that an article is a product of the United States, if it is returned within 3 years.
A manufacturer’s affidavit attesting to the U.S. origin of the good is no longer required if the good, entered under subheading 9801.00.10, HTSUS, is returned to the United States within 3 years. However, portions of 19 C.F.R. § 10.1(a) still remain valid. The EEI by Internal Transaction Number filed through the Automated Export System with the Bureau of Census, or a customs entry form filed with the importing jurisdiction may be acceptable to show that the article is returned within three years of the date of export from the United States; however, the port director may require additional documentation or evidence per 19 C.F.R. § 10.1(b).
If the merchandise is returned to the United States after three years, in order to be eligible for duty-free treatment under subheading 9801.00.10, HTSUS, the importer must demonstrate that the article is a product of the United States and the documentary requirements of 19 C.F.R. § 10.1 must be satisfied.
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been 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 & Special Programs Branch