BON-1-04-CO:R:C:E 223722 SLR
Mr. William L. Morandini
District Director
Patrick V. McNamara Bldg.
477 Michigan Ave.
Detroit, MI 48226
RE: TIB Extension; Untimely Request; 19 CFR 10.37
Dear Mr. Morandini:
This is in reference to your memorandum of February 5, 1992,
concerning an untimely request for extension of the bond period
on TIB entries 510-37196535 and 510-37196543, filed by Mr. James
M. Licate of Mazda Motors Manufacturing (USA) Corporation. Our
decision follows.
FACTS:
On May 10, 1991, Mazda entered car bodies duty-free under
temporary importation under bond (TIB) as show vehicles in
subheading 9813.00.75, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA). On January 17, 1992, the District
Director of Customs, Detroit, Michigan, issued a "Notice of
Penalty of Liquidated Damages Incurred and Demand for Payment"
(CF 5955A) for failure to export within the bond period (May 10,
1991 - November 10, 1991), or to obtain lawful extension thereof.
Liquidated damages were assessed at $2055.36, which is twice the
amount of duty due. The importer now requests extension of the
TIB as well as waiver of the liquidated damages. Mazda indicates
that it had flagged the shipment as a one year TIB and did not
realize that for subheading 9813.00.75, HTSUSA, the length of the
bond period is only six months. Mazda feels that due to the
"extenuating circumstances," it should be allowed the TIB
extension and relief from all penalties.
ISSUE:
Whether an extension of the TIB and the cancellation of
liquidated damages are warranted in this case.
-2-
LAW AND ANALYSIS:
Subheading 9813.00.75, HTSUSA, provides for the free
importation, under bond, of "[a]utomobiles, automobile chassis,
automobile bodies ... when intended solely for show purposes."
Under U.S. Note 1(a) of Subchapter XIII, HTSUSA, articles
described in the provisions of this subchapter, when not imported
for sale or sale on approval, may be admitted into the United
States without the payment of duty, under bond for their
exportation within one year from the date of importation.
U.S. Note 1(a) adds, however, that "articles imported under
heading 9813.00.75 shall be admitted under bond for their
exportation within 6 months from the date of importation
and such a 6-month period shall not be extended...."
(Emphasis added.)
Untimely TIB extension requests are referred to Customs
Headquarters under 19 CFR 10.37. Generally speaking, Customs
employs a five part criteria to determine whether an extension of
a TIB is warranted. This is unnecessary here, however, as U.S.
Note 1(a) of Subchapter XIII of the HTSUSA strictly prohibits the
extension of the subheading 9813.00.75
six month bond period.
HOLDING:
Based on the foregoing, you should deny the TIB extension
request. Moreover, you should proceed with the liquidated
damages claim in accordance with Part 172 of the Customs
Regulations. You may provide a copy of this decision to the
importer if you so desire.
Sincerely,
John Durant, Director
Commercial Rulings Division