CLA-2 CO:R:C:V 555750 SER
Jeremy R. Page, Esq.
Katten, Muchin & Zavis
525 West Monroe St.
Suite 1600
Chicago, Il 60606-3693
RE: CBERA eligibility of medical products from the Dominican
Republic or Costa Rica
Dear Mr. Page:
This is in reference to your letter of September 28, 1990,
on behalf of Baxter Healthcare Corporation, concerning duty-free
treatment of medical products from the Dominican Republic or
Costa Rica under the Caribbean Basin Economic Recovery Act
(CBERA)(19 U.S.C. 2701-2706).
FACTS:
The merchandise at issue consists of a wide variety of
medical devices and products, e.g., blood and plasma collection
and transfusion products, solution administration sets, and
suction catheters. On the whole, the components for these items
are sourced from Puerto Rico, and, in some instances a small
number of components are sourced from the U.S. They are
assembled and tested, by divisions of Baxter, in the Dominican
Republic or Costa Rica, and then imported directly to the customs
territory of the U.S. You specifically ask whether these
articles are entitled to duty-free treatment pursuant to section
215 of the recently-enacted Customs and Trade Act of 1990.
ISSUE:
Whether the merchandise at issue is entitled to duty-free
treatment under the CBERA.
LAW AND ANALYSIS:
Section 215 of the Customs and Trade Act of 1990 (Public Law
101-382) amended section 213(a) of the CBERA (19 U.S.C. 2703(a))
to provide for the duty-free treatment of articles (other than
those ineligible for CBERA treatment), which are the growth,
product, or manufacture of Puerto Rico and which subsequently are
processed in a CBERA beneficiary country (BC). The duty-free
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treatment provided under 19 U.S.C. 2703(a)(5) applies to an
article which is the growth, product, or manufacture of Puerto
Rico, if:
(A) the article is imported directly from the beneficiary
country into the customs territory of the United
States,
(B) the article was by any means advanced in value or
improved in condition in a beneficiary country, and
(C) if any materials are added to the article in a
beneficiary country, such materials are a product of a
beneficiary country or the United States.
This provision was effective for articles entered, or withdrawn
from warehouse for consumption, on or after October 1, 1990.
The medical articles at issue satisfy the above
requirements. Practically all of the components used in the
assembly of the articles at issue are the product or manufacture
of Puerto Rico. Any components not sourced in Puerto Rico are
the product of the U.S. In addition, as stated in General Note
3(c)(v)(A), Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), Costa Rica and the Dominican Republic, the
countries in which the articles are subsequently processed, are
BCs for the purposes of CBERA.
Moreover, the various medical products are CBERA-eligible
articles. All of the articles items are classifiable in
subheading 9018.90.8000, HTSUSA, which provides for instruments
and appliances used in medical, surgical, dental or veterinary
sciences, other instruments and appliances and parts and
accessories thereof, other, other. This provision is a CBERA
eligible provision. It is also required that the articles be
advanced in value or improved in condition by any means in a BC.
Clearly, the operations that are performed in the Dominican
Republic or Costa Rica fulfill this requirement of the
legislation.
We are enclosing for your information copies of Headquarters
telexes to Customs field offices dated September 28, 1990
(9264071)and December 20, 1990 (1354071), which set forth
procedures for the entry of articles under 19 U.S.C. 2703(a)(5).
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HOLDING:
The medical articles at issue are CBERA eligible articles,
which are assembled from components which are the growth,
product, or manufacture of Puerto Rico or the U.S., and are
subsequently advanced in value or improved in condition in a BC.
Therefore, assuming that the articles are imported directly into
the customs territory of the United States, they are entitled to
duty-free treatment under 19 U.S.C. 2703(b)(5), upon compliance
with the documentation requirements set forth in Headquarters'
telexes dated September 28, and December 20, 1990.
Sincerely,
John Durant, Director
Commercial Rulings Division
Enclosures