CLA-2 CO:R:C:S 556058 RA
Cathy Burgess, Esq.
Winston & Strawn
1400 L Street, NW.
Washington, D.C. 20005-3502
RE: Eligiblity for duty-free treatment as American goods
returned of life rafts used in an exchange program
Dear Ms. Burgess:
This is in response to a letter of January 15, 1991, from
your firm, requesting a ruling on behalf of Unitor Ships
Service, Inc. concerning the eligibility for duty-free treatment
of certain life rafts used in an exchange program. In
Headquarters Ruling Letter 111468 dated May 20, 1991, the Carrier
Rulings Branch addressed the issue of whether the life rafts are
entitled to free treatment as instruments of international
traffic (IIT).
FACTS:
Your client is a shore service company that performs
inspections and certification of ships' fire and safety
equipment, including life rafts. Unitor intends to utilize a
life raft exchange program to facilitate the receipt of serviced
rafts to supplant outdated ones taken from its customers' ships.
A supply of serviced rafts would be maintained in stock at
servicing stations which could be immediately exchanged for those
taken off ships and in need of service. The imported outdated
rafts received in exchange would, in turn, be serviced for use
on other ships.
ISSUE:
Whether life rafts imported pursuant to the life raft
exchange program are entitled to duty-free treatment as American
goods returned under subheading 9801.00.10, Harmonized Tariff
Schedule of the United States (HTSUS).
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LAW AND ANALYSIS:
Subheading 9801.00.10, HTSUS, provides for the duty-free
treatment of products of the U.S. which are exported and returned
without having been advanced in value or improved in condition
by any process of manufacture or other means while abroad,
provided there is compliance with the documentation requirements
of section 10.1, Customs Regulations (19 CFR 10.1).
Accordingly, life rafts made in the U.S which are imported
pursuant to the life raft exchange program may receive duty-free
treatment under this tariff provision if they have not been
advanced in value or improved in condition abroad, the district
director of Customs is satisfied of the U.S. origin of the rafts,
and the the documentation requirements of 19 CFR 10.1 are
satisfied. Life rafts of foreign manufacture used in the
exchange program are ineligible for free entry as American goods
returned.
HOLDING:
Life rafts of U.S. origin taken from ships to be serviced
under an exchange program may be accorded duty-free treatment
under subheading 9801.00.10, HTSUS, assuming compliance with the
conditions and requirements of this tariff provision.
Sincerely,
John Durant, Director
Commercial Rulings Division