MAR 2-05 CO:R:C:V 735320 LR
District Director of Customs
El Paso, Texas
RE: Internal Advice Request 41/93; Appraisement Entry; Unknown
Country of Origin
Dear Sir:
This is in response to your memorandum dated April 27, 1993,
forwarding a request for Internal Advice submitted by Westinghouse
Electric Corporation ("Westinghouse").
FACTS:
Westinghouse contracted with American Industries, Inc. through its
Mexican subsidiary, Industrias de Americanas, for the assembly of
kits of electronics products - primarily radar subassemblies for
the defense and aerospace industries. The kits consist of both
foreign and domestic components gathered in Westinghouse's U.S.
facility for shipment to Mexico through E1 Paso, Texas. After
assembly, the finished products were to be returned to the United
States. Westinghouse indicates that both the finished assembly and
unassembled piece parts were the subject of marking waivers
approved by your district.
On March 31, 1993, Westinghouse closed its factory in Mexico and
shifted the production to the United States. All equipment and raw
materials from the Mexican plant have been returned to the United
States. The non-U.S. origin equipment and components are under
temporary deposit in the City of E1 Paso Foreign Trade Zone and
cannot be entered under the usual and normal entry procedures
due to the unavailability of country of origin information. The
goods entered into the FTZ consist of unassembled and partially
assembled kits, ledger storeroom components, capital production
equipment, and test equipment which Westinghouse had previously
exported to Mexico.
You have advised that Westinghouse filed documentation
requesting approval for use of an appraisement entry for this
merchandise. Through use of the appraisement entry procedures,
Westinghouse would like to identify on the entry documents, the
origin of non-U.S. components returned by use of a generic
designation of "foreign" or by listing the source countries in
which the components may have originated. You are holding the
appraisement entry documents pending our approval of such
procedures.
ISSUE:
Whether Westinghouse, through use of the appraisement entry
procedures, may identify on the entry documents the origin of non-
U.S. components returned in unassembled kits by use of a generic
designation of "foreign" or by listing the source countries in
which the components may have originated.
LAW AND ANALYSIS:
19 U.S.C. 1481 provides that all invoices of merchandise to be
imported into the United States shall set forth various information
including facts deemed necessary to a proper appraisement,
examination, and classification of the merchandise that the
Secretary of the Treasury may require. Section 141.86(a)(10),
Customs Regulations (19 CFR 141.86(a)(10)), provides that the
country of origin is required on each invoice of imported
merchandise.
Special entry procedures are provided in 19 CFR Part 143. Entry by
appraisement is covered in 19 CFR Part 143, Subpart B. Such
procedure is generally used when the importer has insufficient
information as to the value of the imported articles and is unable
to obtain such information or to determine the value of the
articles for the purpose of making formal entry thereof. In such
case, the importer shall present any bills or statements of cost
relating to the merchandise which may be in his possession along
with a declaration that he has no other information as to the value
of the articles and is unable to obtain such information or to
determine the value of the articles for the purpose of making
formal entry thereof. See 19 CFR 143.13
As provided in 19 CFR 143.12, application for an entry by
appraisement shall be made on the entry summary, Customs Form 7501.
Each request for such approval shall be filed with the district
director and shall state in detail the reasons for the request. 19
CFR 143.11(b). Except in situations specified in 19 CFR 143.11(a),
which do not apply here, each entry by appraisement shall be
allowed only with the approval of Headquarters.
By memorandum dated November 23, 1993 (copy enclosed), the Chief,
Entry Rulings Branch, determined that appraisement entry procedures
may be used in the present situation where due to the
plant closing, Westinghouse does not have sufficient information
regarding country of origin to specify the country of origin on the
entry documents. However, certain conditions must be satisfied.
The goods which are in the FTZ and are the subject of
Westinghouse's request may be entered by means of an appraisement
entry provided you are satisfied that: 1) the marking requirements
will be complied with; 2) none of the goods are subject to
antidumping or countervailing duties; 3) the merchandise is not
from a column 2 country; and 4) the merchandise is not subject to
quota. These conditions are discussed in more detail in the
November 23, 1993 memorandum. Use of the appraisement entry
procedures will enable Westinghouse to use a generic designation
of "foreign" or to list the source countries in which the
components may have originated on its entry documentation-
HOLDING:
If you are satisfied that the conditions specified in the November
23, 1993 memorandum are satisfied, Westinghouse may enter the
merchandise described above for which it cannot ascertain the
country of origin by means of an appraisement entry. Westinghouse
may identify on the entry documents the origin of non-U.S.
components by use of a generic designation of "foreign" or by
listing the source countries in which the components may have
originated.
The Office of Regulations and Rulings will take steps to make this
decision available to Customs personnel via the Customs Rulings
Module in ACS and the public via the Diskette Subscription Service,
Lexis, Freedom of Information Act and other public access channels
60 days from the date of this decision.
Please provide Westinghouse with a copy of this decision and the
November 23, 1993 memorandum.
Sincerely,
John Durant, Director
Commercial Rulings Division