- Type : • HTSUS :
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Related:
116505
OT:RR:CTF: ER
H101276 PTM
Ms. Melissa Hauser
ROE Logistics
2150 28th St. NE Bay 70
Calgary, Alberta
Dear Ms. Hauser,
We are writing in response to your ruling request regarding informal entry and hand carried aircraft parts, which was forwarded to this office on April 1, 2010. Our response follows. We apologize for the delay in our response.
FACTS:
You state that WestJet aircraft mechanics will fly from Canada into the United States to repair grounded aircraft and hand-carry aircraft parts necessary to complete the repair. You provided a sample of the letter the mechanic from WestJet will present to U.S. Customs and Border Protection (“CBP”) at the Port of Arrival. The letter is on WestJet letterhead and is addressed to CBP. The letter references a bond number, and states:
The aircraft parts indicated on the attached commercial invoice are the property of WestJet and are being hand carried to Las Vegas, NV on Flt #1788 to make repairs on airplane, tail #209 to prevent it from being grounded in LAS. These repairs will be done by Delta Airlines Maintenance Engineers and the WestJet Aircraft Engineer who is accompanying these parts will not perform any work while in the United States; he will only oversee the work being done.
The parts belong to WestJet. You state that the parts are for use for the repair of civil aircraft, and that most of the parts in question are made in the United States by Boeing. Some parts, however, may be of foreign origin. You state that parts are installed to replace broken parts in the aircraft. Consequently, you state that the parts are not for resale and are solely used in the repair of the aircraft.
You provided a sample commercial invoice that the mechanic will present to CBP upon arrival. The invoice lists two separate parts: a dimming module with a declared value of $2,000.00 and a light assembly with a declared value of $800.00. The invoice lists the reason for export as:
WestJet airplane, tail #209 requires the above mentioned parts to be installed upon arrival in LAS to prevent the return flight to Canada from being grounded. Not for sale. Value is for customs purposes only.
Finally, the invoice lists the tariff classification for the parts as U.S. Goods Returning, under subheading 9801.00.10.77 of the Harmonized Tariff Schedule of the United States (“HTSUS”).
ISSUE:
Whether the presentation of a letter and invoice will satisfy entry requirements on the hand-carried aircraft parts.
LAW AND ANALYSIS:
You query whether the presentation of the letter and invoice will suffice in lieu of a formal entry. Although informal entry may be made with a baggage declaration and invoice, duties would be required. As explained below, duty-free entry for parts considered U.S. goods returned under section 9801.00.10 and the Civil Aircraft Agreement (“CAA”) would require additional documentation.
Section 141.4(a), CBP Regulations (19 C.F.R. §141.4(a)), provides that, “[a]ll merchandise imported into the United States is required to be entered, unless specifically excepted.” Specific exemptions from entry apply to merchandise described in General Note 3(e) of the Harmonized Tariff Schedule of the United States (HTSUS), and are not applicable here. Furthermore, CBP has previously ruled that aircraft parts are subject to entry, even if the parts never enter the commerce of the United States at any time. See HQ 116505 (September 21, 2005). Therefore, entry of the aircraft parts is required.
Part 148 of CBP’s regulations contains the regulations on personal declarations and exemptions. Pursuant to 19 CFR §148.23(c)(1), the CBP inspector may examine, determine the dutiable value of, collect duty on, and pass articles accompanying any person arriving in the United States properly listed on the baggage declaration that are not for the personal or household use of the declarant, and provided that the aggregate value is not more than $2,000.00. For articles valued over $2,000.00 arriving in the baggage or accompanying any person and not intended for personal or household use may be examined and entered and cleared on a baggage declaration at the place of their arrival with a passenger if: a) the articles are accompanied by a proper invoice; and b) it is practicable to appraise the articles at the place of arrival. See 19 CFR §148.23(c)(2). Consequently, in the situation you described, the parts imported to repair the grounded aircraft may be entered informally and hand-carried with a person arriving in the United States via a baggage declaration. Consistent with 19 CFR §148.23(c)(2), for parts valued at over $2,000.00, a commercial invoice will need to be presented, and it is must be practicable to appraise the merchandise at the place of arrival. Duties owed would be payable to the CBP Officer to whom the baggage declaration is submitted.
There are two primary methods to enter aircraft parts on a duty-free basis, depending on the origin of the part: as U.S. goods returned for parts of U.S. origin, and entry under the Civil Aircraft Agreement. Both of these methods require additional documentation beyond a baggage declaration and commercial invoice.
In the example you provided, the part is listed under tariff subheading 9801.00.10 of the HTSUS, which permits the duty-free entry of products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. For aircraft parts and equipment returned to the United States under subheading 9801.00.10, HTSUS, by or for the account of an aircraft owner or operator and intended for use in his own aircraft operations, the entry summary may be made on CBP Form 3311, and must be supported by the entry documentation required pursuant to 19 C.F.R. §142.3. See 19 C.F.R. §10.1(g).
There are additional documentary requirements for imports qualifying as U.S. goods returned that are set forth in 19 C.F.R. §10.1. The additional documents required for U.S. goods returned may be waived for aircraft, aircraft parts and equipment if the CBP officer is satisfied that the articles are products of the United States, that they have not been improved in condition or advanced in value while abroad, and that no drawback has been or will be paid. 19 C.F.R. §10.1(g). Even in the event that the extra documents required by 19 C.F.R. §10.1 are waived, the normal entry documents enumerated in 19 C.F.R. §142.3 are still required. Therefore, the presentation of the letter and invoice alone is insufficient to satisfy CBP entry requirements, as additional documents are required pursuant to 19 C.F.R. §142.3, and if not waived, the additional documents for U.S. goods returned set forth in 19 C.F.R. §10.1.
You indicated that not all of the parts are of U.S. origin. Where the parts are not U.S. origin, they will not qualify for duty free entry as U.S. goods returning. However, the parts may still qualify for duty free entry under the Civil Aircraft Agreement (“CAA”) under HTSUS General Note 6(b)(i)(A), which states that the CAA encompasses any aircraft part that is used as original or replacement equipment in the maintenance or repair of an aircraft. Parts and components sought to be eligible for duty-free treatment under the CAA must satisfy the requirements of General Note 6, HTSUS. Pursuant to 19 CFR § 10.183(c), an importer will make a claim for duty free entry by indicating its intent to enter the goods under General Note 6, HTSUS, on the entry summary. Additionally, each entry summary claiming duty-free admission must be supported by documentation required to verify the merchandise qualifies under General Note 6, HTSUS. This documentation may include a certification for the Federal Aviation Administration. This documentation does not need to be submitted with the entry summary but must be maintained by the importer in accordance with the recordkeeping provisions of 19 C.F.R. Part 163. See 19 C.F.R. §10.183(e). Due to the extra requirements of 19 C.F.R. §10.183, including the filing of an entry summary, the presentation of the letter and invoice alone is insufficient if the importer wants to enter the parts duty-free under the CAA.
HOLDING
Entry of the aircraft parts hand-carried by mechanics is permissible with a baggage declaration and invoice. The presentation of a letter and invoice are insufficient to enter aircraft parts on a duty-free basis under 9801.00.10 HTSUS or under the Civil Aircraft Agreement.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division