OT:RR:CTF:VS H314176 EE
CEE Director
Automotive and Aerospace CEE
U.S. Customs and Border Protection
200 East Bay St
Charleston, SC 29401
RE: Application for Further Review of Protest No. 3802-20-102015; Subheading 9801.00.10, HTSUS; Motor Vehicles
Dear CEE Director:
This is in reference to the Application for Further Review (“AFR”) of Protest No. 3802-20-102015, timely filed on May 21, 2020, on behalf of Andrews Importing LLC (hereinafter, the “protestant”), concerning the applicability of subheading 9801.00.10, Harmonized Tariff Schedule of the United States (“HTSUS”), to certain motor vehicles and for the collection of the merchandise processing fee (“MPF”) for the entry at issue.
FACTS:
The merchandise subject to the protest at issue consists of certain motor vehicles. The merchandise was entered on April 11, 2019 and liquidated on January 3, 2020. The protestant claims that the merchandise is eligible for the duty exemption in subheading 9801.00.10, HTSUS, which also allows the merchandise to be exempt from the MPF under 19 C.F.R. § 24.23(c)(1)(i). The protestant seeks reliquidation of the entries and a refund of duties and of the merchandise processing fees paid, with interest. Your office denied the protestant’s request for reliquidation stating that documentation regarding original export and reimport was not submitted and that the protestant only submitted EPA and DOT forms as supporting documents. In support of their claim, the protestant provided the following documentation:
-Foreign Shipper Declarations issued by Manheim Toronto, located in Ontario, Canada, stating that the articles were exported from the United States from the Port of Detroit, MI on or about February 2011, August 2011, February 2012, and December 2014, and that they were returned without having been advanced in value or improved in condition by any process of manufacture or other means. The declarations list the merchandise descriptions, the vehicle identification numbers “VIN”, the quantities, and the value of the motor vehicles. The first digit of the VINs indicate that the vehicles are manufactured in the United States. The declarations are signed by the president of Manheim Toronto and are dated April 9, 2019.
-The importer’s declarations stating that the declaration by the foreign shipper is true and correct and identifying the U.S. manufacturer of the goods and its location. The declarations further state that the goods were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS, and that the articles were exported from the United States without benefit of drawback. The declarations are dated April 9, 2019, signed by the president of the protestant, and list his address. The declarations also include a VIN number for each motor vehicle.
-Pro-forma invoice from Manheim Toronto, located in Milton, Ontario, Canada, to the protestant, dated April 9, 2019, listing the description of the merchandise and VINs, the weight, the unit quantity, the unit price, and the total price.
-U.S. Environmental Protection Agency declaration forms for importation of motor vehicles and motor vehicle engines subject to federal air pollution regulations.
-U.S. Department of Transportation declaration forms for importation of motor vehicles and motor vehicle equipment subject to federal motor vehicle safety, bumper and theft prevention standards.
-U.S. Department of Transportation bond forms to ensure conformance with federal motor vehicle safety and bumper standards.
ISSUE:
Whether the merchandise is eligible for duty-free treatment under subheading 9801.00.10, HTSUS.
LAW AND ANALYSIS:
Section 904(b) of the Trade Facilitation and Trade Enforcement Act of 2015 (Pub. L. 114-125, February 24, 2016) amended subheading 9801.00.10, HTSUS, to include any products which are returned within 3 years after having been exported. Previously, subheading 9801.00.10, HTSUS, only applied to products of the United States. Subheading 9801.00.10, HTSUS, now provides for the duty-free treatment of:
Products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad.
In the instant case, the protestant states the motor vehicles are products of the United States. Section 10.1, CBP Regulations (19 C.F.R. § 10.1) sets forth the documentary requirements for entry under subheading 9801.00.10, HTSUS. We note that CBP has not yet amended the regulations to implement the change to subheading 9801.00.10, HTSUS. Nonetheless, 19 C.F.R. § 10.1(a)(1) provides that the foreign shipper declare the following information with regard to articles in a shipment valued over $2,500: the port of exportation, the date of exportation, the quantity, the description of the merchandise, the value of the merchandise, the date of the declaration, and whether the articles were returned without having been advanced in value or improved in condition by any process of manufacture or other means. In addition, the documentation is to be filed “in connection with the entry.” As previously noted, the protestant has provided us with the foreign shipper’s declarations issued by the foreign shipper, Manheim Toronto. The declarations list the port of exportation, the date of exportation, merchandise description, VINs, quantity, and value of the motor vehicles. The VINs listed on the declarations indicate that the vehicles are manufactured in the United States. Despite the lack of specificity of the specific date of export on the foreign shipper’s declaration, the 3 year requirement that the products be returned after having been exported is not applicable since the vehicles have been satisfactorily shown as products of the United States and, as such, may be returned without a time restriction. Accordingly, we find that the declaration includes all of the required information.
Section 10.1(a)(2), CBP Regulations (19 C.F.R. § 10.1(a)(2)), requires the owner, importer, consignee, or agent having knowledge of the facts regarding the claim for free entry to declare that the foreign shipper’s statement is true, and, that the articles were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS, and that the articles were exported from the United States without benefit of drawback. The information required also pertains to the name of the manufacturer, the location of the manufacturer, and the date of the declaration. The protestant has provided us with the importer’s declarations and the declaration includes all of the required information. Further, the protestant submitted pro-forma invoices from Manheim Toronto corresponding to the rest of the documents provided. Since the documentary requirements under 19 C.F.R. § 10.1 are met, we find that the merchandise is eligible for duty-free treatment under subheading 9801.00.10, HTSUS.
HOLDING:
The motor vehicles at issue are eligible for duty-free treatment under subheading 9801.00.10, HTSUS, and exempt from the MPF under 19 C.F.R. § 24.23(c)(1)(i). The protest should be GRANTED.
In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the Protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings will make the decision available to CBP personnel, and to the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov/ which can be found on the U.S. Customs and Border Protection website at http://www.cbp.gov and other methods of public distribution.
Sincerely,
For Craig T. Clark, Director
Commercial and Trade Facilitation Division