OT:RR:CTF:VS H346942 EE
Ms. Madison Hanson
Dakota Air Parts International
1825 23rd Avenue North
Fargo, ND 58102
RE: Subheading 9801.00.10, HTSUS; Helicopter Parts
Dear Ms. Hanson:
This is in response to your letter, dated April 10, 2025, in which you request a
ruling concerning the applicability of subheading 9801.00.10, Harmonized Tariff
Schedule of the United States (“HTSUS”), to certain helicopter parts. Your request,
submitted as an electronic ruling request, was forwarded to this office from the National
Commodity Specialist Division for review. Our ruling is set forth below.
FACTS:
Dakota Air Parts International (“Dakota Air Parts”) is an aerospace logistics
company located in Fargo, North Dakota. The merchandise at issue are used parts of
UH-1H helicopters. You state that the UH-1H helicopters and parts were originally
manufactured in the United States by Bell Helicopter and other related U.S. Original
Equipment Manufacturers (“OEMs”) and/or approved subcontractors. Starting in the
1970s, helicopters and parts were shipped to the Brazilian Air Force (“BrAF”) in Brazil
under U.S. military aid programs, such as the Military Assistance Program (“MAP”) or
Foreign Military Sales (“FMS”), to support BrAF operations. On December 20, 2024,
Dakota Air Parts purchased, via a BrAF tender, used parts that were accumulated
through the MAP and FMS programs and stored over time to support BrAF’s operation
of the UH-1H fleet during its service life and operation in Brazil.
You provided the following documentation:
-A purchaser assurance letter from Dakota Air Parts to the U.S. Department of
State, dated January 29, 2025.
-Letter from the U.S. State Department, dated April 24, 2025, authorizing the
transfer of the parts at issue to Dakota Air Parts for resale purposes.
-Dakota Air Parts – Brazilian Air Force inventory list.
-Draft commercial invoice, dated April 10, 2025, issued from the Brazilian
Ministry of Defense – Air Force Command to Dakota Air Parts for the parts at
issue listing quantity, part number/description, country of origin United States,
and total price.
-Draft packing list, dated April 10, 2025, issued from the Brazilian Ministry of
Defense – Air Force Command to Dakota Air Parts for the parts at issue listing
quantity, description, pallet number, dimensions, and weight.
-The Office of Defense Trade Controls Compliance (“DDTC”) Exporter
Registration Statement and Fee Submission dated October 10, 2024.
-Communication between BrAF and Dakota Air Parts regarding the location of
the parts at issue in Parque de Material Aeronautico de Sao Paulo.
-Photos of the parts at issue.
-U.S. State Department Third Party Transfer (“TPT”) export approval letter issued
to BrAF providing authorization to permanently transfer H-1H helicopter parts to
Dakota Air Parts for resale purposes. The letter includes an attachment with the
list of the helicopter parts at issue, National Stock Numbers (“NSN”) for the parts,
quantity, and serial number.
You claim that the used parts at issue qualify for duty-free treatment under
subheading 9801.00.10, HTSUS. You state that the parts at issue are products of the
United States since they bear the NSN which is a 13-digit, standardized item identifier
used by the U.S. Department of Defense and NATO members to catalog and manage
logistics inventory. NSNs are assigned to items that are routinely purchased, stocked,
issued, and used across federal agencies and allied military organizations. The first
four digits identify the category of the item, e.g. 1615 = Helicopter Rotor Blades and
Drive Mechanisms. The next two digits indicate the country of cataloging, e.g. 00 and
01 signify the United States. The last 9 digits are a unique identifier specific to the item.
You state that each NSN is typically linked to a Commercial and Government Entity
(“CAGE”) Code, which identifies the original manufacturer or supplier. This allows for
the confirmation of U.S.-registered production entities, especially when combined with
Federal Logistics Information System (“FLIS”) data or official procurement records.
ISSUE:
Whether the helicopter parts at issue are 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:
2
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.
Section 10.1, U.S. Customs and Border Protection (“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) requires the foreign shipper to 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.”
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.
Further, 19 C.F.R. § 10.1(a)(d) provides that if the Center director is reasonably
satisfied, because of the nature of the articles or production of other evidence, that the
articles are imported in circumstances meeting the requirements of subheading
9801.00.10, HTSUS, the Center director may waive the requirements for producing the
documents specified in 19 C.F.R. § 10.1(a).
As previously noted, you provided the TPT letter from the U.S. Department of
State approving the exportation of the parts at issue from Brazil to the United States to
be transferred to Dakota Air for resale purposes. The letter includes an attachment with
the list of the parts at issue and information demonstrating origin and traceability of the
parts. In previous rulings, including Headquarters Ruling Letter (“HQ”) 563132, dated
January 13, 2005, CBP allowed the Port Director to accept other proofs of origin
presented by the manufacturer in place of a manufacturer’s affidavit, provided the Port
Director is reasonably satisfied that the evidence substantiates the importer’s claim that
certain goods are products of the United States. See also HQ H142395, dated January
25, 2011.
Further, you state that the parts at issue were not advanced in value or improved
in condition since they were merely used to support the UH-1H helicopter fleet during
the fleet’s service life and operation within Brazil without subsequent repair, overhaul,
modification, or enhancement. HQ 559258, dated October 17, 1995, concerned certain
3
U.S. military aviation equipment which was abandoned in Vietnam and purchased for
return to the United States. We found in that case that the equipment, which was either
in the same condition as when it was exported from the United States or used briefly in
a U.S. aircraft and removed with no changes being made to the equipment, was eligible
for duty-free treatment under subheading 9801.00.10, HTSUS. Similarly, in this case,
U.S. military helicopter parts are purchased for return to the United States and are
merely used during the course of the fleet’s service life to support the fleet in Brazil.
Based on the information presented, we find that the helicopter parts at issue are
eligible for duty-free treatment under subheading 9801.00.10, HTSUS, if the
documentary requirements of 19 C.F.R. § 10.1 are satisfied. We note that while the
documents listed in 19 C.F.R. § 10.1(a) are required, it is ultimately within the discretion
of the Center director whether he or she is reasonably satisfied that the evidence
presented substantiates the importer’s claim that the goods are products of the United
States.
HOLDING:
Based on the information presented, the helicopter parts at issue are eligible for
duty-free treatment under subheading 9801.00.10, HTSUS, when reimported into the
United States, provided the documentary requirements of 19 C.F.R. § 10.1 are satisfied.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is
issued on the assumption that all of the information furnished in connection with the
ruling request and incorporated in the ruling letter, either directly, by reference, or by
implication, is accurate and complete in every material respect. The application of a
ruling letter by a Customs Service field office to the transaction to which it is purported
to relate is subject to the verification of the facts incorporated in the ruling letter, a
comparison of the transaction described therein to the actual transaction, and the
satisfaction of any conditions on which the ruling was based.”
A copy of this ruling letter should be attached to the entry documents filed at the
time this merchandise is entered. If the documents have been filed without a copy, this
ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch
4