CLA-2-90:OT:RR:NC:4:414
Ms. Erika M. Griffin
CIBA Vision Corporation
11460 Johns Creek Parkway
Duluth, Georgia 30097-1556
RE: The tariff classification of contact lenses manufactured in the United States and returned without being advanced in value or improved in condition
Dear Ms. Griffin:
In your letter dated July 24, 2009, you requested a tariff classification ruling. Samples of the packaging were submitted and will be returned as requested.
The merchandise is contact lenses which are described as CIBA Vision “Dailies” and “FreshLook” contact lenses. You state that the Dailies, disposable daily wear lenses, are manufactured by CIBA Vision in the United States in Duluth, Georgia, in Germany and in Singapore. The FreshLook, cosmetic fashions wear lenses, are produced exclusively in the United States in Des Plaines, IL and in the Customs territory of the United States in Cidra, Puerto Rico. The United States manufactured Dailies and FreshLook are being sold in the United States and also being exported to foreign countries. All FreshLook products bear the “Made in US” country of origin marking. At the point of manufacturing, each Dailies contact lens, whether it is manufactured in the United States, Germany or Singapore, is assigned an eight digit lot number. The lot number system is used to identify, among other things, the date and manufacturing site where the contact lens was produced. The lot numbers are created by CIBA Vision’s manufacturing (MES) system. This global system is used to control all operations and activities associated with a single lot of product. The MES creates the lot numbers and that same lot number is transferred to the MRP system when the goods are received into the inventory. Once the lot number has been established, it cannot be changed. The lot number is printed on both the foil lids, which are the primary packaging, and on the cartons, which are the secondary packaging.
You have stated that the Dailies and FreshLook lenses will be exported to Germany where they will be received at a distribution warehouse and will be held until they are sold. Depending on factors such as forecast demand, inventory levels and distribution requirements, the company’s central lens planning function may adjust the inventory of contact lenses. When an inventory adjustment occurs, an inter-company order is automatically generated. Dailies and/or FreshLook lenses, which are located at the warehouse in Germany, may be included in these inventory adjustment shipments and returned to the Johns Creek Distribution Center (JCD) in Duluth, Georgia. The Dailies and FreshLook lenses will not be advanced in value or changed in condition while outside the United States. You also state that while the Dailies are manufactured in countries other than the United States, CIBA Vision’s manufacturing and MRP systems establish and track the identification of a U.S. produced product by the lot number. The lot number is further identified at time of importation on the import documents and primary packaging and should be considered as evidence of U.S. origin.
You proposed classification under subheading 9801.00.10, HTSUS.
Subheading 9801.00.10, HTSUS, provides for the free entry of products of the United States that have been exported and returned without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, provided the documentary requirements of section 10.1, CBP Regulations (19 CFR 10.1), are met. Some change in the condition of the product while it is abroad is permissible. However, operations which either advance the value or improve the condition of the exported product render it ineligible for duty-free entry upon return to the United States.
Section 10.1(a), CBP Regulations (19 CFR § 10.1(a)) provides in part that a declaration by the foreign shipper and a declaration by the owner, importer, consignee, or agent shall be filed in connection with the entry of articles in a shipment valued over $2,000 and claimed to be free of duty under subheading 9801.00.10 or 9802.00.20, HTSUS.
In order for the Dailies and FreshLook lenses to qualify for duty free treatment under subheading 9801.00.10, HTSUS, you must satisfy CBP that the conditions of this subheading are met through documentation. The regulatory language of 19 CFR 10.1 is clear that the port director must be satisfied that the requirements of subheading 9801.00.10 are met and may require additional information as necessary to substantiate the claim. An export invoice is listed in 19 CFR 10.1(b) as an example of documentation that may be requested. We find that the Port Director may require any documentation that would reasonably substantiate a claim under subheading 9801.00.10, HTSUS, including export invoices.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Barbara Kiefer at (646) 733-3019.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division