CLA-2-98:OT:RR:NC:N3:356
Mr. John M. Peterson Neville Peterson LLP One Exchange Plaza 55 Broadway, Suite 2602 New York, NY 10006
RE: The applicability of subheading 9801.00.10 to various garments from Portugal
Dear Mr. Peterson:
In your letter dated February 1, 2022, written on behalf of your client, Empire Clothing Co., Inc. (“Empire”), you requested a ruling on whether various garments are eligible for duty-free treatment under subheading 9801.00.10, Harmonized Tariff Schedule of the United States (HTSUS).
The subject goods are articles of men’s apparel from Portugal, such as suits, blazers, trousers, vests, and coats. You state that Empire will import these goods into the United States and pay all applicable duties, taxes, and fees at time of entry. The goods will subsequently be exported to Canada, where they will be held in Empire’s warehouse until orders are received from United States retailers. While in the Canadian warehouse, the items will not be advanced in value or improved in condition by manufacture or other means, although they may be repackaged, re-pressed, and/or ticketed. The goods will be reimported into the United States within three years after having been exported to Canada.
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 three years after having been exported. Specifically, this subheading now provides for: 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, Customs Regulations (19 C.F.R. § 10.1), sets forth the documentary requirements for entry under subheading 9801.00.10, HTSUS. CBP has not yet amended the regulations to implement the change to subheading 9801.00.10, HTSUS. Nonetheless, while portions of the regulations are no longer pertinent, some portions of 19 C.F.R. § 10.1 remain valid. For example, 19 C.F.R. § 10.1(a)(1) requires the foreign shipper to declare the following information with respect 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 advanced in value or improved in condition by any process of manufacture or other means. Further, per 19 C.F.R. § 10.1(b), the port director may require such other documentation or evidence as may be necessary to substantiate the claim for duty-free treatment, including a U.S. export invoice, bill of lading, or airway bill evidencing the exportation of the articles from the United States and/or the reason for the exportation of the articles.
Section 10.1(a)(2), Customs 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; that the articles were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS; and that the articles were exported without benefit of drawback. Therefore, provided the party re-importing the goods is an “owner, importer, consignee, or agent having knowledge of the facts regarding the claim for free entry” as required by 19 C.F.R. § 10.1(a)(2), such party may re-import the goods under subheading 9801.00.10, HTSUS.
Regarding the applicability of heading 9801, if the importation of the subject garments meets the criteria set forth in the regulation cited above, the garments may be eligible for duty-free treatment under subheading 9801.00.1098, HTSUS.
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 the World Wide Web at https://hts.usitc.gov/current.
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 Maryalice Nowak at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division