CON-9-04-CO:R:C:E 223082 TG
P.B. McDonald
Eveready Division
Ralston Purina Canada Inc.
5880 Falbourne St.
Mississauga, Ontario L5R 3L8
Dear Mr. McDonald:
This is in response to your letter dated March 18, 1991,
requesting a ruling on the temporary importation under bond
(T.I.B.) of electrolytic manganese dioxide.
According to your letter, you intend to import 200,000 lbs.
of electrolytic manganese dioxide (E.M.D.) on T.I.B. entries for
a heat-treating process. This material is purchased from
Mitsubishi Canada Ltd. and is of Japanese origin, classified
under subheading 2820.10.00 of the Harmonized Tariff Schedule
(HTS), and would be imported into the U.S. by Eveready Canada
Inc.
You describe this heat-treating process as follows: The
E.M.D. is heat-treated in a large rotary dryer at temperatures
exceeding 500ΓΈ F, for several hours. This process alters the
fundamental crystal structure of the E.M.D. from a gamma to a
rho phase. The purpose of the heat-treated E.M.D. is to produce
an E.M.D. that compared to a non heat-treated E.M.D. provides
significantly higher service on low drain tests to low voltage
cut-offs. The E.M.D. will be used in the manufacture of buoylite
batteries at your Walkerton, Ontario, Canada plant. These
buoylite batteries are purchased by both the U.S. and Canadian
Coast Guard. This heat-treating process is only available from
Eveready Battery Company, Inc., at its plant in Marietta, Ohio.
LAW AND ANALYSIS:
Under subheading 9813.00.05, HTS, articles to be repaired,
altered or processed (including processes which result in
articles manufactured or produced in the United States) may be
entered duty-free, temporarily, under bond for their exportation
within one year from the date of importation unless an extension
for one or more additional periods, which when added to the
initial period does not exceed three years, is granted by the
district director.
2
From the description of the operation given, all indications
are that a process takes place. However, you must meet all of
the accountability requirements under the U.S. Notes of
Subchapter XIII, HTS. In particular, subheading 9813.00.05, HTS,
U.S. Note 2(b) states that if any processing of such merchandise
results in an article manufactured or produced in the United
States: (i) a complete accounting will be made to the Customs
Service for all articles, wastes and irrecoverable losses
resulting from such processing; and (ii) all articles and
valuable wastes resulting from such processing will be exported
or destroyed under customs supervision within the bonded period;
except that in lieu of the exportation or destruction of valuable
wastes, duties may be tendered on such wastes at rates of duties
in effect for such wastes at the time of importation.
The applicable Customs regulations may be found at 19 CFR
10.31 through 10.40. Section 10.31(f) states that a bond shall
be given on Customs Form 301 in an amount equal to double the
duties which it is estimated would accrue (or such larger amount
as the district director shall state in writing to the entrant is
necessary to protect the revenue) had all the articles covered by
the entry been entered under an ordinary consumption entry. The
basis for the computation of the amount of a temporary
importation bond is estimated duties determined in accordance
with sections 141.90 and 141.103 of the Customs Regulations (19
CFR 141.90 and 19 CFR 141.103). To this amount is added any
other duties that the district director ascertains may become due
on the articles so entered and, as well, estimated expenses of
reimbursable supervision such as may arise, for instance, when
the articles are not properly marked. Estimated antidumping
duties are properly added under this provision. Thus, the
district director would allow for additional duty which might
accrue by reason of the Antidumping Act in computing the amount
of the bond when the merchandise is entered. See, Headquarters
Letter CON-9-R:CD:D JL 201949 (September 26, 1974).
HOLDING:
Entry is permitted in this case under a temporary
importation under bond as a process under subheading 9813.00.05,
HTS. The importer must meet all of the accountability
requirements under the U.S. Notes of Subchapter XIII to the
satisfaction of the District Director. The antidumping duties
should be treated as duties for the purpose of setting the bond
amount.
Sincerely,
John Durant, Director
Commercial Rulings Division