CLA-2 CO:R:C:S 556528 SER
District Director
U.S. Customs Service
Pembina, ND 58271
RE: Application for Further Review of Protest No. 3401-91-
100075; 9801.00.20, HTSUSA; label applicator machine;
documentation; 19 CFR 10.1(a)
Dear Sir:
The above-referenced protest concerns your classification
and duty assessment of a label applicator machine from Canada.
Protestant claims that the article at issue is eligible for duty-
free treatment under subheading 9801.00.20, Harmonized Tariff
Schedule of the United States Annotated (HTSUSA), a claim which
you have denied.
FACTS:
The article at issue is a label applicator machine. The
importer/protestant has provided some documentation which
indicate that a labeling machine was originally imported into the
United States from Israel. The labeling machine was then stated
to be shipped to Canada and subsequently returned to the United
States.
Three documents were provided to support these transactions.
One document is a Customs Form (CF) 7501, indicating an
importation by the importer/protestant of a labeling machine from
Israel. However, no serial number or detailed description was
included on this form. A second document-- Canadian Customs
invoice-- indicates importation into Canada of a labeling
applicator machine. And, finally, another CF 7501 indicating an
importation by the protestant of a labeling applicator machine
from Canada.
You denied duty-free treatment under subheading 9801.00.20,
HTSUSA, on the basis that the importer failed to provide
sufficient documentation or information to show that the label
applicator machines at issue was imported, exported and
reimported.n -2-
ISSUE:
Whether the labeling applicator machine at issue is eligible
for duty-free treatment under subheading 9801.00.20, Harmonized
Tariff Schedule of the United States Annotated (HTSUSA).
LAW AND ANALYSIS:
Subheading 9801.00.20, HTSUSA, provides duty-free treatment
for "articles previously imported, with respect to which the duty
was paid upon such previous importation, ... if [the articles
are] (1) reimported, without having been advanced in value or
improved in condition by any process of manufacture or other
means while abroad, after having been exported under lease or
similar use agreements, and (2) reimported by or for the account
of the person who imported it into, and exported it from, the
United States." Articles satisfying the above conditions will be
afforded duty-free treatment, provided the documentation
requirements of section 10.1, Customs Regulations (19 CFR 10.1),
are satisfied.
Section 10.1(a), Customs Regulations (19 CFR 10.1(a)),
outlines the necessary documentation required for duty-free entry
under subheading 9801.00.10, and subheading 9801.00.20, HTSUSA.
The documentation consists of Customs Form 3311, the bottom
portion of which must be executed by the district director at the
port of exportation, and a declaration of the foreign shipper.
However, Section 10.1(c), provides that if the district director
is reasonably satisfied, based on the nature of the articles or
production of other evidence, that the articles are imported in
circumstances meeting the requirements of subheading 9801.00.20,
HTSUSA, the district director may waive the requirements of
producing the documents specified above.
It is clear that the documentation requirements of 19 CFR
10.1 have not been satisfied for the entry of the labeling
machine at issue. Moreover, as your office is unable to verify
from the evidence presented by the protestant that the same
merchandise was imported from Israel, exported to Canada, and
reimported under the conditions required by subheading
9801.00.20, HTSUSA, no waiver of the documentation requirements
was granted by your office. Additionally, there is no evidence
provided to indicate that the labeling applicator machine was
exported under a lease or similar use agreement as is required by
subheading 9801.00.20, HTSUSA. Therefore, the labeling machine
is ineligible for duty-free treatment under subheading
9801.00.20, HTSUSA.
n -3-
HOLDING:
Based on the information submitted, since no evidence was
provided which would indicate that the labeling applicator
machine at issue was exported under lease or similar use
agreement, nor was the proper documentation required to receive
duty-free treatment under subheading 9801.00.20, HTSUSA, provided
to Customs, this protest should be denied in full. A copy of
this decision should be attached to Customs Form 19 and sent to
the protestant as part of the notice of action on the protest.
Sincerely,
John Durant, Director