ENT 1
OT:RR:CTF:ER
H247460 RGR
Mary-Anne Hardy
Farrow International Trade Consulting
2397 Eglington Avenue West, Suite 220
Etobicoke, Ontario M9C 5K6
Re: Request for a binding ruling regarding Deep Blue, LLC’s right to act as importer of record
Dear Ms. Hardy:
This is in response to your letter dated October 24, 2013, requesting a ruling on whether Deep Blue, LLC (“Deep Blue”) meets the criteria of “Importer of Record” as defined in Customs Directive No. 3530-002A in connection with imported brine.
FACTS:
Deep Blue provides disposal services to various clients. In the underlying matter, Deep Blue will be disposing of brine water for a Canadian client. In e-mail correspondence dated November 19, 2013, you explained that the relationship between Deep Blue and its Canadian client is one of “service provider and client.” Underlying this relationship is a long-term disposal agreement between Deep Blue and the Canadian client. The fee that Deep Blue charges its client for destruction of the brine is based on fixed and variable costs plus an additional fee for services.
According to your letter dated October 24, 2013, brine, the good being imported into the United States, will be picked up at Deep Blue’s client’s location in Canada and then, imported into the United States for destruction at Deep Blue’s facility in Kimball, Michigan. At no time does Deep Blue take ownership of the brine. You confirmed via e-mail correspondence dated November 20, 2013, that the brine is solely being imported into the United States for destruction at Deep Blue's Michigan facility.
ISSUE:
Whether a brine disposal services company has a financial interest in the imported goods such that it may act as importer of record.
LAW AND ANALYSIS:
Section 484(a)(1) of the Tariff Act of 1930, as amended (19 U.S.C. § 1484(a)(1)) provides that only parties qualifying as the “importer of record” may make entry. Those qualified parties are identified as the “owner” or “purchaser” of the goods or a broker appointed on behalf of an owner, purchaser or consignee under 19 U.S.C. §1484(a)(2)(B). Owner and purchaser are further defined in Customs Directive, (“C.D.”), 3530-002A, dated June 27, 2001. Section 5.3.1 of the directive provides:
5.3.1 The terms “owner and “purchaser” include any party with a financial interest in a transaction, including, but not limited to, the actual owner of the goods, the actual purchaser of the goods, a buying or selling agent, a person or firm who imports on consignment, a person or firm who imports under loan or lease, a person or firm who imports for exhibition at a trade fair, a person or firm who imports goods for repair or alteration or further fabrication, etc. Any such owner or purchaser may make entry on his own behalf or may designate a licensed Customs broker to make entry on his behalf and may be shown as the importer of record on the CF 7501. The terms “owner” or “purchaser” would not include a “nominal consignee” who effectively possesses no other right, title, or interest in the goods except as he possessed under a bill of lading, air waybill, or other shipping document.
C.D. 3530-002A states that the terms owner and purchaser include any party with a financial interest in a transaction. According to C.D. 3530-002A, owners or purchasers have more than custodial interest in the goods. Owners or purchasers have a financial interest in the goods that goes beyond that of a bailee. “Financial interest” means there is a nexus between the financial welfare of the owner or purchaser and the imported goods. See H007168 (Aug. 2, 2007) (noting that past rulings have identified “a nexus between the financial welfare of the would-be importer and the imported goods when finding that the financial interest in the goods is sufficient to entitle the would-be importer to act as importer of record”). Therefore, if Deep Blue’s financial interest in the brine at the time of entry is sufficient to constitute a nexus between Deep Blue’s financial welfare and the imported goods, it may serve as the importer of record.
In Headquarters Ruling Letter (“HQ”) 100056, dated November 15, 2010, we addressed a similar set of facts regarding the right to make entry as an importer of record where the requester rendered services related to the underlying import transaction, the importation of an active pharmaceutical ingredient for a fee. In HQ 100056, the requester performed importation and storage services pursuant to a formal Services Agreement. One of the additional services required under the Services Agreement was the environmental waste disposal of hazardous materials or reactive chemical waste products. The Services Agreement specified that the requester would be paid for the services that it provided. In HQ 100056, we held that the requester had a sufficient financial interest to enter the goods as importer of record.
In the matter under review, Deep Blue is providing a service related to the importation by destroying the imported brine. Along with remuneration for the actual cost of disposal of the brine based on fixed and variable costs, Deep Blue is receiving an additional fee for providing this service. Thus, Deep Blue has a sufficient financial interest to serve as importer of record for the brine. On account of this financial interest in the imported goods, Deep Blue is considered an “owner or purchaser” of the brine and has the right to make entry as importer of record per 19 U.S.C. § 1484.
HOLDING:
Deep Blue has the right to enter the brine as importer of record.
This decision is limited to the specific facts set forth herein. If the terms of the import or export contracts vary from the facts stipulated to herein, this decision shall not be binding on CBP as provided for in 19 C.F.R. § 177(b)(1), (2) and (4), and § 177.9(b)(1) and (2).
Sincerely,
Carrie L. Owens, Chief
Entry Process and Duty Refunds Branch