ENT-1-07-RR:IT:EC 114291 GG

Arthur W. Bodek, Esq.
Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway, 43rd Floor
New York, New York 10036-8901

RE: Clarification of HQ 560827; Samples; Articles Sent to Guam from the United States Not Exported; No Entry Required Upon Return to the United States.

Dear Mr. Bodek:

This is in response to your March 10, 1998, letter requesting a supplement to, or an amendment of, the ruling referenced above. The client you represent is Esprit de Corp. For subject matter jurisdiction reasons, this matter was referred to us by Ms. Sandra Bell and Mr. Burton Schlissel of the Special Classification and Marking Branch.

FACTS:

In Headquarters Ruling Letter HQ 560827, dated February 25, 1998, Customs held in pertinent part that U.S. and foreign-origin sales samples returned to the United States from Guam will not be considered imported, because their shipment to Guam does not qualify as an exportation. Subsequent to the issuance of the ruling, you have expressed concern to its drafter that the ruling may not sufficiently convey to port officials the information that the samples will be exempt from all Customs requirements. Accordingly, you request a written clarification.

ISSUE:

Whether textile sales samples taken to Guam by U.S.-based sales representatives, will be subject to U.S. Customs entry requirements, payment of duty, or presentation of textile visas upon their return to the United States.

LAW AND ANALYSIS:

Longstanding judicial and administrative precedent holds that merchandise sent from the United States to Guam is not exported. See John Rothschild & Co. V. United States, 16 Ct. Cust. Appls. 442, 446, T.D. 43190 (1929); Mitsubishi International Corp. et al v. United States, 55 Cust. Ct. 319, 325, C.D. 2597 (1965); C.S.D. 79-77; and Headquarters Ruling Letter HQ 221414, dated April 11, 1990. If an article leaves the United States but is not deemed to be exported, then there is no importation upon its return to the United States. In accordance with General Note 1 of the Harmonized Tariff Schedule of the United States, only those goods that are imported into the customs territory of the United States are subject to duty. See also Headquarters Ruling Letter HQ 113786, dated November 12, 1997. Furthermore, Customs entry requirements pertain only to merchandise which has been imported. 19 U.S.C. 1484; 19 CFR 141.4. Applied here, sales samples sent to Guam from the United States would not be subject to duty or entry requirements upon their return from Guam to this country. These same samples, if ordinarily subject to quota, would also not require visas, because visas attach only to quota class merchandise, which is defined in 19 CFR 132.1(e) as "any imported merchandise subject to limitations under an absolute or a tariff-rate quota".

HOLDING:

Sales samples of U.S. or foreign origin which are taken to Guam from the United States, are not subject to duty, entry or visa requirements upon their return to the customs territory of the United States. The holding in HQ 560827, dated February 25, 1998, is clarified accordingly.

Sincerely,

Jerry Laderberg
Chief
Entry Procedures and Carriers
Branch