CLA-2-CO:R:C:E 220988 L
Tariff Schedule of the United States
John J. Scanlon, Jr., Esq.
Kemp, Smith, Duncan & Hammond
P.O. Drawer 2800
El Paso, Texas 79999-2800
RE: Classification of certain used airline tickets and used
credit card charge forms; your reference JS No. 88-0537
Dear Mr. Scanlon:
Your inquiry of October 7, 1988, requests a binding ruling
on the classification of certain used airline tickets and used
credit card charge forms, and a binding ruling that the used
airline tickets and used credit card forms are exempt from
country of origin marking requirements.
FACTS:
A 5-page description of the sorting and data collection
process (the "process") abroad involving the used airline tickets
and credit card charge forms has been submitted. Stripped of
detail and so far as is pertinent to the classification issue,
used airline tickets are collected from United States airline
companies. Although not specifically stated, it appears the
tickets are issued, used, and collected in the United States by
the airline companies or their agents. Similarly, the credit
card charge forms appear to be used and collected in the United
States by the airline companies or their agents.
On a regular basis the used airline tickets and credit card
charge forms are exported to Mexico for processing. Following
processing the used airline tickets and credit card charge forms
are returned to the United States.
ISSUE:
Two issues are presented. The first is whether the used
airline tickets and used credit card charge forms are intangibles
within the purview of General Headnote 5(d), Tariff Schedules of
the United States (TSUS). The second issue is whether used
airline tickets and used credit card charge forms are subject to
country of origin marking requirements pursuant to 19 U.S.C.
1304.
- 2 -
LAW AND ANALYSIS:
The TSUS was supplanted by the Harmonized Tariff Schedule of
the United States (HTSUS) on January 1, 1989. General Note 4(c),
HTSUS, provides that for the purposes of General Note 1, HTSUS,
records, diagrams and other data with regard to any business,
engineering or exploration operation whether on paper, cards,
photographs, blueprints, tapes or other media are not goods
subject to the provisions of the tariff schedule.
Section 141.4, Customs Regulations, as pertinent here
provides that entry under 19 U.S.C. 1484(a) is not required for
articles listed in General Note 4, (erroneously indicated as
General Note 5) HTSUS, and additional U.S. Note 2 to Chapter 49,
HTSUS, exempts items provided for in heading 4907 from the
requirement for entry or the payment of duty. Additional Note 2
to Chapter 49 in some respects parallels former General Headnote
5(d), TSUS.
Heading 4907.00.00, HTSUS, provides for unused postage,
revenue or similar stamps of current or new issue in the country
to which they are destined; stamp-impressed paper; banknotes;
check forms; stock, share or bond certificates and similar
documents of title.
Heading 49.07(E), Section X, Explanatory Notes to the
Harmonized System, provides in part that "similar documents of
title" are formal documents issued, or for issue, by public or
private bodies conferring ownership of, or entitlement to,
certain financial interests, goods or benefits named therein.
The used airline tickets and used credit charge forms, as
described, have no intrinsic value. Rather, it is stated, they
are evidence of amounts owed to the various airlines for services
which the airlines have rendered or will soon render. Likewise,
it is stated, they are evidence of such debt or obligation to the
various issuing banks at the time of their importation and in the
condition imported.
The process described appears similar to a bank
clearinghouse but with the exchange of used airline tickets and
credit card charge forms issued by the various parties and the
balancing of the accounts. The used airline tickets and used
credit card charge forms are not "similar documents of title"
within the meaning of heading 4907 HTSUS. They are, however,
business records within the intendment of General Note 4(c),
HTSUS, and, accordingly, are exempt from the requirement for
entry or the payment of duty.
- 3 -
With respect to the second issue, the Customs Service has
held that "intangibles" under the TSUS are not articles within
the meaning of 19 U.S.C. 1304 and therefore need not be marked
with the country of origin.
The same view is adopted with respect to General Note 4(c),
HTSUS.
HOLDING:
Used airline tickets and used credit card charge forms
exported from the United States for processing as described in
detail in a submission dated October 7, 1988, bearing the
reference JS No. 88-0537, and subsequently returned to the United
States are business records within the meaning of General Note
4(c), HTSUS, and are exempt from the requirement for entry or the
payment of duty.
The subject used airline tickets and used credit card charge
forms are not subject to the marking requirements of 19 U.S.C
1304.
Sincerely,
John Durant, Director
Commercial Rulings Division