ENT-1-01 CO:R:C:E 223140 CB
Michael J. Horton, Esq.
Horton & Whiteley
1900 Embarcadero
Suite 201
Oakland, CA 94606
RE: Entry of merchandise for exhibition or trade fair; 19
U.S.C. 1755
Dear Mr. Horton:
This is in reply to your letter of April 11, 1991, wherein
you requested a binding ruling on behalf of your client,
Logistics Management, Inc. (hereinafter "LMI"). In your
submission you posed several questions concerning entry
procedures and broker compliance.
FACTS:
The business of LMI will be to assist various foreign
parties located anywhere in the world to bring merchandise to the
United States for the primary purpose of exhibition. The foreign
exhibitors will ship goods to LMI at many ports throughout the
United States, and LMI will be the consignee of the merchandise
shipped for exhibition. You state that all Customs documentation
will be prepared and filed by licensed Customshouse brokers.
LMI provides personal supervision at the exhibition sites
before, during and after the exhibition event. Members of LMI's
professional staff attend every major show to ensure timely
delivery of the exhibition materials, and the staff remains
throughout the duration of the show to answer questions and
assist the foreign exhibitors. LMI also coordinates with the
local service contractors and drayage companies to arrange
movement of exhibition goods from the various ports of entry to
the exhibition site. Subsequent to the actual exhibition, LMI
also coordinates the movement of goods either to a final U.S.
destination or back to any foreign country designated by the
foreign exhibitor.
The various Customs entry procedures and Customs brokers
procedures which LMI wishes to follow in the course of its
business are as follows: 1) Customshouse broker is importer of
record; 2) LMI is importer of record; or 3) foreign exhibitor is
importer of record.
ISSUE:
1) May LMI, as consignee of the exhibition merchandise,
appoint a Customshouse broker to be the importer of record of the
goods and clear the goods?
2) May LMI, as consignee of the exhibition merchandise, be
named as the importer of record on the Customs entries filed by
the Customshouse broker to clear the goods?
3) Where LMI appoints a Customshouse broker to clear the
exhibition merchandise and the foreign exhibitor is shown as the
importer of record, may the Customshouse broker submit his bill
for services rendered in the name of the foreign exhibitor, but
sent in care of LMI?
LAW AND ANALYSIS:
Under normal entry procedures, pursuant to 19 U.S.C. 1484
only an "importer of record" has the right to make entry.
"Importer of record" is defined as the owner or purchaser of the
goods, or when designated by the owner, purchaser, or consignee,
a licensed customhouse broker. A nominal consignee may designate
a customhouse broker to make entry on his behalf but may not make
entry on his own behalf. If a customhouse broker makes entry for
a nominal consignee, the broker must appear as importer of
record.
However, the fact situation you described in your letter is
provided for in 19 U.S.C. 1751 through 1756 which governs trade
fairs. Under 19 U.S.C. 1755 the fair operator is deemed the sole
consignee and importer of all articles entered. Customs
administration and interpretation of 1751-1756 is contained in 19
CFR Part 147. The regulations reiterate that the fair operator
shall be deemed for Customs purposes the sole consignee of the
merchandise and responsible for all duties and charges due on
account of such entries. 19 CFR 147.11(a). Therefore, the
answer to two of your questions is No. Under the statute and
regulations, your client is unable to make entry if it is named
as importer of record nor is it able, as consignee, to appoint a
Customshouse broker. In view of our answer to the first two
questions, we see no need to address the third question you
posed.
HOLDING:
The trade fair operator is the sole consignee and importer
of record of exhibition merchandise imported into the United
States for a fair.
Sincerely,
John A. Durant, Director
Commercial Rulings Division