CON-3-05/BAG-5-05
CO:R:C:E 223373 DHS
Jack Alsup, Esq.
Alsup & Alsup, Inc.
P.O. Box 1251
Del Rio, Texas 78841
RE: Alcoa Fujikura Ltd.; 9804.00.10; Weighing Equipment;
Tools of Trade
Dear Mr. Alsup:
This is in reference to your letter of July 26, 1991, on
behalf of your client, Alco Fujikura Ltd. (AFL), concerning the
the applicability of 9804.00.10 HTSUS to weighing scales.
FACTS:
You have stated that AFL is an assembler of auto ignition
wire harnesses in Mexico, operating under the Mexican in-bond
maquiladora program. The principal inventory method employed by
AFL in its seven assembly plants importing and exporting through
the Del Rio, Texas Customs Port of Entry, is inventory by weight.
AFL proposes to export from the U.S. to Mexico 40 to 50
weighing scales obtained from their affiliated companies to be
used for a two to three day period. Many scales are of foreign
origin.
You have stated that an employee of AFL will accompany the
equipment to and from Mexico. The equipment will be registered
with the U.S. Customs Service, in the individual's name, on a CF
4455 when departing the U.S.
ISSUE:
What procedure must be followed to entitle an employee to an
exemption from duty under 9804.00.10 HTSUS?
LAW AND ANALYSIS:
Professional books, implements, instruments, or tools of
trade, occupation or employment, may be allowed entry free of
duty and tax under the provisions of subheading 9804.00.10,
Harmonized Tariff Schedule of the United States (HTSUS) (19
U.S.C. 1202), and for such articles taken abroad by or for the
account of any person arriving in the U.S.. (19 CFR 148.53)
The procedures regarding the entry and clearance of tools of
trade is primarily set forth in section 10.68, 148.6
(unaccompanied shipments), and 148.53 (exemption for tools of
trade) of the Customs Regulations.
The exemption for tools of trade is considered a personal
exemption available only to individuals arriving in the U.S. from
a foreign country. Merchandise consigned to and entered by or
for the account of a firm does not qualify for this exemption.
There is no requirement of ownership by the individual in order
to benefit from the exemption. Therefore, merchandise of
domestic or foreign manufacture exported from the U.S. by an
individual employed by the company, AFL, and reimported by the
same individual, even though actually owned by AFL, is eligible
for exemption from duty as tools of trade. Additionally, the
act by the employee of accompanying the equipment to and from
Mexico, although not required, would be a sufficient connection
between the exportation of the goods and the employees journey
home.
Before exportation, the equipment foreign or domestic
subject to classification under 9804.00.10 HTSUS, must be
registered on Customs Form 4455, Certificate of Registration, in
the name of the individual, or the employee of an organization,
by or for whose account the articles are taken or shipped abroad
and will be returned.
Upon reentry into the U.S., the returning individual or
broker on behalf of the returning individual is required to
present the CF 4455, the CF 7501, Entry Summary including a
reference made to the employee as the importer, and the Customs
Form 3299, Declaration For Free Entry of Articles Not
Accompanying a Resident or Nonresident. If the district director
is satisfied an oral declaration may be accepted in lieu of a
written declaration.
HOLDING:
The equipment which will be accompanied by an employee of
AFL to Mexico from the U.S. and from Mexico returning to the U.S.
will be entitled to exemption from duty under 9804.00.10 HTSUS as tools of trade if the CF 4455, the CF 3299 and the CF 7501 is
completed and presented according to 19 CFR 148.53, 10.68 of the
Customs Regulations.
Sincerely,
John Durant, Director
Commercial Rulings Division