CON-9-09 CO:R:C:E 223574 SLR
District Director of Customs
10 Causeway Street
Suite 603
Boston, MA 02222-1059
RE: Internal Advice 73/91; Leather for Footwear;
"Quality Control" Inspection; Testing; Temporary
Importation Under Bond (TIB) Subheading 9813.00.30,
Harmonized Tariff Schedule of the United States
Annotated (HTSUSA)
Dear Sir:
This is in response to your memorandum dated November 14,
1991, requesting our advice on the TIB status of leather which
undergoes an inspection as well as lab testing while in the
United States.
FACTS:
The Morabela Shoe Corporation imports leather from Korea and
Argentina for use in the manufacture of shoes. The imported
leather must meet specific minimum standards and specifications
before being exported to the Dominican Republic for final
assembly. To this end, the leather undergoes an inspection, then
lab testing.
All of the leather shipments are subjected to 100 percent
examination. The inspection ensures that: the color of the
leather matches the standard maintained on file; that the weight
and thickness of the leather is correct; and that the temper or
feel of the leather meets the company's standards. An inspection
involves examining the leather for scars, color imperfections,
and "loose leather quality." Additionally, in determining the
"loose leather quality," weight, and thickness, the inspector
must feel, flex, and manipulate the leather.
Once the inspector determines that the leather meets the
appropriate standards, a sample from each shipment is sent to a
lab for testing. The testing involves seven separate procedures
which measure either the strength, color stability, stretch,
proper bonding quality, or proper adhesion quality of the
leather.
-2-
Counsel representing Morabella maintains that the
above-described inspection (or, in the alternative, the lab
testing) entitles the leather to duty-free entry under subheading
9813.00.30, HTSUSA. You, however, disagree. You maintain that
the performed inspection is a mere quality control procedure
undeserving of TIB treatment and cite a May 26, 1953 Headquarters
letter as the authority for your position. You also discount
counsel's claim that the leather should be allowed TIB status
based on the lab testing procedures as it is your understanding
that only one small piece from each shipment is tested, and that
no shipments have been rejected on the basis of the tests
conducted. You note that the tested samples rarely fail the
above-described tests and, on the rare occassion that a sample
fails a test, another sample is tested until it passes the test.
ISSUE:
Whether either of the above-described procedures (the
inspection or the lab testing) qualifies the leather for
duty-free entry under TIB provision 9813.00.30, HTSUSA.
LAW AND ANALYSIS:
Under subheading 9813.00.30, HTSUSA, articles intended
solely for testing, experimental, or review purposes may be
entered duty-free, temporarily, under bond for their exportation
within one year from the date of importation. This period may be
extended for one or more additional periods, which when added to
the initial period does not exceed three years.
Headquarters has issued several decisions concerning
the TIB status of quality control inspections. In a letter dated
December 8, 1959, Headquarters authorized the entry of files and
rasps for "quality control" testing under item 864.30 Tariff
Schedules of the United States (TSUS) (predecessor to subheading
9813.00.30, HTSUSA). Likewise, in a letter dated December 17,
1986, valves checked manually for dysfunction were allowed entry
under item 864.30, TSUS. It follows that leather subjected to
the type of inspection performed here qualifies for duty-free
entry under subheading 9813.00.30, HTSUSA.
As for our letter of May 26, 1953 (copy attached), entry
under section 308(4) of the Tariff Act of 1930 (predecessor to
item 864.30, TSUS) was denied Canadian-made shoes imported
for the purpose of testing the efficiency of a Canadian company's
production and workmanship. At that time, however, the law
only pertained to "Articles intended solely for experimental
purposes." Section 308(4) was later amended to include "Articles
intended solely for testing, experimental, or review purposes"
and, as indicated in our May decision, the Canadian shoes would
have qualified for entry under section 308(4) as amended.
-3-
Here, inspection alone qualifies the leather for TIB
treatment. Consequently, we need not discuss the lab testing
issues.
HOLDING:
Based on the foregoing, the leather qualifies for duty-free
entry under subheading 9813.00.30, HTSUSA, provided all other TIB
requirements are met.
Sincerely,
John Durant, Director
Commercial Rulings Division