CON-9-04-CO:R:C:E 224246 DH
C.K. Murphy
Manager
International Logistics
Eveready Battery Company, Inc.
Post Office Box 450777
Westlake, Ohio 44145-0616
RE: Temporary importation under bond applied to the application
or processing of lithograph metal displaying labels to batteries;
Labelling; Subheading 9813.00.05, HTSUS
Dear Mr. Murphy:
This is in response to your letter of September 2, 1992,
regarding the applicability of the temporary importation under
bond (T.I.B.) procedures and subheading 9813.00.05 of the
Harmonized Tariff Schedule of the United States (HTSUS), to
lithograph metal applied to batteries as labels.
FACTS
Lithograph metal displaying labels has been imported into
the U.S. from Japan under subheading 7210.90.60009, HTSUS. The
sheets are cut to the size of 9v battery jackets and applied to
the individual 9v batteries. Upon completion, the batteries are
exported. An inventory of the imported lithograph metal used for
exported batteries is kept separately from the inventory of
lithograph metal used on the domestic batteries.
LAW AND ANALYSIS
Under subheading 9813.00.05, HTSUS, articles to be repaired,
altered or processed (including processes which result in
articles manufactured or produced in the United States) may be
entered duty-free, temporarily, under bond for their exportation
within one year from the date of importation unless an extension
for one or more additional periods, which when added to the
initial period does not exceed three years, is granted by the
district director.
From the description of the operation given, all indications
are that a process takes place. However, you must meet all of
the accountability requirements under the U.S. Notes of
Subchapter XIII, HTSUS. In particular, subheading 9813.00.05,
HTSUS, U.S. Note 2(b) states that if any processing of such
merchandise results in an article manufactured or produced in the
United States: (i) a complete accounting will be made to the
Customs Service for all articles, wastes and irrecoverable losses
resulting from such processing; and (ii) all articles and
valuable wastes resulting from such processing will be exported
or destroyed under Customs supervision within the bonded period;
except that in lieu of the exportation or destruction of valuable
wastes, duties may be tendered on such wastes at rates of duties
in effect for such wastes at the time of importation.
The applicable Customs regulations may be found at 19 CFR
10.31 through 10.40. Section 10.31(f) states that a bond shall
be given on Customs Form 301 in an amount equal to double the
duties which it is estimated would accrue (or such larger amount
necessary to protect the revenue) had all the articles covered by
the entry been entered under an ordinary consumption entry. The
basis for the computation of the amount of a temporary
importation bond is estimated duties determined in accordance
with section 141.90 and 141.103 of the Customs Regulations (19
CFR 141.90 and 19 CFR 141.103). To this amount is added any
other duties that the district director ascertains may become due
on the articles so entered.
HOLDING
Entry is permitted in this case under a temporary
importation under bond as a process under subheading 9813.00.05,
HTSUS. The importer must meet all of the accountability
requirements under the U.S. Notes of Subchapter XIII to the
satisfaction of the District Director and all other requirements
contained in 19 CFR 10.31-10.40.
Sincerely,
John Durant, Director
Commercial Rulings Division