DRA-4/DRA-2-02-R:C:E 225934 AJS
Regional Director
Commercial Operations
U.S. Customs Service
10 Causeway Street, Room 801
Boston MA 02222-1056
RE: 19 U.S.C. 1313(j); "exportation" of luggage to cruise ship; 19 CFR 101.1(k); C.S.D. 84-6;
HQ 222284; HQ 223791.
Dear Madame:
This is in reply to your internal advice request of January 13, 1995, (your file DRA-1-0:CO:L DJG) concerning unused merchandise drawback and RDS Imports.
FACTS:
RDS imports various types of luggage from Italy and proposes to sell this luggage to the
operators of a cruise line. The luggage will be sold to passengers while in international waters.
RDS wishes to claim unused merchandise drawback for merchandise laden aboard the cruise
vessels. Your request states that the goods will leave the U.S. only temporarily, with no actual
foreign destination. The goods are not intended to become part of the commerce of any foreign
country. The luggage is expected to be returned to the U.S., after a brief cruise, through the same
port from which the passengers embarked.
ISSUE:
Whether the subject merchandise is eligible for unused merchandise drawback pursuant to
19 U.S.C. 1313(j)(1). More specifically, whether the luggage is exported within the meaning of
section 1313(j)(1).
-2-
LAW AND ANALYSIS:
19 U.S.C. 1313(j)(1) requires that imported merchandise be exported in order to qualify
for unused merchandise drawback. 19 CFR 101.1(k) provides that "exportation" means a
severance of goods from the mass of things belonging to this country with the intention of uniting
them to the mass of things belonging to some foreign country. The shipment of merchandise
abroad with the intention of returning it to the United States with a design to circumvent
provisions of restrictions or limitations in the tariff laws or to secure a benefit accruing to
imported merchandise is not an exportation. Merchandise of foreign origin returned from abroad
under these circumstances is dutiable according to its nature, weight, and value at the time of its
original arrival in this country. The subject luggage does not satisfy the description of
"exportation". There is no intent to unite the luggage with the mass of things belonging to a
foreign country. The luggage will only leave the U.S. temporarily, and be returned after the
cruise. Therefore, the subject luggage does not satisfy the exportation requirements of section
1313(j)(1).
In Customs Service Decision (C.S.D.) 84-6, Customs ruled that nonconsumable souvenir
articles delivered to gift shops for sale to passengers on cruise ships could not be considered as
articles exported to a foreign country because the ultimate destination of the souvenir articles was
the U.S. In that case, the merchandise was laden aboard the vessel in the U.S., the vessels
departed the U.S. for a cruise at sea, and returned to the U.S. The rational for Customs decision
was there was no showing of intent to export these articles to a foreign country. We find this
C.S.D. instructive for determining that there is also no intent to export the subject luggage. We
also refer you to HQ 222284 (7/30/90) and HQ 223791 (4/15/92) for other decisions in which
Customs determined that an exportation did not occur under similar circumstances.
HOLDING:
The subject merchandise is not subject to unused merchandise drawback pursuant to 19
U.S.C. 1313(j)(1) because the luggage is not exported within the meaning of this provision.
Sincerely,
John Durant, Director
Commercial Rulings Division