CLA-2-CO:R:C 555169 RA
District Director of Customs
P.O. Building
Pembina, North Dakota 58271
RE: Application for further Review of Protest No. 3304-8-000016,
contesting the denial of item 801.10, TSUS, treatment for
certain wooden door jambs from Canada
Dear Sir:
The above-referenced protest contests the denial by your
office of duty-free treatment under item 801.10, Tariff Schedules
of the United States (TSUS) (now subheading 9801.00.25,
Harmonized Tariff Schedule of the United States (HTSUS)), for
certain wooden door jambs which were returned to the U.S. from
Canada for failure to meet specifications.
FACTS:
The merchandise in question consists of wooden door jambs
which were initially imported from Korea duty free under the
Generalized System of Preferences (GSP), shipped to Canada where
they were rejected for failure to meet specications, and returned
to the original importer in the U.S. The Canadian customer
claimed the red oak veneered material received was unsuitable for
use because of a high degree of glue bleeding and surface
roughness. The importer claimed that the returned shipment
should be entered free of duty under item 801.10, TSUS. Your
office denied classification under this provision for the reason
that no duty was paid on the first importation, as required by
item 801.10, TSUS.
ISSUE:
Whether merchandise admitted duty free under the GSP on the
original importation is entitled to free entry under item
801.10, TSUS, when exported to Canada and then returned for
failure to meet specifications.
LAW AND ANALYSIS:
Item 801.10, TSUS, provides, in relevant part, for the duty-
free entry of:
Articles, previously imported, with respect
to which the duty was paid upon such previous
importation if ... reimported for the reason
that such articles do not conform to sample or
specifications ....
The protest is against the denial of free entry under this
provision because the merchandise was originally imported under
GSP and duty was never paid. We have consistently held that
payment of duty on the merchandise when first imported is a
prerequisite to obtaining the benefit of item 801.10, TSUS.
In Headquarters Ruling Letter 058225 dated June 14, 1978,
we held that the provision for free entry in item 801.10, TSUS,
is limited to cases where duty was paid at the time of the
original entry into the U.S. and, therefore, articles initially
imported under the GSP were precluded from duty-free entry under
item 801.10, TSUS, when reimported. The same conclusion was
reached in rulings dated November 24, 1982 (071029) (fur jackets
imported under the GSP, exported to the United Kingdom, and
returned because they were the wrong sizes), and January 25,
1985 (553432) (brass articles imported under the GSP, exported
and then returned for failure to conform to specifications).
HOLDING:
In view of the specific requirement that duty be paid on the
original importation before the provision for free entry in item
801.10, TSUS, may apply, and our consistent rulings on this
matter, it is our determination that the protest should be
denied in full. A copy of this decision should be attached to
the Form 19, Notice of Action, to be sent to the protestant.
Sincerely,
John Durant, Director
Commercial Rulings Division