CLA-2 CO:R:C 555483 RA
District Director of Customs
2nd and Chestnut Streets
Philadelphia, Pennsylvania 19106
RE: Internal Advice Request No. 49/89; applicability of
subheading 9810.00.35, HTSUS, to educational materials
stocked in advance of orders from nonprofit institutions
Dear Sir:
This is in response to your memorandum of August 25,
1989, forwarding a request for internal advice from E. J.
Arnold, Inc. concerning the applicability of the free entry
provision in subheading 9810.00.35, Harmonized Tariff Schedule
of the United States (HTSUS), to educational materials
imported in advance of orders from qualified nonprofit
institutions.
FACTS:
Various educational materials are imported from England
by E. J. Arnold, Inc. for sale to school systems in the U.S.
In order to provide the speed and efficiency of service which
the market demands, the importer states that it is essential
to stock these items in advance of orders being confirmed by
the qualified institutions.
ISSUE:
Will the application of the free entry provision in
subheading 9810.00.35, HTSUS, be precluded if the orders for
the merchandise are not in existence at the time of
importation?
LAW AND ANALYSIS:
Subheading 9810.00.35, HTSUS, provides for the free entry
of specified articles which are fabricated to specification
and designed for the classroom instruction of children if
imported for the use of any public or nonprofit institution
established for educational, scientific, literary, or
- 2 -
philosophical purposes or for the encouragement of the fine
arts. Educational articles which are not specifically
designated would not be covered by this provision.
It was the consistent practice under item 851.15, Tariff
Schedules of the United States, the predecessor provision to
subheading 9810.00.35, HTSUS, to require that the articles
involved must be imported directly by the qualified nonprofit
institution or by an agent acting in its behalf. Absent such
a requirement, there would be no assurance that the imported
items would in fact be used as the law intended. See
Headquarters ruling dated August 13, 1968 (SP 534.2). The
requirement that the importation must be made pursuant to a
bonafide, pre-existing order from a nonprofit institution and
not by a dealer for the purpose of securing a purchaser after
importation is one of long standing and has been uniformly
applied in all cases. See C.I.E. 1035/67 dated December 6,
1967.
In the instant case, the educational materials were not
imported by a qualified institution or its agent pursuant to a
pre-existing order for the merchandise. Therefore, the
materials subject to this internal advice request are not
entitled to duty-free treatment under subheading 9810.00.35,
HTSUS.
HOLDING:
For the reasons set forth above, the subject educational
materials are not entitled to classification under the duty-
free provision of subheading 9810.00.35, HTSUS.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc: A.D., NY Seaport
2cc: Chief, CIE
RARNOLD:lw 2/7/90