CLA-2 RR:TC:SM 559598 MLR
Tariff No.: 9801.00.80
Port Director
U.S. Customs Service
P.O. Box 1490
St. Albans, VT 05478
RE: Application for Further Review of Protest No. 0201-95-100467 concerning denial of free entry of 1994 GMC Jimmy
Van; previously exported from U.S.; drawback
Dear Sir:
This is in reference to the above-referenced Application
for Further Review filed by A.N. Deringer, Inc., on behalf of
Coblev. Inc., contesting the denial of an entry under heading
9801, Harmonized Tariff Schedule of the United States
(HTSUS), to a 1994 GMC Jimmy Van.
FACTS:
The record indicates that a 1994 GMC Jimmy Van was
entered July 21, 1995, at St. Albans, Vermont from Canada.
The van's VIN is 1GJHG39K4RF532794. The record contains an
explanation of the symbols contained in the VIN. The entry
was liquidated under subheading 8703.24.90, HTSUS, on October
27, 1995, at a duty rate of 2.5 percent ad valorem. The
protest, timely filed on November 13, 1995, claims that the
van should have been allowed entry under heading 9801, HTSUS,
because it was manufactured in the U.S., but not in a U.S.
foreign trade zone (FTZ). A letter is submitted from General
Motors Corporation stating that GMC has not and does not
intend to manufacture or assemble heavy, medium or light duty
trucks in a FTZ using non-privileged foreign material or
material on a non-duty paid basis.
ISSUE:
Whether the GMC Jimmy Van is eligible for entry under
heading 9801, HTSUS.
LAW AND ANALYSIS:
Subheading 9801.00.10, HTSUS, provides for the free entry
of products of the U.S. that have been exported and returned
without having been advanced in value or improved in
condition by any process of manufacture or other means while
abroad, provided the documentary requirements of section
10.1, Customs Regulations are satisfied. While some change
in the condition of the product while it is abroad is
permissible, operations which either advance the value or
improve the condition of the exported product render it
ineligible for duty-free entry upon return to the U.S.
Border Brokerage Company, Inc. v. United States, 314 F. Supp.
788 (1970), appeal dismissed, 58 CCPA 165 (1970).
The pertinent documents required by 19 CFR 10.1, are a
declaration from the foreign shipper that the articles were
exported from the U.S. and that they are returned without
having been advanced in value or improved in condition, and a
declaration from the owner, importer, consignee, or agent
that the articles were manufactured in the U.S. and that the
articles were exported from the U.S. without benefit of
drawback.
Your office denied entry under heading 9801, HTSUS,
because it was not established to your satisfaction that the
GMC Jimmy Van was not produced in a FTZ in the U.S. The
van's VIN is 1GJHG39K4RF532794. The explanation of the VIN
indicates that the first position denotes where the vehicle
was built. A "1" means that the vehicle was built in the
U.S. The eleventh position denotes the assembly plant. An
"F" means Flint, Michigan. The Office of Field Operations,
Trade Programs Branch informs us that the 1994 GMC Jimmy Van
was not assembled in a FTZ established in Flint, Michigan.
Accordingly, the van may qualify for free entry under
subheading 9801.00.10, HTSUS, provided you are satisfied that
the documentary requirements of 19 CFR 10.1 have been met.
The Office of Field Operations, Trade Programs Branch also
informs us that automobile manufacturers often claim drawback
when their vehicles are exported from the U.S. If your
office is not satisfied that the vehicle was exported from
the U.S. without benefit of drawback, entry under subheading
9801.00.10, HTSUS, will not be applicable.
However, subheading 9801.00.80, HTSUS, provides for a
duty on articles previously exported from the U.S. equal to
the sum of any duty and internal-revenue tax imposed upon the
importation of like articles not previously exported from the
U.S., which, except for U.S. note 1, Subchapter I, Chapter
98, HTSUS, would qualify for free entry under one of the
foregoing items and are not otherwise free of duty. But in
no case is the duty to be in excess of the sum of (a) any
customs drawback proved to have been allowed upon such
exportation of the article, and (b) any internal revenue tax
imposed, at the time such article is entered, upon the
importation of like articles not previously exported. U.S.
note 1, Subchapter I, states that the provisions in the
subchapter (except subheadings 9801.00.70 and 9801.00.80)
shall not apply to any article that is: "(a) exported with
the benefit of drawback; ... or (c) manufactured or produced
in the United States in a customs bonded warehouse...."
Accordingly, since it has been established that the
vehicle was not produced in a U.S. FTZ, the vehicle may
qualify for duty-free entry subheading 9801.00.10, HTSUS,
treatment, provided the documentary requirements of 19 CFR
10.1 are satisfied. If your office is not satisfied that the
vehicle was exported from the U.S. without benefit of
drawback, the vehicle may be entered under subheading
9801.00.80, HTSUS, with duty to be assessed equal to the sum
of any duty and internal-revenue tax imposed upon the
importation of like articles not previously exported, but in
no case in excess of the sum of (a) any customs drawback
proved to have been allowed upon such exportation of the
article, and (b) any internal revenue tax imposed, at the
time such article is entered, upon the importation of like
articles not previously exported.
HOLDING:
Based upon the information provided, the 1994 GMC Jimmy
Van was not assembled in a FTZ in the U.S., but was
manufactured in Flint, Michigan. Therefore, the vehicle will
qualify for duty-free entry under subheading 9801.00.10,
HTSUS, provided the documentary requirements of 19 CFR 10.1
are satisfied. If your office is not satisfied that the
vehicle was exported from the U.S. without benefit of
drawback, the vehicle may be entered under subheading
9801.00.80, HTSUS. Accordingly, this protest should be
disposed of in accordance with this decision.
In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065 dated August 4, 1993, Subject: Revised Protest
Directive, this decision should be attached to Customs Form
19, Notice of Action, and be mailed by your office to the
protestant no later than 60 days from the date of this
letter. Any reliquidation of the entry in accordance with
the decision must be accomplished prior to mailing of the
decision. Sixty days from the date of the decision the
Office of Regulations and Rulings will take steps to make the
decision available to customs personnel via the Customs
Rulings Module in ACS and the public via the Diskette
Subscription Service, Freedom of Information Act and other
public access channels.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division