CLA-02 RR:CR:SM 563022 AL
Category: Classification
Ms. June A. Rhinehart
Johnson Publishing Company, Inc.
820 South Michigan Avenue
Chicago, Illinois 60605
RE: 9801.00.60, HTSUS; 19 CFR 10.66(a) and (b); HQ 221961; HQ 556092
Dear Ms. Rhinehart:
This is in response to your letter dated February 3, 2004, on behalf of the Ebony Fashion Fair, a division of Johnson Publishing Company, Inc., concerning the free entry of clothing and accessories of a traveling fashion show from Nassau, Bahamas.
FACTS:
According to the February 3, 2004 letter, the Ebony Fashion Fair is a traveling fashion show that performs throughout the United States. The fashion show is a charitable event and is performed only for the purpose of charity. The clothing and accessories used in the fashion show are not for the purpose of soliciting orders. Based on your letter, you met with an import specialist with the U.S. Customs and Border Protection (“CBP”) on January 26, 2004 and at that time the import specialist provided you with a Certificate of Registration (“CF 4455”). Moreover, your letter indicates that the import specialist informed you that the Ebony Fashion Fair would need to obtain a ruling from our office to determine the duty treatment of the clothing and accessories upon return to the U.S. from the Bahamas.
The Ebony Fashion Fair attached a list of the items accompanying the traveling fashion show to the CF 4455. The attached list was faxed to our office and provides such information as the description of the clothing and accessories, the number of pieces, and the value and the country of origin of each item. The products originate from the United States, France, London, Italy, and Japan. According to the Ebony Fashion Fair, the clothing and accessories are either purchased in the United States or abroad where prior to receiving the purchased items from abroad, duties have been paid and the items have been cleared by CBP.
You have stated in your ruling request that you obtain a carnet bond for the shows that travel to and from Canada each year. Here, you are requesting a ruling for the show that travels to and from the Bahamas.
ISSUE:
Whether the clothing and accessories of a traveling fashion show from the Bahamas is eligible for duty-free treatment upon return to the U.S.
LAW and ANALYSIS:
Subheading 9801.00.60, Harmonized Tariff Schedule of the United States (“HTSUS”), provides for the free entry of articles which are returned after having been exported for temporary use abroad solely for exhibition or use in connection with any public exposition, fair or conference, provided such articles are returned by or for the account of the person who exported them. In connection with the entry of articles exported for temporary exhibition and returned and claimed to be exempt from duty under subheading 9801.00.60, HTSUS, a certificate of exportation on Customs Form 3311, and a declaration of the importer on Customs Form 4455 for articles of either domestic or foreign are required. 19 CFR 10.66(a)(1) and (2). However, if it is shown to be impracticable to produce the certificate of exportation, the port director may accept other satisfactory evidence of exportation, or may take a bond on Customs Form 301 to secure the production of such certificate or other evidence. 19 CFR 10.66(b).
We must determine whether the clothing and accessories used in the traveling fashion show fall under this tariff provision which would allow for duty-free treatment. With regard to the requirement that the returned articles be exported solely for exhibition or use at a public fair, in Headquarters Ruling (“HQ”) 221961, dated May 15, 1990, the issue was whether gemstones, which were exported for exhibition at the Hong Kong Watch and Jewelry Fair and returned to the U.S., were eligible for subheading 9801.00.60, HTSUS, treatment, because orders were solicited during the fair. It was stated that the controlling factor that CBP will focus on in determining the applicability of subheading 9801.00.60, HTSUS, is the intention of the exporter at the time of exportation, and that compliance with the provision of subheading 9801.00.60, HTSUS, requires that no commercial venture (i.e., sale of goods) be contemplated at the time of exportation. However, a sale which is incidental to the showing at an exhibition, fair, or conference (i.e., when an exporter at the exposition or fair is prevailed upon to sell some of his wares) will not preclude the applicability of subheading 9801.00.60, HTSUS, to the remaining merchandise. Therefore, it was held that the exporter’s acquisition of future orders did not violate the general prohibition of subheading 9801.00.60, HTSUS, against sales at the exposition when the primary intention was for an exhibition and the exported articles were returned to the U.S.
In this case, the returned articles of clothing and accessories are being exported solely for their temporary use in a traveling fashion show. The models that are part of the traveling fashion show dress in the exported clothing and accessories for the purpose of an exhibition. Moreover, the clothing and accessories at issue are not for the purpose of soliciting orders.
With regard to a public exposition, fair or conference, in HQ 556092, dated October 22, 1991, fur goods were exported to Canada from the U.S. for display at an annual “fur show,” for the purpose of soliciting sale orders from attendees. Admission to the show was not restricted to members of a private trade association; however, only someone with a reasonable business interest in attending the show was permitted to attend. The show was advertised through trade or professional journals, and through invitations or letters sent to prospective attendees. Preregistration was required because of space limitations, and no items were actually sold and delivered at the show. It was held that a fair or conference may be considered “public” so long as it does not deny admission, for reasons other than space limitation, to persons who have a reasonable business interest in attending the event. Therefore, the returned goods were determined to be eligible for duty-free treatment under subheading 9801.00.60, HTSUS. In this case, it was indicated by phone that the fashion show does not deny admission nor does it restrict the event to members of a private association. Tickets are sold to all who are interested in attending the fashion show. If admission were to be denied, then it would be due to limited seating.
For purposes of this ruling request, the exported clothing and accessories used in the traveling fashion show are eligible to be entered under subheading 9801.00.60, HTSUS, in order to receive duty-free treatment upon return to the U.S, provided that the documentary requirements have been met. Section 10.66(a), Customs Regulations requires a CF 3311 (Certificate of Exportation) and a CF 4455 (Declaration of the Importer) to be filed at the time of entry. Generally, a CF 3311 is submitted at the time of exportation so that the port director may execute the bottom portion of the form. See HQ 557707 (May 4, 1994). However, 19 CFR 10.66(b) states that “[i]f it is shown to be impracticable to produce the certificate of exportation . . . , the port director may accept other satisfactory evidence of exportation, or may take a bond on Customs Form 301, containing the bond conditions . . . to secure the production of such certificate or other evidence.” Section 10.66(a)(2), Customs Regulations states that a “declaration of the importer on Customs Form 4455 . . .” must be filed in connection with the entry. Unlike CF 3311, there is no waiver of a CF 4455 in 19 CFR 10.66 and thus, it must be presented at the time of entry.
HOLDING:
Based on the information provided by the Ebony Fashion Fair, the clothing and accessories fall under subheading 9801.00.60, HTSUS. However, because the clothing
and accessories are returning to the U.S., having been temporarily used in the
Bahamas, the Ebony Fashion Fair must adhere to the procedures outlined in 19 CFR 10.66(a)(1) and (2) or in some instances, 19 CFR 10.66(b).
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs and Border Protection officer handling the transaction.
Sincerely,
Myles B. Harmon, Director
Commercial Rulings Division