VAL-2 OT:RR:CTF:VS H035769 CMR
Mr. Tim Darst
UPS Supply Chain Solutions, Inc.
1930 Bishop Lane
Suite 200
Louisville, KY 40218
RE: Importation of clothing, luggage, gift items, and office stationary in connection with the
Ryder Cup golf event
Dear Mr. Darst:
This ruling is in response to your request of August 13, 2008, on behalf of your client, Ryder Cup Europe LLP, regarding the classification of various items to be imported for use in connection with the Ryder Cup golfing event to be held in Louisville, Kentucky, from September 15 through 22 of 2008.
FACTS:
Ryder Cup Europe LLP is the European Division of the Ryder Cup which represents itself at the Ryder Cup every two years. The Ryder Cup is an international golf event dating back to 1927 and originally involving golfers from the United States and Great Britain, and since 1979 the players opposing the United States have been chosen from all of Europe.
The European Team will consist of 12 contestants plus caddies. Traveling with the team will be partners/spouses/family members and Ryder Cup LLP staff members.
The merchandise at issue will be in a shipment originating in the United Kingdom and destined for Louisville, Kentucky. The shipment will contain various items, i.e., clothing, gift sets, office materials, luggage, golf bags and umbrellas, with various origins. All packaging will be marked with the country of origin.
Your client indicates that all clothing items will be worn exclusively by the Team and will not be sold or auctioned after the event. The list of the clothing provided is general in nature and identified the clothing as follows:
Canali Gents Clothing
Pro-Quip Waterproofs
Glenmuir – Shirts and Sweaters
Paul Costelloe – Ladies Clothing
Approximately 24 individual gift packs intended for players’ wives and caddies will also be shipped. Your client indicates these will consist of:
Thomas Lyte – Leather and silver gifts
Theo Fennel – Cufflinks in silver
German porcelain chess set
Additional items to be shipped are office stationary (such as Ryder Cup LLP headed paper, pens, etc.), Samsonite suitcases, Level 4 golf bags and umbrellas.
You specifically request confirmation that the merchandise at issue is eligible for classification in heading 9817.60.00 of the Harmonized Tariff Schedule of the United States (HTSUS).
ISSUE:
Are the items described above, imported for the use of European Team members, their caddies, and partners/spouses/family members and Ryder Cup LLP staff members, eligible for classification in heading 9817.60.00, HTSUS, and eligible for entry at a duty rate of Free?
LAW AND ANALYSIS:
Heading 9817.60.00, HTSUS, provides for:
Any of the following articles not intended for sale or distribution to the public: personal effects of aliens who are participants in, officials of, or accredited members of delegations to, an international athletic event held in the United States, such as the Olympics and Paralympics, the Goodwill Games, the Special Olympics World Games, the World Cup Soccer Games, or any similar international athletic event as the Secretary of the Treasury may determine, and of persons who are immediate family members of or servants to any of the foregoing persons; equipment and materials imported in connection with any such foregoing event by or on behalf of the foregoing persons or the organizing committee of such an event, articles to be used in exhibitions depicting the culture of a country participating in such an event; and, if consistent with the foregoing, such other articles as the Secretary of the Treasury may allow. . . .
Heading 9817.60.00, HTSUS, became a provision in the tariff with the enactment of the Miscellaneous Trade and Technical Corrections Act of 2000, Public Law 106 – 476 (November 9, 2000). The Senate Report stated with regard to this new provision:
This provision would amend subchapter XVII of chapter 98 of the HTS by inserting a new heading 9817.60.00 for duty free treatment of the personal effects of participants in, officials of, and accredited members of delegations to, international athletic events, including the paralympics, held in the United States provided that these items are not intended for sale or distribution in the United States. H.R. 2715 would also exempt the articles covered under this provision from taxes and fees and would give the Secretary of the Treasury discretion to determine which athletic events, articles, and persons are covered under this provision.
See S. Rep. No. 503, 106th Cong., 2nd Sess. (2000), (“Tariff Suspension and Trade Act of 2000”) The House Report, H.R. Rep. No. 789, 106th Cong, 2nd Sess. (2000), (“Miscellaneous Trade and Technical Corrections Act of 2000”) contains virtually identical language with regard to the provision.
In explaining the reason for the creation of heading 9817.60.00, both the House and Senate Reports stated:
The Committee recognizes the importance of international athletic events and the tremendous efforts of the athletes and participants. Although athletes and other officials connected with certain sporting events are currently afforded duty free treatment for their personal belongings and equipment under current law, such treatment will expire in December 2002. This legislation will give athletes and participants of future competitions certainty regarding their future duty liability.
See S. Rep. No. 503, 106th Cong., 2nd Sess. (2000), and S. Rep. No. 503, 106th Cong., 2nd Sess. (2000).
Based on the information you have provided, we believe that the merchandise at issue falls within the coverage of heading 9817.60.00, HTSUS, and qualifies for entry in that provision with a rate of duty of Free. However, U.S. Note 8, Subchapter XVII, Chapter 98, provides:
Any article exempt from duty under heading 9817.60.00 shall be free of taxes and fees that may otherwise be applicable, but shall not be free or otherwise exempt or excluded from routine or other inspections as may be required by the Customs Service. [Emphasis added.]
We recommend that you work with the port of entry with regard to any other issues you may have, such as the correct marking of the merchandise, prior to importation.
HOLDING:
The merchandise at issue herein, imported for use by the European Team of Ryder Cup Europe LLP (including contestants, caddies, partners/spouses/family members and Ryder Cup LLP staff members), is classifiable in heading 9817.60.00, HTSUS, which provides for “personal effects of aliens who are participants in, officials of, or accredited members of delegations to, an international athletic event held in the United States, . . . , and of persons who are immediate family members of or servants to any of the foregoing persons; equipment and materials imported in connection with any such foregoing event by or on behalf of the foregoing persons or the organizing committee of such an event, . . . ; and, if consistent with the foregoing, such other articles as the Secretary of the Treasury may allow. Merchandise classifiable in heading 9817.00.60, HTSUS, is subject to a Free rate of duty.
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents are filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch