CLA-2 OT:RR:CTF:VS H068026 KSG
Port Director
U.S. Customs & Border Protection
1 East Bay Street
Savannah, GA 31401
Re: Application for Further Review of Protest 1703-07-100468; footwear; 9801.00.10
Dear Port Director:
This is in response to the Application for Further Review of Protest 1703-07-100468 timely filed by the broker on behalf of Adidas America Inc. addressing whether a claim must be made for certain shoeboxes for preference under subheading 9801.00.10, of the Harmonized Tariff Schedule of the United States (“HTSUS”).
FACTS:
This case involves imported soccer shoes and shoeboxes. The importer initially claimed preferential tariff treatment under subheading 9801.00.10, HTSUS, for the shoeboxes for 3 styles of footwear and submitted the necessary declaration by the foreign shipper and invoice statement to support the claim. The secondary tariff classification for the imported women’s shoes was subheading 6402.19.9061, HTSUS, and subheading 6402.19.9031 for the men’s shoes. The importer filed an amended entry summary for two styles stating that the goods were classified in subheading 6402.19.9061 and 6402.10.9031, and deleted the 9801 claim for the shoeboxes.
The importer has filed a protest stating that it does not choose to claim subheading 9801.00.10, HTSUS, for two styles of footwear. The decision by the importer not to claim subheading 9801.00.10, HTSUS, treatment for the shoeboxes would affect the value of the imported shoes, which impacts the tariff classification and duty rate of the two styles of shoes.
The Port contends that the imported shoes were properly classified in the initial entry summary and that the importer cannot amend its 9801 claim.
ISSUE:
Whether the protestant is required to claim preference under subheading 9801.00.10, HTSUS, when it has provided the necessary documentation to support such a claim?
LAW AND ANALYSIS:
Initially, we note that the matter is protestable under 19 U.S.C. 1514(a)(2) as a decision on classification and the rate and amount of duties chargeable.
Subheading 9801.00.10, HTSUS, provides that products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad are eligible for duty free treatment provided the documentary requirements of 19 CFR 10.1 are satisfied.
The regulatory language in 19 CFR 10.1(a) requires that for goods in a shipment valued over $2000 and claimed to be free of duty under subheading 9801.00.10, a declaration from the foreign shipper is required. Further, 19 CFR 10.1(b) states that the port director “may require, in addition to the declarations required in paragraph (a) of this section, such other documentation or evidence as may be necessary to substantiate the claim for duty-free treatment. Such other documentation or evidence may include a statement from the U.S. manufacturer verifying that the articles were made in the United States, or a U.S. export invoice, bill of lading or airway bill evidencing the U.S. origin of the articles and/or the reason for the exportation of the articles.”
As stated above, the language of subheading 9801.00.10 allows, but does not require that an importer make a claim for duty-free preference under the provision. Further, as discussed above, once such a claim is made, the importer is required to submit certain documentation and may be required to submit additional documentation. Since the importer would be subjected to additional documentation requirements by filing such a claim, Customs cannot require that the importer claim subheading 9801.00.10, HTSUS. Accordingly, we find that the importer could choose not to claim preference under subheading 9801.00.10, HTSUS, for certain shoeboxes even if the importer had submitted the required shipper’s declaration. The protest should be granted.
HOLDING:
The protest should be granted.
In accordance with the Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, 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 International Trade will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial & Trade Facilitation Division