BOR-4-07-OT:RR:BSTC:CCI H204515 DAC
Peter A. Quinter
Becker & Poliakoff
P.O. Box 9057
Ft. Lauderdale, FL 33310-9057
RE: Exportation of Used Self-Propelled Vehicles. 19 CFR §§ 192.0-192.4. 19 U.S.C. §§ 1627a, 1646a, 1646b, 1646c.
Dear Mr. Quinter:
This letter is in response to your letter of January 31, 2012, submitted on behalf of Alphalog Corporation (“Alphalog”), requesting a determination of the term “used” with respect to dealer-to-dealer transactions of vehicles within the meaning of the Customs and Border Protection (CBP) Regulations at 19 CFR § 192.1. Our determination is set forth below.
FACTS:
In your submission of January 31, 2012, you submit the following facts and circumstances. Alphalog is a licensed, independent car dealer that purchases various new motor vehicles from franchised American dealerships. Alphalog purchases some of the new motor vehicles with the intention to export the vehicles to Brazil. The vehicles are purchased in direct dealer-to-dealer transactions. The vehicles subject to this particular request were all issued either Florida or Texas certificates of title in the name of Alphalog in its capacity as a vehicle dealer. Copies of the Manufacturers Statement of Origin (MSO) were provided to Alphalog. The original MSO documents were not physically sent to Alphalog. Your submission inquires whether the subject motor vehicles purchased in dealer-to-dealer transactions are considered “used” within the meaning of 19 CFR §§ 192.0-192.4, when such vehicles had no prior owner that was an ultimate purchaser and the original MSO documents were not physically sent to the motor vehicle dealer Alphalog. In sum, your inquiry is whether the above-described vehicles are considered “used” within the meaning of the CBP Regulations at 19 CFR § 192.1.
ISSUE:
Whether the subject motor vehicles, which had no prior owner that was an ultimate purchaser, and that have been transferred only via dealer-to-dealer transactions, are considered “used” within the meaning of the CBP Regulations at 19 CFR § 192.1.
LAW AND ANALYSIS:
The relevant regulations located at 19 CFR §§ 192.0-192.1, provide, in pertinent part:
19 CFR § 192.0 Scope.
This part sets forth regulations pertaining to procedures for the lawful exportation of used self-propelled vehicles, vessels, and aircraft, and the penalties and liabilities incurred for failure to comply with any of the procedures. (emphasis added.)
19 CFR §192.1 Definitions.
The following are general definitions for the purposes of this subpart A.
* * *
Export. “Export” refers to the transportation of merchandise out of the U.S. for the purpose of being entered into the commerce of a foreign country.
Self-propelled vehicle. “Self-propelled vehicle” includes any automobile, truck, tractor, bus, motorcycle, motor home, self-propelled agricultural machinery, self-propelled construction equipment, self-propelled special use equipment, and any other self-propelled vehicle used or designed for running on land but not on rail.
Ultimate purchaser. “Ultimate purchaser” means the first person, other than a dealer purchasing in his capacity as a dealer, who in good faith purchases a self-propelled vehicle for purposes other than resale.
Used. “Used” refers to any self-propelled vehicle the equitable or legal title to which has been transferred by a manufacturer, distributor, or dealer to an ultimate purchaser. (italics in original). (bold emphasis added.)
According to the facts and cirumstances presented above, the subject motor vehicles have been purchased by a dealer in his capacity as a dealer, and such dealer is not an ultimate purchaser within the meaning of the definitions provided at 19 CFR § 192.1. See also 19 U.S.C. § 1627a. 19 CFR §§ 192.0-192.4. Moreover, the subject motor vehicles have never been owned by an ultimate purchaser within the meaning of the CBP Regulations at 19 CFR § 192.1. Therefore, the subject motor vehicles are not used within the meaning of 19 CFR § 192.1. See 19 CFR §§ 192.0-192.4. See also HQ 116263, July 9, 2004.
At this time we point out the relevant statutory provisions of 19 U.S.C. §§ 1627a, 1646b and 1646c that provide for enforcement and compliance of such exports. In the course of performing their duties, CBP Officers may, based upon the facts and circumstances concerning a particular vehicle or vehicles, verify the presentation of proper documentation that shows the vehicles are actually transferred in the name of a licensed dealer that is in possession of a valid current license, and showing that the vehicles have not been owned previously by an ultimate purchaser.
HOLDING:
In light of all the discussion above, the subject motor vehicles, as described above, are not “used” vehicles within the meaning of 19 CFR § 192.1.
Sincerely,
George Frederick McCray
Supervisory Attorney-Advisor/Chief
Cargo Security, Carriers and Immigration Branch
Office of International Trade, Regulations & Rulings
U.S. Customs and Border Protection