OT:RR:CTF:VS H266203 RMC
Abby Freeman Contino
Lockheed Martin Information Systems and Global Solutions
7400 South Tucson Way
Centennial, CO 80112
Re: Entry of Items Returned from Antarctica
Dear Ms. Contino:
This is in response to your June 17, 2015 request for a ruling on how to enter certain items returning to the United States from Antarctica.
FACTS:
Lockheed Martin is the primary logistics contractor for the National Science Foundation’s United States Antarctic Program (“USAP”). As such, it is responsible for coordinating the movement of supplies and scientific cargo to support research that the federal government, government contractors, and science organizations carry out in Antarctica. Lockheed Martin does not take title to the items it ships to and from Antarctica; it merely transports them on behalf of the owner.
You described the USAP’s operations in Antarctica as “100% green,” meaning that everything brought to Antarctica must ultimately be brought back to the United States. This includes, for example, items that have been degraded by the harsh Antarctic climate, trash, and individual items that were once part of a set. These items are generally entered at the Port of Long Beach.
The problem with some of these items for Customs purposes is that it may be difficult or impossible to enter the items under the usual and normal entry procedures because it is not possible to determine their country of origin. The machinery, for example, may once have been marked with its country of origin, but the harsh weather may have worn it off. Similarly, trash or parts of a set that may once have been properly marked may no longer be so.
Nevertheless, you state that Lockheed Martin can determine the country of origin for the vast majority of the items it transports from Antarctica. Our review of a sample entry confirmed that Lockheed Martin does indeed possess the country of origin information for most items in that particular entry. Examples of items missing country of origin information include “writing pads (lines, letter),” “pair of white socks (golden toe),” and “bag of assorted pens.”
Your request only concerns those items for which Lockheed Martin cannot, in good faith, determine the country of origin. You informed us that, in the past, the Port of Long Beach has requested that you submit a letter when you are missing the country of origin for certain items on Customs Form 7501. Then, the Port of Long Beach has approved the use of an appraisement entry for those specific items and has entered them under country code TF (French Southern Territories and Antarctic Land Territories).
Your June 17, 2015 ruling request originally asked whether an appraisement entry would be appropriate for both one particular entry, submitted for our review, and for future entries. Since submitting that request, you have informed us that the Port of Long Beach has approved the use of an appraisement entry for the entry submitted for our review. Accordingly, this ruling will only address how to proceed with future entries.
ISSUE:
How items of unknown origin returning from scientific experimentation sites in Antarctica should be entered.
LAW AND ANALYSIS:
19 U.S.C. § 1481 provides that all invoices of merchandise to be imported into the United States shall set forth various information including facts deemed necessary to a proper appraisement, examination, and classification of the merchandise. Section 141.86(a)(10), Customs Regulations (19 C.F.R. § 141.86(a)(10)), provides that the country of origin is required on each invoice of imported merchandise.
Special entry procedures are provided for in 19 C.F.R. § 143. Entry by appraisement is covered in 19 C.F.R. § 143 Subpart B. This procedure is generally used when the importer has insufficient information as to the value of the imported articles and is unable to obtain such information or to determine the value of the articles for the purpose of making formal entry. In such cases, the importer must present any bills or statements of cost relating to the merchandise which may be in his possession along with a declaration that he has no other information as to the value of the articles and is unable to obtain such information or to determine the value of the articles for the purpose of making formal entry. See 19 C.F.R. § 143.13.
Although this matter concerns country of origin, CBP previously held that appraisement entry procedures may also be used when the importer does not have sufficient information regarding country of origin for the purpose of making a formal entry. See Headquarters Ruling (“HQ”) 735230, dated Jan. 28, 1994 and HQ 735033, dated Jan. 28, 1994. In such cases, we have found that it may be appropriate to identify the country of origin with a generic description of “foreign.” Id. However, as we stated in HQ 732320, “there is no provision for a blanket approval of appraisement entry procedures.” 19 C.F.R. § 143.11 requires either the port director or headquarters to approve each application for appraisement entry. See 19 C.F.R. Part 143.11(a) and (b). Accordingly, you must apply each time before entering goods under an appraisement entry.
However, because this matter concerns the items’ country of origin, a marking exception may be appropriate. Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that, unless excepted, every article of foreign origin entering the U.S. shall be marked in a conspicuous manner as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. An exception from marking is provided in 19 U.S.C. § 1304(a)(3)(H) and 19 C.F.R. § 134.32(h) where an ultimate purchaser, by reason of the character of the article or by reason of the circumstances of its importation, must necessarily know the country of origin of the article even though it is not marked to indicate its origin. Under 19 C.F.R. § 134.1, the “ultimate purchaser” is defined as “generally the last person in the United States who will receive the article in the form in which it was imported.”
Here, the “ultimate purchaser” is the item’s owner because it is the last person in the United States who will receive the article in the form in which it was imported. Lockheed Martin will not take title to any of the items because it only transports them on behalf of the owner. Given the circumstances of the importation—namely the return of items to their owner—the ultimate purchaser “must necessarily know the country of origin of the article even though it is not marked to indicate its origin” because, as noted above, the items were properly marked when they left the owner’s possession. Therefore, we find that the items for which Lockheed Martin cannot, in good faith, determine the country of origin may be exempt from the marking requirements under 19 U.S.C. § 1304(a)(3)(H) and 19 C.F.R. § 134.32(h). Lockheed Martin may list the country of origin as “TF” for those goods on the invoice and may list the country of origin as “multi” on the entry form.
HOLDING:
Lockheed Martin may apply for approval of an appraisement entry each time it returns items to the United States from Antarctica for which it cannot determine the country of origin for the reasons specified above. In the alternative, it may apply the marking exception in 19 C.F.R. § 134.32(h).
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch