OT:RR:CTF:VS H317640 AP
Center Director Automotive and Aerospace CEE 477 Michigan Ave., Room 281 Detroit, MI 48226
Attn.: Cathy A. Moretton, Supervisory Import Specialist
RE: Application for Further Review of Protest No. 4197-21-104419; Hydraulic Torque Multiplier; Subheading 9801.00.85, HTSUS
Dear Center Director:
This is in response to your correspondence forwarding the Application for Further Review (“AFR”) of Protest Number 4197-21-104419, timely filed on behalf of General Electric (“GE”) Aviation On Wing Support, Inc. (“GE On Wing” or the “importer”), regarding the duty-free treatment of a hydraulic torque multiplier under
subheading 9801.00.85, Harmonized Tariff System of the United States (“HTSUS”).
FACTS:
The importer, GE On Wing, is part of GE Aviation, an operating unit of GE, a provider of jet and turboprop engines. The hydraulic torque multiplier at issue is a tooling applying torque to turn bolts and nuts. The importer uses it as aircraft tooling for aircraft repair. GE On Wing shipped the hydraulic torque multiplier for repair to GE International On Wing in Doha, Qatar. After the repairs were completed, the GE International On Wing in Qatar returned the tooling back to GE On Wing in Ohio.
Export of the merchandise from the U.S. to Qatar:
The February 26, 2019 certificate of origin issued by the National Export Chamber of Commerce states that the aircraft tooling “originated in USA.” The packing list indicates that the total gross weight of the hydraulic torque multiplier was 92 kg. The commercial invoice from GE lists GE in Batavia, Ohio as the seller and GE International, On Wing Support in Doha, Qatar as the consignee, and the total cost was $34,540. DHL Global Forwarding served as the export courier. The DHL Air Waybill of February 26, 2019 shows that GE in Batavia, Ohio was the shipper and the related GE International in Doha, Qatar was the consignee, and states, “Known customer. Parts of Aircraft Turbines for Use in Civil Aircraft FCA.”
Importation of the merchandise back to the U.S.:
On October 30, 2019, GE on Wing in Ohio imported the merchandise back into the U.S. from Qatar. The entry summary indicates that GE on Wing in Cincinnati, Ohio was the importer of record. The total gross weight was 77 kg and the entered value was $34,540. The shipper was GE International, On Wing Support in Qatar. The October 27, 2019 commercial invoice lists GE International On Wing Support in Doha, Qatar as the shipper and GE Aviation in Batavia, Ohio as the U.S. importer. The DHL Air Waybill of October 28, 2019, shows that GE International in Doha was the shipper and GE Aviation, On Wings Support Global Tooling in Batavia, Ohio was the receiver, and that the merchandise was “Aircraft Tooling for Repair & Return.”
The entry was filed under subheading 8479.89.9499, Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”) on October 30, 2019, and was liquidated under the same subheading on September 25, 2020. The importer seeks reliquidation under subheading 9801.00.85, HTSUS.
ISSUE:
Whether the subject hydraulic torque multiplier is eligible for duty-free treatment under subheading 9801.00.85, HTSUS, as tools of trade.
LAW AND ANALYSIS:
Initially, we note that the matter protested is protestable under 19 U.S.C.
§ 1514(a)(1) as a decision on the value of merchandise. The protest was timely filed on March 24, 2021, within 180 days of liquidation for the entry made on October 30, 2019. See Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429,
§ 2103(2)(B)(ii)-(iii) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)). Further Review of this Protest is properly accorded to protestant pursuant to 19 C.F.R.
§ 174.24(b) because the issues protested involve questions of law or fact, which have not been ruled upon.
Subheading 9801.00.85, HTSUS, provides for duty-free treatment for: “Professional books, implements, instruments, and tools of trade, occupation, or employment, when returned to the United States after having been exported for use temporarily abroad, if imported by or for the account of the person who exported such items.”
The U.S. Customs and Border Protection (“CBP”) regulations have not been amended to provide specific procedures for utilizing subheading 9801.00.85, HTSUS. Even though the CBP regulations do not provide for specific documentation required to substantiate a claim under subheading 9801.00.85, HTSUS, commercial invoices, packing lists, customs documents used to import the merchandise into the foreign country, or any other documentation which shows that the merchandise being imported under subheading 9801.00.85, HTSUS, is the same as what was exported, may be utilized for this purpose.
Aircraft tooling qualifies for entry under subheading 9801.00.85, HTSUS, as long as it is imported by or for the account of the person who exported the same merchandise. Here, the hydraulic torque multiplier is aircraft tooling, which is a tool of trade, and was imported by GE Aviation On Wing, 4310 Batavia Road, Batavia, Ohio 45103, who previously exported it to Dubai, Qatar for temporary use abroad. The entry and export documentation show that the hydraulic torque multiplier was exported and imported back into the U.S. as aircraft tooling. As a result, the hydraulic torque multiplier qualifies for duty-free treatment under subheading 9801.00.85, HTSUS.
HOLDING:
Based upon the information submitted, the subject hydraulic torque multiplier qualifies as “tools of trade” and the documentation is sufficient to substantiate a claim for duty-free treatment under subheading 9801.00.85, HTSUS. Accordingly, you should GRANT this Protest.
In accordance with the Protest/Petition Processing Handbook (CIS HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the protestant, through its counsel, no later than 60 days from the date of this letter. Any reliquidation of the entries in accordance with this decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision, Regulations and Rulings, Office of Trade will make the decision available to CBP personnel, and to the public on the CBP Home Page at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
for Craig T. Clark, Director
Commercial and Trade Facilitation Division