CLA-2 CO:R:C:S 556782 SER
Tariff No.: 9808.00.50; 9810.00.60
District Director of Customs
P.O. Box 619050
1205 Royal Lane
Dallas/ Ft. Worth, TX 75261
RE: Internal Advice 37/92; Dutiable status of items being imported for use in the construction and operation of the Superconducting Super Collider
Dear Sir:
This is in reference to your memorandum, dated June 9, 1992, requesting internal advice concerning the dutiable status of items of foreign origin being imported into the U.S. for use in the construction and operation of the Superconducting Super Collider (SSC).
FACTS:
The SSC is a high energy subatomic particle accelerator that will be used in basic research to learn more about the nature of matter and energy. When completed, the SSC will become a world center for research in high energy physics.
Starting in February 1991, Universities Research Association, Inc. (URA) began importing products to be used in the SSC. These products include various types of superconducting wire, laser measuring systems, valves, klystron tubes, magnets, vacuum chambers, etc. URA is a non-profit organization under contract to the Department of Energy for the design, research/development, management and operation of the SSC.
ISSUE:
What is the dutiable status or the imported articles at issue?
LAW AND ANALYSIS:
Subheading 9808.00.50, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), provides for duty-free entry of materials certified by the Nuclear Regulatory Commission or the Department of Energy (DOE) to be source materials the entry of which is necessary in the interest of the common defense and security. We believe that this provision most directly applies to the situation in this case. However, as you note, the DOE has declined to certify the materials as "source materials", and, therefore, they are not eligible for duty-free treatment under this provision.
You also raised the possibility of duty-free treatment for the articles under subheadings 9810.00.60, 9810.00.65, and 9810.00.67, HTSUSA. These provisions provide duty-free treatment for certain scientific instruments and apparatus, and various parts and tools therefor, entered for use by nonprofit institutions, public or private, which are established for educational or scientific purposes. U.S. Note 6(a), subchapter X, Chapter 98, HTSUS, provides that only articles which are both provided for and dutiable in certain prescribed subheadings are eligible for duty-free treatment under these provisions. U.S. Note 6 also describes the procedures by which an importer may receive duty-free treatment under these provisions. Without a more detailed description of the articles being imported, we are unable to determine whether they are classifiable within the subheadings listed in U.S. Note 6(a).
You point out that, in discussions between your office and URA representatives, they indicated an unwillingness to pursue the application procedures outlined in U.S. Note 6. You ask whether there are any other alternatives that URA may pursue to obtain special tariff treatment for these
imported articles.
Aside from obtaining special legislation from Congress, we are unaware of any tariff provision, other than possibly the scientific instruments and apparatus provisions discussed above, under which URA may obtain a partial or complete duty exemption for the imported articles. Consequently,
we agree with you that if URA declines to pursue the procedures necessary to receive duty-free treatment under subheadings 9810.00.60, 9810.00.65 and 9810.00.67, HTSUS, the articles would be fully dutiable under the appropriate Chapters 1-97 tariff provisions.
HOLDING:
Since the DOE has declined to certify the articles in question as "source materials," they are ineligible for duty free treatment under subheading 9808.00.50, HTSUSA. With the possible exception of subheadings 9810.00.60, 9810.00.65, and 9810.00.67, HTSUS, we are unaware of any other tariff provision under which the articles may receive special tariff treatment. It should be noted that a Customs directive, 099 3550-060 dated September 16, 1992, which was recently issued, outlines the procedures required to obtain duty-free treatment under the scientific instruments and apparatus provisions.
Sincerely,
John Durant, Director
Commercial Rulings Division