CLA-2-98:S:N:N8:233 811127
Mr. Richard D. Myrah
Metropolitan Washington Airports Authority
44 Canal Center Plaza
Alexandria, Virginia 22314-1562
RE: The tariff classification of floor medallions from Italy.
Dear Mr. Myrah:
In your letter dated May 19, 1995, you requested a tariff
classification ruling.
The Metropolitan Washington Airports Authority, (Authority),
a tax exempt political subdivision of the Commonwearth of Virginia,
has undertaken the construction of a new terminal buiding at
Washington National Airport. As part of this facility, the
Authority has commissioned an Architectural Enhancement Program to
provide works of art from 29 artists to be permanently integrated
into the building. Some of these works of art include eight (8)
mosaic floor medallions designed by eight artists, but fabricated
and installed by one artisan, Crovatto-Miatto Mosaics, of
Speilimbergo, Italy.
The floor medallions are permanently integrated into the
floor of the facility. The owner of the facility is the
Authority, a non-profit organization (see attached tax exempt
certificate).
Subheading 9812.00.20, HTSUSA, (19 CFR 1202) provides in
pertinent part for an exemption from duty on any article imported
for encouragement of the arts. Prior to the release of articles
under heading 9812.00.20 or 40, bond shall be given for the
payment of lawful duties which may accrue should any of the
articles be sold, transferred or used contrary to the provisions
of this subchapter within 5 years after the date of entry
hereunder, and such articles shall be subject at any time within
such 5-year period to examination and inspection by customs
officers. Surety on such bonds shall be waived in the discretion
of the Secretary of the Treasury.
The statute is implemented by 19 CFR 49. That regulation
allows the district director of customs with whom the entry is
filed to require a declaration of compliance by a qualified
office of the Authority and a bond that would guarentee the
Authority's compliance with the statute and regulation. U.S.
Note 1 to subchapter XII states that the provisions of this
subchapter do not apply to articles intended for sale or for any
purposes other than exhibition or erecting a public monument, nor
do they apply to an institution or society engaged in or
connected with business of a private or commercial character.
Under Note 2 to the subchapter XII, Chapter 98, HTSUSA,
Congress authorized the Secretary of the Treasury to waive surety
on bonds posted by institutions to cover entries under subheading
9812.00.20, HTSUS. That authority to waive surety has been
delegated to the Customs Service. The district director with
whom the entry is filed, is authorized to allow the Metropolitan
Washington Airports Authority to post a bond without surety.
The applicable subheading for the floor medallions will be
9812.00.2000, Harmonized Tariff Schedule of the United States
Annotated, HTSUSA, which provides for: Articles imported for
exhibition by any institution or society established for the
encouragement of agriculture, arts, education or science, or for
such exhibition by any State or for a municipal corporation. The
duty rate will be free, under bond, as prescribed in U.S. Note 2
to this subchapter. The exemption from duty under subheading
9812.00.20, HTSUS, requires that the merchandise is not sold for
five years from the date of entry.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R.177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport