CLA-2-98:RR:NC:SP:233 K83256
Mr. Stephen J. Miotto
Miotto Mosaics Inc.
132 Crane Road
Carmel, NY 10512
RE: The tariff classification of mosaic murals from Italy.
Dear Mr. Miotto:
In your letter dated February 16, 2004, you requested a tariff classification ruling.
You fabricate large mosaic murals for a variety of clients. Most of your murals are for public artwork for train stations, airports, schools, churches, etc. Your mosaics are fabricated using hand made and hand cut glass “smalti” tessera. Marble tessera may also be used.
Subheading 9812.00.20, Harmonized Tariff Schedule of the United States (HTS), (19CFR 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 guarantee 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, HTS, Congress authorized the Secretary of the Treasury to waive surety on bonds posted by institutions to cover entries under subheading 9812.00.20, HTS. That authority to waive surety has been delegated to the Customs Service.
The applicable subheading for the mosaic murals will be 9812.00.2000, HTS, 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, HTS, requires that the merchandise is not sold for five years from the date of entry. Please note that the articles must be imported by the institution or society.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Lawrence Mushinske at 646-733-3036.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division