CLA-2-98:RR:NC:2:224 K89371
Michael E. Roll
Katten Muchin Zavis Rosenman
2029 Century Park East, suite 2600
Los Angeles CA 90067-3012
RE: The eligibility of Asian origin writing instruments packaged in Mexico for duty-free treatment under subheading 9801.00.2000, HTSUS.
Dear Mr. Roll:
In your letter dated September 1, 2004, you requested a tariff classification ruling on behalf of your client, Zebra Pen Corporation.
The information provided indicates that Zebra Pen Corporation (ZPC) will import writing instruments in bulk condition from either Japan or Indonesia into the United States and pay duty on these products. ZPC will then export the writing instruments to Mexico for retail packaging. For example, ZPC’s affiliate company in Mexico may take a box of 1000 loosely packed pieces of a particular writing instrument and package them into blister packs containing 10 writing instruments each. ZPC will then reimport the instruments into the U.S. You ask whether the writing instruments returned to the U.S. under these conditions would be eligible for a duty exemption under subheading 9801.00.20, Harmonized Tariff Schedule of the United States (HTSUS).
Section 141.2 of the Customs Regulations (19 CFR 141.2) states that “Dutiable merchandise imported and afterwards exported even though duty thereon may have been paid on the first importation, is liable to duty on every subsequent importation into the Customs territory of the United States” unless specifically exempted therefrom under the HTSUS. Subheading 9801.00.20, HTSUS, provides for duty-free treatment for “articles previously imported, with respect to which the duty was paid upon such previous importation or which were previously free of duty pursuant to the Caribbean Basin Economic Recovery Act of Title V of the Trade Act of 1974 if (1) reimported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, after having been exported under lease or similar use agreements, and (2) reimported by or for the account of the same person who imported it into, and exported it from, the United States.
You assert that your client’s transaction meets all the requirements for consideration of duty free entry under subheading 9801.0020, HTSUS. Specifically, it is indicated that writing instruments, being previously imported and duty paid where applicable, would be subject solely to packaging operations and would not be otherwise advanced in value or improved in condition by any process or manufacture while in Mexico. Further, the subject writing instruments would be exported under conditions that would constitute exportation pursuant to a lease or similar use agreement and that your client, ZPC, would be the importer, exporter and reimporter of the merchandise.
Based on the information submitted, writing instruments packaged in Mexico will be eligible for duty-free treatment under subheading 9801.00.20, HTSUS, when returned to the U.S., provided ZPC previously imported the writing instruments and paid duty thereon; they are reimported by or for the account of ZPC; that ZPC exported the instruments from the U.S. under a lease or a similar use agreement; and the documentary requirements of section 10.108, Customs Regulations, are satisfied.
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 Tom McKenna at 646-733-3025.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division