CLA-2-84:OT:RR:E:NC:1:104
Ms. Krista Ballenger Ruffoni
Okuma America Corporation
11900 Westhall Drive
Charlotte, NC 28278
RE: The tariff classification of a horizontal spindle machining center from Japan
Dear Ms. Ruffoni:
In your letter dated December 8, 2008 you requested a tariff classification ruling.
The Okuma horizontal spindle machining center, model number MA-800, has a Y-axis travel of 1,250 mm. The unit, which was manufactured in Japan, was originally imported through the port of Savannah on August 22, 2008. The appropriate duty was paid on entry #112-3893133-4. The unit was placed in a U.S. storage warehouse until its subsequent sale to a buyer in Brazil (contract number: M6170021). On October 01, 2008, the unit was exported to Brazil. However, while still in transit, the order was cancelled by the buyer. The unit was not rejected by the buyer because it did not meet specifications. The unit arrived in Brazil on November 26, 2008 but did not clear Brazilian Customs. As of the date of your letter, the unit was still within the foreign carrier’s custody. You indicated that it is Okuma America’s intention to re-import the unit during December, 2008.
In your letter, you inquire as to whether there is any tariff provision that covers a situation such as described above. In particular, you inquire as to the applicability of Chapter 98 of the Harmonized Tariff Schedule of the United States (HTSUS) which provides for Special Classification Provisions.
It is noted that while detailed documentation concerning the exportation of the specific machining center was submitted, you did not indicate whether a drawback claim was filed on the original transaction that caused the machining center to be imported into the United States in the first place. Unused merchandise drawback is the reimbursement of duties paid on goods imported into the U.S. which are subsequently exported. This would apply in cases where there was imported merchandise, (1) on which was paid a duty, tax, or fee imposed under Federal law because of its importation and (2) (a) that was exported or destroyed under customs supervision before the close of the 3-year period beginning on the date if importation and (b) not used within the United States before such exportation or destruction. If the applicable requirements are met, then upon such exportation or destruction 99 percent or the amount of each duty, tax, or fee so paid shall be refunded as drawback.
Note 3(e)(v), HTSUS, was considered with regard to the re-importation of the machining center. Said note reads as follows:
(e). Exemptions. For the purposes of general note 1-- * * * * *
(v) articles exported from the United States which are returned within 45 days after such exportation from the United States as undeliverable and which have not left the custody of the carrier or foreign customs service, ... * * * * * are not goods subject to the provisions of the tariff schedule. Granted the instant exported merchandise did not leave the custody of the carrier nor enter the customs territory of Brazil or any other country. However, the order was “cancelled”. It is not that the goods were “undeliverable”. Also, the merchandise was exported on October 01, 2008. The scheduled sailing date for the return vessel to the United States is December 10, 2008 with an ETA of January 1, 2009 in Savannah. In view of these dates, the “45 day” requirement has not been met. Thus, this office finds that General Note 3(e)(v), HTSUS, does not apply in this instance.
Section 141.2 of the Customs regulations (19 CFR 141.2) provides 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 exempt by law. Your suggested classification under subheading 9801.00.25, HTSUS, would not be applicable as the order was cancelled, not rejected because the goods did not conform to sample or specifications. As no exemption exists for the scenario described in your letter, the machining center is dutiable upon re-importation into the United States.
The applicable subheading for the Okuma horizontal spindle machining center, model number MA-800, will be 8457.10.0065, HTSUS, which provides for Machining centers, unit construction machines (single station) and multistation transfer machines, for working metal: Machining centers… Other: With automatic tool changers: Horizontal-spindle machines with a Y-axis travel of – Over 1,016 mm. The rate of duty will be 4.2 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
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 Patricia O’Donnell at (646) 733-3011.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division