CLA-2-98:OT:RR:NC:N2:231
Mr. Jose Garcia
Launchpad Inc., DBA ManCrates
400 S. El Camino Real
Suite 1400
San Mateo, CA 94402
RE: The applicability of subheading 9801.00.10 to various gift boxes
Dear Mr. Garcia:
In your letter dated June 13, 2017, you requested a ruling on whether various packaged gift sets were eligible for duty-free treatment under subheading 9801.00.10, Harmonized Tariff Schedule of the United States (HTSUS).
The products in question are gift boxes that will contain diverse products ranging from beef jerky, grilling tools, fitness accessories, knives and other food products purchased from distributors in the United States, exported from the latter to a storage facility in Mexico, and subsequently returned to U.S. The products in the gift boxes will be either of U.S. or foreign origin. Furthermore, you state that all necessary packaging materials will be exported along with the merchandise to Mexico. The goods are stored and then repacked into Mancrates branded packaging within 6-8 months for shipment into the United States. The products will not be advanced in value or improved in condition by manufacture while in Mexico. You asked if these products are eligible for duty-free treatment under subheading 9801.00.10, HTSUS.
Section 904(b) of the Trade Facilitation and Trade Enforcement Act of 2015 (Pub. L. 114-125, February 24, 2016) amended subheading 9801.00.10, HTSUS, to include any products which are returned within 3 years after having been exported. Previously, subheading 9801.00.10, HTSUS, only applied to products of the United States. Subheading 9801.00.10, HTSUS, now provides for the duty-free treatment of: Products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad.
Section 10.1, Customs Regulations (19 C.F.R. § 10.1), sets forth the documentary requirements for entry under subheading 9801.00.10, HTSUS. We note that CBP has not yet amended the regulations to implement the change to subheading 9801.00.10, HTSUS. Nonetheless, while portions of the regulations are no longer pertinent, some portions of 19 C.F.R. § 10.1 still remain valid. For example, 19 C.F.R. § 10.1(a)(1) requires the foreign shipper to declare the following information with regard to articles in a shipment valued over $2,500: the port of exportation, the date of exportation, the quantity, the description of the merchandise, the value of the merchandise, the date of the declaration, and whether the articles were advanced in value or in condition by any process of manufacture or other means. Under 19 C.F.R. § 10.1(b), the port director may require such other documentation or evidence as may be necessary to substantiate the claim for duty-free treatment including a U.S. export invoice, bill of lading or airway bill evidencing the exportation of the articles from the United States, and/or the reason for the exportation of the articles demonstrating that the same items were returned within 3 years.
Section 10.1(a)(2), Customs Regulations (19 C.F.R. § 10.1(a)(2)), requires the owner, importer, consignee, or agent having knowledge of the facts regarding the claim for free entry to declare that the foreign shipper’s statement is true; that the articles were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS; and, that the articles were exported without benefit of drawback. Therefore, provided the party re-importing the garments is an “owner, importer, consignee, or agent having knowledge of the facts regarding the claim for free entry” as required by 19 C.F.R. § 10.1(a)(2), then such party may re-import the products under subheading 9801.00.10, HTSUS.
Customs does not consider the mere packaging of a good for retail sale as an advancement in value or improvement in condition. See John v. Carr & Sons, Inc., 69 Cust. Ct. 78, C.D. 4377 (1972), aff'd, 61 CCPA 52, C.A.D. 1118 (1974). Also see Headquarters Ruling Letter (HRL) 555624, dated May 1, 1990, which ruled that perfumes packaged into sample pouches abroad were not advanced in value or improved in condition for purposes of subheading 9801.00.10, HTSUS, treatment.
This office will only address goods that pertain to commodities under its purview regarding the applicability of heading 9801, HTSUS. If the importation of products meets the criteria set forth in the above stated regulations, the “Jerkygrams” and “Exotic Meats Crate” may be eligible for duty exemption under subheading 9801.00.1015, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad: Other: Meat and poultry products provided for in chapter 2 or 16.
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 https://hts.usitc.gov/current.
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.
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 Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division