CLA-2-98:OT:RR:NC:N3:356
Ms. Jacquelyn Votra
Trans-Border Global Freight Systems
2103 Route 9 Round Lake, NY 12156
RE: The tariff classification of articles related to the Arctic Winter Games to be held in Matanuska-Susitna Borough, Alaska
Dear Ms. Votra:
In your letter dated October 17, 2023, you requested a ruling on behalf of your client, Schure Sports USA, Inc. (“Schure”). The request concerns the applicability of subheading 9817.60.0000, Harmonized Tariff Schedule of the United States (HTSUS), to materials that will be imported for the 2024 Arctic Winter Games, to be held in Matanuska-Susitna (Mat-Su) Borough, Alaska, in March 2024.
The Arctic Winter Games’ website, www.arcticwintergames.net, describes this event as follows:
The Arctic Winter Games is a high profile circumpolar sport competition for northern and arctic athletes, and a multi-cultural exposition for the circumpolar world. The Games celebrate sport, social exchange, and culture while providing an opportunity for the developing athlete to participate in friendly competition and share cultural values of northern regions of the world.
Participating athletes will hail from Alaska (United States); Northern Alberta, Yukon, Nunavut, Nunavik, and the Northwest Territories (Canada); Greenland (Denmark); Finland; and Norway. While there is no 2024 schedule yet available, 2023 competitions were held in approximately 20 different sports, including basketball, volleyball, curling, figure skating, ice hockey, speed skating, skiing, snowboarding, gymnastics, and wrestling.
In fulfillment of a sales contract between Schure and the Arctic Winter Games Organizing Committee (“Organizing Committee”), Schure plans to import knit pullovers and woven blankets for use at the 2024 Games. You state that before importation, these items will have been sold to the Organizing Committee, and that Schure will act as the importer of record and be the ultimate consignee of the merchandise. Each imported item will be marked with the logo “Arctic Winter Games Mat-SU 2024.” After importation, the Organizing Committee will distribute the merchandise to participants, Games officials, and volunteers free of charge. You state that the merchandise will not be sold or distributed to the general public.
On behalf of Schure, you have requested a ruling that the merchandise will qualify for a duty-free treatment under subheading 9817.60.0000, HTSUS.
Subheading 9817.60.0000, HTSUS, provides duty-free treatment for:
Any of the following articles not intended for sale or distribution to the public: personal effects of aliens who are participants in, officials of, or accredited members of delegations to, an international athletic event held in the United States, such as the Olympics and Paralympics, the Goodwill Games, the Special Olympics, World Games, the World Cup Soccer Games, or any similar international athletic event as the Secretary of the Treasury may determine, and of persons who are immediate family members of or servants to any of the foregoing persons; equipment and materials imported in connection with any such foregoing event by or on behalf of the foregoing persons or the organizing committee of such an event, articles to be used in exhibitions depicting the culture of a country participating in such an event; and, if consistent with the foregoing, such other articles as the Secretary of the Treasury may allow.
You state that the imported pullovers and blankets will not be available to the general public. Instead, distribution of these goods will be limited to participants, Games officials, and volunteers. We are therefore satisfied that the goods will constitute “articles not intended for sale or distribution to the public” for purposes of 9817.60.0000, HTSUS.
Next, with regard to whether the Games are a “similar international athletic event held in the United States,” we note that the Games will take place in the United States and share important attributes with the qualifying events enumerated in 9817.60.0000, HTSUS (“the Olympics and Paralympics, the Goodwill Games, the Special Olympics World Games, [and] the World Cup Soccer Games...”). Like those events, the Games are a competition organized by an international sports organization that involve participating athletes from various countries.
Moreover, events comparable to the Games have previously been designated as “similar international athletic event[s]” for purposes of subheading 9817.60.0000, HTSUS. See, for example, Treasury Decision (T.D.) 02-21, Duty-Free Treatment of Articles Imported in Connection With the 2002 World Basketball Championship for Men, 67 Federal Register (Fed. Reg.) 30414 (U.S. Customs Service, May 6, 2002); T.D. 02-25, Duty-Free Treatment of Articles in Connection with the Volvo Ocean Race, 67 Fed. Reg. 34518 (U.S. Customs Service, May 14, 2002); and CBP Dec. 04-23, Duty-Free Treatment of Articles Imported in Connection With the 2004 FINA World Championships, 69 Fed. Reg. 45072 (CBP July 28, 2004). Additionally, in Headquarters Ruling H327171, dated November 22, 2022, CBP concluded that articles imported for the World University Games qualified for duty-free treatment under subheading 9817.60.0000, HTSUS. Considering the similarities between the Arctic Winter Games and the qualifying events enumerated in 9817.60.0000, as well as the similarities between the Games and the events previously designated as qualifying events, the Games qualify as a “similar international athletic event” for purposes of this provision.
Finally, we have considered whether the pullovers and blankets will constitute “equipment and materials imported in connection with any such foregoing event by or on behalf of the foregoing persons or the organizing committee of such an event . . .” for purposes of 9817.60.0000, HTSUS. Because the subject items will be sold to the Arctic Winter Games Organizing Committee for distribution to participants, Games officials, and volunteers, they will qualify as materials imported both in connection with the Games and on behalf of the Organizing Committee. The marking of each item with the logo “Arctic Winter Games 2024” further supports the connection between the imported goods and the qualifying international athletic event.
Because each requirement set out under 9817.60.0000, HTSUS, is shown to be satisfied, the applicable subheading for the pullovers and blankets will be 9817.60.0000, HTSUS, which provides for: Any of the following articles not intended for sale or distribution to the public: personal effects of aliens who are participants in, officials of, or accredited members of delegations to, an international athletic event held in the United States, such as the Olympics and Paralympics, the Goodwill Games, the Special Olympics World Games, the World Cup Soccer Games, or any similar international athletic event as the Secretary of the Treasury may determine, and of persons who are immediate family members of or servants to any of the foregoing persons; equipment and materials imported in connection with any such foregoing event by or on behalf of the foregoing persons or the organizing committee of such an event, articles to be used in exhibitions depicting the culture of a country participating in such an event; and, if consistent with the foregoing, such other articles as the Secretary of the Treasury may allow. The rate of duty will be free.
However, in accordance with U.S. Note 8, Subchapter XVII, Chapter 98: “[a]ny article exempt from duty under heading 9817.60.00 shall be free of taxes and fees that may otherwise be applicable, but shall not be free or otherwise exempt or excluded from routine or other inspections as may be required by the Customs Service.”
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 at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Maryalice Nowak at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division