HQ 223729: Ruling request on dutiable status of chemical imported fromGermany; Harmonized Tariff Schedule of the United StatesAnnotated (HTSUSA) subheading 9813.00.05; temporary importationbond (TIB).

us-cbp-cross-rulings-hq-223729HQ 223729: Ruling request on dutiable status of chemical imported fromGermany; Harmonized Tariff Schedule of the United StatesAnnotated (HTSUSA) subheading 9813.00.05; temporary importationbond (TIB).Guidance

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 223729

                          June 18, 1992


CON-9-04 CO:R:C:E 223729  TLS

CATEGORY: Entry

Mr. V.M. DeLisi
Fanwood Chemical, Inc.
219 Martine Avenue North
P.O. Box 159
Fanwood, New Jersey  07023

RE: Ruling request on dutiable status of chemical imported from
Germany; Harmonized Tariff Schedule of the United States
Annotated (HTSUSA) subheading 9813.00.05; temporary importation
bond (TIB).


Dear Mr. DeLisi:

     The above-referenced request has been received by this
office for consideration.  We have considered the issues raised
in your submission and our decision follows.

FACTS:

     The requester would like to import a chemical under a duty-
free provision of HTSUSA.  The importation would be done under a
TIB.  The requester plans to use the chemical in its production
of a chemical compound, all of which is to be exported.  None of
the imported merchandise will be wasted in production, nor will
any of the manufactured product be marketed domestically.

ISSUE:

     Whether the imported chemical may be entered under a
temporary importation bond rather than a consumption entry.

LAW AND ANALYSIS:

     HTSUSA subheading 9813.00.05 provides for entry under bond
of certain articles. It reads as follows:

9813.00.05     Articles to be repaired, altered,
               or processed (including processes
               which in articles manufactured or
               produced in the United
               States)................Free, under
                                      bond as     
                                      prescribed  
                                      in U.S. note
                                      1 to this   
                                      subchapter

U.S. Note 1(a) of HTSUSA subchapter XIII reads in pertinent part
as follows:

     The articles described in the provisions of this
     subchapter, when not imported for sale or for sale on
     approval, may be admitted into the United States
     without the payment of duty, under bond for their
     exportation within 1 year from the date of importation,
     which period, in the discretion of the Secretary of the
     Treasury, may be extended, upon application, for one or
     more further periods which, when added to the initial 1
     year, shall not exceed a total of 3 years,...

Note 2 of the same subchapter reads as follows:

Merchandise may be admitted into the United States under heading
9813.00.05 only on condition that:
     
     (a) Such merchandise will not be processed into an
     article manufactured or produced in the United States
     if such article is:
          (i) Alcohol, distilled spirits, wine, beer,
          or any dilution or mixture of any or all of
          the foregoing;
          (ii) A perfume or other commodity containing
          ethyl alcohol (whether or not such alcohol is
          denatured); or
          (iii) A product of wheat; and 
     (b) If any processing of such merchandise results in an
     article (other than an article described in (a) of this
     U.S. note) manufactured or produced in the United
     States:
          (i) A complete accounting will be made to the
          Customs Service for all articles, wastes and
          irrecoverable losses resulting from such
          processing; and
          (ii) All articles and valuable wastes
          resulting from such processing will be
          exported or destroyed under customs
          supervision within the bonded period; except
          that in lieu of the exportation or
          destruction of valuable wastes, duties may be
          tendered on such wastes at rates of duties in
          effect for such wastes at the time of
          importation. 

In the present case, the imported merchandise will not be used to
produce alcohol, perfume, wheat, or any other commodity listed
under U.S. note 2(a).  The requester has stated that it will keep
an accounting of the imported article and its use in the
manufacturing process.  As noted before, the manufacturing
process referred to here also will not result in any valuable
waste; consequently, U.S. note 2(b)(ii) does not apply here.

     The requester has indicated an understanding of the
requirements to be followed under a TIB entry and has expressed
no difficulty in abiding by them.  There is nothing under Customs
laws and regulations or the HTSUSA that would suggest the subject
chemical is precluded from being entered under a TIB.  Therefore,
we find that the proposed transaction is permissible under
Customs laws to the extent that the importer meets all the
requirements concerning the TIB entry.

     As a final note, if the foreign manufacturer of the imported
article is to be the importer of record on the transaction, the
foreign company must retain the surety who will post the bond. 
The domestic manufacturer who will receive the imported article
for production may export the final product on behalf of the
importer in this case.

HOLDING:

     The subject imported chemical may be entered under a
temporary importation bond pursuant to the provisions of
Harmonized Tariff Schedule of the United States Annotated
subchapter XIII, U.S. Notes 1(a) and 2, and subheading
9813.00.05.

                               Sincerely,




                               John Durant, Director

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