3550-073A Duty Free Entry of Scientific Instruments

Published CBP guidance; operative status and applicability must be assessed from the retained publisher edition.

CUSTOMS DIRECTIVE
ORIGINATING OFFICE: OR&R DISTRIBUTION: S-01
CUSTOMS DIRECTIVE NO. 3550-073A
DATE: AUGUST 16, 2002
SUPERSEDES: CD 3550-073, 4/14/98
REVIEW DATE: AUGUST 2005
SUBJECT: DUTY FREE ENTRY OF SCIENTIFIC INSTRUMENTS
1 PURPOSE. To direct field officers to apprise themselves of the procedures for
duty-free entry of scientific instruments and apparatus under subheading 9810.00.60,
HTSUS, and related tari ff numbers.
2 POLICY. Customs fi eld officers, especially import specialists and entry
personnel should familiarize themse lves with the fo llowing procedures required for
im porta tions entered under subheadings 9810.00.60, HTSUS, 9810.00.65, HTSUS and
9810.00.67, HTSUS. The Customs Regulations (19 CFR) do not contain these
procedures. They are found in 15 CFR 301, which are joint regulations of the
Departm ent of Commerce and the Department of the Treasury pertaining solely to these
tariff numbers. Because 15 CFR 301 may not be readily availa ble to Customs field
officers who may need to refer to these regulations to process merchandise under these
tariff numbers, this Directive provides a summary of the portions of 15 CFR 301 relevant
to fi eld processing of merchandise and entrie s under these tari ff numbers and
clarification of those provisi ons for which problems have been perceived in the past.
3 AUTHORITIES/REFERENCES. Chapter 98, Subchapter X, U. S. Note 6.(a,),
Harmonized Tariff Schedule of the United States (HTSUS), Subhe ading 9810.00.60,
HTSUS, Subheading 9810.00.65, HTSUS, Subheading 9810.00.67, HTSUS, 15 CFR
301, 15 CFR 301, revisions, F.R. May 25, 2001, 19 CFR Subsection 10.114, 19 U.S.C.
1202, Form ITA-338P.
4 RESPONSIBILITI ES. It is the responsibility of Port Directors to see that the
policies in this dire ctive are carried out. Port Directors and headquarters employees
may release copies of this document to the public upon request without a Free dom of
Information Act request.
5 PROCEDURES.
5.1 Instructions for entering under subheading 9810.00.60, HTSUS.
Subheading 9810.00.60, HTSUS, provides for duty-fr ee treatment
for scientific instruments and apparatus which are entered for the use of any nonprofit
in stitution, public or priv ate, established for educational or scien tifi c purposes, and
in tended exclusively for educational purpo ses or scientific research.
5.1.1 Entry procedures at time of initial claim:

5.1.1.1 An applicant may make a claim at the time of filing an entry that an instrument
is entitle d to duty-fr ee classifi cation under 9810.00.60, HTSUS.
5.1.1.2 If no claim is made, the in strument shall be classifi ed without regard to
9810.00.60, HTSUS, duty assessed, and the entry liquidated in the ordinary course.
5.1.1.3 If a claim is made for duty-free treatment under 9810.00.60, HTSUS, the entry
summary shall be accepted without requiring a deposit of estimated duties, provided
that a copy of form ITA-338P, stamped by Customs Headquarters (upper right corner)
wi th the 5 digi t Docket Number, signed and dated, is filed simultaneously with the entry
summary.
5.1.1.4 If a claim for duty-free treatment under 9810.00.60, HTSUS, is made, but the
entry summary is not accompani ed by a copy of the properly stamped form ITA-338P,
the entry may be rejected. In the alternative, liq uidation may be proposed under the
tariff classifi cation otherwi se applicable to the instrument or apparatus. Such liquidation
of the entry shall be suspended for a period of 180 days from the date of entry. On or
before the end of this suspension peri od the applicant must file with the Customs port a
properly stamped copy of the form. In the event that the Customs port does not receive
a copy of the properly stamped form within 180 days, the in strument shall be classifi ed
and liq uidated in the ordinary course.
5.1.1.5 The entry shall not be liquidated or allowed to liq uidate duty-free, unless proof
of the subsequent approval of the application by the Department of Commerce is
presented to the port by the applicant or his agent. If the proper filing procedures above
have been followed, extensions of liquidation shall be made pursuant to 19 U.S.C. 1504
(19 CFR 159.12), as necessary, to allow for completion of the Department of
Commer ce's review.
5.1.1.6 The normal Customs entry requirements, including the filing of a bond must be
complied with.
5.1.1.7 Notwit hstanding the preceding provisi ons, the Commerce Department-approved
application may be filed at any time before liquidation of the entry becomes final.
Liquidation of any entry at the normal duty rate becomes conclusive upon all persons,
unless the liq uidation is protested within 90 days after notice of liquidation and the
necessary document substantiating duty-fr ee entry is produced.
5.1.2 Entry procedures after Commerce approval of an application:
5.1.2.1 Whenever an institution defers entry until after it receives Commerce approval
of the application for duty-fr ee entry, the importer shall file the following wi th the entry
summary:
5.1.2.1.1 The stamped copy of the Form ITA-338P,

5.1.2.1.2 A copy of the notice to the in stitution of the approval of the application by the
Departm ent of Commerce , or a copy of the notice of approval for duty-free entry for the
applicant's instrument, which was published in the Federal Register, and
5.1.2.1.3 Proof that a bona fide order for the merchandise was placed on or before the
favor able decision became fi nal.
Upon receipt of the above documents, liq uidation in such case shall be made under
9810.00.60, HTSUS.
5.1.2.2 Normal Customs entry requirements:
The normal Customs entry requirements, including the filing of a bond, must be
complied with.
5.1.2.3 La te filing:
Notwit hstanding the preceding provisi ons, the Commerce Department-approved
application may be filed at any time before liquidation of the entry becomes final.
Liquidation of any entry at the normal duty rate becomes conclusive upon all persons
unless the liq uidation is protested within 90 days after notice of liquidation and the
necessary document substantiating duty-fr ee entry is produced.
5.2 Uses and dispositi on of instruments entered under 9810.00.60, HTSUS:
5.2.1 An instrument granted duty-fr ee entry may be transferred from the applicant
in stitution to another eligible institution, provided the latter in stitution agrees not to use
the instrument for commercial purposes within five (5) years of the date of entry of the
in strument. In such cases title to the instrument must be transferred dire ctly between
the inst itutions invo lved.
5.2.2 An institution transferri ng a foreign instrument entered under
9810.00.60, HTSUS, within five (5) years of its entry shall so inform the Customs Port in
writing and shall include the following information:
5.2.2.1 The name and address of t he transferri ng institution.
5.2.2.2 The name and address of the receiving institution.
5.2.2.3 The date of transf er.
5.2.2.4 A detaile d descrip tion of the in strument.
5.2.2.5 The seri al number of the instrument and of any
accompanying accessories.

5.2.2.6 The entry number, date of entry, and port of entry of the instrument.
5.2.3 If an in strument is transferred in a manner other than specifie d above or is used
for commercial purpo ses with five (5) years of entry, the institution for which such
in strument was entered shall promptly notify the Customs officials at the Port and shall
be liable for the payment of duty in an amount determined on the basis of it s condition
as imported and the rate applicable to it.
5.3 Importation of repair components under 9810.00.65, HTSUS for an instrument or
apparatus previously entered under 9810.00.60, HTSUS:
Subheading 9810.00.65 provides duty-free treatm ent for repair components for scientific
in struments previously admitted duty-free under subheading 9810.00.60.
An institution which owns an instrument entered under 9810.00.60, HTSUS,
and desires to enter repair components for such in strument under 9810.00.65, HTSUS,
may do so without regard to the application procedures applicable to entrie s under
9810.00.60, HTSUS, provided the institution certifies to the Customs official at the port
of entry upon entry of such components that they are needed repair components for an
in strument owned by that institution which was previously entered and liquidated under
9810.00.60, HTSUS.
5.4 Importation under 9810.00.67, HTSUS of tools for articles previously entered
under 9810.00.60, HTSUS:
Subheading 9810.00.67 provides duty-free treatm ent for tools specially designed to be
used for the maintenance, checking, gauging or repair of instruments or apparatus
previously admitted under subheading 9810.00.60.
An institution which owns an instrument entered under 9810.00.60, HTSUS and desires
to enter tools specially designed to be used for the maint enance, checking, gauging or
repair of this instrument under 9810.00.67, HTSUS may do so without regard to the
application procedures applicable to entrie s under 9810.00.60, HTSUS, provided the
in stitution certifies to the Customs official at the port of entry, upon entry of such tools,
that they are tools needed for an instrument owned by that institution which was
previously entered and liq uidated under 9810.00.60, HTSUS.
For questions on these instructions, first consult the regulations, 15 CFR 301. If the
questions are still not resolved, call the Chief, Special Classifi cation and Marking
Branch, Customs Service Headquarters at (202) 572-8810.
MEASUREMENT. Whenever the circumstances warrant, and occasionally in
any event, the fact of continu ed use for five years for noncommercial purposes by the
applicant institution shall be verified by the Port Director.
6

Assistant Commissioner
Office of Regulations & Rulings
Attachment

Attachment
Notes to the Gui delines
Numbers in the left column refer to the sections of the Guidelines.
5. I Field offi cers need not be concerned with these two requirements. They
are verified at Customs Headquarters.
5.1.1.1 See 15 CFR 301.8(a)(1).
5.1.1.2 See 15 CFR 301.8(a)(2).
5.1.1.3 See 15 CFR 301.8(a)(3), 15 CFR 301.4(b). The application form
for duty-free entry ITA-338P, if approved by Customs
Headqua rters, will have been stamped in the upper right hand
corner with “ACCEPTED FOR TRANSMITTAL TO THE
DEPARTMENT OF COMMERCE” and the name of the
approving officer and date signed. The “Docket Number” (5
digits) will have been stamped in the space labeled
“APPLICATION NUMBER.” An ITA-338P form so stamped
entitles the applicant or his agent to enter the importation
provisi onally duty-fr ee. Note that it does not entitle the entry to
be liq uidated duty-free under subheading 9810.00.60, HTSUS.
(Do not allow provisi onally duty-fr ee entry of an importation for
which an unstamped application is presented; the duty must
be collected.) The entry shall not be liq uidated duty-free nor
allowed to liq uidate duty-fr ee unless and until proof of the
subsequent approval of the application by the Department of
Commerce is presented to the port by the applicant or his
agent. Acceptable proof is either the notice of approval by the
Departm ent of Commerce or the notice of approval published
In the Federal Register at the same time. If the Department of
Commerce has been given entry information by the applicant
for duty-fr ee (ITA-338P, items 10.A. through 10.D.), a copy of
the notice of approval or denial of the app lication will be mailed
to the port where entry was made. Extension of liquidation can
made pursuant to 19 U.S.C. 1504 (19 CFR 159.12), if necessary,
to allow time for the Department of Commerce to complete
their review. If proof of the approval by the Department of
Commerce is not received duri ng the period of the extension of
the liq uidation, or the application has been denied by the
Departm ent of Commerce, the entry shall be liquidated at the
dutiable rate.
5.1.1.4 See 15 CFR 301.8(a)(4). This subsection of the regulations

requires that if the properly stamped application form (ITA-
338P) is not fil ed with the port when formal entry of the article is
made (see 4.A.(1)(c) above), but duty-free entry is claimed,
estimated duties must be deposited, and the properly stamped
application form must be filed with the port within 180 days or
the entry is to be liquidated as dutiable. However, even if the
properly stamped application form is presented within the 180
day period, the entry shall not be liq uidated duty-free nor
allowed to liquidate duty-free unless and until proof of the
subsequent approval by the Department of Commerce is
presented to the port by the applicant or his agent. Acceptable
proof is either the notice of approval fr om the Department of
Commerce or the notice of a pproval published in the Federal
Register at the same time. If the Department of Commerce has
been given entry information by the applicant for duty-free
en try (ITA-338P, items 10.A. through 10.D.), a copy of the
notice of approval or denial of the application will be mailed to
the port where entry was made. Extensions of liquidation can
be made pursuant to 19 U.S.C. 1504 (19 CFR 159.12), if
ne cessary, to allow time for the Department of Commerce to
complete their review. If proof of the approval by the
Department of Commerce is not received duri ng the period of
the extension of the liq uidation, or the application has been
denied by the Department of Commerce, the entry shall be
liquidated at the dutiable rate.
5.1.1.5 See 19 U.S.C. 1504, 19 CFR 159.12.
5.1.1.6 See 15 CFR 301.8(b), 19 CFR 142.3, 19 CFR 142.4.
5.1.1.7 See 15 CFR 301.8(c), 19 CFR Part 174, 19 CFR 10.112.
5.1.2.1 See 15 CFR 301.8(a)(5).
5.1.2.2 See 15 CFR 301.8(b), 19 CFR 142.3, 19 CFR 142.4.
5.1.2.3 See 15 CFR 301.8(c), 19 CFR Part 174, 19 CFR 10.112.
5.2.1 See 15 CFR 301.9(a).
5.2.2 See 15 CFR 301.9(a).
5.2.3 See 15 CFR 301.9(c).
5.3 See 15 CFR 301.10(a), subheading 9810.00.65, HTSUS.

5.4 See subheading 9810.00.67, HTSUS.