HQ 555769: Reimportation under subheading 9801.00.20, HTSUS, of molds exported to Germany under a lease arrangement

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 555769

                        December 20, 1990

CLA-2 CO:R:C  555769 RA

CATEGORY:  Classification

TARIFF NO.:  9801.00.20

Leslie Alan Glick, Esq.
Porter, Wright, Morris & Arthur
1233 20th Street, N.W.
Washington 20036-2395

RE:  Reimportation under subheading 9801.00.20, HTSUS, of molds  
     exported to Germany under a lease arrangement

Dear Mr. Glick:

     This is in response to your letter of October 24, 1990, on
behalf of UVEX Winter Optical Inc., of Smithfield, Rhode Island,
regarding the free entry under subheading 9801.00.20, Harmonized
Tariff Schedule of the United States (HTSUS), of molds which are
reimported after having been exported to Germany pursuant to a
lease arrangement.   You also request that we confirm that the
molds would not be considered "assists" and, thus, would not 
affect the appraisement of merchandise made from the molds.   The
appraisement issue will be subject of a separate response.

FACTS:

     Your client imports molds from its parent company in Germany
and pays the.applicable duty.   The molds, which are used in the
manufacture of glass products, may be sent back to the parent
company pursuant to a lease agreement between the related 
parties.   If the molds are subsequently reimported, the importer
wishes to obtain duty-free treatment for the articles under the
provisions of subheading 9801.00.20, HTSUS.

ISSUE:

     Will the reimported molds be entitled to duty-free treatment
under subheading 9801.00.20, HTSUS?

LAW AND ANALYSIS:
     
     Subheading 9801.00.20, HTSUS, provides for the duty-free
treatment of:

          [a]rticles, previously imported, with respect to 
          which the duty was paid upon such previous 
          importation ... if (1) reimported, without having
                              - 2 -

          been advanced in value or improved in condition 
          by any process of manufacture or other means while 
          abroad,. after having been exported under lease or 
          similar use agreements, and (2) reimported by or for 
          the account of the person who imported it into, and 
          exported it from, the United States.

     You state that your client will reimport each mold after
having paid duty on the first importation from Germany and will
later send the mold back to Germany pursuant to the lease
agreement.   There would be no advancement in value or improvement
in condition of the mold by any means while abroad.

     On the basis of the stated facts, we are of the opinion that
the reimported molds would be entitled to entry without the 
payment of duty under the provisions of subheading 9801.00.20,
HTSUS.

HOLDING:

     Molds reimported after having been exported back to the
country of origin may be accorded free entry under subheading
9801.00.20, HTSUS, provided they were duty paid on the first
importation, not advanced in value or improved in condition while
abroad, exported under a lease agreement, and reimported by the
original importer.

                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division