HQ 555483: Internal Advice Request No. 49/89; applicability of subheading 9810.00.35, HTSUS, to educational materials stocked in advance of orders from nonprofit institutions

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 555483

                                    April 11, 1990

            CLA-2 CO:R:C  555483 RA

            CATEGORY:  Classification

            TARIFF NO.:  9810.00.35

            District Director of Customs
            2nd and Chestnut Streets
            Philadelphia, Pennsylvania 19106

            RE:  Internal Advice Request No. 49/89; applicability of
                 subheading 9810.00.35, HTSUS, to educational materials
                 stocked in advance of orders from nonprofit institutions

            Dear Sir:

                 This is in response to your memorandum of August 25,
            1989, forwarding a request for internal advice from E. J.
            Arnold, Inc. concerning the applicability of the free entry
            provision in subheading 9810.00.35, Harmonized Tariff Schedule
            of the United States (HTSUS), to educational materials
            imported in advance of orders from qualified nonprofit
            institutions.

            FACTS:

                 Various educational materials are imported from England
            by E. J. Arnold, Inc. for sale to school systems in the U.S.
            In order to provide the speed and efficiency of service which
            the market demands, the importer states that it is essential
            to stock these items in advance of orders being confirmed by
            the qualified institutions.

            ISSUE:

                 Will the application of the free entry provision in
            subheading 9810.00.35, HTSUS, be precluded if the orders for
            the merchandise are not in existence at the time of
            importation?

            LAW AND ANALYSIS:

                 Subheading 9810.00.35, HTSUS, provides for the free entry
            of specified articles which are fabricated to specification
            and designed for the classroom instruction of children if
            imported for the use of any public or nonprofit institution
            established for educational, scientific, literary, or













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            philosophical purposes or for the encouragement of the fine
            arts.  Educational articles which are not specifically
            designated would not be covered by this provision.

                 It was the consistent practice under item 851.15, Tariff
            Schedules of the United States, the predecessor provision to
            subheading 9810.00.35, HTSUS, to require that the articles
            involved must be imported directly by the qualified nonprofit
            institution or by an agent acting in its behalf.  Absent such
            a requirement, there would be no assurance that the imported
            items would in fact be used as the law intended.  See
            Headquarters ruling dated August 13, 1968 (SP 534.2).  The
            requirement that the importation must be made pursuant to a
            bonafide, pre-existing order from a nonprofit institution and
            not by a dealer for the purpose of securing a purchaser after
            importation is one of long standing and has been uniformly
            applied in all cases.  See C.I.E. 1035/67 dated December 6,
            1967.

                 In the instant case, the educational materials were not
            imported by a qualified institution or its agent pursuant to a
            pre-existing order for the merchandise.  Therefore, the
            materials subject to this internal advice request are not
            entitled to duty-free treatment under subheading 9810.00.35,
            HTSUS.

            HOLDING:

                 For the reasons set forth above, the subject educational
            materials are not entitled to classification under the duty-
            free provision of subheading 9810.00.35, HTSUS.

                                       Sincerely,




                                       John Durant, Director
                                       Commercial Rulings Division























            6cc:  A.D., NY Seaport
            2cc:  Chief, CIE
            RARNOLD:lw 2/7/90