HQ 225482: Ruling request regarding pre-clearance of used passenger flight coupons; General Note 13(c), HTSUS

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.

                         October 12, 1994

                            HQ 225482

ENT-4-02-CO:R:C:E 225482 CB

CATEGORY:  Entry

J. W. Noonan
American Airlines
P. O. Box 619616
Dallas/Fort Worth Airport, TX 75261-9616

RE:  Ruling request regarding pre-clearance of used passenger
     flight coupons; General Note 13(c), HTSUS

Dear Sir/Madam:

     This is in reply to your letter of May 31, 1994, wherein you
requested a ruling on the above-referenced matter.  Our response
follows.

FACTS:

     On a daily basis, bags of used passenger flight coupons
which represent the lifted tickets of passengers flown on
American Airlines flights originating at Toronto and a collection
of Canadian Airlines International lifted coupons will be
processed under American Airlines Revenue Accounting program. 
You state that determining an air carrier's revenue on a timely
basis is critically important and this preclearance process will
eliminate the need to hold these coupons for post clearance in
New York.  

     You have requested our approval to have U.S. Customs in
Toronto, Canada, preclear on a daily basis these used coupons.

ISSUE:

     Are the used passenger flight coupons eligible for
preclearance in Toronto?

LAW AND ANALYSIS:

     The issue of whether the used passenger flight coupons are 
eligible for preclearance is irrelevant because the coupons are
exempt from the requirement for entry or the payment of duty.

     General Note 13(c), Harmonized Tariff Schedule of the United
States (HTSUS), provides that for the purposes of General Note 1,
HTSUS, records, diagrams and other data with regard to any
business, engineering or exploration operation whether on paper,
cards, photographs, blueprints, tapes or other media are not
goods subject to the provisions of the tariff schedule.  

     Section 141.4, Customs Regulations, provides that entry
under 19 U.S.C. 1484(a) is not required for articles listed in
General Note 13, (erroneously indicated as General Note 4) HTSUS,
and additional U.S. Note 2 to Chapter 49, HTSUS, exempts items
provided for in heading 4907 from the requirement for entry or
the payment of duty.  

     The question of whether used airline tickets are subject to
entry was addressed in Headquarters Ruling (HQ) 220988, dated
August 29, 1989.  That ruling held that used airline tickets
imported into the United States are business records within the
meaning of General Note 13(c), HTSUS, and are exempt from the
requirement for entry or the payment of duty.  There is no reason
to conclude otherwise in the instant case.

HOLDING:

     The used passenger flight coupons are exempt from the
requirement for entry or the payment of duty by virtue of General
Note 13(c), HTSUS.  Therefore, such used coupons are not eligible
for preclearance.

                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division