HQ 555791: Applicability for duty-free treatment under subheadings 9023.00.00, and 9810.00.55, HTSUSA, of molecular models imported for demonstrations in teaching and research by colleges and universities

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 555791

                         March 26, 1991


CLA-2 CO:R:C:S 555791 RA

CATEGORY: Classification

TARIFF NOs.: 9023.00.00: 9810.00.55

Dr. Edward J. Barrett
Molecular Design Inc.
P.O. Box 336, Lenox Hill Station
New York, NY 10021

RE:  Applicability for duty-free treatment under subheadings
     9023.00.00, and 9810.00.55, HTSUSA, of molecular models
     imported for demonstrations in teaching and research by
     colleges and universities

Dear Dr. Barrett:

     This is in reference to your letter of November 1, 1990, to
the Area Director of Customs, New York, regarding the eligibility
for duty-free treatment of certain molecular models used for
demonstration purposes in colleges and universities for teaching
and research.   Your letter was referred to this office for a
reply.

FACTS:

     The merchandise consists of molecular models of biopolymers
for use in teaching and research at colleges and universities, 
and organic chemistry molecular models for use in colleges by
teachers or students studying organic chemistry.   These plastic
models are used to visualize important chemical concepts and you
indicate that, until recently, they were admitted duty-free.   On
March 5, 1991, you advised a member of my staff by telephone that
the models are imported by your company and placed in stock 
pending receipt of future purchase orders.

ISSUE:

     Whether molecular models imported for use in teaching and
research by colleges and universities are entitled to duty-free
treatment under subheading 9023.00.00, Harmonized Tariff Schedule
of the United States Annotated (HTSUSA), or subheading 
9810.00.55,  HTSUSA.
 
                               -2-

LAW AND ANALYSIS:

     Subheading 9810.00.55, HTSUSA, provides for the free entry 
of articles imported for the use of any public library, any other
public institutions or any nonprofit institution established for
educational, scientific, literary or philosophical purposes or 
for the encouragement of the fine arts,  including patterns and
models exclusively for exhibition or educational use at any such
institution.   However, U.S. Note 1, subchapter X, Chapter 98,
HTSUSA, provides that articles entered under this provision must
be exclusively for the use of the institution involved, and not 
for distribution, sale or other commercial use within 5 years 
after being entered.   Therefore, the articles must be imported
by the qualified institution or in behalf of the institution.

     It does not appear that Molecular Design Inc. is acting
directly on behalf of any institutions, and the facts indicate 
that it is a commercial enterprise engaged in retail sale.
Therefore, the models would not be entitled to duty-free 
treatment under subheading 9810.00.55, HTSUSA.

     However, subheading 9023.00.00, HTSUSA, provides duty-free
     treatment for:

     [i]nstruments, apparatus and models, designed for
     demonstrational purposes (for example,  in education or
     exhibitions), unsuitable for other uses, and parts and
     accessories thereof ...

     The Explanatory Notes to the HTSUSA, which constitute the
official interpretation of the HTSUSA at the international level,
state that this subheading covers a wide range of instruments,
apparatus and models designed for demonstrational purposes.  The
exemplars provided in the Explanatory Note to subheading 9023
further indicate that this subheading has a broad scope.   We are
of the opinion that the articles at issue, used for educational 
and demonstrational purposes, fall within the description of this
subheading.

HOLDING:

     Because the models are being imported for commercial 
purposes, they are not eligible for duty-free treatment under
subheading 9810.00.55, HTSUSA.  However, they are classifiable
 
                               -3-

in subheading 9023.00.00, HTSUSA, which provides for "...
models, designed for demonstrational purposes ...."  This
provision provides for duty-free treatment.

                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division