CBP Bulletin Proposes to Revoke Duty-Free Rulings on Reimported Tires, Cameras Parts for Lack of Evidence
In the Aug. 15 issue of the CBP Bulletin (Vol. 46, No. 34), CBP published a notices that propose to revoke rulings and similar treatment regarding the tariff classification of goods under Harmonized Tariff Schedule subheading 9801.00.25.
Comments on Proposed Revocations Due Sept. 14
CBP said that before taking this action, consideration will be given to any written comments received by Sept. 14. In addition, any party who has received a ruling or decision on the merchandise that is subject to the proposed revocations, or any party involved with a substantially identical transaction, should advise CBP by the date that written comments on the proposed ruling are due. (An importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agents for importations subsequent to the effective date of the final decision in this notice.)
Proposed Revocations
CBP is proposing to revoke the rulings below, and any rulings on these products that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
Reimported Tires and Cameras
| Item: Bridgestone Tire Operations' tires reimported for repair, upgrade, or exchange. The tires are exported to Canada from the U.S. and on some occasions returned to the U.S. for repair, upgrade or exchange. Item: Red.com cameras, lenses, lithium batteries, battery charges, battery packs, and battery plates. The parts are imported and kept in inventory in the U.S. for distribution to various customers worldwide. The cameras, lenses, batteries, and accessories that are defective or require upgrade are returned to Red.Com in the U.S. for repair, upgrade, or exchange at no additional cost, when under warranty. The inventory method used is FIFO (first in -- first out) and the inventory turnover is thirty days. |
| Current: 9801.00.25, Free (Articles, previously imported, with respect to which the duty was paid upon such previous importation if (1) exported within three years after the date of such previous importation, (2) reimported without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, (3) reimported for the reason that such articles do not conform to sample or specifications, and (4) reimported by or for the account of the person who imported them into, and exported them from, the United States.) |
| Proposed: Ineligible for duty-free treatment under 9801.00.25 |
| Reason: CBP previously ruled that both items met the requirements for for duty-free imports. CBP now says because Bridgestone and Red.com didn't provide documentation of the reimports not conforming to sample or specifications, they don't meet the criteria for duty-free treatment. Items reimported for upgrade or exchange due to lack of demand are not eligible for duty-free treatment under subheading 9801.00.25, HTSUS. The importer must establish that the goods did not conform to sample or specification and the documentary requirements set forth in 19 CFR 10.8 must be satisfied. |
| Proposed for revocation: NY N163660 (2011) and NY N069900 (2009) |
| Proposed new ruling: HQ H173817and HQ H209471 |