19 CFR Part 192; Exportation of Used Self-Propelled Vehicles

HQ 116263 July 9, 2004 EXP-1-RR:IT:EC 116263 GOB CATEGORY: Entry Carl D. Cammarata, Esq. Law Offices of George R. Tuttle Three Embarcadero Center Suite 1160 San Francisco, CA 94111 RE: 19 CFR Part 192; Exportation of Used Self-Propelled Vehicles Dear Mr. Cammarata: This letter is with respect to your letter of June 22, 2004 on behalf of Porsche Cars North America, Inc. (“Porsche”) and Porsche AG (“PAG”). FACTS: You describe certain of the facts as follows: PAG designs and engineers motor vehicles and parts and, in connection with that work, they produce prototypes for analysis and testing. In some instances, PAG ships some of these prototypes to Porsche, PAG’s wholly owned subsidiary in the United States, for additional analysis and testing. When these vehicles are shipped to the United States, they are consigned, not sold, to Porsche. When this work is completed, the vehicles are exported from the U.S. back to PAG. [Emphasis in original.] The essence of your inquiry is whether the above-described vehicles are subject to the requirements of Part 192, Customs and Border Protection (“CBP”) Regulations (19 CFR Part 192). ISSUE: Whether the above-described vehicles are subject to the requirements of 19 CFR Part 192? LAW AND ANALYSIS: Section 192.0, CBP Regulations (19 CFR §192.0) provides in pertinent part: § 192.0 Scope. This part sets forth regulations pertaining to procedures for the lawful exportation of used self-propelled vehicles, vessels, and aircraft, and the penalties and liabilities incurred for failure to comply with any of the procedures. Section 192.1, CBP Regulations (19 CFR §192.1) provides in pertinent part: §192.1 Definitions. The following are general definitions for the purposes of this subpart A. . . . Used. “Used” refers to any self-propelled vehicle the equitable or legal title to which has been transferred by a manufacturer, distributor, or dealer to an ultimate purchaser. The facts clearly indicate that the subject vehicles are consigned to Porsche. As such, there is no sale of the vehicles and no transfer of title to an ultimate purchaser. Therefore, we find that the vehicles are not “used” vehicles within the meaning of Part 192, CBP Regulations. See the definition of “used” in 19 CFR § 192.1. Accordingly, the vehicles are not subject to the requirements of Part 192, CBP Regulations. HOLDING: Because the subject vehicles are not “used” vehicles as that term is defined in 19 CFR 192.1, they are not subject to the requirements of Part 192, CBP Regulations. Sincerely, Glen E. Vereb Chief Entry Procedures and Carriers Branch