The tariff classification of floor medallions from Italy.

NY 811127 June 21, 1995 CLA-2-98:S:N:N8:233 811127 CATEGORY: Classification TARIFF NO.: 9812.00.2000 Mr. Richard D. Myrah Metropolitan Washington Airports Authority 44 Canal Center Plaza Alexandria, Virginia 22314-1562 RE: The tariff classification of floor medallions from Italy. Dear Mr. Myrah: In your letter dated May 19, 1995, you requested a tariff classification ruling. The Metropolitan Washington Airports Authority, (Authority), a tax exempt political subdivision of the Commonwearth of Virginia, has undertaken the construction of a new terminal buiding at Washington National Airport. As part of this facility, the Authority has commissioned an Architectural Enhancement Program to provide works of art from 29 artists to be permanently integrated into the building. Some of these works of art include eight (8) mosaic floor medallions designed by eight artists, but fabricated and installed by one artisan, Crovatto-Miatto Mosaics, of Speilimbergo, Italy. The floor medallions are permanently integrated into the floor of the facility. The owner of the facility is the Authority, a non-profit organization (see attached tax exempt certificate). Subheading 9812.00.20, HTSUSA, (19 CFR 1202) provides in pertinent part for an exemption from duty on any article imported for encouragement of the arts. Prior to the release of articles under heading 9812.00.20 or 40, bond shall be given for the payment of lawful duties which may accrue should any of the articles be sold, transferred or used contrary to the provisions of this subchapter within 5 years after the date of entry hereunder, and such articles shall be subject at any time within such 5-year period to examination and inspection by customs officers. Surety on such bonds shall be waived in the discretion of the Secretary of the Treasury. The statute is implemented by 19 CFR 49. That regulation allows the district director of customs with whom the entry is filed to require a declaration of compliance by a qualified office of the Authority and a bond that would guarentee the Authority's compliance with the statute and regulation. U.S. Note 1 to subchapter XII states that the provisions of this subchapter do not apply to articles intended for sale or for any purposes other than exhibition or erecting a public monument, nor do they apply to an institution or society engaged in or connected with business of a private or commercial character. Under Note 2 to the subchapter XII, Chapter 98, HTSUSA, Congress authorized the Secretary of the Treasury to waive surety on bonds posted by institutions to cover entries under subheading 9812.00.20, HTSUS. That authority to waive surety has been delegated to the Customs Service. The district director with whom the entry is filed, is authorized to allow the Metropolitan Washington Airports Authority to post a bond without surety. The applicable subheading for the floor medallions will be 9812.00.2000, Harmonized Tariff Schedule of the United States Annotated, HTSUSA, which provides for: Articles imported for exhibition by any institution or society established for the encouragement of agriculture, arts, education or science, or for such exhibition by any State or for a municipal corporation. The duty rate will be free, under bond, as prescribed in U.S. Note 2 to this subchapter. The exemption from duty under subheading 9812.00.20, HTSUS, requires that the merchandise is not sold for five years from the date of entry. This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R.177). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, Jean F. Maguire Area Director New York Seaport