H261894; Instruments of International Traffic (“IIT”); 19 C.F.R. § 141.4; Harmonized Tariff Schedule of the United States (“HTSUS”) General Note 3(e)(vi); Horizon Airlines (“Horizon”).

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H261894 May 29, 2015 CON2-03 OT:RR:BSTC:CCR H261894 KLQ CATEGORY: Carriers Mr. S. Richard Shostak Stein Shostak Shostak Pollack & O’Hara, LLP 865 South Figueroa Street, Suite 1388 Los Angeles, CA 90017 RE: H261894; Instruments of International Traffic (“IIT”); 19 C.F.R. § 141.4; Harmonized Tariff Schedule of the United States (“HTSUS”) General Note 3(e)(vi); Horizon Airlines (“Horizon”). Dear Mr. Shostak: This is in response to your January 8, 2015 ruling request on behalf of Horizon, received in this Branch on February 20, 2015, in which you request a ruling determining whether certain airplane parts or equipment and unused parts of aircraft repair kits qualify for entry and duty-free treatment upon entry into the United States (“U.S.”). Our decision follows. FACTS The following facts are from your ruling request, supplemental letter, dated May 12, 2015 and email to this office, dated May 26, 2015. Horizon is a U.S. air carrier engaged in the international transportation of passengers. All Bombardier aircraft which operate internationally were manufactured in Canada, imported into the U.S. and registered by Horizon. Repairs to the aircraft occur mainly in the United States; however, Horizon maintains repair facilities at five airports in Canada (Calgary, Edmonton, Kelowna, Vancouver and Victoria) and one in Mexico (Loreto International Airport in Baja California Sur Mexico) in the event the aircraft breaks down while abroad. Horizon, through Bombardier, also maintains aircraft repair kits. These repair kits consist of a large number of components including: tire change kits, batteries, sensors, wheels, alignment tools, torque wrenches, sealant guns, and aircraft brakes. When a Horizon Bombardier aircraft needs repairs abroad, Horizon’s maintenance center sends an aircraft repair kit and other additional “trouble shooting parts” to the foreign airport where the disabled plane is located. All of the unused portions of the repair kit return to the U.S. within 45 days of the aircraft repair kit leaving the United States. Any parts removed from the subject aircraft are returned to the U.S. within 45 days of their removal from the aircraft. Upon arrival in the U.S., unused parts of the aircraft repair kit go back into stock to be used in future aircraft repair kits. The parts and equipment removed from the aircraft are repaired or scrapped. Your client provided this office with a list of the articles included in the aircraft repair kits. ISSUE Whether the aircraft parts and equipment removed from the aircraft and the unused parts of the aircraft repair kit qualify for entry and duty-free treatment upon returning to the United States? LAW AND ANALYSIS Removed Aircraft Parts and Equipment All merchandise imported into the U.S. is required to be entered, unless specifically excepted. Exceptions to this general rule include “the exemptions listed in General Note 3(e) to the HTSUS.” General Note 3(e)(vi) of the HTSUS states: For the purposes of general note 1 […] any aircraft part or equipment that was removed from a United States-registered aircraft while being used abroad in international traffic because of accident, breakdown, or emergency, that was returned to the United States within 45 days after removal, and that did not leave the custody of the carrier or foreign customs service while abroad, are not goods subject to the provisions of the tariff schedule. Therefore, in order to qualify for entry and duty-free treatment under 19 C.F.R. § 141.4(b)(1) and General Note 3(e)(vi), the subject aircraft parts and equipment must: (1) be removed from a U.S.-registered aircraft while being used abroad in international traffic; (2) be removed from the U.S.-registered aircraft because of accident, breakdown, or emergency; (3) not leave the custody of the carrier or foreign customs service while abroad; and (4) be returned to the U.S. within 45 days after the parts or equipment are removed from the aircraft. First, the subject aircraft are U.S. registered and are engaged in international traffic. The subject aircraft are engaged in international traffic insofar as the subject aircraft provide continual in-service flights between the U.S. and Canada and the U.S. and Mexico. Second, the facts indicate that the subject aircraft parts and equipment are removed from the subject aircraft only in the event of accident, breakdown or emergency. In addition, the facts as presented evidence that the intent of these foreign repairs is merely to facilitate a continuation of Horizon’s regular international flights. Therefore, there is neither evidence of an intent to export the aircraft parts or equipment nor is there evidence of an intent to engage in any activity that would remove the parts and equipment from “the custody of the carrier or foreign customs service while abroad.” Finally, pursuant to General Note 3(e)(vi) of the HTSUS, the aircraft parts or equipment must return to the U.S. within 45 days of their removal from the aircraft in order to qualify for entry and duty-free treatment. You indicate that the subject aircraft parts and equipment removed from the subject aircraft will be returned to the U.S. within 45 days of their removal from the aircraft. Therefore, the subject aircraft parts and equipment removed from the subject aircraft while abroad qualify for duty and entry-free treatment pursuant to 19 C.F.R. § 141.4(b)(1) and General Note 3(e)(vi) insofar as the aircraft are U.S. registered and used in international traffic. Moreover, the parts and equipment are removed from the aircraft in the event of accident, breakdown or emergency, do not leave the custody of the carrier or foreign customs service while abroad and are returned to the U.S. within 45 days of their removal from the subject aircraft. Unused Parts of the Aircraft Repair Kit As stated above, all merchandise imported into the U.S. is required to be entered, unless specifically excepted. Exceptions to this general rule include “the exemptions listed in General Note 3(e)” to the HTSUS. General Note 3(e)(vi) of the HTSUS states: For the purposes of general note 1 […] any aircraft part or equipment that was removed from a United States-registered aircraft while being used abroad in international traffic because of accident, breakdown, or emergency, that was returned to the United States within 45 days after removal, and that did not leave the custody of the carrier or foreign customs service while abroad, are not goods subject to the provisions of the tariff schedule. Therefore, in order to qualify for entry and duty-free treatment under 19 C.F.R. § 141.4(b)(1) and General Note 3(e)(vi), the subject unused parts of the aircraft repair kits must: (1) be removed from a U.S.-registered aircraft while being used abroad in international traffic; (2) be removed from the U.S.-registered aircraft because of accident, breakdown, or emergency; (3) not leave the custody of the carrier or foreign customs service while abroad; and (4) be returned to the U.S. within 45 days after removal. The unused parts of the aircraft repair kits are not removed from a U.S.-registered aircraft while being used abroad in international traffic. The unused parts of the aircraft repair kit are merely part of the total aircraft repair kit which was stored in the U.S. until needed abroad. Therefore, the subject unused parts of the aircraft repair kit are not excepted from entry and duty under 19 C.F.R. § 141.4(b)(1) and General Note 3(e)(vi). HOLDING The aircraft parts and equipment removed from the aircraft qualify for entry and duty-free treatment upon returning to the United States. However, the unused parts of the aircraft repair kit do not qualify for entry and duty-free treatment upon returning to the United States. Sincerely, Lisa L. Burley Chief/Supervisory Attorney-Advisor Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations and Rulings U.S. Customs and Border Protection