The applicability of subheading 9801.00.10 to various garments.

N286711 June 28, 2017 CLA-2-98:OT:RR:NC:N3:348 CATEGORY: Classification TARIFF NO.: 9801.00.1098 Mr. John M. Peterson Neville Peterson LLP One Exchange Plaza 55 Broadway, Suite 2602 New York, NY 10006 RE: The applicability of subheading 9801.00.10 to various garments. Dear Mr. Peterson: In your letter dated May 25, 2017, written on behalf of SGS Sport Inc., you requested a ruling on whether various garments were eligible for duty-free treatment under subheading 9801.00.1098, Harmonized Tariff Schedule of the United States (HTSUS). The items concerned are swimwear and other casual wearing apparel from China, exported to Canada from the United States, and imported back into the United States without being advanced in value. You state in your letter that SGS Sport in Canada exports these garments from the United States to store in a warehouse. The garments will not be advanced in value or improved in condition by manufacture while in Canada. The goods are unpacked and stored in bins on warehouse shelves by style/size/color. The garments will be subject to simple storage operations in Canada. The goods will imported into the United States within three years after having been exported to Canada. You asked if these garments are eligible for duty-free treatment under subheading 9801.00.10, HTSUS. Section 904(b) of the Trade Facilitation and Trade Enforcement Act of 2015 (Pub. L. 114-125, February 24, 2016) amended subheading 9801.00.10, HTSUS, to include any products which are returned within 3 years after having been exported. Previously, subheading 9801.00.10, HTSUS, only applied to products of the United States. Subheading 9801.00.10, HTSUS, now provides for the duty-free treatment of: Products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. Section 10.1, Customs Regulations (19 C.F.R. § 10.1), sets forth the documentary requirements for entry under subheading 9801.00.10, HTSUS. We note that CBP has not yet amended the regulations to implement the change to subheading 9801.00.10, HTSUS. Nonetheless, while portions of the regulations are no longer pertinent, some portions of 19 C.F.R. § 10.1 still remain valid. For example, 19 C.F.R. § 10.1(a)(1) requires the foreign shipper to declare the following information with regard to articles in a shipment valued over $2,500: the port of exportation, the date of exportation, the quantity, the description of the merchandise, the value of the merchandise, the date of the declaration, and whether the articles were advanced in value or in condition by any process of manufacture or other means. Under 19 C.F.R. § 10.1(b), the port director may require such other documentation or evidence as may be necessary to substantiate the claim for duty-free treatment including a U.S. export invoice, bill of lading or airway bill evidencing the exportation of the articles from the United States, and/or the reason for the exportation of the articles demonstrating that the same items were returned within 3 years.  Section 10.1(a)(2), Customs Regulations (19 C.F.R. § 10.1(a)(2)), requires the owner, importer, consignee, or agent having knowledge of the facts regarding the claim for free entry to declare that the foreign shipper’s statement is true; that the articles were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS; and, that the articles were exported without benefit of drawback. Therefore, provided the party re-importing the garments is an “owner, importer, consignee, or agent having knowledge of the facts regarding the claim for free entry” as required by 19 C.F.R. § 10.1(a)(2), then such party may re-import the garments under subheading 9801.00.10, HTSUS. Regarding the applicability of heading 9801, HTSUS, if the importation of the garments meets the criteria set forth in the cited regulation, the merchandise may be eligible for duty exemption under subheading 9801.00.1098, HTSUS. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Rosemarie Hayward via email at rosemariecasey.hayward@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division