Applicability of 9817.00.98 and 9802.00.50 to costumes imported from Canada

N353145 September 26, 2025 CLA-2-98:OT:RR:NC:N3:356 CATEGORY: Classification TARIFF NO.: 9802.00.50; 9817.00.98 Mr. Yves Lacelle W2C Customs Trade Management 1919 Lionel Bertrand, Suite 104 Boisbriand J7H 1N8 Canada RE: Applicability of 9817.00.98 and 9802.00.50 to costumes imported from Canada Dear Mr. Lacelle: In your letter dated September 1, 2025, you requested a ruling on behalf of your client, Jean-François Rochefort (“Rochefort”), a costume manufacturer located in Canada. Your inquiry concerns the applicability of subheadings 9817.00.98 and 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS), to imports of costumes. You state that Rochefort’s U.S. clients, including Walt Disney World, cruise ships, and theatrical productions, purchase various materials in the United States and export them to Rochefort. The materials include fabrics, plastics, parts of garments, and other items such as buttons and zippers. Rochefort uses these materials to produce costumes, including apparel, accessories such as gloves and belts, footwear, and wigs, and ships the finished goods to its clients in the United States. Subheading 9817.00.98, HTSUS, provides duty-free treatment for: “Theatrical scenery, properties, and apparel brought into the United States by proprietors or managers of theatrical, ballet, opera or similar productions arriving from abroad for temporary use by them in such productions.” This office agrees that at least some of the subject goods fall within the parameters of “theatrical scenery, properties and apparel” as set forth in 9817.00.98, HTSUS. However, you have not responded to our inquiry regarding whether the theatrical productions in which these costumes will be used will arrive from abroad, as also required by 9817.00.98. See Headquarters Ruling Letter (HRL) 561876, dated October 10, 2001. Additionally, you have not established that all of the subject goods will be used solely in theatrical productions. Specifically, you state that Rochefort produces costumes “for resorts such as Walt Disney World,” and that the costumes include “Disney characters, [and] heroes.” You have not responded to our inquiry as to whether some of the goods will be used for purposes other than theatrical productions (for example, to greet visitors in theme parks). Finally, for goods to qualify for duty-free entry under subheading 9817.00.98, HTSUS, the importer (in this case, Rochefort’s U.S. clients) must be able to establish to the satisfaction of Customs officials at the port of entry that the goods will be used temporarily in one of its theatrical productions until that production ends in the United States or the merchandise is no longer being used in the production. At that time, all the goods must be exported. See HRL 561472, dated July 21, 2000. While you state that the subject goods are intended for temporary use, you have not responded to our inquiry regarding whether they are exported from the United States following such use. For the reasons noted above, we find that subheading 9817.00.98, HTSUS, is inapplicable to goods imported under the circumstances you describe. 9802.00.50, HTSUS, provides a partial duty exemption for: “[A]rticles returned to the United States after having been exported to be advanced in value or improved in condition by any process of manufacture or other means: Articles exported for repairs or alterations: Other [than those made pursuant to a warranty].” Based on the information provided in your submission, the processes performed on the materials exported to Rochefort by its U.S. clients amount to more than mere repairs or alterations. Rather, these processes transform the materials into new and different articles with different commercial identities, and which are classifiable under different tariff provisions than those applicable at the time of export. The operations performed on these materials thus exceed those allowable under 9802.00.50, HTSUS. Accordingly, upon their import into the United States, the goods produced from these materials are ineligible for the partial duty exemption provided by 9802.00.50, HTSUS. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Maryalice Nowak at maryalice.nowak@cbp.dhs.gov. Sincerely, (for) Denise Faingar Designated Official Performing the Duties of the Division Director National Commodity Specialist Division