TDs 67-50, 72-64. TD 68-73. 10.118 Disposition of articles entered under item 851.60, TSUS.--(a) An institution transferring an article entered under item 851.60 within 5 years of its entry shall so inform the district director of customs at the port of entry in writing and shall include the following information: (1) The name and address of the transferring institution. (2) The name and address of the transferee. (3) The date of transfer. (4) The description of the article required by question 5 of Form OIPF-768. entry. (5) The serial number(s) of the article. (6) The entry number, date of entry, and port of entry of the original (b) Whenever the circumstances warrant, and occasionally in any event, district directors of customs shall cause the fact of continued use for 5 years for noncommercial purposes by the importing institution to be verified by the Customs Agency Service. (77A Stat. 14, 419, as amended; 19 U.S.C. 1202 (Gen. Hdnte 11, sch. 8, pt. 4, hdnotes 1, 6).) 10.119 Importation of repair components under item 851.65 for articles previously entered under item 851.60, Tariff Schedules of the United States.--An institution which owns an instrument or apparatus entered under item 851.60 of the Tariff Schedules of the United States and desires to enter repair components for such instrument or apparatus under item 851.65 of the Tariff Schedules of the United States shall certify upon entry of such components that the articles are needed repair components for an article or articles owned by that institution and previously entered and classified under item 851,60, Tariff Schedules of the United States. (77A Stat. 14, 419, as amended; 19 U.S.C. 1202 (Gen. Hdnote. 11, Sch. 8, Pt. 4, Hdnote 1).) TD 67-185. VISUAL OR AUDITORY MATERIALS 10.121 Visual or auditory materials of an educational, scientific, or cultural character.--(a) Where photographic film and other articles described in item 870.30, Tariff Schedules of the United States, are claimed to be free of duty under item 870.30, there shall be filed in connection with the entry covering such articles a document issued by the United States Information Agency certifying that it has determined that the articles are visual or auditory materials of an educational, scientific, or cultural character within the meaning of the Agreement for Facilitating the International Circulation of Visual and Auditory Materials of an Educational, Scientific, and Cultural Character as required by headnote 1, part 6, schedule 8, Tariff Schedules of the United States. (b) Articles entered under item 870.30, Tariff Schedules of the United States, shall be released from customs custody prior to submission of the document required in paragraph (a) of this section only upon the deposit of estimated duties with the district director of customs. Liquidation of an entry covering merchandise which has been released under this procedure shall be suspended for a period of 90 days from the date of entry or until the required document is submitted, whichever occurs first. In the event that the district director of customs at the port of entry does not receive the required document within the 90-day period, the merchandise shall be immediately classified and liquidated in the ordinary course, without regard to item 870.30. (77A Stat., as amended; 19 U.S.C. 1202 (Gen. Hdnte 11, sch. 8, pt. 6 hdnte 1).) TD 71-139. RATE OF DUTY DEPENDENT UPON ACTUAL USE 10.131 Circumstances in which applicable.-- The provisions of sections 10.131 through 10.139 are applicable in those circumstances in which the rate of duty applicable to merchandise is dependent upon actual use, unless there is a specific provision in this part or Part 54 of this chapter which governs the treatment of the merchandise. However, specific marking or certification requirements, such as those for bolting cloths in section 10.58, may be applicable to merchandise subject to the provisions of sections 10.131-10.139. CR-254 10.132 Examples of actual use provisions.-- Examples of actual use provisions found in the Tariff Schedules of the United States (19 U.S.C. 1202) which will be subject to the provisions of sections 10.131 through 10.139 are: (a) Rice * * * Patna, cleaned, for use in the manufacture of canned soups (Item 131.37), Tariff Schedules of the United States); (b) Woven bolting cloths, wholly of silk, imported to be used for milling purposes, and marked so as to be fit for such purposes (Item 357.25, Tariff Schedules of the United States); and (c) Limestone, crude, broken, or crushed, when imported to be used in the manufacture of fertilizer (Item 480.05, Tariff Schedules of the United States). 10.133 Conditions required to be met,-- When the tariff classification of any article is controlled by its actual use in the United States, three conditions must be met in order to qualify for free entry or a lower rate of duty unless the language of the particular item of the Tariff Schedules of the United States applicable to the merchandise specifies other conditions. The conditions are that: (a) Such use is intended at the time of importation. (b) The article is so used. (c) Proof of use is furnished within 3 years after the date the article is entered or withdrawn from warehouse for consumption. 10.134 Declaration of intent.-- A showing of intent by the importer as to the actual use of imported merchandise shall be made by filing with the entry for consumption or for warehouse a declaration as to the intended use of the merchandise, or by entering the proper item number of an actual use provision of the Tariff Schedules of the United States and the reduced or free rate of duty on the entry form. Entry made under an actual use provision of the Tariff Schedules of the United States may be construed as a declaration that the merchandise is entered to be used for the purpose stated in the schedules, provided the district director is satisfied the merchandise will be so used. However, the district director shall require a written declaration to be filed if he is not satisfied that merchandise entered under an actual use provision will be used for the purposes stated in the schedules. 10.135 Deposit of duties.-- When the requirement of section 10.134 has been met the merchandise may be entered or withdrawn from warehouse for consumption without deposit of duty when proof of use will result in free entry, or with deposit of duty at the lower rate when proof of use will result in a lower rate of duty. For bond requirements, see section 8.28 of this chapter. 10.136 Suspension of liquidation.-- Liquidation of an entry covering merchandise for which a declaration of intent has been made pursuant to section 10.134 and any required deposit of duties made, shall be suspended until proof of use is furnished or the 3-year period allowed for production thereof has expired. 10.137 Records of use.--(a) Maintenance by importer. The importer shall maintain accurate and detailed records showing the use or other disposition of the imported merchandise. The burden shall be on the importer to keep records so that the claim of actual use can be readily established. (b) Retention of records. The importer shall retain records of use or disposition for a period of 3 years from the date of liquidation of the entry. (c) Examination of records. The records required to be kept by paragraph (a) shall be available at all times for examination and inspection by an authorized Customs officer. 10.138 Proof of use.-- Within 3 years from the date of entry or withdrawal from warehouse for consumption, the importer shall submit in duplicate in support of his claim for free entry or for a reduced rate of duty a certificate executed by (1) the superintendent or manager of the manufacturing plant, or (2) the individual end-user or other person having knowledge of the actual use of the imported article. The certificate shall include a description of the processing in sufficient detail to show that the use contemplated by the law has actually taken place. A blanket certificate covering all purchases of a given type of merchandise from a particular importer during a given period, or all such purchases with specified exceptions, may be accepted for this purpose, provided the importer CR-254-A TDs 73-175, 75-185, TDs 73-175, 75-185, TD 73-175, TD 75-185, shall furnish a statement showing in detail, in such manner as to be readily identified with each entry, the merchandise which he sold to such manufacturer or end-user during such period. 10.139 Liquidation.--(a) In general. Upon satisfactory proof of timely use of the merchandise for the purpose specified by law, the entry shall be liquidated free of duty or at the lower rate of duty specified by law. When such proof is not filed within 3 years from the date of entry or withdrawal from warehouse for consumption, the entry shall be liquidated dutiable under the appropriate item of the Tariff Schedules of the United States. (b) Exception for blackstrap molasses. An entry covering blackstrap molasses, as hereinafter defined, may be accepted and liquidated with duty at the lower rate after the filing of the declaration of intent required by section 10.134 and the deposit of estimated duties required by section 10.135 without compliance with sections 10.136, 10.137 and 10.138. Blackstrap molasses is "final" molasses practically free from sugar crystals, containing not over 58 percent total sugars and having a ratio of total sugars X 100 not in excess of 71. In the event of doubt, an ash determination may be made. An ash content of not less than 7 percent indicates a blackstrap molasses within the meaning of this paragraph. IMPORTATIONS NOT OVER $1 AND BONA FIDE GIFTS 10.151 Importations not over $1.-- Pursuant to section 321(a)(2)(C), Tariff Act of 1930, as amended (19 U.S.C. 1321(a)(2)(C)), the district director shall pass free of duty and tax, and without the preparation of an entry, any importation having a fair retail value in the country of shipment not exceeding $1, unless he has reason to believe that the shipment is one of several lots covered by a single order or contract and that it was sent separately for the express purpose of securing free entry therefor or of avoiding compliance with any pertinent law or regulation. (Sec. 7, 52 Stat. 1081, as amended, sec. 498, 46 Stat. 728, as amended; 10.152 Bona-fide gifts.-- Pursuant to section 321(a)(2)(A), Tariff Act of 1930, as amended (19 U.S.C. 1321(a)(2)(A)), the district director shall pass free of duty and tax, and without the preparation of an entry, any article sent as a bona-fide gift from a person in a foreign country to a person in the United States, provided the aggregate fair retail value in the country of shipment of such articles received by one person on 1 day does not exceed $10 or, in the case of articles sent from a person in the Virgin Islands, Guam, and American Samoa, $20. An article is "sent" for purposes of this paragraph if it is conveyed in any manner other than on the person or in the accompanied or unaccompanied baggage of the donor or donee. (Sec. 7, 52 Stat. 1081, as amended, sec. 498, 46 Stat. 728, as amended; 19 U.S.C. 1321, 1498) 10.153 Conditions for exemption.-- Customs officers shall be further guided as follows in determining whether an article or parcel shall be exempted from duty and tax under section 10.151 or 10.152: (a) A "bona fide gift" for purposes of section 10.152 is an article formerly owned by a donor (may be a commercial firm) who gave it outright in its entirety to a donee without compensation or promise of compensation. It does not include articles acquired by purchase, barter, promissory exchange, or similar transaction, nor does it include articles said to be "given" in conjunction with a purchase, barter, promissory exchange, or similar transaction, such as a so-called "bonus article." (b) A parcel addressed to a person in the United States from an individual in a foreign country which contains a gift should be clearly marked on the outside to indicate that it contains a gift. Such marking is not conclusive evidence of a gift nor is the absence of such marking conclusive evidence that an article is not a gift. Ordinarily an article not exceeding $10 in fair retail value in the country of shipment sent from a person in a foreign country to a person in the United States ($20, in the case of an article sent from a person in the Virgin Islands, Guam, and American Samoa) will be recognizable as a gift from the nature of the article and obvious facts surrounding the shipment. CR-254-B (c) A parcel addressed to a person in the United States from a business firm in a foreign country would ordinarily not contain a gift from a donor in the foreign country. When such a parcel in fact contains an article entitled to free entry under section 10.152, the parcel should be clearly marked to indicate that it contains such a gift and a statement to this effect should be enclosed in the parcel. (d) Consolidated shipments addressed to one consignee shall be treated for purposes of sections 10.151 and 10.152 as one importation. The foregoing shall not apply to shipments of bona fide gifts consolidated abroad for shipment to the United States when: (1) The consolidation for shipment to the United States is in a cargo van or similar containerization which is consigned to a common carrier, freight forwarder, freight handler, or other public service agency for distribution of the gift packages; (2) The separate gifts not exceeding $10 in fair retail value in the country of shipment ($20, in the case of articles sent from persons in the Virgin Islands, Guam, and American Samoa) included in the consolidated shipment are before shipment individually wrapped and addressed to the donee in the United States; (3) Each gift package is marked on the outside to indicate that it contains a gift not exceeding $10 in fair retail value in the country of shipment ($20, in the case of packages sent from persons in the Virgin Islands, Guam, and American Samoa); and (4) Each gift package is separately listed in the name of the addresseedonee on a packing list, manifest, bill of lading, or other shipping document. (e) No alcoholic beverage, perfume containing alcohol (except where the aggregate fair retail value in the country of shipment of all merchandise contained in the shipment does not exceed $1), cigars, or cigarettes shall be exempted from the payment of duty and tax under section 10.151 or section 10.152. (f) The exemptions provided for in section 10.151 or section 10.152 are not to be allowed in respect of any shipment containing one or more gifts having ́an aggregate fair retail value in the country of shipment in excess of $10 ($20, in the case of articles sent from persons in the Virgin Islands, Guam, and American Samoa), except as indicated in paragraph (d) of this section. For example, an article ordinarily subject to an ad valorem rate of duty but sent as a gift, if the fair retail value exceeds the $10 (or $20) exemption, would be subject to a duty based upon its value under the provisions of section 402 or 402(a), Tariff Act of 1930, as amended (19 U.S.C. 1401a or 1402), even though the dutiable value is less than the $10 (or $20) exemption. (g) The exemption referred to in section 10.151 is not to be allowed in the case of any merchandise of a class or kind provided for in any absolute or tariffrate quota, whether the quota is open or closed. In the case of merchandise of a class or kind provided for in a tariff-rate quota, the merchandise is subject to the rate of duty in effect on the date of entry. (Sec. 7, 52 Stat. 1081, as amended, sec. 498, 46 Stat. 728, às amended; 19 U.S.C. 1321, 1498) TD 75-185, TD 75-185, TD 75-185, PHILIPPINE ARTICLES 10.161 Evidence required for Philippine articles.-- When any total or partial exemption from duty is claimed on the ground that the merchandise consists of "Philippine articles," as defined in general headnote 3(c)(iv), Tariff Schedules of the United States (19 U.S.C. 1202), the claim shall be allowed only if it is established to the satisfaction of the district director concerned. The district director may accept as satisfactory evidence a certificate of origin in the appropriate form specified in section 10.164, subject to any verification he may deem necessary. 10.162 Waiver of certificate.-- The district director may waive the production of a certificate of origin if he is satisfied by other reasonable ways and means, taking into consideration the kind and value of the merchandise and the circumstances of importation, that the merchandise consists of "Philippine articles." 10.163 No evidence needed for unconditionally free merchandise.-- No evidence of origin shall be required for any Philippine merchandise which is unconditionally free of duty. TD 73-175, TD 73-175. TD 73-175. CR-254-C TD 73-175. 10.164 Forms of certificates of origin.--(a) Philippine article not containing foreign material. When no material other than that which is the growth, product, or manufacture of the Philippines or of the Customs territory of the United States was used at any stage in the production of the imported article, a certificate in the following form may be accepted as evidence that the commodity is a "Philippine article": The product covered by the (Describe the invoice, bill of lading, or other document or statement identifying the shipment) annexed or appended to this certificate of Philippine origin at the time it was subscribed is the growth, product, or manufacture of the Philippines. No foreign materials (other than those which are of the growth, product, or manufacture of the Customs territory of the United States) were used at any stage in the production of this product, i.e., either in its immediate production or in the production of any intermediate product used at any stage in the chain of production in the Philippines which resulted in this product. (b) Philippine article containing foreign material. When any material which is not the growth, product, or manufacture of the Philippines or of the Customs territory of the United States was used at any stage in the manufacture of the imported article, a certificate in the following form may be accepted as evidence that the commodity is nevertheless a "Philippine article": The product covered by the (Describe the invoice, bill of lading, or other document or statement identifying the shipment) annexed or appended to this certificate of Philippine origin at the time it was subscribed is the product of the Philippines. There were used in its production in the Philippines (Number of units and description) of foreign materials (other than those which are of the growth, product, or manufacture of the Customs territory of the United States) valued by the Philippine Customs officers for the purpose of the Philippine Customs laws at (Official Philippine Customs value at the time of importation into the Philippines, in terms of pounds, yards, or other applicable unit) (c) Alternative form for Philippine article containing foreign material. If the district director is satisfied that the revenue will be protected adequately thereby, he may accept in lieu of the certificate specified in paragraph (b) of this section a certificate in the following form: The product covered by the (Describe the invoice, bill of lading, or other document or statement identifying the shipment) TD 73-175. annexed or appended to this certificate of Philippine origin at the time it was subscribed is a product of the Philippines. There were or may have been used in its production in the Philippines foreign materials (other than those which are of the growth, product, or manufacture of the Customs territory of the United States). It is impracticable to ascertain the exact number of units of foreign material, if any, used in its production or the Customs valuation of such material, but to the best of (my) (our) (its) knowledge and belief such foreign materials as were or may have been used would not exceed 20 per centum of the selling price or invoice value of the product covered by this certificate. 10.165 Certificate to show information for each kind of article and material. If more than one kind of article is covered by a certificate provided for in section 10.164(a), (b), or (c), the required information shall be shown with respect to each kind. When more than one kind of material or other than Philippine or Customs territory of the United States origin is used in the production of an article covered by such a certificate, the certificate shall state the number of units, description, and Philippine Customs valuation per unit of each such kind of material. CR-254-D |