U. S. Customs & Border Protection issued CSMS # 49163963 updating guidance for importers and brokers on the responsibilities when using the 9801.00.10 provision in the Harmonized Tariff Schedule of the United States (HTSUS).
The text of tariff number 9801.00.10 in the HTSUS states:
“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.”
This allows for a duty-free option for U.S. made and non-U.S. made goods, provided the requirements are fulfilled and the supporting documentation is maintained at your company’s facility in the event of a regulatory request.
This guidance clarifies the importer has the burden to prove their claim for duty-free treatment under Subheading 9801.00.10 unless the broker obligates themselves as the importer of record.
Shipments valued over $2,500, the following documents may be requested from the importer to determine if the duty-free exemption under Subheading 9801.00.10 applies for either U.S. manufactured goods exported from and returned to the United States at any time, or foreign origin goods exported from the United States and returned within the 3-year time limit.
1) For either U.S. manufactured goods or foreign origin goods:
a) Declaration by Foreign Shipper indicating that the products were not advanced in value or improved in condition while outside the United States. A certificate from the master of a vessel stating that the products are returned without having been un-laden from the exporting vessel may be accepted in lieu of the declaration by the foreign shipper.
b) Declaration by the owner, importer, consignee, or agent having knowledge of the facts regarding the duty-free claim.
If the owner or ultimate consignee is a corporation, such declaration may be signed by the president, vice president, secretary, or treasurer of the corporation, or may be signed by an employee or agent of the corporation who holds a power of attorney and a certification by the corporation that such employee or other agent has or will have knowledge of the pertinent facts.
2) For U.S. manufactured goods valued over $2,500 entered three years after the date of exportation that are not clearly marked with the name and address of the U.S. manufacturer, CBP may require, in addition to the declarations above, additional documents to substantiate the claim for duty-free treatment including a statement from the U.S. manufacturer verifying that the articles were made in the United States.
3) One of the following documents will be deemed sufficient proof of export from the United States for U.S. manufactured goods or foreign origin goods, provided the information contained therein proves an export from the United States:
a) Copy of the entry into the foreign country;
b) U.S. export invoice or bill of lading/airway bill; or,
c) Electronic Export Information (EEI) or the Automated Export System (AES) filing exemption.
Documentation may be requested to substantiate that the same articles exported from the United States are being returned. No substitution of the same type of articles under an inventory management system may occur. This merchandise must meet all of the requirements such that it was not advanced in value or changed in condition, and not processed under a drawback claim or Temporary Importation under Bond (TIB) entry.
Please read the complete guidance here.
Failure to substantiate this claim may result in a rate advance and potentially recordkeeping penalties assessed by CBP.
Please follow the links below for additional resources on this topic:
If you have any questions or concerns regarding your recordkeeping obligations under this provision, please contact the Willson International U.S. Regulatory Team at transitionus@willsonintl.com