HQ 220988: Classification of certain used airline tickets and used credit card charge forms; your reference JS No. 88-0537

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                      HQ 220988

                                   August 29, 1989

          CLA-2-CO:R:C:E 220988 L

          CATEGORY: Classification; Marking

          TARIFF NO.: Additional U.S. Note 2, Chapter 49, Harmonized
                      Tariff Schedule of the United States

          John J. Scanlon, Jr., Esq.
          Kemp, Smith, Duncan & Hammond
          P.O. Drawer 2800
          El Paso, Texas 79999-2800

          RE: Classification of certain used airline tickets and used
              credit card charge forms; your reference JS No. 88-0537

          Dear Mr. Scanlon:

               Your inquiry of October 7, 1988, requests a binding ruling
          on the classification of certain used airline tickets and used
          credit card charge forms, and a binding ruling that the used
          airline tickets and used credit card forms are exempt from
          country of origin marking requirements.

          FACTS:

               A 5-page description of the sorting and data collection
          process (the "process") abroad involving the used airline tickets
          and credit card charge forms has been submitted.  Stripped of
          detail and so far as is pertinent to the classification issue,
          used airline tickets are collected from United States airline
          companies.  Although not specifically stated, it appears the
          tickets are issued, used, and collected in the United States by
          the airline companies or their agents.  Similarly, the credit
          card charge forms appear to be used and collected in the United
          States by the airline companies or their agents.

               On a regular basis the used airline tickets and credit card
          charge forms are exported to Mexico for processing.  Following
          processing the used airline tickets and credit card charge forms
          are returned to the United States.

          ISSUE:

               Two issues are presented.  The first is whether the used
          airline tickets and used credit card charge forms are intangibles
          within the purview of General Headnote 5(d), Tariff Schedules of
          the United States (TSUS).  The second issue is whether used
          airline tickets and used credit card charge forms are subject to
          country of origin marking requirements pursuant to 19 U.S.C.
          1304.










                                        - 2 -


          LAW AND ANALYSIS:

               The TSUS was supplanted by the Harmonized Tariff Schedule of
          the United States (HTSUS) on January 1, 1989.  General Note 4(c),
          HTSUS, provides that for the purposes of General Note 1, HTSUS,
          records, diagrams and other data with regard to any business,
          engineering or exploration operation whether on paper, cards,
          photographs, blueprints, tapes or other media are not goods
          subject to the provisions of the tariff schedule.

               Section 141.4, Customs Regulations, as pertinent here
          provides that entry under 19 U.S.C. 1484(a) is not required for
          articles listed in General Note 4, (erroneously indicated as
          General Note 5) HTSUS, and additional U.S. Note 2 to Chapter 49,
          HTSUS, exempts items provided for in heading 4907 from the
          requirement for entry or the payment of duty.  Additional Note 2
          to Chapter 49 in some respects parallels former General Headnote
          5(d), TSUS.

               Heading 4907.00.00, HTSUS, provides for unused postage,
          revenue or similar stamps of current or new issue in the country
          to which they are destined; stamp-impressed paper; banknotes;
          check forms; stock, share or bond certificates and similar
          documents of title.

               Heading 49.07(E), Section X, Explanatory Notes to the
          Harmonized System, provides in part that "similar documents of
          title" are formal documents issued, or for issue, by public or
          private bodies conferring ownership of, or entitlement to,
          certain financial interests, goods or benefits named therein.

               The used airline tickets and used credit charge forms, as
          described, have no intrinsic value.  Rather, it is stated, they
          are evidence of amounts owed to the various airlines for services
          which the airlines have rendered or will soon render.  Likewise,
          it is stated, they are evidence of such debt or obligation to the
          various issuing banks at the time of their importation and in the
          condition imported.

               The process described appears similar to a bank
          clearinghouse but with the exchange of used airline tickets and
          credit card charge forms issued by the various parties and the
          balancing of the accounts.  The used airline tickets and used
          credit card charge forms are not "similar documents of title"
          within the meaning of heading 4907 HTSUS.  They are, however,
          business records within the intendment of General Note 4(c),
          HTSUS, and, accordingly, are exempt from the requirement for
          entry or the payment of duty.













                                        - 3 -


               With respect to the second issue, the  Customs Service has
          held that "intangibles" under the TSUS are not articles within
          the meaning of 19 U.S.C. 1304 and therefore need not be marked
          with the country of origin.

               The same view is adopted with respect to General Note 4(c),
          HTSUS.

          HOLDING:

               Used airline tickets and used credit card charge forms
          exported from the United States for processing as described in
          detail in a submission dated October 7, 1988, bearing the
          reference JS No. 88-0537, and subsequently returned to the United
          States are business records within the meaning of General Note
          4(c), HTSUS, and are exempt from the requirement for entry or the
          payment of duty.

               The subject used airline tickets and used credit card charge
          forms are not subject to the marking requirements of 19 U.S.C
          1304.

                                        Sincerely,





                                        John Durant, Director
                                        Commercial Rulings Division