HQ 221211: Mail importation; 19 CFR 145.12(a)(2); formal entry; 19 CFR145.35; subheading 9801.00.10, HTSUSA, 19 USC 1498(a)(1)

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 221211

                         April 29, 1991

ENT-4-02 CO:R:C:E 221211 C

CATEGORY:  Entry/Liquidation

Colonel Verlin D. Dickman
General Counsel
Army & Air Force Exchange Service
Departments of the Army and Air Force
Dallas, Texas 75266-0202

RE:  Mail importation; 19 CFR 145.12(a)(2); formal entry; 19 CFR
145.35; subheading 9801.00.10, HTSUSA, 19 USC 1498(a)(1)

Dear Colonel Dickman:

     This responds to your January 31, 1989 letter concerning the
entry of United States origin merchandise upon its return to the
United States from Army & Air Force Exchange Service (AAFES)
locations overseas.  You requested a waiver of the formal entry
procedure and the informal entry limit of $1,250 (formerly
$1,000), in order to facilitate the duty-free importation of this
merchandise under subheading 9801.00.10 of the Harmonized Tariff
Schedule of the United States (HTS)(item 800.00 of the formerly
applicable Tariff Schedules of the United States).

     You explained that certain merchandise of United States
manufacture, such as rings, watches, gold chains, and other
jewelry, is purchased in the United States by the Specialized
Distribution Activity (SDA) of the AAFES Distribution Region,
located at Ft. Gillem, Georgia.  Delivery of the merchandise is
made to SDA, where it is inspected and sorted.  The merchandise
is then exported and distributed to AAFES locations overseas,
called "exchanges."  The merchandise is there sold to United
States military personnel and their families.

     Each year, some of the exported merchandise is returned by
overseas exchanges to the SDA for various reasons.  Since your
question is limited to the entry procedure issue, we will not
make a determination as to the applicability of subheading
9801.00.10, HTS, to these importations.  (If you desire such a
determination, contact the Special Classification Branch of the
Office of Regulations and Rulings (202/566-2938).)  An attachment
to your letter lists various shipments of merchandise by date and
mail registration number.  The shipments to the United States are
from exchanges in the United Kingdom, Japan, Germany, and Guam. 
The value for each shipment is listed, with the lowest being
$4,000 and the highest $94,179.  Of the 29 shipments listed, the
value for 21 shipments is in excess of $10,000.

     Because these shipments were made through the mail, part 145
of the Customs Regulations governs these importations.  (See
Title 19, Code of Federal Regulations, Part 145.)  Section
145.12(a)(2) provides that formal entry shall be required for
every mail importation that exceeds $1,250 in value.  The
regulation provides exceptions which include, in relevant part,
that contained in section 145.35, pertaining to United States
products returned under 9801.00.10, HTS.  This section provides
that products of the United States returned (to the United
States) after having been exported, which have not been advanced
in value or improved in condition, may be admitted into the
United States duty-free and without entry, provided that the
value of the shipment does not exceed $1,250.  In fact, then,
this is not much of an exception since this section also contains
a $1,250 limitation.  In any event, the two sections taken
together require formal entry for shipments valued in excess of
$1,250, even if the merchandise qualifies for duty-free treatment
under 9801.00.10, HTS.

     The $1,250 limit of sections 145.12(a)(2) and 145.35
implements the $1,250 limit of Section 498 of the Tariff Act of
1930, 19 U.S.C. 1498.  (See 19 U.S.C. 1498(a)(1).)  That
statutory provision authorizes the Secretary of the Treasury to
prescribe regulations for the entry of merchandise imported
through the mail, or otherwise, when the aggregate value of the
shipment does not exceed an amount not greater than $1,250.  This
authorizes the Secretary to provide for a less formal entry
procedure than that required for importations generally in
section 484 of the Tariff Act of 1930, 19 U.S.C. 1484.  Because
the $1,250 limit is statutorily prescribed, it cannot be waived
by Customs.

     The significance of the foregoing is that formal entry will
be required for the shipments you described.  The entry
requirements are contained in parts 141 and 142 of the
regulations.  See also section 10.1 for the requirements
concerning merchandise that has been exported and returned. 
Please note section 10.1(d) which gives the district director the
authority to waive the documentary requirements of sections
10.1(a) and 10.1(b), provided he/she is satisfied that the
merchandise qualifies for treatment under subheading 9801.00.10,
HTS.  This is a matter to be referred to the district director.

     As stated previously, because the shipments in question are
made through the mail, the regulations governing mail
importations control.  Thus, the application of the $1,250
limitation of sections 145.12(a)(2) and 145.35.  However, you may
want to consider importing the merchandise in question by means
other than the mail, in order to qualify for the informal entry
procedure of section 143.21(k).  (See also 19 U.S.C. 1498(a)(2).) 
The limit imposed in this provision is $10,000: shipments of
products of the United States which do not exceed $10,000 can be
entered informally if the products are imported for
repair/alteration and reexport, or after having been rejected or
returned by the foreign purchaser to the United States for
credit.  If this provision applies to any of the merchandise you
import, it may be worthwhile to consider restructuring your
importations to take advantage of this provision.  Based on the
information you provided, however, it may not apply to all your
importations.

     An alternative to the foregoing, is the temporary
importation under bond (TIB) provision of 9813.00.05, HTS.  It
provides for duty-free admission, under bond, for merchandise
that will be exported within one year of importation, after
having been repaired, altered, or processed.  Using the TIB
provision would eliminate any concerns over the value of the
shipments; however, it appears that only some of your
importations would qualify.

     In summary, Customs is without authority to waive the
statutory formal entry procedure required for the importations
you described.  Compliance with the required procedures will
ensure duty-free entry.  We apologize for the delay in
responding.  If you have any further questions, please contact
our office.

                               Sincerely,




                               John Durant, Director
                               Commercial Rulings Division