HQ 223635: Ruling request on the mounting of ordnance and sighting system to a 105mm light artillery gun in an FTZ; 19 U.S.C. 81c(a); prohibition of manufacture of firearms in an FTZ

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 223635

                          June 18, 1992

FOR-2-01-CO:R:C:E 223635 CB

CATEGORY:  Entry

Mr. Robert J. Schott
Airschott
P. O. Box 17377
Washington, D.C. 20041

RE:  Ruling request on the mounting of ordnance and sighting
     system to a 105mm light artillery gun in an FTZ; 
     19 U.S.C. 81c(a); prohibition of manufacture of firearms
     in an FTZ 

Dear Mr. Schott:

     This is in response to your letter of December 18, 1991,
wherein you requested a ruling regarding the assembly of 105mm
artillery cannons in a foreign trade zone (FTZ).

FACTS:

     According to your letter, your client proposes to bring
finished component parts for approximately four hundred 105mm
light artillery guns through the Port of Baltimore and admitted
into an FTZ.  The finished and assembled imported components will
consist of the trail and spades, suspension, platform, elevating
mass and saddle and controls.  Each of the foregoing components
will be fully manufactured and assembled in a foreign country
into a single wheeled unit prior to shipment to the United
States.

     Once admitted into the FTZ, the guns will be fitted with
U.S. manufactured ordnance (barrel, breech & muzzle brake) and
with a U.S. manufactured sighting system.  You state that the
operations to be conducted are very similar to those operations
which would be conducted by the gun crew in a field exercise. 
Once assembled, each gun will be tested by cycling all moving
components including the firing mechanism (without ammunition). 
After completion of the testing, the completed 105mm guns,
together with the U.S. ordnance and sighting system, will be
exported to a foreign country.

ISSUE:

     Whether the subject light artillery guns may be admitted
into a foreign trade zone?
                               -2-


LAW AND ANALYSIS:

     The statute governing the creation and operation of foreign
trade zones is the Foreign Trade Zones Act of 1934, as amended
(48 Stat. 998; 19 U.S.C. 81a through 81u).  Pursuant to the
provisions of section 3 of the Foreign Trade Zones Act, as
amended (19 U.S.C. 81c), merchandise of every description may be
brought into a zone without being subject to the Customs laws for
the purposes set forth in the statute.  Merchandise may "be
brought into a zone and may be stored, sold, exhibited, broken
up, repacked, assembled, distributed, sorted, graded, cleaned,
mixed with foreign or domestic merchandise, or otherwise
manipulated, or be manufactured...."  19 U.S.C. 81c (1982).

     Under 19 U.S.C. 81c(a), operations which are subject to any
provision(s) of section 1807 of Title 26 and chapters 15 to 17,
21 to 26 or 32 of Title 26 are not permitted in a zone.  Section
4181, Title 26, United States Code (formerly chapter 25, Title
26) imposes a tax on firearms.  The regulations relating to the
administration of the tax on the sale of firearms imposed by 26
U.S.C. 4181 are contained in 27 CFR Part 53.  The Bureau of
Alcohol, Tobacco and Firearms has informed us, by way of letter
dated May 15, 1992, that it is their opinion that the 105mm
artillery cannon is not a firearm as defined in 27 CFR part 53;
thus, it is not subject to the federal excise tax provided for in
Chapter 53 of the Internal Revenue Code.  Consequently, it is
Customs position that the proposed assembly of the 105mm
artillery cannon is a permissible operation under the Foreign
Trade Zones Act because it is not a firearm subject to the 
excise tax.

HOLDING:

     The subject 105mm artillery guns may be admitted into a
foreign trade zone and assembled provided all other State
Department and Bureau of Alcohol, Tobacco and Firearms
requirements have been met.


                                   Sincerely,




                                   John A. Durant, Director
                                   Commercial Rulings Division