HQ 224052: Union Rail Car (Partnership); Subheading 9813.00.05, HTSUS; Temporary Importation under Bond; semi-finished carbody shells; processing for exportation

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 224052

                       September 25, 1992

CON-9-04-CO:R:C:E 224052 CB

CATEGORY:  Entry

Ned M. Marshak, Esq.
Sharretts, Paley, Carter & Blauvelt
67 Broad Street
New York, NY 10004

RE:  Union Rail Car (Partnership); Subheading 9813.00.05,
     HTSUS; Temporary Importation under Bond; semi-finished
     carbody shells; processing for exportation

Dear Mr. Marshak:

     This is in response to your letter of July 7, 1992, on
behalf of Union Rail Car (Partnership), U.S.A. ("URC"), wherein
you requested a binding ruling concerning the temporary
importation under bond of certain semi-finished carbody shells.

FACTS:

     URC will import 132 semi-finished carbody shells to Yonkers
and will subsequently export to Taiwan 120 finished rail
vehicles, and 12 vehicles which will be exported in knock-down
condition for further assembly into finished vehicles in Taiwan.

     The initial six imported carbody shells will contain, at
time of importation, the vast majority of components required to
produce a complete carbody shell.  Upon arrival at URC's
manufacturing facility at Yonkers, these shells will be subjected
to certain processing operations set forth in your letter.  These
operations include, but are not limited to:  replacement of trip
parking brake hoses, installation of emergency boxes,
installation of reactor sensors and their wiring, and replacement
of speed sensors.  In addition, the shells will be assembled
together with trucks (which will be imported separately).  The
various systems of the completed rail vehicles will be fine-
tuned and the vehicles will be subjected to running tests.  Prior
to exportation, the trucks will be detached from the finished
carbody, and rubber trucks will be attached for shipping
purposes.  The completed rail vehicles will be shipped to Taiwan.

     The remaining 126 carbody shells will be imported in a
significantly lesser state of completion.  As is the case with
the initial six importations, the finished carbody shells will be
exported to Taiwan, along with trucks which will be assembled
with the shells upon arrival in Taiwan.  The final 12 rail
vehicles will be exported in a "knock-down" condition.  The 


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carbody shells for these vehicles will be imported in the same
condition as the 126 carbody shells described above.  These
shells will be subjected to the same operations in Yonkers as the
other shells.

ISSUE:

     Whether the subject carbody shells and above-described
operation are eligible for temporary importation under bond?

LAW AND ANALYSIS:

     Subheading 9813.00.05, of the Harmonized Tariff Schedule of
the United States (HTSUS), provides for the importation into the
United States temporarily free of duty under bond, of articles to
be repaired, altered or processed.  The latter may include
processing that transforms an article into one that is considered
manufactured or produced in the United States.  The provision
requires that the imported merchandise be exported or destroyed
within one year of the date of importation.  This period may be
extended for one or more periods which, when added to the initial
one year, do not exceed a total of three years.  In order to
qualify for this duty-free treatment, merchandise cannot be
imported for the purpose of sale (or sale on approval).  This
limitation pertains to sales in the United States.  (See U.S.
Note 1(a), Subchapter XIII, Chapter 98, HTSUS.)

     It is clear that the operations described above qualify as a
process under the subheading.  However, you must meet all of the
accountability requirements under the U.S. Notes of Subchapter
XIII, HTSUS and the applicable Customs regulations, which may be
found at 19 CFR 10.31 through 10.40.  Section 10.31(f) states
that a bond shall be given on Customs Form (CF) 301 in an amount
equal to double the duties which it is estimated would accrue (or
such larger amount as the district director shall state in
writing to the entrant is necessary to protect the revenue) had
all the articles covered by the entry been entered under an
ordinary consumption entry.  The basis for the computation of the
amount of a temporary importation bond is estimated duties
determined in accordance with sections 141.90 and 141.103 of the
Customs Regulations (19 CFR 141.90 and 19 CFR 141.103).  To this
amount is added any other duties that the district director
ascertains may become due on the articles so entered and, as
well, estimated expenses of reimbursable supervision such as may
arise, for instance, when the articles are not properly marked.



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HOLDING:

     Based on the foregoing, we conclude that the above-described
assembly process constitutes a "processing" under subheading
9813.00.05, HTSUS, and the imported merchandise is entitled to
temporary importation under bond so long as all other
requirements are met to the satisfaction of the District
Director.

                              Sincerely,




                              John A. Durant, Director
                              Commercial Rulings Division