HQ 087978: Protest No. 3004-90-00181, concerning duty-free entry foraudio equipment.

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 087978
                       September 16, 1991

CLA-2 CO:R:C:E  087978  SR

CATEGORY: Entry

District Director of Customs
U.S. Customs Service
111 West Huron Street
Buffalo, New York 14202

RE:  Protest No. 3004-90-00181, concerning duty-free entry for
audio equipment.

Dear Sir:

     The above-referenced protest concerns your denial of duty-
free entry for articles entered under the Educational,
Scientific, and Cultural Materials Importation Act of 1982.  The
issue of this protest involves the suspension of duty for one
year.

FACTS:

     The merchandise at issue consists of audio equipment that is
properly classifiable in Schedule 7 of the Tariff Schedules of
the United States (TSUS).  The importer claimed classification
under items 960.50 through 960.70, TSUS, for duty-free treatment
under the Educational, Scientific, and Cultural Materials
Importation Act of 1982 (Public Law 97-446).  This act was
enacted by Congress in order to give effect to the Nairobi
Protocol to the Florence Agreement on the Importation of
Educational, Scientific, and Cultural Materials.  It established
temporary duty reductions for merchandise in the following
categories:  (1) books, publications, and documents; (2) works of
art and collector's pieces; (3) visual and auditory materials;
(4) scientific instruments and apparatus; and (5) articles for
the blind.  Merchandise may be entered duty-free under this
legislation provided the following conditions are met:

     a) a Federal agency (or agencies) designated by the
     President determines that such an article is visual or
     auditory material of an educational, scientific or cultural
     character within the meaning of the [Act], or

     b) [articles] are imported by, or certified by the importer
     to be for the use of, any public or private institution or
     association approved as educational, scientific, or cultural
     by a Federal agency or agencies designated by the President
                               -2-


     for the purpose of duty-free treatment admission pursuant to
     the Nairobi Protocol to the Florence Agreement.

     The effective period of this Act initially expired on August
11, 1985.  The merchandise was entered in the time period between
August 12, 1985, through December 31, 1986.  After the expiration
of the duty-free provision, Customs issued Telex 07575, dated
August 1985, which provided the following: "We have been advised
by Congress that bills have been introduced that will
retroactively extend the duty-free period.  Therefore, duty-free
entry may still be accepted, with bond, following the expiration
of the duty-free provisions . . .  Liquidations will be extended
pending the passage of appropriate legislation."  Customs Telex
016679, dated December 1986, stated as follows: "liquidation of
such entries, and all entries previously accepted under an
expired Schedule 9 provision, should be withheld until further
notice from Customs headquarters.  Based on these telexes,
Customs suspended liquidation for another year beyond the one
year statutory period.  
 
ISSUE:

     Whether the merchandise at issue is allowed duty-free
treatment because of improper suspension of the date of
liquidation.

LAW AND ANALYSIS:

     19 USC 1504(b) provides that liquidation may be extended by
giving notice of the extension to the importer for the following
reasons:  

     (1)  information needed for the proper appraisement or
     classification of the merchandise is not available to the
     appropriate customs officer;

     (2)  liquidation is suspended as required by statute or
     court order; or

     (3)  the importer, consignee, or his agent requests such
     extension and shows good cause therefor.

     A notice was sent to the importer of the merchandise at
issue which stated that liquidation of the entry was suspended by
statute or court order.  Suspending a liquidation to wait until
pending legislation becomes law is not the same as a suspension
by statute.  Therefore, the liquidation date of the merchandise
at issue was not lawfully extended.  (Pagoda Trading Corp. v.
U.S., 617 F. Supp. 96, 9 CIT 407 (1985); aff'd 804 F. 2d. 665, 5
Fed. Cir. (T) 10 (1986)).
                               -3-



     19 CFR Section 159.11 provides as follows:

            Except as provided in section 159.12, an entry not
          liquidated within 1 year from the date of entry of the
          merchandise, or the date of final withdrawal of all
          merchandise covered by a warehouse entry, shall be
          deemed liquidated by operation of law at the rate of
          duty, value, quantity, and amount of duties asserted by
          the importer at the time of filing an entry summary for
          consumption in proper form, with estimated duties
          attached, or a withdrawal for consumption in proper
          form, with estimated duties attached.  

Under this provision, the entries were deemed liquidated by
operation of law one year from the date of the entry of the
merchandise.  The merchandise should be duty-free under items
960.60 and 960.65, TSUS, as claimed by the importer on the entry
summary.

HOLDING:

     The merchandise at issue shall be deemed liquidated by
operation of law at the rate of duty, value, quantity, and amount
of duties asserted by the importer at the time filing the entry
summary for consumption.  Therefore, the audio equipment is
entered duty-free under items 960.60 and 960.65, TSUS.  This
protest is granted in full.  A copy of this decision should be
attached to Form 19 to be returned to the protestant.

                                   Sincerely,




                                   John Durant, Director
                                   Commercial Rulings Division