HQ 221702: Eligibility of Cinematography Equipment for Entry Temporarily Free of Duty Under Bond or Under an A.T.A. Carnet

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 221702

                                   December 27, 1989


          CON-9-CO:R:C:E   221702, 221710 L

          CATEGORY:  Other

          Mr. James B. Clawson
          Executive Vice President
          International Business-Government Counsellors, Inc.
          818 Connecticut Avenue, NW.
          Washington, D.C. 20006

            RE:  Eligibility of Cinematography Equipment for Entry
                 Temporarily Free of Duty Under Bond or Under an
                 A.T.A. Carnet

          Dear Mr. Clawson:

               You ask whether cinematography cameras and related equipment
          may be imported under temporary importation under bond (TIB)
          procedures pursuant to subheading 9813.00.50, Harmonized Tariff
          Schedule of the United States (HTSUS) or under an A.T.A. carnet in
          accordance with the Customs Convention on the Temporary
          Importation of Professional Equipment.

          FACTS:

               An American corporation is the United States importer and
          distributor of cinematography cameras and related equipment .  The
          importer purchases the equipment from a related foreign
          manufacturer, enters them for consumption, and then places the
          duty-paid cameras in inventory in either its Resale Division or
          its Rental Division.  Cameras purchased for the Resale Division
          are resold to buyers in the United States; cameras purchased for
          the Rental Division are leased to motion picture producers and
          directors in the United states for use in the production of films
          for theatrical release.

               The importer proposes to abolish its Rental Division and the
          related foreign manufacturer will establish its own Rental
          Corporation abroad.  Cameras would be purchased and owned by the
          foreign Rental Corporation.  The foreign Rental Corporation would
          then lease the equipment to foreign nationals who have been
          engaged to work in the production of commercial films in the
          United States.  The foreign nationals would then import the
          equipment into the United States, acting as importers of record,
          under subheading 9813.00.50, HTSUS, temporarily free of duty under
          bond, or under cover of an A.T.A. carnet.











                                         - 2 -


               The cameras would be used in the United States by the foreign
          nationals or under their supervision.  After completion of filming
          the films would be edited, scored, printed and distributed in the
          United States,  The copyrights would be owned by the United States
          production company, which would also own all other property rights
          in the film.


          ISSUES:

               The following issues are presented:

          1.  May foreign-origin cinematography equipment which is intended
              for use in the production of motion pictures for United
              States persons and corporations be imported temporarily free
              of duty under cover of an A.T.A. carnet?

          2.  May foreign-origin cinematography equipment which is intended
              for use in the production of motion pictures for United
              States persons and corporation be imported temporarily free
              of duty under a temporary importation bond in accordance with
              subheading 9813.00.50 of the HTSUS?


          LAW AND ANALYSIS:

               Annex B to the Customs Convention on the Temporary
          Importation of Professional Equipment (the "Professional
          Equipment" Convention) relates to the conditions of grant of
          temporary admission of cinematographic equipment, which includes
          cameras of all kinds, under an A.T.A. carnet.

               The conditions of temporary admission are that the equipment:

          (a) shall be owned by a natural person resident abroad or by
              a legal person established abroad;

          (b) shall be imported by a natural person resident abroad or by
              a legal person established abroad;

          (c) shall be capable of identification on re-exportation;
              provided that in the case of blank image or sound recording
              media the most flexible means of identification shall be
              applied;

















                                         - 3 -


          (d) shall be used solely by or under the personal supervision of
              the visiting person, provided that this condition shall not
              apply in the case of equipment imported for the production of
              a film under a co-production contract to which a person
              resident or established in the country of temporary
              importation is a party and which is approved by the competent
              authorities of that country under an inter-government
              agreement concerning cinematographic co-production;

          (e) shall not be the subject of a hire contract or similar
              arrangement to which a person resident or established in the
              country of temporary importation is a party.

               Pursuant to 19 CFR 114.22(a) the A.T.A. carnet is acceptable
          for goods to be temporarily entered under the Customs Convention
          on the Temporary Importation of Professional Equipment.

               Subheading 9813.00.50, HTSUS, provides for the admission
          temporarily free of duty under bond, as prescribed in U.S. note 1
          to subchapter XIII, chapter 98, HTSUS, of professional equipment,
          tools of trade, repair components for equipment or tools admitted
          under this subheading and camping equipment; all the foregoing
          imported by or for nonresidents sojourning temporarily in the
          United States and for the use of such nonresidents.

               It is suggested that if a leased cinematography camera were
          imported by a foreign national it would qualify for duty-free
          temporary entry only if used exclusively by or for the foreign
          national or foreign corporate entry.  If the foreign national
          employed a cameraman or cinematographer who was a United States
          resident the use of a carnet or TIB entry would be improper, since
          the equipment would be used in furthering the profession of a
          United States resident rather than a temporary sojourner from
          abroad.

               This suggestion is not necessarily true.  The requirement
          under either the carnet or TIB entry is that the article be used
          solely by or under the personal supervision of the nonresident.
          The person operating the article, if under the personal
          supervision of the nonresident, need not be a nonresident.  See,
          for example, paragraph IV 3.  "Use of equipment" in the Text and
          Commentary to the Customs Convention on the Temporary Importation
          of Professional Equipment (September 1962), wherein it is noted
          that the provision "... does not preclude the possibility of
          assistance by nationals, whatever their professional
          qualifications".















                                         - 4 -


               It is further suggested that where a United States person or
          corporation uses or benefits from the imported equipment, the use
          of a carnet or TIB entry is inappropriate.  That is, equipment
          rented by a foreign rental corporation to a foreign national
          working on a United States film production would not be imported
          "for a person visiting a country in order to make a specified
          film", as specified in the definition of "cinematographic
          equipment" in Annex B to the "Professional Equipment Convention".

               Both the "Professional Equipment" Convention and subheading
          9813.00.50 provide that professional equipment may be imported by
          a nonresident for use solely by or under the personal supervision
          of the nonresident.  If the foreign national working on the United
          States film in the above example is a nonresident of the United
          States and the equipment imported by him is being used solely by
          him or under his personal supervision, it is being imported "for a
          person visiting a country in order to make a specified film or
          films" and a carnet or TIB entry is appropriate, assuming all
          other requirements are met.  Of course, the nonresident could not
          use these provisions for the purpose of importing equipment to be
          held in inventory for subsequent lease or rent to third parties in
          the United States.


          HOLDINGS:

          1.  Foreign - origin cinematography equipment which is owned by
              a natural person resident abroad or by a legal person
              established abroad and which is intended for use in the
              production of motion pictures in the United States for United
              States persons or corporations and which will be used solely
              by or under the personal supervision of the nonresident
              importer may be imported under cover of an A.T.A. carnet.

          2.  Foreign-origin cinematography equipment which is intended for
              use in the production of motion pictures in the United States
              for United States persons or corporations and which will be
              used solely by or under the personal supervision of the
              nonresident importer may be imported temporarily free of duty
              under bond under subheading 9813.00.50, HTSUS.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division