HQ 223424: Protest # 3801-1-100230; Chrysler Corporation; 19 U.S.C.1313(j); Same Condition Drawback; Transferred to a Foreign TradeZone for the Purpose of Manufacturing

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 223424
                        January 22, 1992

FOR-CO:R:C:E
223424  DHS

CATEGORY:  Foreign Trade Zones

Regional Commissioner of Customs
Chicago, Illinois 60603-5790

RE:  Protest # 3801-1-100230; Chrysler Corporation; 19 U.S.C.
1313(j); Same Condition Drawback; Transferred to a Foreign Trade
Zone for the Purpose of Manufacturing

Dear Sir:

     The above referenced protest has been forwarded to this
office for further review.  We have considered the points raised
by the protestant and your office.  Our decision follows.

FACTS:

     On August 8, 1990, the protestant imported and paid duty on
merchandise upon its entry into the U.S.  At the same time, a
claim for drawback of duties, in the amount of $886,407.00, under
19 U.S.C. 1313(j), was also presented.  

     On December 19, 1990, Customs liquidated the entry and
denied drawback.  

     The protestant contests this decision, contending that the
transfer of the merchandise to a zone for the purpose of
manufacturing fulfills all the requirements of an exportation as
required under 19 U.S.C. 1313(j).  

     In response to this argument, your office has directed our
attention to T.D. 89-4, dated February 27, 1989.

ISSUE:

     Is duty-paid imported merchandise, which is transferred to a
foreign-trade zone for the purpose of manufacturing for ultimate
domestic consumption, subject to drawback under 19 U.S.C.
1313(j)?

LAW AND ANALYSIS:

     Without any additional information, we assume the facts
(other than the applicable dates) and issue presented in the
protest are identical to those argued at length by counsel for
the protestant before the Court of Appeals for the Federal
Circuit and the Court of International Trade in Chrysler Motors
Corporation v. United States, Slip Op. 90-130 (Ct. Int'l Trade,
decided December 11, 1990), aff'd C.A.F.C. (Appeal No. 91-1190,
decided October 8, 1991). 
     
     Therefore, in conformity with T.D. 89-4 and this opinion, we
reiterate that drawback will not be authorized for merchandise
brought into a foreign-trade zone for the purpose of
manufacturing for domestic consumption because that admission
into a foreign-trade zone is not an exportation.  Therefore, the
denial of drawback was proper. 

HOLDING:

     Imported merchandise, which is transferred to a foreign-
trade zone for the purpose of manufacturing for ultimate domestic
consumption, is not exported and is not eligible for drawback. 

     You are instructed to deny the protest.  A copy of this
decision should be attached to the CF 19, Notice of Action, sent
to the protestant to satisfy the notice requirement of section
174.30(a), Customs Regulations.



                              Sincerely,





                              John Durant, Director
                              Commercial Rulings Division