HQ 223692: International cable laid under the territorial waters of theUnited States and brought, or not brought, on shore in the UnitedStates; cable first imported then laid under U.S. territorialwaters between points in the United States; 19 U.S.C. 1322; 19C.F.R. 10.41(f)

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 223692

                         March 11, 1992

CON-2-07 CO:R:C:E 223692 C

CATEGORY:  Entry/Liquidation

A.H. Dodeman
President
Margus Co., Inc.
P.O. Box 6126
Bridgewater, NJ  08807

RE:  International cable laid under the territorial waters of the
United States and brought, or not brought, on shore in the United
States; cable first imported then laid under U.S. territorial
waters between points in the United States; 19 U.S.C. 1322; 19
C.F.R. 10.41(f)

Dear Mr./Ms. Dodeman:

     This responds to your letter of December 27, 1991,
requesting a ruling regarding the dutiability of undersea cable
laid between points in the United States through both United
States territorial waters and international waters.  We have
reviewed the matter and our response follows.

FACTS:

     We understand that fiber optic cable manufactured in Japan
will be shipped to the United States to be transferred onto a
cable laying vessel and laid under the sea between Carona del Mar
and North Torey Pines, California.  The cable route will follow a
generally westward course from the California coast through U.S.
territorial waters to a point off the coast at which it will turn
generally southward, continuing through U.S. territorial waters;
at approximately half the distance to the southern landing point,
the cable route will enter international waters, still continuing
in a generally southern direction; at a certain point, the cable
route will turn generally eastward toward shore, reentering U.S.
territorial waters; the cable will then come ashore at the
southern landing point.  Thus, the cable will connect the two
California points and will lie under both U.S. and international
waters.  Although distances were not specified, from the map
attached to your letter, it appears that the cable route will be
laid primarily through and under U.S. territorial waters, with
comparatively little of the entire distance laid through and
under international waters.  That part of the route within
international waters runs generally parallel to the U.S. waters 
boundary and appears to lie only a short distance from it.

     You requested a ruling regarding an interpretation of the
duty exemption for international cable provided in section
10.41(f) of the Customs Regulations (19 C.F.R. 10.41(f)).

ISSUE:

     On the above facts, does the duty exemption for
international cable apply; if so, what is the proper duty
application?

LAW AND ANALYSIS:

     Under 19 U.S.C. 1322(a) (Title 19, United States Code),
"[v]ehicles and other instruments of international traffic, of
any class specified by the Secretary of the Treasury, shall be
excepted from the application of the customs laws to such extent
and subject to such terms and conditions as may be prescribed in
regulations or instructions of the Secretary."  (Emphasis
supplied.)  Under section 10.41(f) of the Customs Regulations,
the following applies to undersea international cable:

          International cables laid under the
          territorial waters of the United States but
          not brought on shore in the United States
          shall be admitted without entry or the
          payment of duty.  With respect to
          international cables laid under the
          territorial waters of the United States but
          brought on shore in the United States, only
          that part of the cable in the United States
          between the point of entry into the
          territorial waters of the United States and
          the first point of support on land in the
          United States shall be admitted without the
          payment of duty.

     Clearly, neither sentence of the above regulation applies to
the instant case.  On the facts here, we have merchandise,
undersea cable, that is imported into the United States for the
purpose of being used in the United States to make a
telecommunications connection between two points in the United
States.  After importation, the cable is loaded onto a cable
laying vessel and laid under and through U.S. territorial waters
from point in the United States to point in the United States. 
The first part of the above regulation pertains to situations
where undersea cable is laid between two points, neither of which
is in the United States, where some part of the cable route
traverses the U.S. territorial waters boundary, thus resulting in
the cable entering United States territory without being brought
on shore.  In such an instance, the regulation exempts from entry
and payment of duty that part of the cable that enters U.S.
territory.  The second part of the above regulation pertains to
situations where undersea cable is laid between some point
outside U.S. territory and a point on shore in the United States. 
In that instance the entry and duty exemption applies to that
part of the cable lying between the U.S. waters boundary and the
point at which the cable comes ashore.  Duty is payable on the
cable lying between the latter point and its remaining length.

     The fact that some of the cable, in the instant case, passes
through a segment of international waters is irrelevant.  In
fact, a view of the map might suggest that it is unnecessary,
since the cable route runs for a relatively short distance
parallel to, and just outside of, the U.S. waters boundary.  Even
if it is necessary, for reasons unapparent, it has no affect on
the dutiability of the cable.  The cable is first imported into
the United States to clearly be joined to the commerce of the
United States.  Thus, the regulatory entry and duty exemption is
inapplicable.

HOLDING:

     The entry and duty exemption for international undersea
cable, provided under section 10.41(f) of the Customs
Regulations, does not apply to cable that is first imported into
the United States and then laid between points in the United
States under and through both international and U.S. territorial
waters.

     If you have any additional questions regarding this or any
Customs matter, please contact this office.

                               Sincerely,




                               John Durant, Director
                               Commercial Rulings Division