HQ 110838: Importation by an American Citizen of a Sailing Yacht Built in South Africa

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 110838
                          June 20, 1990

VES-12-02-CO:R:P:C 110838 LLB

CATEGORY:  Carriers

Mr. Ralph Alter
121 Worcester Lane
Waltham, Massachusetts  02154

RE:  Importation by an American Citizen of a Sailing Yacht
     Built in South Africa


Dear Sir:

     Reference is made to your letter of January 29, 1990, in
which you request that we rule upon the consequences of your
intended importation into the United States of a steel-hulled
sail yacht of South African manufacture.

FACTS:

     The yacht in question, a steel-hulled sail yacht with
auxiliary engine, is currently documented under the flag of
Great Britain.  It is proposed that the yacht would be imported
into the United States following purchase, and would have aboard
at that time various articles comprising vessel equipment such
as, sails, cushions, electronics, etc.  It is stated that the
yacht was built some years ago by a company named "Louw &
Halvorson" which is not listed by the Treasury Department as a
parastatal organization, the products of which are prohibited
from importation.

ISSUE:

     The extent of the Customs requirements associated with the
importation of a South African yacht, together with its component
equipment.

LAW AND ANALYSIS:

     Sailboats, regardless of size or value, imported by a
resident of the United States, are subject to an ad valorem duty
of 1.5 per cent of the value of the vessel (Item 8903.91.00,
Harmonized Tariff Schedule of the United States, copy enclosed).
The result is likewise if the vessel is owned by a foreign
corporation whose principal asset is the pleasure vessel or whose
primary business relates to its use, so long as a substantial
portion of the corporate stock is owned by one or more United
States residents.  (See Treasury Decision 54680 (14)(1958), as
modified by Ruling Letter of March 2, 1965 (433.51 R).  Also,
Ruling Letter 107022 of March 8, 1985).

     There need be no concern that a separate accounting as to
origin of each of the necessary components of the vessel will be
required at the time of importation.  The vessel, together with
its equipment, will be considered as a single entity at the time
that it is imported, and the country of manufacture of the vessel
defines the origin of the importation as a whole.

     The request for ruling indicates general familiarity with
the special procedures associated with importations from South
Africa.  The Office of Foreign Assets Control, Department of the
Treasury, will require that a certain certification accompany
your intended importation.  Under section 545.807, Foreign
Assets Control Regulations (31 CFR 545.807)(copy enclosed), you
will have to certify that the yacht has no connection with any
parastatal organization in South Africa.  This will require that
you certify that neither the builder of the vessel, nor the party
from whom you purchased the yacht is such an organization.  There
is no blanket prohibition on importations of South African
origin, but there is such a ban on such importations which are
grown, produced, manufactured, marketed, or exported by a
parastatal entity.

HOLDING:

     A yacht built in South Africa may be imported, together with
its usual and necessary equipment, and will be considered as a
single entity upon its importation.  The importation must be
accompanied by a certification concerning parastatal
organizations, as specified above.

                                Sincerely,




                                B. James Fritz
                                Chief
                                Carrier Rulings Branch