HQ 224711: Ruling request concerning conversion of a temporaryimportation bond (TIB) to a duty-free consumption entry; 19 CFR10.31; 19 CFR 10.37; 19 CFR 10.39; Harmonized Tariff Schedule ofthe United States Annotated (HTSUSA) subheading 9813.00.30.

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 224711

                        November 12, 1993


CON-9-09 CO:R:C:E 224711  TLS

CATEGORY: Entry

Ms. Marlene Antoku
Nippon Express USA, Inc.
Los Angeles Air Cargo Branch
2233 East Grand Avenue
El Segundo, California  90245


RE: Ruling request concerning conversion of a temporary
importation bond (TIB) to a duty-free consumption entry; 19 CFR
10.31; 19 CFR 10.37; 19 CFR 10.39; Harmonized Tariff Schedule of
the United States Annotated (HTSUSA) subheading 9813.00.30.


Dear Ms. Antoku:

     This office has received the above-referenced request for a
ruling as provided for under Customs regulations.  We have
considered the request and have made the following decision.

FACTS:

     An experimental model of an automobile was imported under
TIB on January 14, 1992 under HTSUSA subheading 9813.00.30.  An
extension of the bond was requested and approved on January 27,
1993.  The importer now wishes to cancel the TIB and waive any
bond charges or penalties that would incur if the automobile
remained in the United States after bond cancellation.  The
automobile is currently on display at a public museum in Chicago
and has been donated to the museum as a gift from the owner.

ISSUE:

     Whether the TIB may cancelled without the merchandise being
exported or destroyed and whether Customs may waive any bond
charges or penalties that might incur as a result.

LAW AND ANALYSIS:

     HTSUSA subheading 9813.00.30 allows an importer to enter
merchandise under TIB solely for testing, experimental, or review
purposes.  As provided for in 19 CFR 10.37, the original bond
period may be extended upon an approved application for another
one-year period.  No more than two extensions may be given on any
TIB entry.

     A TIB entry may not be substituted for a consumption entry
unless the merchandise has not yet been released from Customs
custody or the importer can establish that a mistake of fact,
clerical error, or inadvertence caused the merchandise to be
mistakenly entered under TIB.  19 CFR 10.31(g).  The importer
here does not assert that either is the case, however.

     The TIB should be cancelled in accordance with 19 CFR
113.55, which provides a number of ways an export bond may be
cancelled.  An export bond may be cancelled upon exportation
under Customs supervision of course, upon the payment of
liquidated damages as noted above, with a foreign landing
certificate, and in cases where the ordinary estimated Customs
duty on the merchandise does not exceed $10 and the merchandise
has been exported under Customs supervision.  Under 19 CFR
10.39(d)(1), if an article entered under TIB has not been
exported or destroyed within the lawful time period it may remain
in the United States under the bond, then the director of the
Customs district holding the bond "shall make a demand in writing
under the bond for the payment of liquidated damages equal to
double the estimated duties applicable to such entry, unless a
lower amount is prescribed by [section] 10.31(f)."  Section
10.31(f) does not apply to the present case.

     In this case, the merchandise has not been exported at all,
liquidated damages have not been assessed, and a foreign landing
certificate is not applicable.  There is no authority that would
allow the lawful cancellation of a TIB in the manner that you
suggest.  Furthermore, there is no provision under law that would
allow Customs to waive any charges that might incur under bond in
this circumstance.  Thus, the importer would remain liable for
any liquidated damages assessed under bond if the merchandise
remained in the United States after the bond period expired,
including any extensions.  Finally, we have ruled before that the
donation of an article entered under TIB would not cancel the
bond and the importer may still be liable for liquidated damages. 
Customs ruling HQ 208966 (May 16, 1978).  We are compelled to
follow that ruling in this case, as the cases are similar.

HOLDING:

     A temporary importation bond cannot be lawfully cancelled
without the merchandise being exported or destroyed within the
bond period, including any extensions.  Customs does not have the 





authority to waive any liquidated damages assessed under bond
that might incur if the merchandise remains in the United States
beyond the bond period.

                    Sincerely,




                    John Durant, Director
                    Commercial Rulings Division