CSMS Message: 04-001968

TO: ALL ABI BROKERS.

FROM: RICHARD B WALLIO

DATE: 09/07/2004

MEMORANDUM FOR: DIRECTORS, FIELD OPERATIONS

FROM: EXECUTIVE DIRECTOR, TRADE COMPLIANCE AND FACILITATION
OFFICE OF FIELD OPERATIONS

SUBJECT: REVISED - INTERIM PROCEDURES FOR ENTRY OF "PROTOTYPES"

THE PURPOSE OF THIS MEMORANDUM IS TO AMEND THE JUNE 22, 2004 INTERIM
PROCEDURES FOR PROCESSING ENTRIES OF "PROTOTYPES."

BACKGROUND:

THE TRADE SUSPENSION AND TARIFF ACT OF 2000 HAS SET FORTH A NEW
PROVISION FOR THE IMPORTATION OF "PROTOTYPES." PROPOSED REGULATIONS
WERE PUBLISHED IN THE FEDERAL REGISTER, VOLUME 67, NUMBER 46, ON
MARCH 8, 2002. THE FOLLOWING INTERIM GUIDELINES ARE TO BE FOLLOWED
UNTIL FINAL REGULATIONS ARE PUBLISHED.

THE UNITED STATES HARMONIZED TARIFF NUMBER 9817.85.01 IS USED FOR THE
CLASSIFICATION OF PROTOTYPES, WHICH ARE TO BE USED EXCLUSIVELY FOR
DEVELOPMENT, TESTING, PRODUCT EVALUATION, OR QUALITY CONTROL PURPOSES.
THE LIQUIDATION OF ENTRIES CONTAINING THE PROTOTYPE CLASSIFICATION HAS
BEEN WITHHELD PENDING PUBLICATION OF FINAL REGULATIONS.

ACTION:

UNTIL FINAL REGULATIONS ARE PROMULGATED, THE FOLLOWING GUIDELINES ARE
APPLICABLE:

THE AUTOMATIC EXTENSION OR SUSPENSION OF ENTRIES OF PROTOTYPES IS NO
LONGER NECESSARY. IN MOST CASES THESE ENTRIES CAN BE LIQUIDATED
IMMEDIATELY. IF THE CIRCUMSTANCES SO WARRANT, THE PORT DIRECTOR MAY
EXTEND THE ENTRY AND/OR REQUEST ADDITIONAL INFORMATION SUPPORTING THE
HTSUS SUBHEADING 9817.85.01 CLAIM. UNLESS CIRCUMSTANCES WARRANT, THE
CF-28S AND CF-29S ALREADY ISSUED MAY BE CANCELLED AND THE ENTRIES MAY
BE LIQUIDATED.

DECLARATION OF INTENT.

ENTRY OR WITHDRAWAL FROM WAREHOUSE FOR CONSUMPTION UNDER HTSUS
SUBHEADING 9817.85.01 MAY BE ACCEPTED BY THE PORT DIRECTOR AS AN
EFFECTIVE DECLARATION THAT THE ARTICLES WILL BE USED SOLELY FOR THE
PURPOSES STATED IN THE SUBHEADING.

PROOF OF ELIGIBILITY.

THE PORT DIRECTOR MAY REQUEST THE IMPORTER TO SUPPLY A STATEMENT OF
COMPLIANCE WITH THE REQUIREMENTS OF HTSUS SUBHEADING 9817.85.01 OF
ACTUAL OR INTENDED PROTOTYPE USE. THERE IS NO PARTICULAR FORM FOR
THIS DECLARATION; IT MAY EITHER BE SUBMITTED IN WRITING, OR
ELECTRONICALLY AS AUTHORIZED BY CUSTOMS AND BORDER PROTECTION,
AND MUST INCLUDE THE FOLLOWING:

(A) A DESCRIPTION OF THE USE MADE, OR TO BE MADE, OF THE ARTICLES
SET FORTH IN SUFFICIENT DETAIL SO AS TO ENABLE THE PORT DIRECTOR
TO DETERMINE WHETHER THE ARTICLES HAVE BEEN ENTITLED TO ENTRY
AS CLAIMED;
(B) A STATEMENT THAT THE ARTICLES ARE NOT BEING PUT TO ANY OTHER USE;
AND
(C) A STATEMENT THAT NEITHER THE ARTICLES NOR ANY PARTS OF THE ARTICLES
WILL BE SOLD, OR INCORPORATED INTO OTHER PRODUCTS THAT ARE SOLD,
AFTER THE ARTICLES HAVE BEEN ENTERED OR WITHDRAWN FROM WAREHOUSE
FOR CONSUMPTION AND PRIOR TO THE COMPLETION OF THEIR USE AS
PROVIDED IN HTSUS SUBHEADING 9817.85.01.

THIS NOTICE SHOULD BE DISTRIBUTED TO ALL PORT DIRECTORS; ASSISTANT PORT
DIRECTORS, IMPORT AND ENTRY SPECIALISTS; BROKERS; IMPORTERS AND OTHER
INTERESTED PARTIES.

QUESTIONS FROM THE IMPORTING COMMUNITY CONCERNING THIS NOTICE SHOULD
BE REFERRED TO THEIR LOCAL CUSTOMS PORT OF ENTRY. THE CUSTOMS PORT
MAY REFER QUESTIONS TO MR. RICHARD WALLIO, SUMMARY MANAGEMENT BRANCH,
AT (202) 344-2556, OR VIA E-MAIL.

/S/

ELIZABETH G. DURANT