US Goods Returned – Claiming Duty Free Products Under HTS # 9801.00.10

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On April 25, 2016 the Harmonized Tariff Schedule, Chapter 98 – U.S- goods returned – was amended with the intention to provide regulations for merchandise being entered into the U.S. under HTSUS 9801. Customs may be requesting proof of U.S. origin when products are claimed duty free under subheading 9801.00.10.

Make sure you are in compliance with the U.S. goods returned regulations!

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What is Considered U.S. Goods Returned?

The expansion of subheading 9801.00.10 includes:

U.S. origin products exported from and returned to the United States. There is no time limit for return
AND
All products exported from and returned to the U.S. regardless of the country of origin. These products have a 3-year time limit.

**The provision affecting “Returned Property” applies to U.S. or foreign articles returned to the United States and entered, or withdrawn from warehouse, for consumption on or after April 25, 2016.**

 

What is Needed?

The following documents may be requested from the importer by CBP to determine if the duty free exemption under 9801.00.10 applies for either U.S. manufactured goods exported from and returned to the United States at any time, or foreign origin goods exported from the United States and returned within the 3 year time limit

1) For either U.S. manufactured goods or foreign origin goods (for formal entries valued over $2,500 only): Declaration by Foreign Shipper indicating that the products were not advanced in value or condition while outside the United States. A certificate from the master of a vessel stating that the products are returned without having been un-laden from the exporting vessel may be accepted in lieu of the declaration by the foreign shipper;

 

2) For U.S. manufactured goods (for formal entries valued over $2,500 only): for U.S. goods formally entered that are not clearly marked with the name and address of the U.S. manufacturer, CBP may require a Manufacturer’s Affidavit confirming that the articles were made in the United States;

 

3) One of the following documents will be deemed sufficient proof of export from the United States for U.S. manufactured goods or foreign origin goods, provided the information contained therein proves an export from the United States:

a) Copy of the entry into the foreign country;

b) U.S. export invoice or bill of lading/airway bill; or,

c) Electronic Export Information (EEI) or the Automated Export System (AES) filing           exemption.

 

4) For aircraft and aircraft parts and equipment returned to the United States by or for the account of an aircraft owner or operator and intended for use in his own aircraft operations, within or outside the United States, a CBP Form 3311, or its electronic equivalent may be used as stated in 19 CFR 10.1.

 

5) For U.S. origin goods that were originally exported under a Department of State license that are now being re-imported, formal entry is required regardless of value along with the Directorate of Defense Trade Controls (DDTC) Partnership Government Agency (PGA) message set.

 

6) For U.S. manufactured aircraft returning to the United States, that were sold to a foreign government under the Foreign Military Sales Program, formal entry is required if any maintenance is being performed on the aircraft while in the United States. The repairs have to be authorized via a specific case line in the Letter of Offer and Acceptance (LOA). The LOA is the agreement between the United States and the foreign government regarding the sale of munitions and other articles to the foreign government.

a) At the time of export of the aircraft, the EEI has to be filed for the maintenance of the aircraft.

 

7) For U.S. manufactured aircraft returning to the United States that were sold to a foreign government under the Foreign Military Sales program, where modifications or enhancements will be made to the aircraft, then the following is required for the import and subsequent export of the aircraft:

a) Formal entry is required.

b) At the time of export, the EEI submission is required, citing the Directorate of Defense Trade Controls export license (DSP-5).

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More information can be found at:

https://apps.cbp.gov/csms/csms.asp?srch_argv=17-000046&srchtype=all&opt=1