In accordance with the facts above, what is the Chapter 98 CLASSIFICATION of the cowboy boots?
How to get there
MBM asked Expeditious to enter the boots under temporary importation under bond (TIB). They're four sample pairs ($3,000) that Mr. Costa will show to retailers and wholesalers to generate orders, then export.
HTSUS 9813.00.20 (Subchapter XIII, articles admitted temporarily free of duty under bond)Samples solely for use in taking orders for merchandise: Free, under bond, as prescribed in U.S. note 1 to this subchapter
Chapter 98, Subchapter XIII, U.S. Note 1(a)The articles described in … this subchapter, when not imported for sale or for sale on approval, may be admitted … without the payment of duty, under bond for their exportation within 1 year from the date of importation, [extendable to a total of 3 years] …
The boots aren't for sale, they're used only to take orders, and they'll be exported (or, under TIB rules, destroyed under CBP supervision). The answer is D.
Why the other choices are wrong
A) 9802.00.8068: U.S. components assembled abroad. The uppers are U.S.-origin, but they were further processed in Italy and changed shape, which goes beyond assembly (§ 10.16). The facts also call for a temporary, duty-free entry, not a partial-duty entry for goods kept in the U.S.
B) 9806.00.35: personal effects of foreign goodwill delegations visiting at the State Department's request. A sales rep isn't one.
C) 9811.00.60: samples valued not over $1 each, or mutilated so they're unsuitable for sale. These boots are worth about $750 a pair and are intact.
Tip
Commercial samples: worth little or mutilated go to 9811.00.60 (free, no bond). Valuable samples for taking orders go to 9813.00.20 (TIB, export within 1 year, up to 3 with extensions). Samples bought for sale get no exemption.
Sources: HTSUS 9813.00.20 and Chapter 98, Subchapter XIII, U.S. Note 1; 9802.00.80, 9806.00.35, 9811.00.60 (USITC); 19 CFR 10.16; facts p. 8.
CBP answer key: Answer D · HTSUS 9813.00.20Source: CBP past exams ↗