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HQ 223097

July 23, 1991

TRA-8 CO:R:C:E 223097 C


Shotaro Nakazawa
Vice President
Western Steel & Tinplate, Inc.
2200 Wilbur Avenue
Antioch, CA 94509

RE: Transportation and exportation entry; T&E; goods entered under T&E cannot be manufactured or manipulated after entry; 19 USC 1553; CSD 81-235; CSD 82-25

Dear Mr. Nakazawa:

This responds to your letters of March 19 and May 7, 1991, concerning transportation and exportation (T&E) entry of tin plate coils exported from Japan and destined to Mexico. You asked whether or not the tin plate would be eligible for T&E entry. You also asked whether the operation to be applied to the tin plate after entry is a manipulation or manufacture.

You did not describe in detail the operation to be performed on the tin plate, stating only that it would be sheared, coated, and otherwise manipulated into sheets. You believe that T&E entries would be appropriate, obviating compliance with export license requirements.

The statute that authorizes T&E entry is 19 U.S.C. 1553. In pertinent part, it provides the following:

Any merchandise, other than explosives and merchandise the importation of which is prohibited, shown by the manifest, bill of lading, shipping receipt, or other document to be destined to a foreign country, may be entered for transportation in bond through the United States by a bonded carrier without appraisement or the payment of duties and exported under such regulations as the
Secretary [Treasury] shall prescribe . . .

The statute is implemented by operation of sections 18.20 - 18.24 of the Customs Regulations (Title 19, Code of Federal Regulations). Nowhere in the statute or the regulations is it indicated that merchandise entered for transportation and exportation can be either manipulated or manufactured in the United States after such entry is made. The statute, as above, is clear. Merchandise admitted under a T&E entry can be transported in bond to a port or place for exportation. The scenario presented in your request includes subjecting the merchandise to at least a shearing and coating operation sometime after entry and before exportation. This is not permitted. If it is your intention to import the tin plate, have it manipulated or manufactured, whichever the case may be, in or out of a bonded warehouse, and then export the sheets to Mexico, a T&E entry will not be effective to avoid export license requirements.

Because you have not described the operation to be performed on the tin plate in sufficient detail, we hesitate to make a determination as to whether it is a manipulation or manufacture. Instead, we draw your attention to Customs Service Decision (CSD) 81-235 (15 Cust. Bull. p. 1200) and CSD 82-25 (16 Cust. Bull. p. 720 (1982)) (copies attached).

If you have any further questions, please contact this office.


William G. Rosoff

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