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HQ 116024

August 14, 2003

ENT-1-01:RR:IT:EC 116024 TLS


Michael E. Roll, Esq.
Katten Muchin Zavis Rosenman
2029 Century Park East, Suite 2600
Los Angeles, California 90067-3012

RE: Right to Make Entry; 19 U.S.C. §1484(a)(2)(B); Customs Directive No. 3530-002A (June 27, 2001).

Dear Mr. Roll:

This is in response to your ruling request dated July 24, 2003, on behalf of Perseco System Services, L.P. (Perseco), seeking a binding ruling on the right to make entry. Our decision follows.


Perseco provides supply chain services to food service and beverage industries, which include product delivery and financing import transactions. Among Perseco’s clients is the McDonald’s Corporation, for which it wishes to import Happy Meal Toys that will be distributed throughout the McDonald’s restaurant system. The companies now acting as importer of record of Happy Meal Toys are [xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx] and [xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx]. Under the current arrangement, Perseco takes title of the Happy Meal Toys after they have been imported and entered. Until that point, [xxxx] and [xxxxxx] both hold title to the toys. Perseco now proposes to purchase and take title of the merchandise immediately after [xxxx] and [xxxxxx] take title in Asia.


Does Perseco qualify as an “importer of record” with the right to make entry, particularly if it takes title to the merchandise in question before it is imported and entered into the United States?


Title 19, United States Code, section 1484(a)(2)(B) provides that entry shall be filed either by the owner or purchaser of the merchandise or, when appropriately designated by the owner, purchaser, or consignee of the merchandise, a person holding a valid license under 19 U.S.C. §1641 (that is, a licensed customs broker). A nominal consignee may designate a customs broker to make entry on his behalf but may not make entry on his own behalf. If a customs broker makes entry for a nominal consignee, the broker must appear as importer of record. These are the only persons who can act as importers of record. You cite Customs Directive 3530-02 (sic)*

* The correct citation is Customs Directive 3530-002 (November 6, 1984)., dated November 6, 1984, to support your claim that Perseco would qualify as an importer of record in accordance with 19 U.S.C. §1484 in the scenario you propose. Customs Directive 3530-002 has been superceded by Customs Directive 3530-002A (June 27, 2001), entitled “Right to Make Entry.” Customs Directive 3530-002A defines the terms “owner” or “purchaser” as:
any party with a financial interest in the transaction, including, but not limited to, the actual owner of the goods, the actual purchaser of the goods, a buying or selling agent, a person or firm who imports on consignment, a person or firm who imports under loan or lease, a person or firm who imports for exhibition at a trade fair, a person or firm who imports goods for repair or alteration or further fabrication, etc. Any such owner or purchaser may make entry on his own behalf or may designate a licensed Customs broker to make entry on his behalf and may be shown as the importer of record on the CF 7501. The terms “owner” or “purchaser” would not include a “nominal consignee” who effectively possesses no other right, title, or interest in the goods except as he possessed under a bill of lading, air waybill, or other shipping document.

In the scenario proposed, Perseco would take title to the goods FCA (free carrier Asia) and would hold title to the Happy Meal Toys upon importation and entry of them. Given such, Perseco would clearly qualify as the importer of record of the toys as the actual owner of the goods. Thus, if Perseco takes title to the goods before they are entered, it may be an importer of record in accordance with 19 U.S.C. §1484(a)(2)(B) and Customs Directive 3530-002A.


By taking title of the merchandise in question in Asia, Perseco would qualify as an “importer of record” with the right to make entry in accordance with 19 U.S.C. §1484(a)(2)(B) and Customs Directive 3530-002A (June 27, 2001).


Glen E. Vereb

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