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ITA Proposes Rule on Duty-Free Entry of Scientific Instruments by Educational/Nonprofit Institutions

The International Trade Administration has issued a proposed rule to amend 15 CFR Part 301 on the duty-free entry of scientific instruments and apparatus into the U.S. by educational and nonprofit institutions.

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Comments are due by January 16, 2009.

The ITA states that the amendments are being proposed for the purpose of making technical changes required by the passage of the Miscellaneous Trade and Technical Corrections Act of 2004, updating the regulations to comport with current U.S. Customs and Border Protection (CBP) practices and changes made in the Harmonized Tariff Schedule (HTS), etc.

ITA Proposes to Remove References to Liquidation Suspension, Spectrometers

Among other things, the ITA proposes the following amendments to the regulations on the duty-free entry of scientific instruments and apparatus:

Proposed deletion of 180-day suspension of liquidation. Currently, the instructions for entering such instruments/apparatus through CBP under HTS 9810.00.60 at 15 CFR 301.8(a)(4) state that liquidation of the entry shall be suspended for a period of 180 days from the date of entry and that the applicant must file a properly stamped application form on or before the end of this suspension period or the entry will be liquidated without regard to HTS 9810.00.60.

The ITA is proposing to delete the reference in 15 CFR 301.8(a)(4) to the 180 day time period for the suspension of liquidation. According to the ITA, this reference is outdated as under current law, CBP has up to one year to liquidate an entry before it is deemed liquidated by operation of law. The ITA also states that the use of the term "suspension" is misleading since the governing statute does not authorize a "suspension" of liquidation.

The ITA notes that while there is no statutory authority preventing CBP from liquidating the entry at any time during the one-year period after entry of the merchandise, CBP normally liquidates an entry 315 days after entry is filed. Importers should file a copy of the stamped application as soon as possible because CBP may liquidate the entry at any time.

Proposed removal of reference to spectrometers. The ITA also proposes to amend 15 CFR 301.2(j) and (o) by removing the references to spectrometers, as Presidential Proclamation 7011 of June 30, 1997, made spectrometers free of duty.

Proposed example of ancillary equipment. The proposed rule would also amend 15 CFR 301.2(j) by adding ''a vacuum evaporator sold for use with an electron microscope'' as an appropriate example of ancillary equipment.

(See ITA proposed rule for complete proposed amendments, including changing references of Customs to CBP and the addition of a Web site address for Statutory Import Programs Staff (SIPS).)

ITA contact - Jesse Cortes (202) 482-3986

ITA proposed rule (D/N 080102004-8005-01, FR Pub 12/17/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-29128.pdf