H329790

H329790 June 16, 2025 OT:RR:CTF:EPDR H329790 MY CATEGORY: ENTRY Alan Aprea, Center Director Electronics Center of Excellence & Expertise 1 World Trade Center, Suite 741 Long Beach,?CA?90831 RE: Temporary Importation under Bond (TIB); exportation; satellites launched into orbit. Dear Center Director: This is in reference to your request for internal advice, dated January 30, 2023, regarding Temporary Importation under Bond (TIB) entry number XXX-XXXXX113. The entry was filed by Maxar Space LLC (Maxar) for imported articles used to manufacture, produce, and test satellites that are launched into outer space. You inquire whether the launch of a satellite into outer space constitutes exportation for purposes of satisfying the requirement to export or destroy merchandise entered under a TIB. Our decision follows. FACTS: On January 1, 2021, Maxar filed a TIB entry for inorganic oxygen compounds under subheading 9813.00.05, Harmonized Tariff Schedule of the United States (HTSUS), and for containers of compressed or liquified gases under subheading 9813.00.45, HTSUS. Maxar imported such articles for the purpose of “manufacturing, producing, and testing of telecommunications satellites in the United States.” Specifically, a satellite launched from Cape Canaveral Air Force Station on June 6, 2021. On December 31, 2021, documents were uploaded to U.S. Customs and Border Protection’s (CBP) Automated Commercial Environment (ACE) intended to evidence the exportation of the entered compounds and containers upon the launch of the satellite. The satellite was launched into outer space by a rocket for an indefinite period of orbit and is not intended to be returned the United States. The uploaded documents were reviewed by CBP in April of 2022. A CBP Officer determined that the launch of the satellite into orbit may not constitute exportation because “[t]here was no indication that the merchandise was exported to a foreign country” although “[t]here was no indication . . . that the goods were going to be returning from space once launched.” The CBP Officer concluded that the launch of a satellite did not constitute an exportation for purposes of a TIB. Subsequently, the CBP Officer identified several other TIB entries filed for articles alleged to have been exported by the launch of a satellite. CBP informed Maxar that it determined the articles in each of the identified entries were not exported. In response, Maxar requested that CBP review Headquarters Ruling Letter (HQ) H282698, dated February 24, 2017, which holds that a satellite may be deemed exported for purposes of drawback. Your office reviewed HQ H282698 and determined that even if a satellite may be deemed exported upon launch into outer space for purposes of drawback, this is not dispositive for whether a satellite may be deemed exported for TIB purposes. Your office noted that that drawback and TIB have distinct regulatory requirements and stressed that “[u]nder TIB regulations ALL goods need to be exported to a foreign entity or destroyed.” Due to the disagreement between your office and Maxar regarding whether launching a satellite into outer space constitutes exportation for TIB purposes, your office sought internal advice. ISSUE: Whether launching a satellite into outer space constitutes exportation for purposes of satisfying the requirement to export or destroy merchandise entered under a TIB. ANALYSIS: Pursuant to General Note 1 of the HTSUS all merchandise imported into the United States is subject to duty unless specifically exempted. Such an exemption is accorded to merchandise temporarily imported under bond, that is not imported for sale or for sale on approval, on the condition that such merchandise is exported or destroyed within a year of importation. See e.g. Notes 1-2 of Subchapter XIII, Chapter 98, HTSUS; 19 C.F.R. § 10.31. The timeframe for this duty exemption, termed a TIB, may be extended up to three years from the date of importation. See U.S. Note 1(a) of Subchapter XIII, Chapter 98, HTSUS; 19 C.F.R. § 10.37. Failure to export or destroy merchandise entered under a TIB within the applicable timeframe may result in liquidated damages “equal to double the duties and fees, which it is estimated would accrue . . . had all the articles covered by the entry been entered under an ordinary consumption entry.” See 19 C.F.R. §§ 10.31(f); 10.39(d)(1). The requirements for exporting or destroying merchandise entered under a TIB are detailed in Chapter 98 of the HTSUS and CBP Regulations. For merchandise entered under subheadings 9813.00.05 and 9813.00.45, HTSUS, the relevant requirements are specified in U.S. Note 1 of Subchapter XIII, Chapter 98. Pursuant to U.S. Note 1(a), the “articles described in the provisions of this subchapter . . . may be admitted into the United States without the payment of duty, under bond for their exportation.” Pursuant to U.S. Note 2(b)(ii), if an article entered under subheading 9813.00.05, HTSUS, is so processed as to manufacture or produce a distinct article, this distinct article must be either “exported or destroyed under customs supervision within the bonded period.” Accordingly, for both subheadings 9813.00.05 and 9813.00.45, HTSUS, exportation is generally required as a condition of obtaining duty-free treatment – unless a manufacture or production of a distinct 2 article occurs under subheading 9813.00.05, HTSUS, in which case either exportation or destruction of this distinct article is permitted. Pursuant to 19 C.F.R. § 10.39(a), even in circumstances when exportation is generally required, such merchandise may instead be “destroyed under Customs supervision” to satisfy the conditions for duty-free treatment. This regulation specifies, in relevant part, that “[b]onds covering articles entered under [a subheading other than 9813.00.30, HTSUS] shall not be canceled upon proof of destruction . . . unless the articles are destroyed under Customs supervision in accordance with section 557, Tariff Act of 1930, as amended.” Pursuant to 19 U.S.C. § 1557(c), “[m]erchandise entered under bond, under any provision of law, may . . . be destroyed, at the request and at the expense of the consignee, within the bonded period under customs supervision, in lieu of exportation.” (emphasis added); see also C.S.D. 84-43 (Dec. 1, 1983) (holding that “destruction in lieu of exportation for purposes of TIB cancellation pursuant to 19 U.S.C. 1557(c)” is permitted by the terms of the statute). Consequently, for both subheadings 9813.00.05 and 9813.00.45, HTSUS, exportation and/or destruction of the imported merchandise is required to satisfy the applicable bond conditions for duty-free treatment. Such exportation and/or destruction within the applicable timeframe must be substantiated to CBP in order for the bond obligation to be cancelled. See e.g. 19 C.F.R. § 10.39. “Charges against bonds taken pursuant to Chapter 98, Subchapter XIII, [HTSUS], may be canceled in the manner prescribed in § 113.55 of this chapter” to substantiate exportation of merchandise entered under a TIB. 19 C.F.R. § 10.39(a). Pursuant to 19 C.F.R. § 113.55(a)(1), a “bond to assure exportation as defined in § 101.1 of this chapter may be cancelled” upon submission of the following documents which specifically identify the exported merchandise: outward manifest or outward bill of lading; inspector's certificate of lading; record of clearance of the vessel or of the departure of the vehicle; and a foreign landing certificate if required by a port director. Exportation, as defined in 19 C.F.R. § 101.1, requires “a severance of goods from the mass of things belonging to this country with the intention of uniting them to the mass of things belonging to some foreign country.” Accordingly, the outward manifest or bill of lading substantiating exportation in accordance with 19 C.F.R. § 113.55(a)(1) must evidence that merchandise entered under a TIB is destined for a foreign country because exportation requires: 

Pursuant to General Note 1 of the HTSUS all merchandise imported into the United States is subject to duty unless specifically exempted. Such an exemption is accorded to merchandise temporarily imported under bond, that is not imported for sale or for sale on approval, on the condition that such merchandise is exported or destroyed within a year of importation. See e.g. Notes 1-2 of Subchapter XIII, Chapter 98, HTSUS; 19 C.F.R. § 10.31. The timeframe for this duty exemption, termed a TIB, may be extended up to three years from the date of importation. See U.S. Note 1(a) of Subchapter XIII, Chapter 98, HTSUS; 19 C.F.R. § 10.37. Failure to export or destroy merchandise entered under a TIB within the applicable timeframe may result in liquidated damages “equal to double the duties and fees, which it is estimated would accrue . . . had all the articles covered by the entry been entered under an ordinary consumption entry.” See 19 C.F.R. §§ 10.31(f); 10.39(d)(1). The requirements for exporting or destroying merchandise entered under a TIB are detailed in Chapter 98 of the HTSUS and CBP Regulations. For merchandise entered under subheadings 9813.00.05 and 9813.00.45, HTSUS, the relevant requirements are specified in U.S. Note 1 of Subchapter XIII, Chapter 98. Pursuant to U.S. Note 1(a), the “articles described in the provisions of this subchapter . . . may be admitted into the United States without the payment of duty, under bond for their exportation.” Pursuant to U.S. Note 2(b)(ii), if an article entered under subheading 9813.00.05, HTSUS, is so processed as to manufacture or produce a distinct article, this distinct article must be either “exported or destroyed under customs supervision within the bonded period.” Accordingly, for both subheadings 9813.00.05 and 9813.00.45, HTSUS, exportation is generally required as a condition of obtaining duty-free treatment – unless a manufacture or production of a distinct 2 

article occurs under subheading 9813.00.05, HTSUS, in w