Customs has announced that certain foreign duty-paid goods exported from the US and returned within three years are now duty free. Effective April 24, 2016, the description for HTS 9801.00.10 is changing to allow foreign goods, previously entered for consumption into the US, to return duty-free if they are returned within three years of the export from the US.
Text of 9801.0010 on or after 4/24/2016:
Products of the United States, when returned after having been exported, or any other products when returned within three years after having been exported without having been advanced in value or improved in condition by any process of manufacture or other means while abroad…
Customs will require some evidence that the goods are returning within three years of exporting from the US. We recommend that importers confirm that they have proof of export before using this HTS for foreign goods. Acceptable proof of export can be, but is not limited to:
1. Canadian B3 entry with accompanying import invoice
2. Entry documents into another country
3. Carrier’s bill of lading (signed)
4. Legible proof of delivery
5. US Customs Form 4455 (Certificate of Registration)
Customs has not given any information at this time regarding required documentation for this new provision. However, we suspect that Customs will require evidence that the returning goods were not exported from the US under Drawback, 9813 (TIB), or were exported from a Foreign Trade Zone (FTZ) or Customs bonded warehouse in the US.
This change is authorized by the Trade Facilitation and Trade Enforcement Act of 2015. Please send an email to Deringer’s Compliance Department with any questions.