Returned Goods 9801.00.10, Proving Duty-Free Eligibility
By NNR USA In Insight On 1st September 2021
In the past year, over USD 6.7 billion in returned goods were claimed as duty-free under HTS 9801.00.10.
Classifying products under this tariff number can save an importer substantial money in duty, especially on products subject to high tariffs. Due to these savings, importers must be prepared to prove their goods qualify for duty-free treatment.
Do your goods qualify for duty-free treatment under 9801.00.10?
The key to using this tariff classification is the goods must be of:
- U.S. origin returned anytime; or
- Foreign origin returned within 3 years after having been exported from the U.S.;
- In all cases, Not advanced in value or improved in condition by any process of manufacture or other means while abroad.
How do you prove goods qualify for duty-free treatment under 9801.00.10?
On August 20, 2021, U.S. Customs and Border Protection (CBP) released information on the type of documents that are required to support these type of duty-free claims.
For either U.S. manufactured goods or foreign origin goods, the following documents are required:
- Declaration by Foreign Shipper indicating that the products were not advanced in value or improved in condition while outside the United States. A certificate from the master of a vessel stating that the products are returned without having been un-laden from the exporting vessel may be accepted in lieu of the declaration by the foreign shipper.
- Declaration by the owner, importer, consignee, or agent having knowledge of the facts regarding the duty-free claim. If the owner or ultimate consignee is a corporation, such declaration may be signed by an officer of the company.
- Proof of Export from the United States:
- Copy of the entry into the foreign country.
- U.S. export invoice or bill of lading/airway bill.
- Electronic Export Information (EEI) or the Automated Export System (AES) filing exemption. Documentation may be requested to substantiate that the same articles exported from the United States are being returned. No substitution of the same type of articles under an inventory management system may occur. This merchandise must meet all of the requirements such that it was not advanced in value or changed in condition, and not processed under a drawback claim or Temporary Importation under Bond (TIB) entry.
For U.S. manufactured goods valued over $2,500 entered three years after the date of exportation that are not clearly marked with the name and address of the U.S. manufacturer:
CBP may require, in addition to the declarations above, additional documents to substantiate the claim for duty-free treatment including a statement from the U.S. manufacturer verifying that the articles were made in the United States.
For additional information, please refer to: Cargo Systems Messaging Service #49132200 - Updated Requirements for Importers and Brokers Regarding HTS Subheading 9801.00.10 - U.S. and Foreign Goods Returned.