Classification of articles admitted temporarily free of duty – Pr. Ex. Q 2 Q 7

Chapter 98 of the HTSUS deals with Special Classification Provisions. As per U.S. Note 1 to this Chapter, the provisions of this chapter are not subject to the rule of relative specificity in general rule of interpretation 3(a). Any article which is described in any provision in this chapter is classifiable in said provision if the conditions and requirements thereof and of any applicable regulations are met.

SUBCHAPTER XIII of Chapter 98 deals with ARTICLES ADMITTED TEMPORARILY FREE OF DUTY UNDER BOND

U.S. Note 1. (a) to Subchapter XIII states that the articles described in the provisions of this subchapter, when not imported for sale or for sale on approval, may be admitted into the United States without the payment of duty, under bond for their exportation within 1 year from the date of importation, which period, in the discretion of the Secretary of the Treasury, may be extended, upon application, for one or more further periods which, when added to the initial 1 year, shall not exceed a total of 3 years, except that (1) articles imported under heading 9813.00.75 shall be admitted under bond for their exportation within 6 months from the date of importation and such a 6-month period shall not be extended, …

Note 5 states that articles may be admitted under heading 9813.00.75 only on condition that the Secretary of the Treasury shall have found that the foreign country from which the articles were imported allows, or will allow, substantially reciprocal privileges in respect of similar imports to such country from the United States; and if the Secretary finds that a foreign country has discontinued, or will discontinue, the allowance of such privileges, the privileges of heading 9813.00.75 shall not apply thereafter in respect of imports from such foreign country.

The article description in the tariff for Heading/Subheading 9813.00.75 is Automobiles, automobile chassis, automobile bodies, cutaway
portions of any of the foregoing and parts for any of the foregoing, finished, unfinished or cutaway, when intended solely for show purposes.
The prescribed General rate of duty is Free, under bond, as prescribed in U.S. note 1 to this subchapter.

Here, a privately held U.S. corporation, imports five automobiles intended solely for show purposes. They will not be offered for sale. Their country of origin is the United Kingdom, which allows reciprocal privileges for similar imports to their country. The automobile shows in the U.S. will last three months but the shows have been extended and the automobiles will be in the U.S. for an additional three months.This duration does not exceed the 6 months.

This meets the criteria of U.S. Note 1. (a) that articles imported under heading 9813.00.75 shall be admitted under bond for their exportation within 6 months from the date of importation and such a 6-month period shall not be extended.

Since the country of origin of the imported automobiles is UK which allows substantially reciprocal privileges in respect of similar imports to such country from the United States, the conditions specified in Note 5 are also satisfied.

The correct classification is 9813.00.75 which is answer choice B.
9813.00.35 is an incorrect classification as it deals with automobiles and other vehicles and craft that are temporarily imported for races, not for show.
Heading 8706 classifies Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705: This is not applicable here as this import is a special case of temporary importation under bond without payment of duty.