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  • GASTON AGUIRRE
    Participant
    September 11, 2023 at 10:36 pm
    Post count: 1
    #10805

    Dora Angelino imported 250 blouses and skirts under quota categories 341 and 342, respectively. They were manufactured in China, and arrived in the port of San Francisco, California on July 31, 2000. On July 31st, the two quota categories were full. Dora placed the merchandise in a bonded warehouse waiting to see if the categories opened up again before the end of the year. One month later, on August 30th, Dora decided to sew the blouses and skirts together into dresses. The dresses were covered by quota category 336. This quota category was open. Could Dora withdraw the dresses from the bonded warehouse, and enter them into the commerce of the United States on August 30th while category 336 was open? Considering the above scenario, choose the one correct statement.

    A. No, because there has been a change from one quota category to another during the warehouse period.
    B. Yes, because the new quota category is open.
    C. Yes, but she must use the original quota categories.
    D. No, because they have not remained in the warehouse for more than six months.
    E. Yes, but she must withdraw the dresses under quota category 636.

    Correct choice is: A
    Explanation: CFR 144.38(f)(3)

    • This topic was modified 7 months, 2 weeks ago by admin.
    • This topic was modified 7 months, 2 weeks ago by admin.
    admin
    Keymaster
    September 12, 2023 at 2:53 am
    Post count: 72
    #10807

    19 CFR § 144.38(f) Textiles and textile products. Textiles and textile products subject to quota, visa or export license requirements in their condition at the time of importation may not be withdrawn from warehouse for consumption if during the warehouse period there has been a change by manipulation or other means:
    …
    (3) From one textile category to another textile category.

    In this case, 250 blouses and skirts under quota categories 341 and 342, respectively but these quota categories were full and so this merchandise was placed in a bonded warehouse waiting to see if the categories opened up again before the end of the year. One month later, the importer decided to sew the blouses and skirts together into dresses. The dresses were covered by a different quota category 336. This quota category was open.

    However, as per the terms of 19 CFR § 144.38(f) textiles and textile products subject to quota, visa or export license requirements in their condition at the time of importation may not be withdrawn from warehouse for consumption if during the warehouse period there has been a change by manipulation or other means from one textile category to another textile category.

    Here the imported textile products were blouses and skirts under quota categories 341 and 342. These were placed in a bonded warehouse and then sown together into dresses which are covered by a different quota category 336. There was a change in quota category of these textile products from 341 and 342 to 336 by manipulation or other means viz. sewing. Therefore, the dresses may not be withdrawn from warehouse for consumption due to the change from one quota category to another during the warehouse period.

    Answer A is therefore correct.

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