Tools of the Trade

To: All Import Specialists, Entry Specialists, Brokers, Importers, and Other Interested Parties
From: Director Trade Compliance
Subject: Tools of Trade Provisions

This is in reference to Headquarters message number 7358071, dated December 23, 1996, giving notice of a new "Tools of Trade" provision under Harmonized Tariff Schedule (HTS) number 9801.00.8500. This subheading was provided for under Public Law 104-295. The new subheading does not affect the existing "Tools of Trade" provision, under HTSUS 9804.00.10.

The new HTSUS number, 9801.00.8500, has expanded the use of the "Tools of Trade" provision. Under this new tariff provision, any merchandise claimed as "tools of trade" may now be imported by other than the person exporting the same. This will also allow the company, rather than just an individual, to be the importer of record.

To help facilitate entry processing, a notation, such as "Temporary Export - Tools of Trade" should be made on the entry/entry summary documentation. The types of documents that may be used to substantiate the claim under the "Tools of Trade" provision are: the ATA Carnet, commercial invoices, packing lists, landing certificates, other Customs documents used to import the merchandise into the foreign country, and any other documents that will show the merchandise being imported is the same as what was exported.

Any foreign replacement parts purchased while abroad, used for repair on the merchandise designated as "Tools of Trade," and is subsequently imported in with the "tools" should be specifically notated on the entry/entry summary documentation at the applicable dutiable rate.

If you have further questions on this issue, you may contact:

Erin K. Riley of the Entry Branch @ (202) 927-0292