19 C.F.R. § 4.94a; M/Y HUNTRESS; Large Yacht Exportation.

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H257744 December 18, 2014 OT:RR:BSTC:CCR H257744 KLQ CATEGORY: Carriers Mr. Leonard L. Rosenberg Sandler, Travis & Rosenberg, P.A. 1000 NW 57th Court, Suite 600 Miami, FL 33126 RE: 19 C.F.R. § 4.94a; M/Y HUNTRESS; Large Yacht Exportation. Dear Mr. Rosenberg: This is in response to your ruling request on behalf of your client, Howard Reeder, Inc., dated June 19, 2014, and received in this office for our review on September 16, 2014, in which you request a ruling determining whether a yacht, the M/Y HUNTRESS (“vessel”), is required to be exported from the port of entry pursuant to 19 C.F.R. § 4.94a. Our decision follows. FACTS The following facts are from your ruling request and emails to this office, dated October 27, 2014 and December 15, 2014. The subject vessel was imported at the Port of Fort Lauderdale, Florida under a “Bond for the Deferral of Duty on Large Yachts Imported for Sale at United States Boat Shows” (“boat show bond”), dated October 28, 2014. The subject vessel is: (1) dutiable; (2) approximately 155 feet in length; (3) used primarily for recreation or pleasure purposes; and (4) was previously sold by a manufacturer or dealer to a customer. The vessel entered the United States for the purpose of appearing for sale at the Lauderdale International Boat Show. On or about November 5, 2014, after the conclusion of the Lauderdale International Boat Show, the subject vessel sailed to West Palm Beach, Florida. The vessel was not sold and your client now proposes to export the subject vessel at West Palm Beach, Florida on or about December 15, 2014. The vessel will then proceed directly to the Caribbean. ISSUE Whether 19 C.F.R. § 4.94a(b) requires a yacht, exported from the United States under its own power pursuant to a boat show bond, to be exported from the same port at which it made entry. LAW AND ANALYSIS The exportation of large yachts is governed by 19 C.F.R. § 4.94a, which states in pertinent part: (a) General. An otherwise dutiable vessel used primarily for recreation or pleasure and exceeding 79 feet in length that has been previously sold by a manufacturer or dealer to a retail consumer and that is imported with the intention to offer for sale at a boat show in the United States may qualify at the time of importation for a deferral of entry completion and deposit of duty. The following requirements and conditions will apply in connection with a deferral of entry completion and duty deposit under this section: (4) All subsequent transactions with Customs involving the vessel in question, including any transaction referred to in paragraphs (b) through (d) of this section, must be carried out in the same port of entry in which the certification was filed and the bond was posted under this section; and (b) Exportation within 6-month period. If a vessel for which entry completion and duty payment are deferred under paragraph (a) of this section is not sold but is exported within the 6-month bond period specified in paragraph (a)(2) of this section, the importer of record must inform Customs in writing of that fact within 30 calendar days after the date of exportation […]. (c) Sale within 6-month period. If the sale of a vessel for which entry completion and duty payment are deferred under paragraph (a) of this section is completed within the 6-month bond period specified in paragraph (a)(2) of this section, the importer of record within 15 calendar days after completion of the sale must complete the entry by filing an Entry Summary (Customs Form 7501) and must deposit the appropriate duty […]. (d) Expiration of bond period. If the 6-month bond period specified in paragraph (a)(2) of this section expires without either the completed sale or the exportation of a vessel for which entry completion and duty payment are deferred under paragraph (a) of this section, the importer of record within 15 calendar days after expiration of that 6-month period must complete the entry by filing an Entry Summary (Customs Form 7501) and must deposit the appropriate duty […]. The subject yacht qualifies for duty deferral treatment under 19 C.F.R. § 4.94a. It is dutiable, exceeds 79 feet, is used primarily for recreation or pleasure and was previously sold by a manufacturer or dealer to a retail consumer. In addition, the subject vessel was imported under the requisite boat show bond for purposes of appearing for sale at a United States boat show. Customs and Border Protection (“CBP”) regulation 19 C.F.R. § 4.94a indicates that certain transactions regarding the exportation of large yachts must occur at the port of entry. Title 19 C.F.R. § 4.94a(a)(4) states in pertinent part, “[a]ll subsequent transactions with Customs involving the vessel in question, including any transaction referred to in paragraphs (b) through (d) of this section, must be carried out in the same port of entry.” However, neither the regulation nor the regulatory history defines “transaction.” In the instant matter, the subject vessel was not sold and your client now proposes to export it on or about December 15, 2014. The date of the boat show bond is October 28, 2014. Therefore, the proposed exportation would occur within the 6-month bond period. Therefore, this matter falls under 19 C.F.R. § 4.94a(b), which governs vessels which are not sold, but are instead exported, within the 6-month bond period. Subsection (b) indicates that if the vessel is not sold, but is instead exported within the 6-month bond period, the importer of record must inform CBP in writing. The language of 19 C.F.R. § 4.94a(a)(4) only requires the importer of record to submit the relevant formal filings to CBP at the port of entry. There is no additional requirement of the physical presence of the vessel. Therefore, in the absence of a specific export provision, and in consideration of the nature of the transaction as described in the regulation, which only concerns the submission of documentation, it would not be a violation of 19 C.F.R. § 4.94a(b) for your client to physically export the vessel from West Palm Beach, Florida despite having made entry in Fort Lauderdale, Florida. HOLDING Title 19 C.F.R. § 4.94a(b) does not require a yacht, exported from the United States under its own power pursuant to a boat show bond, to be exported from the same port at which it made entry. Sincerely, Lisa L. Burley Chief/Supervisory Attorney-Advisor Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations and Rulings U.S. Customs and Border Protection