equipment for doing the repairs, alterations or processing abroad or otherwise. § 10.9 Books bound abroad.

The provisions of § 10.8 with respect to articles exported for repairs or alterations shall be applicable in the case of books of domestic manufacture which have been advanced in value or improved in condition abroad and returned to the United States.'

$ 10.10 Newsreel films.

Where free entry is claimed for newsreel films under the provisions of item 724.05, Tariff Schedules of the United States, there shall be furnished in connection with the entry a statement of the cameraman, shipper, or other person having knowledge of the facts, identifying the films with the invoice and stating that the basic films have to the best of his knowledge and belief been exposed abroad and that they are shipped for use as newsreel of current events abroad. The invoice shall state the footage and title of each subject.

7 "Articles returned to the United States after having been exported to be advanced in value or improved in condition by any process of manufacture or other means:

"Books manufactured in the United States [are subject to] a duty upon the value of the change in condition (see headnote 2 of this subpart)". (Item 806.10, Tariff Schedules of the United States.)

8 "Newsreels, not developed, of current events abroad (Item 724.05, Tariff Schedules of the United States.)

The free entry of household effects under item 810.10, Tariff Schedules of the United States is limited to such as are similar to books, libraries, furniture, carpets, paintings, tableware, and other usual household furnishings. Automobiles, horses, carriages, sleighs, boats, and similar articles, and wines, provisions, and other consumable supplies do not constitute similiar household effects within the meaning of item 810.10, Tariff Schedules of the United States. Articles such as office safes and office furniture used abroad in business pursuits are not entitled to free entry as household effects.

10 "Books, libraries, usual and reasonable furniture, and similar household effects, if actually used abroad by him or by him and

(a) In order to obtain free entry for household effects under the provisions of item 810.10, Tariff Schedules of the United States, the required use of the effects abroad for 1 year must be proven to the satisfaction of the collector," who may, in his discretion, require evidence other than the declaration of the applicant.

(b) Household effects used abroad not less than 1 year by a family of which the importer was a resident member for not less than 1 year during such period of use may be passed free of duty, whether or not the importer owned the effects at the time of such use.

(c) The free entry of household effects under item 810.10, Tariff Schedules of the United States shall be allowed to residents of the United States as well as to nonresidents.

his family not less than one year, and not intended for any other person, or for sale (Item 810.10, Tariff Schedules of the United States.)

11 The year of use need not immediately precede the time of importation nor need it be continuous.

As a general rule, household effects arriving more than 10 years after the last arrival of the importer in the United States from the country in which the effects were used should not be admitted free under item 810.10, Tariff Schedules of the United States. If, however, the collector is satisfied from the importer's explanation that the effects were unavoidably detained beyond the 10-year period he may admit them to free entry upon the filing of a declaration on customs Form 3297 in the case of a returning resident of the United States or customs Form 3299 in any other case. In no case shall free entry be allowed under item 810.10, Tariff Schedules of the United States when a period of 25 years or more has elapsed since the last arrival of the importer in the United States from the country in which the effects were used. (T. D.'s 38668, 40174, 41985)

14

(a) Articles claimed to be free of duty under item 815.00, Tariff Schedules of the United States, as the effects of citizens of the United States dying abroad shall be entered in accordance with the provisions of § 8.50 of this chapter or if not exceeding $250 in value, entry may be permitted under § 8.51.

(b) The collector shall require in connection with the entry the written statement of a person having knowledge of the facts or otherwise satisfy himself as to the citizenship of the deceased owner of the effects at the time of his death. § 10.15 Tools of trade.

When professional books, implements, instruments, or tools of trade, occupation, or employment are claimed to be free of duty under item 811.10 16 or item 810.20,18 Tariff Schedules of the United States, a declaration of the emigrant or returning individual shall be required to support the claim of free entry. The declaration shall be on customs Form 3299 if the declarant is an emigrant or nonresident returning from abroad, and on customs Form 3297 if the declarant is a returning resident of the United States, except that, as to any such articles claimed to be free of duty under the said item 810.20, an oral declaration of

14 "Personal and household effects, not stock in trade, the title to which at the time of importation is in the estate of a citizen of the United States who died abroad

" (Item 815.00, Tariff Schedules of the United States.)

16 "Articles by or for the account of any person emigrating from a foreign country to the United States:

"Professional books, implements, instruments, and tools of trade, occupation, or employment (not including theatrical scenery, properties, or apparel, and not including articles for use in any manufacturing establishment, for any other person, or for sale), owned and used by him abroad * * *.” (Item 811.10, Tariff Schedules of the United States.)

18 "Articles imported by or for the account of any person arriving in the United States from a foreign country:

"Professional books, implements, instruments, and tools of trade, occupation, or employment, which have been taken abroad by him or for his account * * (Item 810.20,

Tariff Schedules of the United States.)

the returning individual may be accepted in lieu of a written declaration. PASSENGERS' BAGGAGE "

§ 10.16

Status of passengers.

(a) Persons arriving from foreign countries shall be divided into two classes for customs purposes: (1) Residents of the United States returning from abroad, and (2) all other persons, hereinafter referred to as nonresidents.

(b) Citizens of the United States, or persons who have formerly resided in the United States, shall be deemed to be residents thereof returning from abroad within the meaning of "residents" as used in schedule 8, part 2A, Tariff Schedules of the United States, in the absence of satisfactory evidence that they have established a home elsewhere. The residence of a wife shall be deemed to be that of her husband unless satisfactory evidence is presented that the wife has established a separate restdence elsewhere. The residence of a minor child shall be presumed to be that of his parents.

(c) Any person arriving in the United States who is not a resident of the United States or who, though a resident of the United States, is not returning from abroad shall be treated for the purposes of the regulations in this part as a nonresident.

§ 10.17 Exemptions for returning residents.

(a) Personal and household effects taken abroad. Each returning resident is entitled under item 813.10 and schedule 8, part 2, headnote 1, Tariff Schedules of the United States," to bring in free of duty and internalrevenue tax all personal and house

20 "The Secretary of the Treasury is authorized to prescribe rules and regulations for the declaration and entry of

"(6) Articles carried on the person or contained in the baggage of a person arriving in the United States; * # " (Tariff Act of 1930, sec. 498 (a); 19 U.S.C. 1498 (a).) 21 "All personal and household effects taken abroad by him or for his account (Item 813.10, Tariff Schedules of the United States.)

"1. Any article exempted under this part from the payment of duty shall be exempt also from the payment of any internal revenue tax imposed upon or by reason of importation." (Schedule 8, part 2, headnote 1, Tariff Schedules of the United States.)

hold effects which he took abroad. If any such effect has been advanced in value or improved in condition while abroad by repairs (including cleaning) not merely incidental to wear or use while abroad, or by alterations (including additions) which did not change the identity of the article, the cost or value of such repairs or alterations is subject to duty, unless all or part of such cost or value is covered by an allowance of the $100 or $200 exemption hereinafter mentioned. An effect taken abroad and there changed into a different article is dutiable at its full value when returned to the United States, unless covered in whole or in part by some provision for free entry.

(b) Articles acquired abroad. Subject to the limitations and conditions hereinafter stated, each returning resident is entitled under items 813.30 and 813.31, and schedule 8, part 2, headnote 1, Tariff Schedules of the United States,22 to bring in free of duty and internal revenue tax articles for his personnal or household use which were purchased or otherwise acquired abroad merely as an

22 "Other articles accompanying such person, including (but only in the case of an individual who has attained the age of 21) not more than 1 quart of alcoholic beverages (or 1 wine gallon of such beverages if such individual arrives directly or indirectly from American Samoa, Guam, or the Virgin Islands of the United States, not more than 1 quart of which shall have been acquired elsewhere than in such insular possessions) and including not more than 100 cigars, acquired abroad as an incident of the journey from which he is returning, for his personal or household use, but not imported for the account of any other person nor intended for sale, if declared in accordance with regulations of the Secretary of the Treasury:

"Articles not over $100 (or $200 in the case of persons arriving directly or indirectly from American Samoa, Guam, or the Virgin Islands of the United States, not more than $100 of which shall have been acquired elsewhere than in such insular possessions) in aggregate fair retail value in the country of acquisition, if such person arrives from the Virgin Islands of the United States or from a contiguous country which maintains a free zone or free port, or arrives from any other country after having remained beyond the territorial limits of the United States for a period of not less than 48 hours, and in either case has not claimed an exemption under this item (813.31) or under item 915.30 within the 30 days immediately preceding this arrival." (Items 813.30, 813.31, Tariff Schedules of the United States.)

incident of the foreign journey from which he is returning and which accompany him on his arrival. The aggregate fair retail value in the country of acquisition of such articles shall not exceed $100 or, in the case of a resident arriving directly or indirectly from American Samoa, Guam, or the Virgin Islands of the United States, $200, of which not more than $100 shall have been acquired elsewhere than in such insular possession. These exemptions do

not apply to articles intended for sale or acquired on commission, i.e., for the account of another person, with or without compensation for the service rendered.

(c) Gifts. An article acquired abroad by a returning resident and imported by him to be disposed of after importation as his bona fide gift is for the personal use of the importer.

(d) Tobacco products, alcoholic beverages, and foodstuffs. Cigars, cigarettes, manufactured tobacco, alcoholic beverages, and foodstuffs may be included in the exemption to which a returning resident is entitled: Provided, The exemption shall not include:

(1) More than 100 cigars;

(2) Any alcoholic beverages in the case of an individual who has not attained the age of 21;

(3) More than 1 quart of alcoholic beverages in the case of an individual who does not arrive directly or indirectly from American Samoa, Guam, or the Virgin Islands of the United States;

(4) More than 1 wine gallon of alcoholic beverages in the case of an individual who arrives directly or indirectly from American Samoa, Guam, or the Virgin Islands of the United States (not more than 1 quart of which shall have been acquired elsewhere than in such insular possessions).

(e) Application of exemption to articles subject to the highest rates of duty. The $100 or $200 exemption shall be applied to the aggregate fair retail value in the country of acquisition of the articles subject to the highest rates of duty.2 If an internal revenue tax is applicable, it shall be combined with the duty in determining which rates are highest.

23

23 When the $100 or $200 exemption has been so applied, another claim for the $100 or $200 exemption within the following 30 days cannot be allowed. See § 23.5(c) of this chapter.

(f) Family grouping of exemptions. Each member of a family is entitled to the $100 or $200 exemption, subject to the conditions prescribed in schedule 8, part 2, Tariff Schedules of the United States. Articles belonging to one person cannot be included in the $100 or $200 exemption of another person, but when members of a family residing in one household travel together on their return to the United States, the $100 or $200 exemption to which the several members of the family may be entitled may be grouped and allowed without regard to which member is the owner of the articles except in the case of alcoholic beverages when such a member has not attained the age of 21. A grouped exemption shall not include any exemption for a family member not entitled to it in his own right, nor shall a grouped exemption be applied to any property of such a member. The term "members of a family residing in one household," as used herein, shall include all persons, regardless of age, related by blood, marriage, or adoption, who lived together in one household at their last permanent residence and who intend to live together in one household after their return to the United States. No exemption allowable to a resident servant accompanying the family shall be included in the family grouping.

(g) Length of stay abroad. (1) The $100 exemption shall not be allowed unless a returning resident has remained beyond the territorial limits of the United States for a period not less than 48 hours, except in the case of a returning resident arriving in the United States from Mexico. With respect to articles acquired in Mexico, the $100 exemption may be allowed without regard to length of time a returning resident has remained outside the territorial limits of the United States, unless the resident returns through a port as to which there is in effect a special regulation or instruction requiring that the returning resident, in order to obtain the benefit of the $100 exemption for such articles, shall have remained beyond the territorial limits of the United States for such period, not to exceed 24 hours, as shall be specified in the special regulation or instruction.24

24 "2. In the case of persons arriving from a contiguous country which maintains a free zone or free port, if the Secretary of the Treasury deems it necessary in the public interest and to facilitate enforcement of the

(2) The $200 exemption applicable in the case of the arrival of a returning resident directly or indirectly from the Virgin Islands of the United States may be allowed without regard to the length of time such person has remained outside the territorial limits of the United States.

(h) Frequency of allowances. (1) The $100 or $200 exemption shall not be granted to a returning resident who has taken advantage of such exemption within the 30-day period immediately preceding his return to the United States.25 The date of the returning resident's latest prior arrival on which he declared articles for allowance of the $100 or $200 exemption shall be deemed the date he took advantage of the applicable exemption.

(2) A returning resident who has received a total exemption of less than $100 under the $100 exemption, or a total exemption of less than $200 under the $200 exemption, in connection with his return from one journey is not entitled to apply the remainder of either amount to articles acquired abroad on a subsequent journey. Articles acquired on one journey and left in a foreign country cannot be allowed any exemption accruing upon the importer's return from a subsequent journey.

(i) Computation of time requirements. (1) The 48-hour period a returning resident must have been abroad to be entitled to an exemption shall be computed exactly. For example, a resident leaving United States territory at 1:30 p.m. on June 1 would complete the 48hour period at 1:30 p.m. on June 3.

(2) The 30-day period immediately preceding the resident's return shall be computed by excluding the day of ar

requirement that the exemption in item 813.31 shall apply only to articles acquired as an incident of the foreign journey, he shall prescribe by regulation or instruction, the application of which may be restricted to one or more ports of entry, that such exemption shall be allowed only to residents who have remained beyond the territorial limits of the United States for not less than a specified period, not to exceed 24 hours, and, after the expiration of 90 days after the date of such regulation or instruction, allowance of the said exemption shall be subject to the limitation so prescribed." (Schedule 8, part 2A, headnote 2, Tariff Schedules of the United States.) There is no special regulation providing a minimum absence requirement under this provision. 25 See footnote 22, appended to § 10.17 (b).

rival and counting backward 30 days. In the case of an arrival on May 28, the resident would not be entitled to the $100 or $200 exemption if he had taken advantage of such exemption on or after the last preceding April 28.

(j) Arrival incidental to further foreign travel. A resident who enters the United States merely as an incident of foreign travel and will continue his foreign travel before finally returning to the United States from the continuous trip shall not be required to clear through customs any articles he has acquired, or had repaired or altered, while abroad. Such articles may be left in customs custody, shipped in bond, or exported directly from customs custody in order that the resident may declare them, and possibly other later acquired articles, upon his final return to the United States from the continuous trip. If, however, the traveler fails to advise the customs officer of the incidental character of such an entry or for other reason declares any articles for allowance of the $100 or $200 exemption, such declaration will start the running of the respective period or periods during which a further allowance cannot be granted.

(k) [Reserved]

(1) Replacements. An article furnished by a foreign supplier to replace a like article of comparable value previously exempted from duty under item 813.31 Tariff Schedules of the United States, shall be allowed free entry if the article previously exempted is found by the importer to be unsatisfactory and is returned to customs custody and exported under customs supervision at the expense of the importer within 60 days after its importation.25a In any case where the importer has failed to return the unsatisfactory article to customs custody for supervision of exportation, the collector may allow free entry of the replacement article if he is satisfied that the unsatisfactory article was timely exported and that the failure to return it to customs custody was due to inadvertence or lack of experience in customs

matters and was without willful intent to avoid customs supervision. The requirement that the original article be exported under customs supervision does not apply when a duplicate article is furnished by a foreign supplier as a replacement for an article declared for entry under the $100 or $200 exemption and found by the customs inspector or other examining officer to be so damaged as to constitute a nonimportation (§ 15.10 of this chapter). In such a case the duplicate replacement shall be considered to have been acquired abroad for the purposes of the $100 or $200 exemption provision, provided no charge is made to the importer for such article.

(m) Sale. An article brought in under the $100 or $200 exemption and subsequently sold is not dutiable or subject to forfeiture by reason of the sale thereof, if the returning resident actually acquired and imported the article for his bona fide personal or household use and not for sale.

(n) Rented automobiles. Under the provisions of item 813.25, Tariff Schedules of the United States,* 26a an automobile rented by a resident of the United States while abroad may, without the payment of duty, be brought into the United States for a temporary period not to exceed 30 days by or on behalf of such resident for the transportation of such resident, his family and guests, and such incidental carriage of articles as may be appropriate to his personal use of the automobile. No entry or security for exportation shall be required.

[28 F.R. 14663, Dec. 31, 1963, as amended by T.D. 56481, 30 F.R. 11851, Sept. 16, 1965] § 10.18 Exemptions for nonresidents.

(a) Personal effects. A nonresident (including any resident who is not returning), regardless of age, arriving in the United States is entitled under item 812.10, Tariff Schedules of the United States, to entry free of duty and in