HQ 554961: Applicability of partial duty exemption under HTSUS subhead- ing 9802.00.80 to athletic supporters to be imported from Jamaica

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                      HQ 554961

                            June 27, 1989

          CLA-2 CO:R:C:V 554961 GRV

          CATEGORY:  CLASSIFICATION

          TARIFF NO.:  9802.00.80, HTSUS

          Mr. Robert E. Boehme
          Bike Athletic Company
          P.O. Box 666
          Knoxville, Tennessee 37901

          RE:  Applicability of partial duty exemption under HTSUS subhead-
               ing 9802.00.80 to athletic supporters to be imported from
               Jamaica

          Dear Mr. Boehme:

                This is in response to your letters of March 18, 1988, and
          May 4, 1989, requesting a ruling on the applicability of subhead-
          ing 9802.00.80, Harmonized Tariff Schedule of the United States
          (HTSUS) (formerly item 807.00, Tariff Schedules of the United
          States (TSUS)), to athletic supporters to be imported from Jamica
          after assembly and packaging operations.  Samples of the
          components and packaging materials to be exported from the U.S.
          and the completed athletic supporter to be returned to the U.S.
          were submitted for examination.  You also request advice
          concerning the proper tariff classification of the returned
          supporters.  We regret the delay in responding to your request.

          FACTS:

                You state that U.S. knitted fabric, for use as pouch
          material, will be cut to length and width in the U.S. before it
          is sent to Jamaica for assembly operations.  In addition, rolls
          of U.S. elastic in various widths, comprising the waistband, leg
          straps and pouch reinforcement, and U.S. thread and labels, will
          be shipped to the assembly facility in Jamaica.  The foreign
          processing consists of cutting the various rolls of elastic to
          length, forming the pouch by partially sewing the knitted fabric
          to itself (which gathers the fabric), attaching the pouch and the
          reinforcing elastic to the waistband and adding the leg straps
          and a label by sewing operations.

          ISSUE:

                Whether the athletic supporters will be entitled to the
          partial duty exemption provided for under HTSUS subheading
          9802.00.80 when returned to the U.S.












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          LAW & ANALYSIS:

                Effective January 1, 1989, the HTSUS superseded and re-
          placed the TSUS.  TSUS item 807.00 was carried over into the
          HTSUS without change as subheading 9802.00.80.  This tariff
          provision provides a partial duty exemption for articles:

                ...assembled abroad in whole or in part of fabricated
                components, the product of the United States, which
                (a) were exported in condition ready for assembly without
                further fabrication, (b) have not lost their physical
                identity in such articles by change in form, shape, or
                otherwise, and (c) have not been advanced in value or
                improved in condition abroad except by being assembled and
                except by operations incidental to the assembly process
                such as cleaning, lubricating and painting.

          An article entered under HTSUS subheading 9802.00.80 is subject
          to duty upon the full value of the imported assembled article
          less the cost or value of such U.S. components, upon compliance
          with the documentary requirements of section 10.24, Customs
          Regulations (19 CFR 10.24).

                Section 10.14(a), Customs Regulations (19 CFR 10.14(a)),
          provides, in part, that:

                [t]he components must be in condition ready for assembly
                without further fabrication at the time of their exporta-
                tion from the United States to qualify for the exemption.
                Components will not lose their entitlement to the exemption
                by being subjected to operations incidental to the assembly
                either before, during, or after their assembly with other
                components.

          Section 10.16(b)(6), Customs Regulations (19 CFR 10.16(b)(6)),
          states that the cutting to length of wire, thread, tape, foil,
          and similar products exported in continuous length is an example
          of an operation incidental to the assembly process.

                In the instant case, we are satisfied from the description
          of the foreign assembly operations and the samples submitted that
          the U.S. components to be sent to Jamaica will be entitled to the
          duty exemption available under HTSUS subheading 9802.00.80, upon
          return of the assembled supporters.  The forming of the pouch by
          partially sewing the fabric to itself is considered an acceptable
          assembly operation involving two separate components -- the
          fabric and thread.  See L'Eggs Products, Inc. Inc. v. United
          States, 13 CIT ___, 704 F.Supp. 1127 (1988).  The cutting to
          length of the rolls of elastic comprising the waistband, pouch












                                        - 3 -


          reinforcement, and legs straps is considered an operation
          incidental to the assembly process pursuant to 19 CFR
          10.16(b)(6).  Moreover, sewing the various components together
          clearly is an acceptable means of assembly.  See 19 CFR 10.16(a).

                The cardboard box of U.S. origin into which each supporter
          is packaged is entitled to duty-free entry under subheading
          9801.00.10, HTSUS, as the sample box submitted evidences that it
          is not advanced in value or improved in condition while abroad.
          See Headquarters Ruling Letter 731420 (November 18, 1988).

                On the basis of the completed sample submitted, it is our
          opinion that the athletic supporters are properly classifiable in
          subheading 6212.90.0010, HTSUS, with duty at the rate of 7
          percent ad valorem.  The applicable textile category number is
          359.

          HOLDING:

                On the basis of the described assembly operations and after
          examining the samples submitted, the athletic supporters will be
          entitled to the partial duty exemption under HTSUS subheading
          9802.00.80 when returned to the U.S., upon compliance with the
          applicable Customs regulations (19 CFR 10.11-10.24).  Allowances
          in duty may be made under this tariff provision for the cost or
          value of the U.S. fabricated components to be sent abroad,
          including the knitted pouch material, the elastic pouch
          reinforcement, waistband, and leg straps, and the thread and
          label.  The packaging material will be duty free under subheading
          9801.00.10, HTSUS.  The supporters are classifiable in subheading
          6212.90.0010, HTSUS.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division