HQ 555329: Free entry under subheading 9801.00.10, HTSUS, of parts bags containing U.S.-made components

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 555329

                                    June 16, 1989

          CLA-2-CO:R:C  555329 RA

          CATEGORY: Classification

          TARIFF NO.: 9801.00.10, HTSUS

          Mr. John W. Cain
          Cain Customs Brokers Inc.
          P.O. Box 150
          Hildalgo, Texas 78557

          RE: Free entry under subheading 9801.00.10, HTSUS, of parts
              bags containing U.S.-made components

          Dear Sir:

               This is in response to your letter of March 10, 1989,
          regarding the eligibility for free entry as American goods
          returned under the provisions of subheading 9801.00.10,
          Harmonized Tariff Schedule of the United States (HTSUS), of
          certain air conditioner parts of U.S. manufacture packaged in
          plastic bags in Mexico.

          FACTS:

               The Whirlpool Corporation proposes to export U.S.-made parts
          for its air conditioners to Mexico where they will be placed in
          plastic bags, weighed, sealed, and labelled before return to the
          U.S. for sale with the air conditioners and for installation by
          the purchasers.  The three parts bags involved will contain knobs
          only; screws, nuts, and washers; or knobs; a screw, a washer, and
          a plastic cup.  Labels will be affixed to the bags with a
          dispenser.

          ISSUE:

               Will packaged U.S.-made parts for air conditioners qualify
          for free entry under the provisions of subheading 9801.00.10,
          HTSUS?

          LAW AND ANALYSIS:

               Subheading 9801.00.10, HTSUS, provides for the free entry of
          U.S. products exported and returned without having been advanced
          in value or improved in condition by any process of manufacture
          or other means while abroad.  The courts have held that the
          repackaging of U.S.-made articles will not preclude
          classification as returned American products when there is no
          change in the value or condition of the articles themselves
          (apart from the container).  U.S. v. John V. Carr & Son, Inc., 69
          Cust. Ct. 78, C.D. 4377 (1972), aff'd 61 CCPA 52,
















                                        - 2 -


          C.A.D. 1118 (1974), and Border Brokerage Company, Inc. v. U.S.,
          65 Cust. Ct. 50, C.D. 4052 (1970), appeal dismissed 58 CCPA 165
          (1970).  In Headquarters Ruling Letter of November 18, 1988,
          (731806), we held that U.S.-made containers of the kind normally
          used for packaging may receive the free entry treatment for
          American goods returned under subheading 9801.00.10, HTSUS, if
          they meet the criteria for classification under that subheading.
          Such treatment is not precluded by the process of filling them
          with their contents.

          HOLDING:

               Air conditioner parts made in the U.S. and exported to
          Mexico for packaging in plastic bags which are then weighed,
          sealed, and labelled are not considered to have been advanced in
          value or improved in condition and would be entitled to free
          entry under subheading 9801.00.10, HTSUS, upon compliance with
          the requirements of section 10.1, Customs Regulations (19 CFR
          10.1).  As the parts are of U.S. origin being returned, they may
          be excepted from country of origin marking requirements, if their
          immediate containers are properly marked, under section
          134.32(m), Customs Regulations (19 CFR 134.32(m)).

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division