HQ 086898: Aluminum Slat Packs

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 086898

                         August 1, 1990

CLA-2 CO:R:C:G 086898    ALS

CATEGORY:  Classification

TARIFF NO.:  7616.90.0080

Mr. R.C. Willette
A.N. Deringer, Inc.
30 West Service Road
Champlain, New. York 12919-9703

RE: Aluminum Slat Packs

Dear Mr. Willette:

     This is in response to your letter of April 4, 1990,
requesting the classification of a sample pack of aluminum blind
slats under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA) as well as the applicability of subheading
9802.00.8050 (HTSUSA) thereto.

FACTS:

     The submitted sample consists of aluminum slats of two
different sizes made from 3000 foot coils of pre-colored and
textured aluminum which is shipped from the United States to
Canada.  Your client slits the coils, cuts to size and shape and
prints model, color, etc. on each sample slat swatch.  They then
punch a hole in the slats which are assembled in a vinyl case
with a screw post to form a slat pack.  The slat pack, which
measures approximately 6 1/2" x 3 1/2" x 1 1/2", is used to
obtain orders for U.S. made venetian blinds.

ISSUE:

     What is the tariff classification of aluminum slats
assembled in a vinyl case with a screw post to form a slat pack?

LAW and ANALYSIS:

     Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI's) taken in order.
GRI 1 provides that classification is determined first in
accordance with the terms of the headings and any relative
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section and chapter notes.  If GRI 1 fails to classify the goods,
and if the headings and legal notes do not otherwise require, the
remaining GRI's may be applied, taken in order.

     In reviewing the headings eligible for classification of
these goods, we note that suitable headings may be found in
Chapters 42, 48 and 76, HTSUSA.  Goods consisting of more than
one material or substance are, pursuant to GRI 2(b), to be
classified according to the principles of GRI 3.  Since each
possible heading refers only to a part of the goods and the
articles under consideration are made up of different components,
they are classifiable according to GRI 3(b).  That GRI provides:

     Mixtures, composite goods consisting of different
     materials or made up of different components,...shall
     be classified as if they consisted of the material or
     component which gives them their essential character.
The factor which determines essential character will vary as
between different kinds of goods.  It may, for example, be
determined by the nature of the material or component, its bulk,
quantity, weight or value, or by the role of a constituent
material in relation to the use of the goods.  As noted in United
China and Glass Co, v. United States, 61 Cust. Ct. 386, C.D.
3637, 293 F. Supp. 734 (1968), "In general, 'essential character'
has been construed to mean the attribute which strongly marks or
serves to distinguish what an articles is; that which is
indispensable to the structure, core or condition of the
article."  While this case stated the standard under the Tariff
Schedules of the United States (TSUS), the principle is equally
valid under the HTSUSA.

     The constituent material which most imparts the essential
character to the slat pack is the aluminum which form the slats.
Without those slats the pack would not serve its intended
purpose.  Accordingly, the article is classifiable under the
provisions of Chapter 76, HTSUSA, which covers aluminum and
articles thereof.

     We have considered the applicability of subheading
9802.00.8050, HTSUSA, as requested in your inquiry, which
provides a partial duty exemption for articles assembled abroad
in whole or in part of fabricated components which are the
product of the United States.  The subheading further provides
that the articles must have been exported in condition ready for
assembly without further fabrication, have not lost their
physical identity in such articles by change in form, shape, or
otherwise, and 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.


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     An article entered under subheading 9802.00.8050, HTSUSA, is
subject to duty on its full value less the cost or value of the
U.S. components assembled therein, upon compliance with the
documentary requirements of section 10.24, Customs Regulations
(19 CFR 10.24).

     Fabricated components subject to the exemption are provided
for in section 10.14, Customs Regulations (19 CFR 10.14).
Section 10.16(a), Customs Regulations (19 CFR 10.16(a)) discusses
the nature of assembly operations and section 10.16(b), Customs
Regulations (19 CR 10.16(b)), discusses operations which are
considered incidental to the assembly process and are not
considered further fabrication operations since they are of a
minor nature and cannot always be provided for in advance of the
assembly operation.

     We believe the operations performed in Canada; slitting of
the coils, cutting to size and shape, printing model, color, etc.
on the sample swatch, the punching of a hole in the slat to
assemble it in a vinyl case, are operations beyond the assembly
concept.  They are further fabrication and completion steps in
manufacturing of the slat pack.  Subheading 9802.00.8050, HTSUSA,
is, therefore, inappropriate.

     We have considered the possible applicability of subheading
9802.00.50, HTSUSA, although you did not specifically request
such consideration in your inquiry.  That subheading provides for
a partial duty exemption for articles returned to the United
States after having been exported to be advanced in value or
improved in condition by means of repairs or alterations.  Such
articles are dutiable only on the value of the foreign repairs or
alterations, upon compliance with the documentary requirements of
section 10.8, Customs Regulations (19 CFR 10.8).  However,
entitlement to this tariff treatment is precluded where the
exported articles are incomplete for their intended use prior to
the foreign processing, Guardian Industries Corp. v.United
States, 3 CIT 9 (1982), as "repairs and alterations are made to
completed articles and do not include intermediate processing
operations which are performed as a matter of course in the
preparation or the manufacture of finished articles."  Dolliff
and Company, Inc. v. United States, C.D. 4755, 81 Cust, Ct. 1,
455 F. Supp. 618 (1978), aff'd, C.A.D. 1225, 66 CCPA 77, 599 F.
2d 1015 (1979) (Court's emphasis).  Thus, "the focus is upon
whether the exported article is incomplete or unsuitable for its
intended use prior to the foreign processing." (Guardian, Supra).
The operations performed on the coils occur prior to the
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completion of the slat pack and are, therefore, excluded from
consideration under subheading 9802.00.50, HTSUSA.

HOLDING:

     The aluminum sample slat packs are classifiable in
subheading 7616.90.0080, HTSUSA, which provides for other
articles of aluminum, other, other, other, and are subject to a
general rate of duty of 5.7% ad valorem.  Goods so classifiable
which are of Canadian origin are entitled to a 4.5% ad valorem
rate of duty under the United States-Canada Free Trade Agreement
(FTA) upon compliance with all applicable regulations

                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division

























086898    Aluminum slat pack
ALSARASKY 7/26/90