HQ 555012: Applicability of partial duty exemption of item 807.00, TSUS, to plastic bags assembled in Mexico

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 555012

                                   August 26, 1988

          CLA-2  CO:R:C:V  555012 DBI

          CATEGORY:  Classification

          TARIFF NO.:  9802.00.80; 807.00

          Mr. Adolfo Loera
          Twin Plant Customs Consultant
          6044 Gateway East Suite 506
          El Paso, Texas  79905

               RE:      Applicability of partial duty exemption of item
                        807.00, TSUS, to plastic bags assembled in Mexico

          Dear Mr. Loera:

               This is in response to your letters dated January 22, and
          April 28, 1988, in which you request a ruling concerning the
          applicability of item 807.00, Tariff Schedules of the United
          States (TSUS), to plastic bags for hazardous waste removal
          exported to Mexico to be assembled.

          FACTS:

               You advise that the sleeve component of the plastic bag will
          be exported in rolls of double wound sheeting that will be cut
          and heat sealed.  The glove component, which is foreign, will be
          sewn to the sleeves using American thread and tape.  The final
          assembly of the bag involves the heat sealing of the sleeves and
          a pre-made tool pouch to the pre-printed bag and simultaneously
          cutting arm holes in the bag.  A pre-printed pressure sensitive
          reinforcement label will be applied.  You indicate that all of
          the components are of U.S. origin except the glove component.

          ISSUE:

               Whether the described plastic bags, when returned to the
          U.S., will be eligible for the partial exemption from duty in
          item 807.00, TSUS (9802.00.80, Harmonized Tariff Schedule of the
          United States (HTSUS)).

          LAW AND ANALYSIS:

               Item 807.00, TSUS, applies to articles assembled abroad in
          whole or in part of fabricated components, the products of the
          U.S., with no operations performed thereon except the attachment
          of the components to form the imported merchandise and operations













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          incidental thereto.  An article classified under item 807.00,
          TSUS, is subject to duty upon the full appraised value of the
          imported article, less the cost or value of such products of the
          U.S. Section 10.14(a), Customs Regulations (19 CFR 10.14(a)),
          provides that the components must be in condition ready for
          assembly without further fabrication at the time of their
          exportation from the U.S. to qualify for the exemption.

               As stated in E. Dillingham, Inc. v. United States, 60 CCPA
          39, C.A.D. 1078, 470 F.2d 629 (1972), the correct starting point
          for the application of item 807.00, TSUS, is the condition of the
          components as "exported" from the United States.  Fabricating or
          non-assembly steps performed on exported components between the
          time of the arrival abroad and the assembly merely show that the
          exported components were not "in condition ready for assembly
          without further fabrication."

               We have previously held that item 807.00, TSUS, does apply
          to materials exported in continuous lengths that are merely cut
          to individual lengths abroad prior to assembly.  However, it does
          not apply to materials which are cut into specific shapes or
          patterns abroad.  Cutting parts to pattern shape from exported
          material is a fabrication and would not be considered an
          incidental operation under item 807.00, TSUS (HQ 554748, February
          24, 1988).

               In the present case, cutting the double wound sheeting into
          sleeves would be considered cutting material into a specific
          shape and, therefore, cannot be considered an acceptable assembly
          operation under item 807.00, TSUS.

               Sewing the glove component to the sleeves is an acceptable
          assembly.  However, the sleeves do not qualify for item 807.00,
          TSUS, treatment for the reasons stated above and the gloves are
          precluded because they are not U.S.-made.

               In Rudolph Miles v. United States, 64 CCPA 24,  C.A.D. 1178,
          545 F.2d 739 (1976), it was held that the burning of slots and
          holes into Z-beams manufactured in the U.S. did not constitute
          further fabrication abroad but was incidental to the assembly of
          the Z-beams into center sills for box cars. In the present case,
          arm holes will be cut in the bag in order to attach the sleeves.
          According to the reasoning in Miles, this operation abroad would
          be incidental to the assembly of the plastic bags.

               Heat sealing the pre-made tool pouch and printed bag is an
          acceptable assembly since the pouch and bag are U.S.-made















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          components.  Heat-sealing these two components to the sleeves is
          an acceptable assembly.  However, the sleeves would still not
          qualify for the reasons stated above.

          HOLDING:

               Based on the information submitted, we are of the opinion
          that only the cutting of the arm holes in the bags and the heat-
          sealing of the tool pouch and printed bag are acceptable assembly
          operations or operations incidental thereto.  Therefore,
          allowances in duty may be made under item 807.00, TSUS, for the
          cost or value of the tool pouch and printed bag, upon compliance
          with section 10.16, Customs Regulations (19 CFR 10.16).  No
          allowances may be made under item 807.00, TSUS, for the cost or
          value of the glove or sleeves.

                                     Sincerely,




                                     John Durant, Director
                                     Commercial Rulings Division







































          1cc: CO:R:C:V:DIZZO:LDC:8/22/88































































                                  Mr. Adolfo Loera
                                  Twin Plant Customs Consultant
                                  6044 Gateway East Suite 506
                                  El Paso, TX 79905