HQ 555026: Applicability of partial duty exemption of item 807.00, TSUS, to certain leather shoe uppers to be assembled in the Dominican Republic

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 555026

                                    July 7, 1988


          CLA-2  CO:R:C:V  555026 DBI

          CATEGORY:  Classification

          TARIFF NO.:  9802.00.80; 807.00

          Mr. James P. McDermott
          B.B. Walker Company
          Drawer 1167
          Asheboro, North Carolina  27204

          RE:  Applicability of partial duty exemption of item 807.00,
          TSUS, to certain leather shoe uppers to be assembled in the
          Dominican Republic

          Dear Mr. McDermott:

               This is in response to your letter of May 11, 1988, to
          Senator Jesse Helms, requesting information concerning the
          applicability of item 807.00, Tariff Schedules of the United
          States (TSUS), to certain leather shoe uppers to be assembled in
          the Dominican Republic and imported by your company.

          FACTS:

               You advise that U.S. made leather, thread, lining material,
          sewing machines and dies will be shipped to the Dominican
          Republic where the leather and lining will be die-cut and the
          components will then be sewn into leather shoe uppers.  You
          indicate that uppers are portions of a shoe or boot that will
          have the soles attached in a subsequent operation.

          ISSUE:

               Whether the described leather shoe uppers, 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
          incidental thereto.  An article classified under item 807.00,
          TSUS, is subject to duty upon the full appraised value of the












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          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.

               We have previously held in a ruling dated February 24, 1988
          (HQ 554748), that die-cutting pattern-shaped fabric parts to fit
          automobile doors was a fabricating, non-assembly step that
          prepared the fabric for final assembly with the doors.  We stated
          that no allowances could be made under item 807.00, TSUS, since
          the fabric parts were not in condition ready for assembly.

               In the present case, the leather and lining exported from
          the U.S. is not in condition ready for assembly without further
          fabrication since the die-cutting performed abroad is a further
          fabrication.  Therefore, the die-cutting cannot be considered an
          acceptable assembly under item 807.00, TSUS.

               With respect to the sewing operation performed abroad, the
          sewing of components is an acceptable assembly operation under
          section 10.16(a), Customs Regulations (19 CFR 10.16(a)).
          However, the sewing must be performed on a U.S. component that
          has not been further fabricated.  Therefore, the sewing operation
          performed in the Dominican Republic would not be an acceptable
          assembly under item 807.00, TSUS.

          HOLDING:

               On the basis of the information submitted, we are of the
          opinion that the die-cutting of the leather and lining and the
          sewing of the components together into shoe uppers may not be
          considered an acceptable assembly and therefore, no allowances in
          duty may be made under item 807.00, TSUS.

                                     Sincerely,




                                     John Durant, Director
                                     Commercial Rulings Division




















          1cc: CO:R:C:V:DIZZO:LDC:6/28/88































































                               Mr. James P. McDermott
                               B.B. Walker Company
                               Drawer 1167
                               Asheboro, NC 27204