HQ 555049: Applicability of partial duty exemption of item 807.00, TSUS, to certain disposable smocks to be 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 555049

                                    July 12, 1988


          CLA-2  CO:R:C:V  555049DBI

          CATEGORY:  Classification

          TARIFF NO.:  9802.00.80, HTSUS (807.00, TSUS)

          Mr. Eduard Braun
          BMI Healthcare
          Naco, Arizona 85620-0725

                RE:     Applicability of partial duty exemption of item
                        807.00, TSUS, to certain disposable smocks to be
                        assembled in Mexico

          Dear Mr. Braun:

                This is in response to your letter of May 19, 1988, to Mr.
          Herbert Persky of our New York office, in which you request
          information concerning the applicability of item 807.00, Tariff
          Schedules of the United States (TSUS), to certain disposable
          smocks to be assembled in Mexico and imported by your company.
          Your letter has been referred to this office for review and the
          preparation of a ruling.

          FACTS:

                You advise that the smocks, which are designed to be worn
          in hospitals, laboratories and other such facilities where
          sanitation is a necessity, are manufactured of U.S.-made
          spunbonded polypropylene.  Individual parts for the smocks are
          cut from large bolts into pattern designs.  These individual
          parts will then be sent to Mexico where they will be assembled by
          either stitching or hot melt adhesive method.  The smocks will be
          packaged in polyethelene bags and then packed into U.S. shipper
          cartons labeled "U.S. Material/Assembled in Mexico."

          ISSUE:

                Whether the described disposable smocks, 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 product of the
          U.S., with no operation 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








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          the imported article, less the cost or value of such products of
          the U.S.  Sections 10.11-10.24, Customs Regulations (19 CFR
          10.11-10.24), set forth definitive and interpretive regulations
          pertaining to the construction of item 807.00, TSUS, and related
          provisions of law.  Section 10.16(a), Customs Regulations (19 CFR
          10.16(a)), provides that the assembly operations performed abroad
          may consist of any method used to join or fit together solid
          components, such as gluing or sewing, and may be preceded,
          accompanied, or followed by operations incidental to the assembly
          as illustrated in paragraph (b) of this section.

                Although you do not indicate whether or not the hot melt
          adhesive is of American origin, the adhesive would not be
          eligible under item 807.00, TSUS, even if the glue was U.S.-made.
          We have previously held in a ruling dated February 3, 1988 (HQ
          554714), that hot melt glue was regarded as having lost its
          physical identity in the gluing assembly process, which was
          contrary to the requirements of item 807.00, TSUS.

          HOLDING:

                On the basis of the information submitted, we are of the
          opinion that the stitching or hot melt adhesive processes
          performed in Mexico constitute an acceptable assembly operation
          and, therefore, allowances in duty may be made under item 807.00,
          TSUS, for the cost or value of the disposable smocks, 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 hot melt glue.

                                     Sincerely,




                                     John Durant, Director
                                     Commercial Rulings Division
                                     
























          CC: Chief, Commercial Operations Branch 3
              New York Seaport
          1cc: CO:R:C:V:DIZZO:LDC:7/6/88





























































                                  Mr. Eduard Braun
                                  BMI Healthcare
                                  Naco, Arizona 85620-0725