HQ 555071: Applicability of partial duty exemption of item 807.00, TSUS, to surgical masks assembled in Canada

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 555071

                                   October 17, 1988

            CLA-2  CO:R:C:V  DBI

            CATEGORY:  Classification

            TARIFF NO.: 9802.00.80; 807.00

            Ms. Ann M. Williams
            A.N. Deringer, Inc.
            30 West Service Road
            Champlain, New York  12919-9703

            RE:   Applicability of partial duty exemption of item 807.00,
                  TSUS, to surgical masks assembled in Canada

            Dear Ms. Williams:

               This is in response to your letter of July 12, 1988, on
            behalf of your client, Surgi-Tech Canada Ltd., Quebec, Canada,
            in which you request a ruling concerning the applicability of
            item 807.00, Tariff Schedules of the United States (TSUS), to
            surgical masks assembled in Canada and imported by your client.

            FACTS:

               You advise that all of the components from which the masks
            are made are of U.S. origin.  In step one of the Canadian
            assembly operation, three layers of fabric, consisting of the
            overstock, filter and understock, are collated.  A nose clip is
            inserted into the binding and the binding is sewn to the top
            and bottom of the mask.  In step two, the product is folded
            into pleats and additional binding is sewn on the sides which
            extend beyond the mask and are used as ties.  You indicate that
            the large pleats open fully to form a pocket which holds the
            mask away from the nose and mouth for added breathability. The
            fabric is exported to Canada in rolls of predetermined widths
            (7 5/8 inches).  The aluminum nose clips are exported on spools
            and the thread on bobbins.  The binding is exported in rolls,
            5/8 of an inch in width.  A sample has been submitted for
            examination.

            ISSUE:

               Whether the described surgical masks, 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)).















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            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 imported article, less the cost or value of such
            products of the U.S.

               With respect to the sewing operations performed abroad, the
            sewing of components is an acceptable assembly operation under
            section 10.16(a), Customs Regulations (19 CFR 10.16(a)).

               With respect to the spools of aluminum, it appears (and we
            are assuming for purposes of this ruling) that the aluminum is
            merely cut to uniform lengths to create the nose clips.  We
            have previously held that the cutting to individual lengths of
            material exported in continuous length constitutes an operation
            which is incidental to the assembly process.  The cutting of
            the fabric and the binding to individual lengths also is
            incidental to assembly.

               Generally speaking, pleating which occurs as a separate
            manufacturing step, without any concurrent assembly, is not
            considered incidental to assembly.  However, where functional
            pleats are made during the course of a valid assembly process,
            the pleating operation may be considered incidental to
            assembly.  In regard to this case, we believe that the creation
            of functional pleats by sewing binding on the sides of the
            masks is an operation which is incidental to the assembly of
            the masks.

            HOLDING:

               On the basis of the information and sample submitted, we are
            of the opinion that the sewing of the fabric and binding, the
            pleating operation, and the cutting of the aluminum, fabric and
            binding to individual lengths, may be considered acceptable
            assembly operations and operations incidental thereto.
            Therefore, allowances in duty may be made under item 807.00,
            TSUS, for the cost or value of the fabric, binding, thread and


















                                         - 3 -


            aluminum nose clips, upon compliance with the applicable
            Customs Regulations (19 CFR 10.11-10.24).

                                      Sincerely,




                                       John Durant, Director
                                       Commercial Rulings Division




            cc: CO:R:C:V:DIZZO:MDM:8/16/88













































                                  Ms. Ann M. Williams
                                 A.N. Deringer, Inc.
                                 30 West Service Road
                                 Champlain, NY 12919-9703