HQ 555205: Applicability of partial duty exemption under HTSUS subhead- ing 9802.00.80 to spark plug wire assemblies created by cutting spooled wire to length, stripping the ends, crimping a terminal on one end of the wire and force fitting nipples over the other ends with the aid of a lubricant.Incidental operations; General Instrument (1974).

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 555205

                         August 25, 1989

CLA-2 CO:R:C:V 555205 GRV

CATEGORY:  CLASSIFICATION

TARIFF NO.:  9802.00.80, HTSUS

Mr. John W. Cain
Cain Customs Brokers, Inc.
421 Texano
P.O. Box 150
Hidalgo, Texas  78557

RE:  Applicability of partial duty exemption under HTSUS subhead-
     ing 9802.00.80 to spark plug wire assemblies created by
     cutting spooled wire to length, stripping the ends, crimping
     a terminal on one end of the wire and force fitting nipples
     over the other ends with the aid of a lubricant.Incidental
     operations; General Instrument (1974).

Dear Mr. Cain:

     This is in response to your letter of November 14, 1988, on
behalf of Wells Mfg. Co., requesting a ruling on the applicabili-
ty of item 807.00, Tariff Schedules of the United States (TSUS)
(now subheading 9802.00.80, Harmonized Tariff Schedule of the
United States (HTSUS)), to spark plug wire assemblies to be
imported from Mexico.  Photographs of the assembly process were
submitted.  We regret the delay in responding to your request.

FACTS:

     You state that U.S.-made wire (8 mm in diameter), die-
stamped terminals (one set is stamped at a 90 degree angle and
the other set is stamped at a 180 degree angle) and rubber
nipples will be exported to Mexico for assembly into spark plug
wire assemblies.  The wire and terminal sets will be exported on
spools and the nipples will be exported in bulk. The foreign
assembly operation consists of two steps:

     (1)  a spool of wire and one spool each of the terminals are
          fed through a wire stripper machine, which cuts the
          wire to length, strips both ends, and crimps a 90
          degree terminal onto one end and a 180 degree terminal
          onto the other end.  The operator then places the wire
          on an overhead conveyor that moves the sub-assembly to
          a booting station.
     (2)  At the booting station, the operator force fits the 90
          degree terminal into a distributor nipple and the 180
          degree terminal into a spark plug nipple.  To aid the
          operator in force fitting the nipples over the ends of
          the spark plug wire, a lubricant is applied.

     The spark plug wire assemblies are then packaged and shipped
to the U.S.

ISSUE:

     Whether the returned spark plug wire assemblies are entitled
to the partial duty exemption under HTSUS subheading 9802.00.80.

LAW AND ANALYSIS:

     HTSUS subheading 9802.00.80 provides a partial duty exemp-
tion for:

     [a]rticles assembled abroad in whole or in part of fabri-
     cated components, the product of the United States, which
     (a) were exported in condition ready for assembly without
     further fabrication, (b) have not lost their physical
     identity in such articles by change in form, shape, or
     otherwise, and (c) 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.

All three requirements of HTSUS subheading 9802.00.80 must be
satisfied before a component may receive a duty allowance.  An
article entered under this tariff provision is subject to a duty
upon the full value of the imported assembled article, less the
cost or value of the U.S. components assembled therein, provided
there has been compliance with the documentation requirements of
section 10.24, Customs Regulations (19 CFR 10.24).

     Assembly operations for purposes of HTSUS subheading
9802.00.80 are interpreted at section 10.16(a), Customs Regula-
tions (19 CFR 10.16(a)), which specifically enumerates force
fitting as an acceptable means of assembly.  Further, this
section provides that assembly operations may be preceded,
accompanied, or followed by operations incidental to the
assembly.

     Operations incidental to the assembly process are not con-
sidered further fabrication, as they are of a minor nature and
cannot always be provided for in advance of the assembly opera-
tion.  Examples of operations considered incidental to the assem-
bly process are delineated at section 10.16(b), Customs Regula-
tions (19 CFR 10.16(b)), which specifically enumerates cutting to
length of finished components exported in continuous lengths.
     In the instant case, the description of the foreign opera-
tion shows that the spark plug wire assemblies to be imported
will be eligible for the partial duty exemption available under
HTSUS subheading 9802.00.80.  The wire, terminals and nipples
components are products of the U.S. which are exported on spools
or in bulk.  Once abroad, the wire is cut to length and both ends
are striped of insulation--acceptable incidental operations under
19 CFR 10.16(b)(6), as the ends cannot be stripped until the wire
is cut to length (see also, General Instrument Corporation v.
United States, 61 CCPA 86, C.A.D. 1128, 499 F.2d 1318 (1974),
rev'g, 70 Cust.Ct. 151, C.D. 4421, 359 F.Supp. 1390 (1973)--and a
terminal is crimped onto each end.  The crimping operation con-
stitutes an acceptable joining of two solids within the meaning
of 19 CFR 10.16(a).  The nipples are then force fitted onto each
end of the spark plug wire with the aid of a lubricant.  This
also is an acceptable assembly operation.  As the U.S. components
do not lose their physical identities in the assembly operation,
and are not otherwise advanced in value or improved in condition
except by assembly operations and operations incidental thereto,
the returned spark plug wire assemblies will be eligible for the
partial duty exemption under HTSUS subheading 9802.00.80.

HOLDING:

     On the basis of the described foreign operation and after
viewing the photographs submitted, the spark plug wire assemblies
will be eligible for the partial duty exemption under HTSUS
subheading 9802.00.80 when returned to the U.S., upon compliance
with the documentary requirements of 19 CFR 10.24.

                              Sincerely,





                              John Durant, Director
                              Commercial Rulings Division