HQ 555328: Applicability of subheading 9802.00.80, HTSUS, to certain roller assemblies from 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 555328

                                     May 2, 1989

          CLA-2-CO:R:C  555328 RA

          CATEGORY: Classification

          TARIFF NO.: 9802.00.80, HTSUS

          Mr. John W. Cain
          Cain Customs Brokers Inc.
          P.O. Box 150
          Hildago, Texas 78557

          RE:  Applicability of subheading 9802.00.80, HTSUS, to certain
               roller assemblies from Mexico

          Dear Mr. Cain:

               This is in response to your letter of March 10, 1989, on
          behalf of the Whirlpool Corporation of McAllen, Texas, regarding
          the applicability of subheading 9802.00.80, Harmonized Tariff
          Schedule of the United States (HTSUS), to certain roller
          assemblies to be imported from Mexico for attachment to domestic
          refrigerator/freezers.  Because the assemblies, in their
          condition as imported, will not be sold to the ultimate
          purchasers of the refrigerators, you also ask whether the
          assemblies will be excepted from country of origin marking
          requirements.  Although not stated in your ruling request, we are
          assuming that the roller assemblies will be assembled from
          components of U.S. origin.

          FACTS:

               Two types of rollers are involved in the assembly
          operations -- a front roller, which has a screw that allows the
          refrigerator to be leveled, and a rear roller.  The first
          assembly step consists of placing a roller inside a bracket with
          the holes in each properly aligned.  A rivet axle is then
          inserted into the aligned holes and a rivet machine or manual
          press is used to cold form the rivet in place, which completes
          assembly of the rear roller assembly.  The front roller assembly
          is made by following the same steps to form a roller assembly
          which is placed inside a levelling bracket with the holes in each
          properly aligned.  A rivet axle is then inserted into the holes
          and cold formed into place by a manual press or rivet machine.
          An adjusting screw is driven into the levelling bracket with a
          screw driver which completes the front roller assembly.  The
          completed assemblies are imported by the manufacturer for
          attachment to the refrigerators before sale to the dealers.










                                        - 2 -


          ISSUES:

               I. Can an allowance in duty under the provisions of
          subheading 9802.00.80, HTSUS, be made for the cost or value of
          the components of U.S. origin incorporated in the assembled
          roller assemblies?

               II. Will the assemblies be excepted from country of origin
          marking requirements?

          LAW AND ANALYSIS:

               Subheading 9802.00.80, HTSUS, provides for articles
          assembled abroad in whole or in part of fabricated components of
          U.S. origin with no operations performed thereon except the
          attachment of the components to form the imported merchandise and
          operations incidental thereto.  Duty is assessed on the appraised
          value of the imported article less the cost or value of the
          fabricated components of U.S. origin.

               The joining of the roller and bracket by riveting, the
          attachment of the roller assembly and levelling bracket by means
          of a rivet, and the insertion of an adjusting screw into the
          levelling bracket are all acceptable assembly operations for
          purposes of subheading 9802.00.80, HTSUS.  See section 10.16(a),
          Customs Regulations (19 CFR 10.16(a)).  Therefore, allowances in
          duty may be made under this tariff provision for the cost or
          value of the components of U.S. origin incorporated in the
          imported roller assemblies.

               With respect to the country of origin marking issue, section
          304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304),
          requires, with certain exceptions, that every article of foreign
          origin (or its container) imported into the U.S. shall be marked
          in a conspicuous place as legibly, indelibly, and permanently as
          the nature of the article (or container) will permit in such
          manner as to indicate to an ultimate purchaser in the U.S. the
          name of the country of origin of the article.

               Section 134.35, Customs Regulations (19 CFR 134.35),
          provides that where an imported article is used in the U.S. in
          manufacture which results in an article having a name, character,
          or use differing from that of the imported article, the U.S.
          manufacturer will be considered the "ultimate purchaser" of the
          imported article within the contemplation of 19 U.S.C. 1304.
          Under these circumstances, the imported article shall be excepted
          from marking requirements, although the outermost container of
          the article must be properly marked.  Section 134.32(d), Customs
          Regulations (19 CFR 134.32(d)), provides that an imported article












                                        - 3 -


          is excepted from marking requirements if the marking of the
          container will reasonably indicate the origin of the article.

               In this case, we find that the importer is the "ultimate
          purchaser" of the imported roller assemblies that will be
          utilized by the importer in the manufacture of refrigerators.
          Therefore, these assemblies will be excepted from marking
          requirements under 19 CFR 134.35 and 134.32(d), provided the
          outermost containers of the assemblies are properly marked.
          The containers should be marked either "Product of Mexico" or
          "Assembled in Mexico of U.S. Components" pursuant to section
          10.22, Customs Regulations (19 CFR 10.22).

          HOLDING:

               Roller assemblies made by joining U.S.-made components by
          riveting or screwing are entitled to tariff treatment under the
          provisions of subheading 9802.00.80, HTSUS, upon compliance with
          sections 10.16 to 10.24, Customs Regulations (19 CFR 10.16 to
          10.24).  Moreover, they will be excepted from country of origin
          marking under 19 CFR 134.35 and 134.32(d), provided the outermost
          containers of the assembled articles are properly marked.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division