HQ 555445: Applicability of subheading 9802.00.80, HTSUS, to automobile pick-up coil assemblies

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 555445

                                    April 23, 1990

            CLA-2 CO:R:C 555445 RA

            CATEGORY: Classification

            TARIFF NO.: 9802.00.80

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

            RE:  Applicability of subheading 9802.00.80, HTSUS, to
                 automobile pick-up coil assemblies

            Dear Mr. Cain:

                 This is in response to your three letters, each dated
            July 12, 1989, on behalf of the Wells Manufacturing Co.,
            requesting rulings concerning the tariff treatment of
            certain automobile pick-up coil assemblies from Mexico.  We
            regret the delay in responding to your requests.

            FACTS:

                 Your client will begin assembling in Mexico pick-up
            coil items which will serve to supply an electrical
            timing pulse or signal to fire the spark plugs on Ford,
            General Motors, or Chrysler automobile engines.  The
            assembly steps undertaken in the case of the Ford coil
            assemblies consist of (1) staking a bushing to a steel
            plate, (2) pressing two posts into holes in the plate, (3)
            pressing an encapsulated coil to a pole piece, (4)
            attaching a coil/pole assembly and a magnet to the plate
            assembly with liquid rivets, and (5) magnetizing the magnet
            with an electrical magnetizing machine.

                 The assembly steps for the General Motors' coil item
            consist of (1) swaging a bushing to the housing, (2)
            attaching the coil assembly, magnet, and pole piece to the
            housing with screws, and (3) inserting the lead wires from
            the coil into the terminal housing.

                 The Chrysler product is assembled by (1) riveting a
            bar, bracket, and magnet together, (2) pressing the coil
            and magnet assembly together to form the sensor assembly,
            (3) swaging a post to a plate to form the trigger plate
            assembly, (4) riveting the sensor and trigger plate
            assembly together, (5) testing the assembly for continuity
            and coil resistance, and (6) turning a lock screw through
            the clearance hole of the sensor into the trigger plate.

            ISSUE:

                 Whether the assembly operations performed abroad
            qualify the returned pick-up coil assemblies for tariff
            treatment under subheading 9802.00.80, HTSUS?

            LAW AND ANALYSIS:

                 Subheading 9802.00.80, HTSUS, provides a partial duty
            exemption for articles assembled abroad in whole or in part
            of fabricated components of U.S. origin with no operations
            performed thereon except the joining of the components and
            operations incidental thereto.  The U.S. components must be
            exported in condition ready for assembly without further
            fabrication, and cannot lose their physical identity in the
            assembled article by change in form, shape, or otherwise.
            Duty is assessed on the full appraised value of the
            imported merchandise less the cost or value of the
            U.S.-made components, upon compliance with the
            documentation requirements of section 10.24, Customs
            Regulations (19 CFR 10.24).

                 Section 10.16(a), Customs Regulations (19 CFR
            10.16(a)), states that the assembly operations may consist
            of any method used to join or fit together solid components
            and may be preceded, accompanied, or followed by operations
            incidental to the assembly process.  However, 19 CFR
            10.16(c) provides that any significant process, operation,
            or treatment other than assembly whose primary purpose is
            the fabrication, completion, or physical or chemical
            improvement of a component shall not be regarded as
            incidental to the assembly and shall preclude the
            application of the exemption to such article.

                 With respect to the force fitting, soldering,
            riveting, gluing, and screwing operations performed in
            Mexico to produce the coil assemblies, these are
            specifically enumerated in 19 CFR 10.16(a) as acceptable
            assembly operations for purposes of subheading 9802.00.80,
            HTSUS.  Moreover, we are satisfied from the description of
            the swaging, pressing and staking operations that these are
            also acceptable assembly operations under 19 CFR 10.16(a),
            as they serve to securely join solid components together.
            The testing operation is considered to be incidental to the
            assembly process pursuant to 19 CFR 10.16(b)(7).

                 Regarding the magnetizing operation, you indicate
            that, due to the relatively strong force of the magnet, it
            would be extremely difficult to assemble it with the other
            components after it has been magnetized.  In view of this,
            and the fact that the magnetizing operation appears to be a
            minor one which is logically performed during the assembly
            proces, it is considered to be incidental to the assembly
            process.  See U.S.  v. Mast Industries, Inc., 69 CCPA 47,
            668 F. 2d 501 (1981), and Headquarters Ruling Letter 039835
            dated May 2, 1975 (magnetizing U.S. ceramic magnet segments
            abroad following their assembly into electric motors is
            incidental to the assembly process).

            HOLDING:

                 We are of the opinion that the operations performed to
            make the various pick-up coil assemblies consititute either
            acceptable assembly operations or operations incidental
            thereto under subheading 9802.00.80, HTSUS.  Therefore,
            allowances in duty may be made under this tariff provision
            for the cost or value of the U.S. fabricated components,
            upon compliance with the documentation requirements of 19
            CFR 10.24.

                                        Sincerely,

                                        Jerry Laderberg
                                        Acting Director
                                        Commercial Rulings Division