HQ 555572: Applicability of partial duty exemption under HTSUSA subheading 9802.00.60 to stainless steel plates

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 555572

                                    April 27, 1990


            CLA-2 CO:R:C  555572 RA

            CATEGORY:  Classification

            TARIFF NO.:  9802.00.60

            Mr. Serge Vinograd
            Executive Vice President
            Charleroi (USA)
            88 Danbury Road
            Wilton, CT 06897

            RE:  Applicability of partial duty exemption under HTSUSA
                 subheading 9802.00.60 to stainless steel plates

            Dear Mr. Vinograd:

                 This is in response to your letter of January 2, 1990,
            regarding the further processing of imported steel plates
            which were the subject of our ruling dated September 21, 1989
            (HQ 084776).

            FACTS:

                 You state that stainless steel plates are imported for
            sale to end users or service centers and to be primarily used
            in the manufacture of storage tanks for gases or chemicals.
            They cannot be used as imported without being processed by
            machining, grinding, drilling, punching, or forming.  No
            further description of these operations or the finished
            product is given.

            ISSUE:

                 Whether stainless steel plates will be eligible for a
            partial duty exemption when returned to the U.S. and used in
            the manufacture of storage tanks.

            LAW AND ANALYSIS:

                 Subheading 9802.00.60, Harmonized Tariff Schedule of the
            United States (HTSUSA), provides a partial duty exemption for
            articles of metal manufactured or subjected to a process of
            manufacture in the U.S., exported for further processing, and
            further processed when returned.  The term "further
            processing" has been interpreted to mean operations which













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            change the shape of the metal or impart new and different
            characteristics which become an integral part of the metal
            itself.  It does not include the assembly of finished parts by
            bolting, welding, etc.

                 Accordingly, if the steel plates are subjected to
            processes which change their shape or effect the metal by
            grinding, drilling, forming, punching, or similar processes
            this would be sufficient to meet the domestic processing
            requirement.  However, if the plates are merely assembled by
            welding or bolting without changes in the metal itself, they
            would not be eligible for tariff treatment under the statute.
            It is incumbent upon the importer to satisfy the District
            Director of Customs of the actual performance of further
            processing and that it constitutes more than mere assembly
            without the required changes in the metal.  See C.S.D. 89-128,
            copy enclosed.

            HOLDING:

                 Stainless steel plates made abroad from domestic metal
            and manufactured into storage tanks after being returned to
            the U.S. are eligible for partial exemption under subheading
            9800.00.60, HTSUSA, if the further processing in this country
            consists of more than mere assembly and includes a change in
            shape or other characteristics of the metal by operations such
            as grinding, drilling, forming, punching, or similar
            processes.

                                        Sincerely,




                                        Jerry Laderberg
                                        Acting Director
                                        Commercial Rulings Division

            Enclosure






















            RARNOLD:lw 4/23/90