HQ 555626: Applicability of partial duty exemption under subheading 9802.00.80, HTSUS, to spring block 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 555626

                                    July 3, 1990

          CLA-2  CO:R:C:V  555626 LS

          CATEGORY:  Classification

          TARIFF NO.:  9802.00.80, 9801.00.10

          Kenneth H. Keefe, Esq.
          Sandler, Travis & Rosenberg, P.A.
          The Waterford
          5200 Blue Lagoon Drive
          Miami, Florida 33126-2022

          RE:  Applicability of partial duty exemption under subheading
               9802.00.80, HTSUS, to spring block assemblies

          Dear Mr. Keefe:

                This is in response to your letter of March 30, 1990, on
          behalf of Suttle Caribe, Inc., requesting a ruling on the
          applicability of subheading 9802.00.80, Harmonized Tariff
          Schedule of the United States (HTSUS), to spring block
          assemblies, which are subassemblies used in the manufacture of
          telephone modular connectors.  Samples of three spring block
          assemblies were submitted.

          FACTS:

                The components comprising the spring block assemblies are
          all of U.S. origin and are supplied by Suttle Caribe, Inc. to
          Variety Assembling Co. which performs the assembly operations in
          Haiti.  The components are exported to Haiti in kits, consisting
          of (1) plastic parts, known as spring blocks, which are molded in
          Suttle Caribe Inc.'s sister plant, Suttle Apparatus, in
          Minnesota, and (2) lead assemblies, which are also assembled by
          Suttle Apparatus, and are comprised of colored insulated wires,
          gold pins, splices, and spade terminals.  Two of the
          subassemblies have small, beige colored spring blocks, and the
          third has a larger, clear plastic spring block.  The latter
          subassembly has a comb inserted into it which is also a component
          of U.S. origin.

                The assembly process in Haiti consists of the following
          steps.  The spring blocks, which contain several holes on the top
          and bottom, are placed onto fixtures which hold them upwards.
          The lead assemblies are inserted into the spring blocks by
          introducing the ends with the gold pins into the holes until the
          splices attached to the pins are inside the blocks.  Two of the
          subassemblies have four pins, while the third has six pins.  An











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          operator then manually activates a lever in the fixture that
          bends all the pins in the same direction.  The bending serves the
          purpose of holding the pins in place and positioning them so that
          they are ready to be incorporated into the telephone modular
          connector.  The one sample with the larger, clear plastic spring
          block undergoes an additional operation wherein a comb is
          inserted into the spring block to separate the pins after they
          are bent.  When the comb is in place, the tips of the pins fit
          into the grooves of the comb.  The subassemblies are then
          extracted from the fixture, checked, and grouped into quantities
          of 25 or 50, depending upon the particular subassembly.  The
          grouped subassemblies are tied with a rubber band and placed into
          cartons.  Both the rubber bands and cartons are of U.S. origin.
          The packaged subassemblies are then exported to Puerto Rico or
          the United States where Suttle Caribe, Inc. incorporates them
          into final products.

          ISSUE:

                Whether the spring block subassemblies will qualify for the
          duty exemption available under subheading 9802.00.80, HTSUS, when
          returned to the U.S.

          LAW AND ANALYSIS:

                Subheading 9802.00.80, HTSUS, provides a partial duty
          exemption for:

                [a]rticles assembled abroad in whole or in part of
                fabricated 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 subheading 9802.00.80, HTSUS, must be
          satisfied before a component may receive a duty allowance.  An
          article entered under subheading 9802.00.80, HTSUS, is subject to
          duty upon the full value of the imported assembled article less
          the cost or value of the U.S. components, upon compliance with
          the documentary requirements of section 10.24 of the Customs
          Regulations (19 CFR 10.24).

                According to section 10.16(a), Customs Regulations (19 CFR
          10.16(a)), assembly operations may consist of any method used to
          join or fit together solid components, such as welding,
          soldering, riveting, force fitting, gluing, or the use of












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          fasteners.  The combined processes of placing the spring blocks
          in a fixture, inserting the lead assemblies into the spring
          blocks by introducing the gold pins into the holes, and bending
          the pins in the same direction by activating a lever in the
          fixture are analogous to the operations enumerated in 19 CFR
          10.16(a) and, therefore, constitute an assembly operation within
          the meaning of subheading 9802.00.80, HTSUS.  See Headquarters
          Ruling Letters (HRL's) 555444 dated March 15, 1990 (foreign
          operations of placing various parts of a solenoid inside a
          housing and making an indentation on the outside of the housing
          to hold the parts inside constitute acceptable assembly
          operations), and 554962 dated May 15, 1989 (force fitting of "y"-
          shaped bracket to spiral-shaped metal tube, and crimping of
          bracket so that "y"-shaped frame and metal tube are permanently
          held together constitute an acceptable assembly operation).  The
          additional operation of inserting a comb into one of the
          subassemblies to separate the pins after they are bent is also an
          assembly operation because it is analogous to force fitting.

                We find that the U.S. fabricated components consisting of
          the spring blocks, the lead assemblies, and the combs are
          exported in condition ready for assembly without further
          fabrication, do not lose their physical identities in the
          assembly operations, and are not otherwise advanced in value or
          improved in condition except by assembly operations.  Therefore,
          the spring block assemblies imported into the U.S. are eligible
          for the partial duty exemption under subheading 9802.00.80,
          HTSUS.

                Subheading 9801.00.10, HTSUS, provides for the free entry
          of products of the U.S. that are exported and returned without
          having been advanced in value or improved in condition by any
          process of manufacture or other means while abroad, provided the
          documentary requirements of section 10.1, Customs Regulations (19
          CFR 10.1) are met.  The packaging materials used in grouping and
          shipping the subassemblies are entitled to free entry under
          subheading 9801.00.10, HTSUS, since they are U.S. products which
          are returned without having been advanced in value or improved in
          condition while abroad.  See HRL 731806 dated November 18, 1988
          (duty-free treatment provided by subheading 9801.00.10, HTSUS,
          extends to an American-made container which is exported and then
          reimported with its contents, provided that it meets all of the
          criteria for classification within that subheading).

          HOLDING:

                The combined processes of placing the spring blocks in a
          fixture, inserting the lead assemblies into the spring blocks,
          and bending the pins of the lead assemblies constitute an
          assembly operation within the meaning of subheading 9802.00.80,
          HTSUS.  The additional step of inserting a comb into one of the











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          subassemblies is also an acceptable assembly operation.  The
          spring block assemblies may be entered under subheading
          9802.00.80, HTSUS, when returned to the U.S., with allowances in
          duty for the cost or value of the spring blocks, lead assemblies,
          and combs, which are all of U.S. origin, upon compliance with the
          documentation requirements of 19 CFR 10.24.  The packaging
          material of U.S. origin is entitled to free entry under
          subheading 9801.00.10, HTSUS, provided the documentation
          requirements of 19 CFR 10.1 are met.

                                        Sincerely,



                                        John Durant, Director
                                        Commercial Rulings Division