HQ 555920: Applicability of partial duty exemption to water ski ropes assembled abroad

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 555920

                          July 03, 1991


CLA-2 CO:R:C:S 555920 RA 

CATEGORY:  Classification

TARIFF NO:  9802.00.80

Mr. Jack Alsup, President
Alsup & Alsup, Inc.
P.O. Box 1251
Del Rio,  TX 78841

RE:  Applicability of partial duty exemption to water ski ropes
     assembled abroad

Dear Mr. Alsup:

     This is in response to your letter of February 25, 1991, on
behalf of Fabrionics, Inc., requesting a ruling on the
applicability of subheading 9802.00.80, Harmonized Tariff 
Schedule of the United States (HTSUS), to water ski ropes 
assembled in Mexico.

FACTS:

     You state that your client will export to Mexico rolls of
various colored polypropylene hollow braided ropes along with
rubber-covered aluminum and wooden ski rope handles, all of U.S.
origin.   In Mexico,  30 and 80 inch segments are cut from two
different colored rolls of rope and joined to the ends of the
handle by running each rope through a hole in the handle and then
attaching the rope to itself by inserting the end into the 
hollow of the rope.   The other end of the 30 inch rope is joined
to the 80 inch segment approximately 12 inches from the handle by
inserting it into the hollow of the longer segment.   The end of
the 80 inch rope is then joined to itself, in the same manner
described above, to form a loop.   This completes the "bridle
assembly."  Four additional segments, of various lengths and
colors, are cut from rolls, and loops are formed at each end of 
the four segments by attaching each rope to itself.  The loops 
are then connected to form a continuous, segmented rope with one
end attached to the bridle assembly.

     You believe that the forming of the loops before connecting
them is incidental to the assembly and should not disqualify the
rope from the partial duty exemption under subheading 9802.00.80,
HTSUS.
                              - 2 -

ISSUE:

     Will the various ropes and handles be considered U.S.
fabricated components entitled to the partial duty exemption 
under subheading 9802.00.80, HTSUS, when returned as parts of the
finished ski ropes?

LAW AND ANALYSIS:

     Subheading 9802.00.80, HTSUS, provides a partial exemption
from duty for articles assembled abroad in whole or in part of 
U.S. fabricated components, provided the components (a) are
exported in condition ready for assembly without further
fabrication;  (b) do not lose their physical identity by change in
form, shape or otherwise, and;  (c)  are not 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 such U.S. components, upon compliance with 
the documentary requirements of section 10.24, Customs 
Regulations (19 CFR 10.24).

     The assembly operations performed abroad may consist of any
method used to join or fit together solid components, such as
welding, soldering, riveting, force fitting, gluing, laminating,
sewing,  or the use of fasteners.   See section 10.16(a),  Customs
Regulations (19 CFR 10.16(a)).

     Operations incidental to the assembly process are not
considered further fabrication operations, as they are of a minor
nature and cannot always be provided for in advance of the 
assembly operation.   See 19 CFR 10.16(a).  Examples of operations
considered incidental to the assembly process are delineated at 
19 CFR 10.16(b).   However, any significant process, operation, or
treatment whose primary purpose is the fabrication, completion, 
or physical or chemical improvement of a component precludes the
application of the exemption under subheading 9802.00.80, HTSUS.
See 19 CFR 10.16(c).
                              - 3 -

     We are of the opinion that the joining of the ropes to the
handles and to each other constitute qualified assembly 
operations under this tariff provision as the method of joining 
is analagous to force fitting which is specifically enumerated as
an acceptable assembly operation in 19 CFR 10.16(a).   Cutting the
ropes to length is an operation incidental to the assembly 
process pursuant to 19 CFR 10.16(b)(6).  Moreover, we find that
forming the loops on each end of four additional segements and on
the end of the 80 inch segment, prior to their joinder to each
other,  is incidental to assembly pursuant to 19 CFR 10.16(b)(5).
The provision states that "[a]djustments in the shape or form of
a component to the extent required by the assembly being 
performed abroad," are considered incidental to the assembly
process.

HOLDING:

     Based on the information provided, we conclude that the
operations performed abroad to create the water ski ropes
constitute acceptable assembly operations or operations 
incidental thereto under subheading 9802.00.80, HTSUS. 
Therefore, the assembled ropes are entitled to classification 
under this tariff provision, with allowances in duty for the cost
or value of the U.S. components, upon compliance with the
documentation requirements of 19 CFR 10.24.

                              Sincerely,


                              John Durant, Director
                              Commercial Rulings Division