HQ 556423: Partial duty exemption for reversing switches assembled in 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 556423

                         March 30, 1992


CLA-2 CO:R:C:S 556423 RA

CATEGORY:  Classification

TARIFF NO.:  9802.00.80

Mr. Philip Freeman
Cain Customs Brokers, Inc.
P.O. Box 150
Hildago, Texas 78557

RE:  Partial duty exemption for reversing switches assembled in
     Mexico.

Dear: Mr. Freeman:

     This is in response to your letter of November 19, 1991,
requesting a ruling on the duty allowance applicable to certain
reversing switches assembled in Mexico.

FACTS:

     You state that the Furnace Electric Company of Osceola, Iowa
plans to import reversing switches used in the operation of
automatic electric overhead doors.   The switches are assembled
into three main subassemblies from parts described in a bill of
materials and photographs, copies of which you submitted.  It is
assumed that the parts involved are made in the United States. 
The crossarm subassembly is assembled by placing movable contacts
and contact springs in position on a crossarm using tweezers. 
The coil/base subassembly is assembled by placing a spring and
magnet in the base.   A coil is also affixed to the base after its
wires are straightened in a fixture.   The contact board assembly
is made by affixing several contacts, armatures, armature pads, 
and lever supports by means of screws.   The final assembly is
accompllshed by joining the various subassemblies utilizing 
screws.

ISSUE:

     Will the domestic-made parts assembled into the reversing
switches be entitled to an allowance in duty under the provisions
of subheading 9802.00.80, Harmonized Tariff Schedule of the 
United States (HTSUS)?
                               -2-


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 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 performed abroad 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.  The joining and fitting of
the various parts of the switches by means of screws and force
fitting are considered to be qualified assembly operations under
the statute and regulations.   Accordingly, on the basis of the
submitted facts, we are of the opinion that an allowance in duty
may be made for the cost or value of the U.S.-made parts 
contained in the imported switches upon compliance with the
documentation requirements of 19 CFR 10.24.

HOLDING:

     An exemption from duty may be accorded U.S.-made components
assembled abroad into reversing switches by utilizing screws and
force fitting to join the various parts.

                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division