HQ 556596: Applicability of subheading 9802.00.50, HTSUS, to bronze sculptures created by drilling, grinding, heat treatment, sandblasting, patinization, applying gold leaf, hand burnishing, painting; 071523; 555640; 555002; 555093; 071689

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 556596

                          May 15, 1992

CLA-2 CO:R:C:S  556596  WAW

CATEGORY:  Classification

TARIFF NO.:  8306.21.00, 9802.00.50

Mr. Sergio Alvarez
J.O. Alvarez, Inc.
224 South Bridge
P.O. Box 448
Hidalgo, TX  78557

RE:  Applicability of subheading 9802.00.50, HTSUS, to bronze
     sculptures created by drilling, grinding, heat treatment,
     sandblasting, patinization, applying gold leaf, hand
     burnishing, painting; 071523; 555640; 555002; 555093; 071689

Dear Mr. Alvarez:

     This is in response to your letter dated March 13, 1992, on
behalf of Austin Sculptures & Decorative Art, Inc., requesting a
ruling on the classification and applicability of subheading
9802.00.50, Harmonized Tariff Schedule of the United States
(HTSUS), to bronze sculpture castings which are finished in
Mexico and imported into the U.S.  Descriptive literature and a
photograph of the merchandise was submitted for review.

FACTS:

     You state that bronze castings of various types and sizes
will be manufactured in the U.S. at different locations.  The
manufacturers of the castings will be required to supply
"Manufacturers Affidavits" to confirm the origin of the castings
being made in the U.S., prior to their shipment to the McAllen,
TX facility.  Once the castings are received in McAllen, they are
stored for a short period of time.  The castings are then loaded
onto a trailer and registered with Customs and imported into
Mexico.  In Mexico, the castings undergo the following finishing
steps:

     (1) The castings will be unpacked and inspected for any
     damage that may have occurred during shipment from the U.S.;

     (2) The casting will be drilled and tapped to facilitate
     assembly to the base.  Next, the seams will be removed from
     the casting by grinding, and any imperfections such as voids
     and bubbles will be filled by welding.  Once these
     operations are performed, all of the repaired areas will be
     blended by use of abrasives and/or applying heat.  The
     pieces are then sanded and polished and finally
     "sandblasted" using glass beads;

     (3) The castings will then undergo a patinization process
     which involves the application of acids or other chemicals
     which react with the bronze to achieve a desired color. 
     This application process is performed by applying heat, as a
     very specific temperature must be maintained in conjunction
     with the chemical application.  During this process, the
     acids or chemicals are applied with various brushes to
     obtain different finishes.  This process is very time
     consuming and critical;

     (4) Next, a gold leafing is applied to the castings.  This
     is accomplished by first varnishing the area and then laying
     the gold sheet on and hand burnishing.

     (5) The sculpture is inspected and a clear coat of paint
     and/or wax is applied for protection.

     (6) The sculpture is then attached to a polyester base,
     which is manufactured in Mexico, by means of a screw.  

     (7) Felt is attached to the bottom of the base in addition
     to the appropriate marking;

     (8) All the pieces are packaged individually in a wooden
     box.  The box is filled with a urethane foam which is molded
     to accept the specific piece;

     (9) The wood box is then wrapped in a protective film and
     placed in a corrugated shipping carton containing
     polystyrene filler material.  The carton is closed and
     shipped to the U.S.

ISSUE:

     (1) What is the proper tariff classification of the bronze
sculptures under the HTSUS.

     (2) Whether the bronze sculptures will be entitled to the
partial duty exemption under subheading 9802.00.50, HTSUS, when
imported into the U.S.

LAW AND ANALYSIS:

Tariff Classification of bronze sculptures

     Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order.  GRI 1 provides that classification is determined
according to the terms of the headings and any relative section
or chapter notes.

     The merchandise is specifically provided for under
subheading 8306.21.00., HTSUS, which provides for: "[s]tatuettes
and other ornaments, of base metal: [s]tatuettes and other
ornaments, and parts thereof: [p]lated with precious metal, and
parts thereof."  The general, column one rate of duty is 6.5
percent ad valorem.

Applicability of duty exemption under subheading 9802.00.50,
HTSUS

     Subheading 9802.00.50, HTSUS, provides for the assessment of
duty on the value of repairs or alterations performed on articles
sent abroad for that purpose.  However, the application of this
tariff provision is precluded in circumstances where the
operations performed abroad destroy the identity of the articles
or create new or commercially different articles.  See A.F.
Burstrom v. United States, 44 CCPA 27, C.A.D. 631 (1956), aff'd,
C.D. 1752, 36 Cust. Ct. 46 (1956); Guardian Industries
Corporation v. United States, 3 CIT 9 (1982), Slip Op. 82-4 (Jan.
5, 1982).  Subheading 9802.00.50, HTSUS, treatment is also
precluded where the exported articles are incomplete for their
intended use and the foreign processing operation is a necessary
step in the preparation or manufacture of finished articles. 
Dolliff & Company, Inc. v. United States, 81, Cust. Ct. 1, C.D.
4755, 455 F. Supp. 618 (1978), aff'd, 66 CCPA 77, C.A.D. 1225,
599 F.2d 1015 (1979).

     We have previously held that the polishing and cleaning of
finished articles qualify as alterations under item 806.20,
Tariff Schedules of the United States (TSUS) (the precursor to
HTSUS subheading 9802.00.50).  See Headquarters Ruling Letter
(HRL) 071523 dated December 1, 1983 (drilling, polishing and
cleaning pearls qualify as alterations), HRL 555640 dated August
13, 1990 (gold jewelry exported for polishing will qualify for
the duty exemption available under subheading 9802.00.50, HTSUS).

     We also have held that electroplating and lacquering
operations constitute operations that exceed an alteration for
purposes of the partial duty exemption under subheading
9802.00.50, HTSUS.  In HRL 555002 dated June 28, 1988, brass or
bronze metal door knobs of U.S.-origin were sent to Mexico for
electroplating through a liquid bath process and, in some cases,
spray lacquering.  The purpose of these operations was to impart
a decorative brass or chrome finish to the door knobs, in
addition to preserving the metal.  The electroplating and
lacquering operations did not chemically alter the brass or
bronze metal.  We held in HRL 555002 that the door knobs and
rosettes were incomplete for their intended use and that the
electroplating and lacquering was a necessary step in the
preparation of the finished product.  Therefore, the imported
door knobs and rosettes were precluded from receiving the duty
exemption under item 806.20 TSUS.  See also HRL 555093 dated
April 26, 1989 (foreign staining and lacquering of wooden
furniture parts in Mexico is considered to exceed an alteration
for purposes of subheading 9802.00.50, HTSUS); HRL 071689 dated
May 31, 1984 (anodizing of certain heat transfer devices in
Mexico was too extensive to be considered an alteration, since it
caused oxides to enter into the structure of the basic metal,
thereby changing the chemical structure of the articles).

     With regard to the facts in this case, we believe that the
patinization process, application of gold leafing, along with
other finishing operations, are analogous to the electroplating,
lacquering, staining, and anodizing operations in HRL's 555002,
555093, and 071689, and do not constitute acceptable
"alterations," within the meaning of HTSUS subheading 9802.00.50. 
The above-described processes constitute a series of finishing
operations which are necessary to the manufacture of the
completed sculpture.  The process of patinizing the bronze to a
desired color is a significant manufacturing operation which has
the effect of changing the character and chemical make-up of the
outer layer of the bronze. That some of the same retailers who
purchase the finished sculpture may also buy the sculpture that
has not been patinized, painted or otherwise finished, does not
change the fact that these foreign processing operations are
necessary in the preparation of the finished article.  We believe
that the process of changing the color of the bronze, applying
gold leaf and painting impart significant new characteristics to
the sculpture giving it a unique and specialized appeal. 
Accordingly, it is our opinion that the finishing operations
performed in Mexico constitute a process of manufacture which
exceeds an alteration within the meaning of HTSUS subheading
9802.00.50.

HOLDING:

     The bronze sculpture is classifiable under subheading
8306.21.00, HTSUS, which provides for: [s]tatuettes and other
ornaments, of base metal: [s]tatuettes and other ornaments, and
parts thereof: [p]lated with precious metal, and parts thereof." 
The general, column one rate of duty is 6.5 percent ad valorem.

     On the basis of the information presented, it is our opinion
that the drilling, grinding, welding, patinizing, gold leaf
application, painting and/or waxing and other finishing
operations performed in Mexico on the exported bronze sculpture,
do not constitute "alterations", within the meaning of HTSUS
subheading 9802.00.50.  Therefore, upon return to the U.S., the
bronze sculpture will not be entitled to the partial duty  exemption available under this tariff provision, but will be
dutiable upon its full value.

                                   Sincerely,




                                   John Durant, Director
                                   Commercial Rulings Division