HQ 556698: Applicability of duty exemption under HTSUS subheading 9802.00.80 to shirts sewn together in the Dominican Republic using U.S.-origin precut pattern pieces

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 556698

                         August 29, 1992

CLA-2 CO:R:C:S 556698 RAH

CATEGORY:  Classification

TARIFF NO.: 6205.20.2025; 9802.00.80

Mr. Jose M. Pietri
J.M. Pietri & Assoc., Inc.
P.O. Box 2928
Old San Juan, Puerto Rico  00903

RE:  Applicability of duty exemption under HTSUS subheading
     9802.00.80 to shirts sewn together in the Dominican Republic
     using U.S.-origin precut pattern pieces

Dear Mr. Pietri:

     This is in response to your letter of April 7, 1992, to the
Assistant District Director, San Juan, on behalf of Internation-
 al, Inc., regarding the eligibility of men's woven cotton shirts
under subheading 9802.00.80, Harmonized Tariff Schedule of the
United States (HTSUS).

FACTS:

     The shirt is composed of woven cotton.  It is a Wrangler
men's long-sleeved work shirt.  The shirt has a spread collar,
long sleeves with cuffs, a full frontal opening with button
closures, front and back yokes and two breast pockets.  The
pockets have button closures corresponding to button holes on the
front yoke.  The components submitted are already cut fabric
parts, buttons, spectrum thread, hand-tags, lining, labels and
hangers.  The inquirer states that the components will be joined
together by sewing in the Dominican Republic.   

     As you requested, we are returning under separate cover the
samples which were submitted for our review.

                              - 2 -

ISSUE:

     Whether the Wrangler men's long-sleeved work shirt which
will be sewn together in the Dominican Republic using U.S.-
origin precut pattern pieces will qualify for the partial duty
exemption available under subheading 9802.00.80 (HTSUS), when
returned to the United States.

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 this tariff provision is subject to duty
upon the full cost or value of the imported assembled article,
less the cost or value of the U.S. components assembled therein,
upon compliance with the documentary requirements of section
10.24, Customs Regulations (19 CFR 10.24).

     Section 10.14(a), Customs Regulations (19 CFR 10.14(a)),
states in part that:

     [t]he components must be in condition ready for
     assembly without further fabrication at the time of
     their exportation from the United States to qualify for
     the exemption.  Components will not lose their
     entitlement to the exemption by being subjected to
     operations incidental to the assembly either before,
     during, or after their assembly with other components.

     Section 10.16(a), Customs Regulations (19 CFR 10.16(a)),
provides that the assembly operation performed abroad may consist
of any method used to join or fit together solid components, such
as welding, soldering, riveting, force fitting, gluing,
lamination, sewing, or the use of fasteners.

     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 - 3 -

assembly operations.  However, any significant process, operation
or treatment whose primary purpose is the fabrication,
completion, physical or chemical improvement of a component
precludes the application of the exemption under subheading
9802.00.80, HTSUS, to that component.  See, 19 CFR 10.16(c).

     Under the facts presented, we find that all three
requirements of subheading 9802.00.80, HTSUS, will be satisfied. 
The foreign operations that entail sewing together pre-cut
pattern pieces, making button-holes and sewing on buttons are
acceptable assembly operations.  Headquarters Ruling Letter
555542 dated June 8, 1990.  In that case, citing L'Eggs Products,
Inc. v. United States, 704 F.Supp. 1127 (CIT 1989), we held that
sewing together U.S.-origin, pre-cut fabric pattern pieces,
zippers, buttons, thread, hem ribbon and interfacing in Costa
Rica to create women's pleated skirts constitutes acceptable
assembly operations.  Furthermore, button-holing is an operation
incidental to the assembly of the garment.  See, United States v.
Oxford Industries, Inc., 517 F.Supp. 694 (1981).       

     Finally, the shirt is classified under subheading
6205.20.2025, HTSUS, which provides for men's other woven cotton
shirts.  The rate of duty is 21 percent ad valorem.  

HOLDING:

     From the information and samples submitted, it is our
opinion that the operations performed in the Dominican Republic
to create the Wrangler men's long-sleeved work shirt are
considered proper assembly operations or operations incidental
thereto.  Therefore the shirts may be entered under subheading
9802.00.80, HTSUS, with allowances in duty for the cost or value
of the U.S. components incorporated therein, upon compliance with
the documentary requirements of 19 CFR 10.24.

                                   Sincerely,



                                   John Durant, Director