HQ 555551: Applicability of partial duty exemption under HTSUS subheading 9801.00.10 to certain shipments of computer and analytical products

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 555551

                         March 28, 1990

CLA-2 CO:R:C:V  555551 KAC

CATEGORY:  CLASSIFICATION

TARIFF NO.:  9801.00.10

Mr. Allan T. Low
Hewlett-Packard Co.
P.O. Box 10301
Palo Alto, California  94303-0890

RE:  Applicability of partial duty exemption under HTSUS
     subheading 9801.00.10 to certain shipments of computer and
     analytical products

Dear Mr. Low:

     This is in response to your letter of June 9, 1989,
requesting, inter alia, a ruling on the applicability of
subheading 9801.00.10, Harmonized Tariff Schedule of the United
States (HTSUS), to certain shipments of computer and analytical
products imported into the U.S. from Mexico, West Germany, France
and Japan.  The portion of your request regarding classification
of the computer and analytical products was the subject of a
separate response in Headquarters Ruling Letter 085558 dated
March 26, 1990.  We regret the delay in responding to your
request.

FACTS:

     Your company will export U.S.-origin products, consisting of
modems, manuals, software, VECTRA personal computers, liquid
chromatographs, CPU/drive, and 4-MB memory boards, to Mexico,
West Germany, France, and Japan for foreign operations.  A VECTRA
personal computer is a computer system, consisting of a
CPU/drive, monitor, and keyboard, housed separately but presented
together.  Once abroad, these U.S. products will be packaged with
foreign computer and analytical products, as specified by
customers' orders, so that the customer will receive his entire
order in one shipment.  The seven shipments under consideration
consist of the following products:

     A.   U.S. products, modem, manuals and software, with
          Mexican microcomputer.
     B.   Singapore products, dot matrix printer and accessories.
     C.   U.S. product, VECTRA personal computer with West
          German liquid chromatograph.
     D.   U.S. product, liquid chromatograph, with West German
          VECTRA personal computer.




     E.   U.S. products, VECTRA CPU/drive, with West German
          liquid chromatograph and French VECTRA monitor and
          keyboard.
     F.   U.S. product, liquid chromatograph, with Japanese
          VECTRA CPU/drive and Korean VECTRA monitor and
          keyboard.
     G.   U.S. product, 4-MB memory board, with West German
          memory controller board and Mexican arithmetic logic
          unit board, control and maintenance controller, and
          control process store.

     The repackaged products will then be imported into the U.S.

ISSUE:

     Whether the U.S.-origin products to be exported will qualify
for the duty exemption available under HTSUS subheading
9801.00.10 when returned to the U.S. packaged with foreign
products.

LAW AND ANALYSIS:

     HTSUS subheading 9801.00.10 provides for the duty free entry
of U.S. products that are exported and returned without having
been advanced in value or improved in condition by any means
while abroad, provided the documentary requirements of section
10.1, Customs Regulations (19 CFR 10.1), are met.  In Superscope,
Inc. v. United States, 13 CIT   , 727 F.Supp. 629 (CIT 1989), the
court found that glass panels of U.S. manufacture that were
exported,  packaged with other components to make unassembled
stereo cabinets, and then imported into the U.S. as an entirety
were not advanced in value or improved in condition while abroad,
but were merely repacked.  Therefore, the court held that the
glass panels were entitled to duty free entry under item 800.00,
Tariff Schedules of the United States (TSUS) (the precursor
provision to HTSUS subheading 9801.00.10).

     With respect to the shipments containing U.S. products, the
operations performed abroad consist merely of repackaging the
U.S. products with the foreign products.  As the mere packaging
of U.S. products with other products does not advance in value or
improve in condition the U.S. products, the portion of the
shipments consisting of U.S. products will be eligible for the
duty exemption under HTSUS subheading 9801.00.10.  This assumes
that the documentation requirements of 19 CFR 10.1 are met and
that the district director of Customs at the port of entry is
satisfied of the U.S. origin of each product claimed to be
entitled to this duty exemption.





HOLDING:

     On the basis of the information provided, as all of the U.S.
products in Shipments #A (modem, manuals and software), #C
(VECTRA personal computer), #D (liquid chromatograph), #E
(CPU/drive), #F (liquid chromatograph) and #G (4-MB memory board)
returned with foreign products will not be advanced in value or
improved in condition while abroad as a result of the packaging
operations, these U.S. products will qualify for the duty
exemption under HTSUS subheading 9801.00.10 upon compliance with
the documentary requirements of 19 CFR 10.1.  However, those
products comprising Shipment #B will not be eligible for the duty
exemption, as none of the products are of U.S. origin.

                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division