HQ 555201: Classification of self adhesive index tabs assembled from U.S. origin materials

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 555201

                                   April 11, 1990

          CLA-2 CO:R:C  555201 RA

          CATEGORY: Classification

          TARIFF NOS: 9802.00.80, 3926.10.00, or 9801.00.10, HTSUS

          Richard G. Seley
          Rudolph Miles & Sons
          P.O. Box 144
          El Paso, Texas 79942

          RE: Classification of self adhesive index tabs assembled
              from U.S. origin materials

          Dear Sir:

               This is in response to your letter of November 25, 1988, on
          behalf of Avery International, relative to the tariff treatment
          applicable to certain index tabs to be assembled in Mexico from
          plastic and paper materials of U.S. origin.

          FACTS:

               Your client proposes sending rolls of polyester plastic 1
          3/16 inch in width (to make the tab exterior), rolls of polyester
          plastic 1 inch in width (to make the retainer skirt), rolls of
          1/4 inch in width pressure sensitive paper tape, and glue to
          Mexico for assembly into finished index tabs.  Paper labels or
          inserts cut to exact shape and scored for easy separation are
          also sent to Mexico in the flat and will be only folded and
          packaged with the tabs.

               The foreign operations consist of placing the plastic strips
          and paper tape into a machine where the glue and paper tape would
          be applied to the 1 3/16 inch wide polyester plastic and the
          product would be bent, beaded, and cut to length to a profile
          shape. The plastic retainer skirt is shaped and applied under the
          tab to prevent the paper labels from falling out in use by the
          consumer.  The finished plastic tabs and paper labels are counted
          and packed in a rectangular clear plastic hinged box and these
          units are packaged in cartons and shipping containers, all of
          U.S. origin.
















                                        - 2 -


          ISSUE:

               Will the paper labels, plastic container, or plastic parts
          be eligible for free entry as American goods returned and can an
          allowance be made for the paper tape which is only cut to length
          before being glued to the tab?

          LAW AND ANALYSIS:

               Subheading 9801.00.10, Harmonized Tariff Schedule of the
          U.S. (HTSUS), provides that products of the U.S. when returned
          after having been exported may be admitted free of duty if they
          have not been advanced in value or improved in condition by any
          process of manufacture or other means while abroad.  Based upon
          your description, the plastic components making up the tabs were
          manufactured abroad from exported domestic-made strips by means
          of cutting, beading, and forming and there has been a significant
          advancement in value and improvement in condition of the plastic
          raw material.  Accordingly, free entry under subheading
          9801.00.10, HTSUS, for these components is precluded.

               The paper labels are unassembled parts of the index tabs and
          cannot be constructively segregated to obtain separate tariff
          treatment.  Ruling 554059, dated April 9, 1986, held U.S.-made
          glass shelves imported with a stereo cabinet assembled from
          foreign parts could not be segregated to obtain free entry as
          American goods returned.  The pressure sensitive tape which
          before assembly is merely cut to length may be accorded an
          allowance in duty for its value under the provision of subheading
          9802.00.80, HTSUS, for articles assembled abroad, upon compliance
          with sections 10.11-10.24, Customs Regulations (19 CFR 10.11-
          10.24).  This provision is applicable only to fabricated
          components assembled abroad without any processing other than
          assembly and operations incidental thereto.  Accordingly, it
          would not apply to the plastic parts made by beading, bending,
          and cutting to shape before being assembled.  The plastic
          container may be returned free of duty under the provisions of
          subheading 9801.00.10, HTSUS, as a usual container the product of
          the U.S. returned.  The imported index tabs are classifiable
          under the provisions of subheading 3926.10.00 HTSUS, as other
          articles of plastics, office or school supplies, at the rate of
          5.3 percent ad valorem.



















                                        - 3 -


          HOLDING:

               As plastic imparts the essential character of the index tabs
          they are classifiable under the provision in subheading
          3926.10.00, HTSUS, with an allowance for the value of the
          pressure sensitive tape under subheading 9802.00.80, HTSUS. The
          plastic container of U.S. origin is free of duty under subheading
          9801.00.10, HTSUS.

                                  Sincerely,




                                  John Durant, Director
                                  Commercial Rulings Division