HQ 555689: Applicability of partial duty exemption under subheading 9802.00.80, HTSUS, to two types of pintlepins formed by swaging, cutting to length, cleaning, rounding, and braiding. Assembly; incidental operation; 555594; 553593; 555128.

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 555689

                                  December 20, 1990


          CLA-2  CO:R:C:V  555689 LS

          CATEGORY:  Classification

          TARIFF NO.:  9802.00.80

          Mr. R. B. McKenny
          John V. Carr & Son, Inc.
          P.O. Box 307
          Derby Line, Vermont 05830

          RE:  Applicability of partial duty exemption under subheading
               9802.00.80, HTSUS, to two types of pintlepins formed by
               swaging, cutting to length, cleaning, rounding, and
               braiding.  Assembly; incidental operation; 555594;
               553593; 555128.

          Dear Mr. McKenny:

                This is in response to your letter dated July 2, 1990, on
          behalf of Lippert Pintlepin Mfg. Inc., requesting a ruling on the
          applicability of subheading 9802.00.80, Harmonized Tariff
          Schedule of the United States (HTSUS), to two types of
          pintlepins.  Samples were submitted for examination.

          FACTS:

                The following facts are based upon two letters dated
          June 29, 1990 and a supplemental letter dated November 13, 1990,
          from Lippert Pintlepin, and several telephone conversations
          between a representative of Lippert Pintlepin and a member of my
          staff.

                Lippert Pintlepin is planning to ship to the U.S. two types
          of pintlepins which it produces in Canada.  The pintlepins are
          primarily sold for use on conveyor belts and belts on pulp and
          paper making machinery.  The pintlepin fits between two sets of
          rings on these belts.

                Both types of pintlepins have three common components--a
          monofilament, which can be made of nylon, polyester or peek; a
          brass or stainless steel tubing; and a wire, which may be made of
          stainless steel or oil tempered steel--all of which are
          manufactured in the U.S. and exported to Canada.  The two types
          of pintlepins differ in that one contains a plain clear
          monofilament, whereas the other contains a clear monofilament
          encased with a braided nomex fiber which serves to strengthen the











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          monofilament.  When the pintlepins are put into use on a belt,
          the wire and tubing serve only to thread the monofilament into
          the belt.  Once the monofilament is inside the belt, the wire and
          tubing are severed and discarded.

                In manufacturing the latter type pintlepin, the nomex
          thread is imported from the U.S. on bobbins.  A braiding machine
          then takes 8 to 16 strands of nomex threads from bobbins and
          braids them over the monofilament.  The machine simultaneously
          braids the threads, dyes them a purplish color, and applies glue.
          The glue serves to hold the nomex fibers to the monofilament.
          When the monofilament is removed from the braiding machine, it is
          completely encased by the braided nomex fibers.  Both the glue
          and dye are also of U.S. origin.

                The following operations apply to both types of pintlepins.
          The wire is imported into Canada either precut or in coils.  In
          the case of the coiled wire, it is cut to the desired length.
          The oil tempered wire is wiped clean to remove any excess oil.
          The cut end of the wire is rounded or filed to prevent it from
          catching onto and tearing the material of the belt onto which the
          completed pintlepin is threaded.  The monofilament is also
          imported precut or on spools.  The spooled monofilament is cut to
          the desired length in Canada.

                The next series of steps consist of joining the clear
          monofilament or the nomex covered monofilament with the wire by
          means of the tubing.  This is accomplished by a machine which
          swages the wire to the tubing, and then the monofilament to the
          tubing.  This swaging or swedging operation involves squeezing
          the tubing down onto the wire and monofilament, thus securely
          joining the tubing to the wire and the monofilament to the
          tubing.  A representative of Lippert Pintlepin states that this
          operation does not permanently affect the shape of the
          monofilament, wire, or tubing.

                After the completed pintlepins are rolled, tags are
          attached to indicate their length and size.  Plastic zip-lock
          bags are used to package the pintlepins, with one or two per bag.
          Explanatory installation sheets are inserted in some of the bags
          prior to shipping.

          ISSUES:

                (1)  Whether the pintlepin, consisting of a clear
          monofilament, tubing, and wire, will qualify for the partial duty
          exemption under subheading 9802.00.80, HTSUS, when imported into
          the U.S.

                (2)  Whether the pintlepin, consisting of a tubing, wire,
          and clear monofilament encased with braided nomex fibers, will











                                        - 3 -

          qualify for the partial duty exemption under subheading
          9802.00.80, HTSUS, when imported into the U.S.

          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 subheading 9802.00.80, HTSUS, is subject to
          duty upon the full value of the imported assembled article less
          the cost or value of the U.S. components, upon compliance with
          the documentary requirements of section 10.24, Customs
          Regulations (19 CFR 10.24).

          I.  Pintlepin consisting of clear, unencased monofilament,
              tubing, and wire

                The assembly operations performed abroad may consist of any
          method used to join or fit together solid components, such as
          welding, soldering, riveting, force fitting, gluing, laminating,
          sewing, or the use of fasteners.  See section 10.16(a), Customs
          Regulations (19 CFR 10.16(a)).  Assembly operations may be
          preceded, accompanied, or followed by operations incidental to
          assembly, such as those delineated in 19 CFR 10.16(b).

                We find that the swaging operation whereby the wire is
          joined to the tubing and the monofilament to the tubing
          constitutes an acceptable assembly operation since it is a type
          of force fitting.  Cleaning the oil tempered wire, cutting the
          monofilament and wire to length, and rounding the cut end of the
          wire are all considered operations incidental to the assembly
          process pursuant to 19 CFR 10.16(b)(1),(4), and (6).

                We find that the U.S. fabricated components, consisting of
          the clear monofilament, tubing, and wire, are in a condition
          ready for assembly without further fabrication, do not lose their
          physical identities in the assembly operation, and are not
          otherwise advanced in value or improved in condition except by an
          assembly operation and operations incidental thereto.  Therefore,











                                        - 4 -

          an allowance in duty may be made under subheading 9802.00.80,
          HTSUS, for the cost or value of these three components when the
          pintlepin is imported into the U.S.  However, no allowance may be
          made for the glue because, as a liquid, it is not a fabricated
          component of a type designed to be fitted together with other
          components.  The legislative history of subheading 9802.00.80,
          HTSUS, makes it clear that the exemption applies to U.S.-made
          fabricated components which are of types designed to be fitted
          together with other components, and does not apply to chemical
          products, food ingredients, liquids, gases, powders, etc.  H.R.
          Rep. No. 342, 89th Cong., 1st Sess. 49 (1965).

          II.  Pintlepin consisting of a tubing, wire, and clear
               monofilament encased with braided nomex fibers

                Our first inquiry with respect to this pintlepin is whether
          the braiding of the nomex threads over the monofilament
          constitutes an acceptable assembly operation or operation
          incidental to assembly.

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

                In Headquarters Ruling Letters (HRL) 555594 dated
          May 16, 1990, 555128 dated January 9, 1989, and 553593 dated May
          16, 1985, we held that passing yarn through braiding machines to
          produce braided rope or cordage is analogous to weaving fabrics
          from spun yarn and, therefore, is considered a manufacturing
          process that does not qualify as an assembly operation within the
          meaning of subheading 9802.00.80, HTSUS.

                Applying these rulings to the instant case, we find that
          the braiding of the nomex fiber threads is considered a
          manufacturing or fabrication process which results in the
          creation of a fabric covering over the monofilament.  Since the
          braiding of the nomex threads is not an acceptable assembly of
          the threads within the meaning of subheading 9802.00.80, HTSUS,
          the bobbins of thread are not eligible for the partial duty
          exemption when the pintlepin is imported into the U.S.  However,
          we believe that the simultaneous encasement of the monofilament
          by the braided nomex fibers constitutes an acceptable assembly
          operation, pursuant to 19 CFR 10.16(a), since it appears that it
          is primarily the gluing process which serves to secure the fibers
          to the monofilament.  Since the monofilament is not being











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          advanced in value or improved in condition except by being
          assembled with the nomex fibers, an allowance may be made for its
          cost or value when the pintlepin is imported into the U.S.

                We further find that an allowance may be made for the cost
          or value of the wire and tubing because, as explained in
          section I above, these two components are joined by an assembly
          operation.  No allowance may be made for the dye and the glue
          because, as a powder and a liquid, they are not fabricated
          components of a type designed to be fitted together with other
          components.

                With respect to the packing prior to shipping,
          19 CFR 10.16(f) provides, in part, that an assembled article
          which otherwise qualifies for the exemption under subheading
          9802.00.80, HTSUS, will not be disqualified by reason of having
          been packaged abroad.

          HOLDING:

                The pintlepin with the plain clear monofilament is eligible
          for the partial duty exemption under subheading 9802.00.80,
          HTSUS, when imported into the U.S., upon compliance with the
          documentary requirements of 19 CFR 10.24.  Allowances may be made
          for the cost or value of the monofilament, wire, and tubing, all
          of U.S. origin, because the swaging operation by which they are
          joined is an acceptable assembly operation.  The glue is not
          eligible for an allowance because it is not a fabricated
          component of a type designed to be fitted together with other
          components.

                With respect to the pintlepin containing the monofilament
          encased with braided nomex fibers, the nomex threads are not
          eligible for the partial duty allowance under subheading
          9802.00.80, HTSUS, because the braiding operation does not
          constitute an acceptable assembly operation or operation
          incidental thereto.  No allowance is permitted for the cost or
          value of the dye or glue because they are not fabricated
          components of a type designed to be fitted together with other
          components.  However, an allowance may be made for the cost or
          value of the wire, tubing, and monofilament, which are all
          subject to acceptable assembly operations.

                                        Sincerely,



                                        Jonn Durant, Director
                                        Commercial Rulings Division