HQ 555393: Applicability of provision for articles assembled abroad of fabricated U.S. components in subheading 9802.00.80, HTSUS, to shoes made in the Dominican Republic

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 555393

                          July 6, 1989

CLA-2-CO:R:C  555393 RA

CATEGORY: Classification

TARIFF NO.: 9802.00.80, HTSUS

Ms. Yvonne Williams
Stratford Service Limited
19 West 34th Street - 4th Floor
New York, New York  10001

RE: Applicability of provision for articles assembled abroad of
    fabricated U.S. components in subheading 9802.00.80, HTSUS,
    to shoes made in the Dominican Republic

Dear Ms. Williams:

     This is in regard to your letter of May 4, 1989, on behalf
of Reebok International Ltd., requesting a ruling on an allowance
in duty for "Kahuna"shoes assembled in the Dominican Republic
from U.S.-made components and Korean outsoles.

FACTS:

     According to your letter, shoe upper parts manufactured in
the U.S. will be shipped to Puerto Rico where they will be cut to
shape.  The cut upper parts will then be exported to the
Dominican Republic to be joined by stitching or cementing, and
attached to molded outsoles from Korea to form complete shoes.

ISSUE:

     Will the assembled components of U.S. origin qualify for
tariff treatment under the provisions of subheading 9802.00.80,
Harmonized Tariff Schedule of the United States (HTSUS)?

LAW AND ANALYSIS:

     Subheading 9802.00.80, HTSUS, provides for articles
assembled abroad in whole or in part of fabricated components of
U.S. origin with no operations performed thereon except the
joining of the components and operations incidental thereto.
The components must be exported in condition ready for assembly,

cannot lose their physical identity, and cannot be advanced in
value or improved in condition except by being assembled with
incidental operations.  Duty is assessed on the appraised value
of the imported merchandise less the cost or value of the U.S.-
made components at the time of exportation.

     You indicate that the exported components are cut to size
and shape in Puerto Rico and the shoe parts exported to the
Dominican Republic are exported in condition ready for assembly.
The assembly operations in the Dominican Republic consist of
folding back the counter and stitching, stitching the gore to the
back counter, stitching the gore to the throat, folding the vamp
and stitching it to the back counter, stitching the sock to the
upper, pulling the upper over the last, cementing the molded
bottom to the upper, removing the upper from the last, and
placing the removable sock into the finished shoe.

     The described operations are considered to be qualified
assembly procedures or incidental thereto and you indicate that
no other operations are required to accomplish the attachment of
the U.S.-made parts to each other and to the Korean-made outsoles
to produce finished shoes.  In Carter Footwear, Inc. v. U.S.,
Slip. Op. 87-92, 11 C.I.T. - (1987), components of footwear
uppers assembled in the Dominican Republic were accorded a duty
allowance under the predecessor provision to subheading
9802.00.80, HTSUS, including a plastic toe reinforcement applied
to the fabric vamps in a molten condition.  In Headquarters
Ruling Letter 553808, dated October 11, 1985, we held that U.S.-
made fabricated components were entitled to an allowance in duty
when assembled into ladies' footwear abroad by stitching,
cementing, and heat pressing.  The components were cut to size
and shape when exported and did not lose their physical identity
in the assembly process.  Accordingly, an allowance in duty for
the value of the U.S.-made components may be granted, upon
compliance with sections 10.11-10.24, Customs Regulations (19 CFR
10.11-10.24), under the provisions of subheading 9802.00.80,
HTSUS.


HOLDING:

     An allowance in duty may be made for the value of fabricated
components of U.S. origin which have merely been joined by means
of stitching or cementing with only incidental operations to
produce finished shoes with Korean-made outsoles, under the
provisions of subheading 9802.00.80, HTSUS, upon compliance with
applicable Customs Regulations.

                               Sincerely,



                               John Durant, Director
                               Commercial Rulings Division