CLA-2 CO:R:CV:V 554924 BJO
TARIFF NO. 9802.00.80, HTSUS
James A. Geraghty, Esq.
Donohue and Donohue
26 Broadway
New York, New York 10004
RE: Applicability of 9802.00.80, HTSUS, Partial Duty Exemption to
Automobile Door Panels
Dear Mr. Geraghty:
This is in response to your letter of August 27, 1987, on
behalf of Lignotock Corporation (your file 1220-01), in which you
request a ruling that automobile door panels produced in West
Germany in part from U.S. materials are eligible for the partial
duty exemption provided for in item 807.00, Tariff Schedules of
the United States (TSUS)(now subheading 9802.00.80, Harmonized
Tariff Schedule of the United States (HTSUS)). We regret the
delay in responding to your letter.
FACTS:
The door panels will be made in West Germany from fabric, a
glue foil, foam coat material, and automobile door frames. It
appears from your submission that only the fabric is of U.S.
origin. The door panels will be produced first by combining the
fabric and foam coat material. This is accomplished by rolling
and hot air melting the glue foil to the back of the fabric, then
rolling the foam coat material to the adhesive surface. The
material is then cut by die stamping to the size and shape
necessary to fit the automobile door frames. The cut material is
then assembled to the door frames.
ISSUE:
Whether U.S. fabric cut to size and shape as described is
further fabricated for purposes of subheading 9802.00.80, HTSUS.
LAW AND ANALYSIS:
Articles assembled abroad in whole or in part of fabricated
components the product of the U.S. qualify for the partial duty
exemption of subheading 9802.00.80, HTSUS, if three conditions
are met: (1) the U.S. products are exported in condition ready
for assembly without further fabrication, (2) the U.S. products
have not lost their physical identity in the assembled articles
by change in form, shape, or otherwise, and (3) the U.S. products
have not been advanced in value or improved in condition except
by being assembled and except operations incidental to the
assembly process such as cleaning, lubricating, and painting.
Such articles are subject to duty upon their full value, less the
cost or, if no charge is made, the value of the U.S. products.
Under section 10.14 of the Customs Regulations (19 CFR
10.14), interpreting subheading 9802.00.80, HTSUS, materials
undefined in final dimensions and shapes which are cut into
specific shapes or patterns are not considered fabricated
components. For example, uncut textile fabrics exported in
bolts, or other materials such as lumber, leather, sheet metal,
or plastic sheeting exported in basic shapes and forms, to be
fabricated into components for assembly are not considered fully
fabricated when exported.
You claim that cutting the fabric panels to the size and
shape necessary to fit the automobile frames does not constitute
a further fabrication, but is an operation incidental to the
second assembly step; the combining of the cut fabric with the
door frames. In support, you claim that the process is analogous
to that at issue in General Instrument Corp. v. United States, 60
CCPA 178, C.A.D. 1106, 480 F 2d. 1402 (1973), where the court
held that rolls of foil, paper, cellophane tape, and plastic
insulating film which were cut to length and assembled to the
article by staking, interleaving, securing, immersing, and other
operations for the manufacture of capacitor rolls did not lose
their eligibility for item 807.00, TSUS, benefits.
We do not find General Instruments to be controlling to the
facts presented in this case. The process in General Instruments
involved simply cutting material exported in rolls or spools to
length, not, as here, cutting material exported in bulk to give
it its basic size and shape. The Customs Regulations
distinguish between cutting exported material to size and shape,
thus creating the basic article, from cutting material exported
in continuous lengths to length to separate it from its supply
source. See 19 CFR 10.16(b)(6) and (c)(2); Cf. Samsonite
Corporation v. United States, 702 F.Supp 908 (CIT 1988)(steel
strip bent abroad to the shape of luggage frame is further
fabricated: the bending gives the strip the shape and form
necessary before it can be assembled into luggage). The cutting
operation performed in General Instruments falls within the
latter category; the cutting operation performed here clearly
falls within the former.
HOLDING:
U.S. fabric which is cut to size and shape abroad is further
fabricated for purposes of subheading 9802.00.80, HTSUS.
Accordingly, automobile door panels made in West Germany from
fabric exported from the U.S. which is glued to foam coat
material, cut to component size and shape, and attached to door
frames, are not eligible for the partial duty exemption of
subheading 9802.00.80, HTSUS.
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: Area Director, New York Seaport
Attention: Marion Evans, Room 409G