CLA-2 CO:R:C:V 555020 DBI
Mr. Richard Hirschman
Hudson Optical Corporation
50 Keyland Corporation
Bohemia, New York 11716
RE: Applicability of partial duty exemption of item
807.00, TSUS, to certain safety spectacles to be
assembled in Korea
Dear Mr. Hirschman:
This is in response to your letter dated May 11, 1988, in
which you request a ruling concerning the applicability of item
807.00, Tariff Schedules of the United States (TSUS), to
spectacle lenses manufactured in the U.S., exported to Korea to
be cut into the shape of the spectacle frame and inserted, and
then returned to the U.S.
FACTS:
You advise that the plastic lenses are manufactured in the
U.S., including all coatings and all the optics built into the
lens. The lenses will be shipped to Korea where they will be cut
to the shape of the spectacle frame and inserted into the frame.
The finished spectacles will then be returned to the U.S.
ISSUE:
Whether the described safety spectacles, when returned to
the U.S., will be eligible for the partial exemption from duty in
item 807.00, TSUS (9802.00.80, Harmonized Tariff Schedule of the
United States (HTSUS))?
LAW AND ANALYSIS:
Item 807.00, TSUS, applies to articles assembled abroad in
whole or in part of fabricated components, the products of the
U.S., with no operations performed thereon except the attachment
of the components to form the imported merchandise and operations
incidental thereto. An article classified under item 807.00,
TSUS, is subject to duty upon the full appraised value of the
imported article, less the cost or value of such products of the
- 2 -
U.S. Section 10.14(a), Customs Regulations (19 CFR 10.14(a)),
provides that the components must be in condition ready for
assembly without further fabrication at the time of their
exportation from the U.S. to qualify for the exemption.
Components will not lose their entitlement to the exemption by
being subject to operations incidental to assembly. However,
material undefined in final dimensions and shapes, which is cut
into specific shapes or patterns abroad is not considered a
fabricated component.
In the present case, the lenses exported from the U.S. are
not fabricated components in condition ready for assembly since
they must be cut into various shapes to fit into frames while
abroad. Therefore, the cutting to shape performed abroad cannot
be considered an acceptable assembly under item 807.00, TSUS.
HOLDING:
On the basis of the samples and information submitted, we
are of the opinion that the cutting to shape of the spectacle
lenses may not be considered an acceptable assembly, and,
therefore, no allowances in duty may be made under item 807.00,
TSUS.
Sincerely,
John Durant, Director
Commercial Rulings Division
1cc: CO:R:C:V:DIZZO:7/5/88
Mr. Richard Hirschman
Hudson Optical Corporation
50 Keyland Corporation
Bohemia, NY 11716