CLA-2 CO:R:C:V DBI
Ms. Ann M. Williams
A.N. Deringer, Inc.
30 West Service Road
Champlain, New York 12919-9703
RE: Applicability of partial duty exemption of item 807.00,
TSUS, to surgical masks assembled in Canada
Dear Ms. Williams:
This is in response to your letter of July 12, 1988, on
behalf of your client, Surgi-Tech Canada Ltd., Quebec, Canada,
in which you request a ruling concerning the applicability of
item 807.00, Tariff Schedules of the United States (TSUS), to
surgical masks assembled in Canada and imported by your client.
FACTS:
You advise that all of the components from which the masks
are made are of U.S. origin. In step one of the Canadian
assembly operation, three layers of fabric, consisting of the
overstock, filter and understock, are collated. A nose clip is
inserted into the binding and the binding is sewn to the top
and bottom of the mask. In step two, the product is folded
into pleats and additional binding is sewn on the sides which
extend beyond the mask and are used as ties. You indicate that
the large pleats open fully to form a pocket which holds the
mask away from the nose and mouth for added breathability. The
fabric is exported to Canada in rolls of predetermined widths
(7 5/8 inches). The aluminum nose clips are exported on spools
and the thread on bobbins. The binding is exported in rolls,
5/8 of an inch in width. A sample has been submitted for
examination.
ISSUE:
Whether the described surgical masks, 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)).
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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 U.S.
With respect to the sewing operations performed abroad, the
sewing of components is an acceptable assembly operation under
section 10.16(a), Customs Regulations (19 CFR 10.16(a)).
With respect to the spools of aluminum, it appears (and we
are assuming for purposes of this ruling) that the aluminum is
merely cut to uniform lengths to create the nose clips. We
have previously held that the cutting to individual lengths of
material exported in continuous length constitutes an operation
which is incidental to the assembly process. The cutting of
the fabric and the binding to individual lengths also is
incidental to assembly.
Generally speaking, pleating which occurs as a separate
manufacturing step, without any concurrent assembly, is not
considered incidental to assembly. However, where functional
pleats are made during the course of a valid assembly process,
the pleating operation may be considered incidental to
assembly. In regard to this case, we believe that the creation
of functional pleats by sewing binding on the sides of the
masks is an operation which is incidental to the assembly of
the masks.
HOLDING:
On the basis of the information and sample submitted, we are
of the opinion that the sewing of the fabric and binding, the
pleating operation, and the cutting of the aluminum, fabric and
binding to individual lengths, may be considered acceptable
assembly operations and operations incidental thereto.
Therefore, allowances in duty may be made under item 807.00,
TSUS, for the cost or value of the fabric, binding, thread and
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aluminum nose clips, upon compliance with the applicable
Customs Regulations (19 CFR 10.11-10.24).
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: CO:R:C:V:DIZZO:MDM:8/16/88
Ms. Ann M. Williams
A.N. Deringer, Inc.
30 West Service Road
Champlain, NY 12919-9703